Daily Focus. Indonesia. Jun 29, For subscription of our Daily Focus, please contact us at

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Indonesia Daily Focus Nur Marini +62-21-515-1140 marini@dwsec-id.com For subscription of our Daily Focus, please contact us at research@dwsec-id.com Market Index Last Trade Chg (%) MoM YoY JCI 4,923.

2 Valuation 2015F P/E (x) P/B (x) ROE (%) JCI 15.5 2.5 18.4 Key Rates Last Trade Chg (bps) MoM YoY Policy Rate 7.50 0-25 -25 3yr 8.07 2 22 51 10yr 8.

from the next door neighbor From a common sense perspective, Indonesia is a tropical land which hints us that the country is highly fertile.

1 Indonesia Daily Focus Nur Marini For subscription of our Daily Focus, please contact us at Market Index Last Trade Chg (%) MoM YoY JCI 4, MSCI EM HANG SENG 26, KOSPI 2, FTSE 6, DJIA 17, NASDAQ 5, Valuation 2015F P/E (x) P/B (x) ROE (%) JCI Key Rates Last Trade Chg (bps) MoM YoY Policy Rate yr yr FX Last Trade Chg (%) MoM YoY USD/IDR 13, USD/KRW 1, USD/JPY USD/CNY The price of fruits in our backyard vs. from the next door neighbor From a common sense perspective, Indonesia is a tropical land which hints us that the country is highly fertile. Indeed, many agricultural products are harvested including fruits. Many parts of Indonesia is well-known for its delicious fruits: Indramayu is famous for its juicy mango, Sleman in Yogyakarta is well-known to be the producer of super quality pondoh, Gayo area in Central Aceh is also famous for its top quality avocado with a fibrous texture. These excellent quality fruits are considered to be good dollar earning commodities (i.e., exports). According to the data from Central Statistics Agency (BPS), fruits export value in 2013 reached USD418mn (up 4% YoY). Popular fruits productions are mango (2,192.9ton/yr), mangosteen (139,608 ton/yr), and bark 1,030.4ton/yr). These fruits are exported to destinations such as Singapore, Malaysia, Vietnam, China, and United Arab Emirates. Based on our on-the-ground observations, we found some interesting facts. In our recent visit to a local super-sized mart (catering mid-to-low households), imported fruits were easily found on display. What s more interesting is that imported fruits were larger in display quantity and what caught us by surprise was that imported fruits were cheaper than local fruits. Locally produced apples were priced at IDR65,000/kg while imported apples were priced at IDR49,500/kg (see picture below). According to our interview with the sales person, we found out that this is because most all of the local fruits were exported and it was hard to secure supply. However, domestic fruit consumption remains high. According to Tropical Horticulture Research Center, Indonesia imports 18.5mn tons of fruits per annum. Based on 2014 figures, the largest fruit imports came from China (82.7%), USA (4.7%), Thailand (4.5%), Vietnam (1.2%), Australia (0.6%), and others (6.3%). We will add more color to this issue in our next edition. Commodities Last Trade Chg (%) MoM YoY WTI Gold 1, Coal Palm Oil Rubber Nickel 12, Copper 5, Tin 14, Price of imported fruits (left) vs local (right) JCI Index VS MSCI Emerging Markets (pt) JCI MSCI EM (pt) 1,200 5,500 4,500 1,000 3,500 05/13 02/14 11/ Source: KDB Daewoo Securities Research

2 Local flashes GGRM: Gudang Garam distribute dividend IDR800 per share. PT Gudang Garam Tbk distribute a dividend of IDR800 per share in the general meeting of shareholders for fiscal year 2014, or same as "The dividend payment conducted with consideration of company needs," said Director of Gudang Garam Heru Budiman. (Bisnis Indonesia) LSIP: London Sumatra acquire a property companies. PT PP London Sumatra Indonesia Tbk (LSIP) have a new subsidiary. This plantation companies to acquire 56.7 million shares, equivalent to 50% ownership at Asian Asset Management Pte. Ltd. The transaction value is USD 39 million. With estimates of the exchange rate in the range of IDR 13,300, this transaction equivalent to IDR billion. "It was funded by internal cash," said Endah Madnawidjaja, Corporate Secretary LSIP. (Kontan) MDLN: Modernland posted land sales of 135 ha. When industrial land sales hit by sluggishness, PT Modernland Realty Tbk (MDLN) able to posted a positive sales. Until mid-june, this property company recorded land sales of 135 hectares (ha). This means MDLN already nearly reached land sales target is pegged to the end of the year, 145 ha. Although he won 93.1% of land sales target, the company has no plan to revise the target. "We do not want to raise the target," said Cuncun Wijaja, Corporate Secretary MDLN. (Kontan) MPPA: Matahari Opens Premium Supermarket in Lippo Village. Matahari Putra Prima, an operator of multi-format modern retailers, has launched a new premium supermarket outlet at Lippo Village s commercial area MaxxBox in Karawaci, Banten. The new supermarket, called Foodmart Primo, is part of the company s efforts to meet the burgeoning demand from Indonesia s rising middle-income consumers, said MPP director of Foodmart Operations Dave Rao. (Jakarta Globe) MASA: Multistrada prepare USD 30 million to add machines. PT Multistrada Arah Sarana Tbk (MASA) has set aside USD 30 million to buy additional machines in order to maximize the production capacity of passenger vehicle tires. There will be additional production volume of 5,000 units of tires per day, focused on exports. Currently, passenger tire production capacity is about 28,500 units per day. With an additional 5,000 units, means that MASA could produce 32,500 units of passenger tires. (Kontan) TKIM: Tjiwi Kimia focus to finish powerplant projects. Pabrik Kertas Tjiwi Kimia Tbk (TKIM) focus on completing the construction of a power plant in East Java. Project with a capacity of 90 megawatt (MW) was targeted to be completed later this year. Arman Sutedja, Director Tjiwi Kimia said, after projects worth USD 110 million complete, then they draw up a plan to increase production. "If the plant project is completed, then we add the machine," said Arman. (Kontan) ISAT: Indosat prepare IDR 9.2 trillion. PT Indosat Tbk (ISAT) set aside cash up to USD million, or around IDR 9.2 trillion to buy back the company's debt. Despite spend big money, a subsidiary of the Ooredoo Group still have sufficient funds to finance expansion in the second half of The company will pay up guaranteed notes worth USD 650 million on July 29, In addition to repayment the principal debt, the company will pay the price value and a premium of USD million. The price value equivalent to percent of the total principal amount of debt securities. (Berita Satu) 2

Technical analysis Recommendation Trading Close 4,923 Resistance 4,935 Support 4,890 Stop-Loss 4,875 View from the Charts JCI became the only index in Asia that recorded 0.

27tr of a total trading value and tried to get back on its 4,935-5,010 consolidations area. Some key stocks like; UNTR, BBRI, GGRM, TLKM, posted a hike 1.

3 Technical analysis Recommendation Trading Close 4,923 Resistance 4,935 Support 4,890 Stop-Loss 4,875 View from the Charts JCI became the only index in Asia that recorded 0.1% gain, amid the sore of major Asian bourse last weekend. JCI booked 3.02pts to close at 4,923 with IDR4.27tr of a total trading value and tried to get back on its 4,935-5,010 consolidations area. Some key stocks like; UNTR, BBRI, GGRM, TLKM, posted a hike 1.7% average to push and hold the onslaught of negative sentiment. Entering a stochastic trading area at 26.7% with a 30% higher volume traded compared to JCI s previous trading day, expected to hold on to its 4,935-5,005 area and move positively higher. Chart 1. IHSG Daily Chart Chart 2. IHSG Intraday Chart Source: HOTS, Source: HOTS, 3

4 Chart 3. JCI Vs. USD/IDR (pt) JCI Composite Index (L) 5,600 USD/IDR (R) 5,500 5,400 5,300 5,200 5,100 5,000 4,900 4,800 4,700 4,600 3/30 4/13 4/27 5/11 5/25 6/8 6/22 (IDR) 13,800 13,300 12,800 12,300 11,800 11,300 Chart 4. JCI performance (absolute vs. relative) (%, %p) Note: Relative to MSCI EM Index Absolute D 1W 1M 1Y Relative 7.9 Chart 5. Foreigner s net purchase (EM) Chart 6. Energy price (USDmn) Day 5 Days ((USD/b) Brent (L) CPO(R) (USD) ,400 2,300 2, Korea Taiwan Indonesia Thailand Philippines India Note: The latest figure for India are Jun, 25 th ; /15 4/15 4/15 5/15 5/15 6/15 6/15 2,100 2,000 1,900 Chart 7. Non-ferrous metal price Chart 8. Precious metal price (D-3M=100) Copper Nickel Tin /15 4/15 5/15 Silver Gold Platinum /15 4/15 5/15 6/15 4

5 Table. Key valuation metrics Company Name BANKING Ticker Price Market Cap Price Performance (%) P/E(X)* P/B(X)* ROE(%)* (IDR) (IDRbn) 1D 1W 1M 1Y FY14 FY15 FY14 FY15 FY14 FY15 Bank Central Asia Tbk PT BBCA 13, , Bank Mandiri Persero Tbk PT BMRI 10, , Bank Rakyat Indonesia Persero Tbk PT BBRI 10, , Bank Negara Indonesia Persero Tbk PT BBNI 5,275 98, Bank Danamon Indonesia Tbk PT BDMN 4,200 40, Bank Tabungan Pensiunan Nasional Tbk PT BTPN 3,550 20, PROPERTY Surya Semesta Internusa Tbk PT SSIA 1,000 4, Ciputra Property Tbk PT CTRP 575 3, N/A Pakuwon Jati Tbk PT PWON , Alam Sutera Realty Tbk PT ASRI , Bumi Serpong Damai PT BSDE 1,755 33, CONSTRUCTION Total Bangun Persada Tbk PT TOTL 850 2, Adhi Karya Persero Tbk PT ADHI 2,085 3, Wijaya Karya Persero Tbk PT WIKA 2,610 16, Pembangunan Perumahan Persero Tbk PT PTPP 3,600 17, Waskita Karya Persero Tbk PT WSKT 1,580 22, RETAIL & CONSUMER Indofood Sukses Makmur Tbk PT INDF 6,625 58, Kalbe Farma Tbk PT KLBF 1,685 78, Mitra Adiperkasa Tbk PT MAPI 5,600 9, Unilever Indonesia Tbk PT UNVR 40, , Indofood CBP Sukses Makmur Tbk PT ICBP 12,600 73, Ramayana Lestari Sentosa Tbk PT RALS 690 4, Mayora Indah Tbk PT MYOR 24,600 22, Ace Hardware Indonesia Tbk PT ACES , Gudang Garam Tbk PT GGRM 44,200 85, Nippon Indosari Corpindo Tbk PT ROTI 1,145 5, AUTOMOTIVE Astra International Tbk PT ASII 6, , Indomobil Sukses Internasional Tbk PT IMAS 3,490 9, N/A Astra Otoparts Tbk PT AUTO 2,345 11, TELECOMMUNICATION Telekomunikasi Indonesia Persero Tbk PT TLKM 2, , XL Axiata Tbk PT EXCL 3,760 32, N/A Indosat Tbk PT ISAT 4,000 21, INFRASTRUCTURE Jasa Marga Persero Tbk PT JSMR 5,500 37, Tower Bersama Infrastructure Tbk PT TBIG 9,275 44, MINING Aneka Tambang Persero Tbk PT ANTM 695 6, N/A Timah Persero Tbk PT TINS 725 5, Tambang Batubara Bukit Asam Persero Tbk PTBA 8,500 19, CEMENT Indocement Tunggal Prakarsa Tbk PT INTP 20,975 77, Holcim Indonesia Tbk PT SMCB 1,520 11, Semen Indonesia Persero Tbk PT SMGR 12,075 71, *Note: Valuation metrics based on Bloomberg consensus estimates 5

6 Sector performance Top 10 market cap performance Name Index Chg (%) Ticker Price Market Cap (IDRbn) Chg (%) Agricultural 2, ULTJ IJ , Mining 1, LPKR IJ , Basic-Industry TSPC IJ , Miscellaneous Industry 1, BBRI IJ , Consumer Goods 2, SSMS IJ , Property & Construction UNTR IJ , Infrastructure 1, MSKY IJ , Finance SMMA IJ , Trade KLBF IJ , Composite 4, MEGA IJ , Source: Bloomberg Top 5 leading movers Top 5 lagging movers Name Chg (%) Close Name Chg (%) Close BBRI IJ ,475 UNVR IJ ,000 TLKM IJ 1.0 2,935 BBNI IJ ,275 BMRI IJ ,100 ICBP IJ ,600 BBCA IJ ,550 INDF IJ ,625 UNTR IJ ,350 BDMN IJ ,200 Source: Bloomberg Economic Calendar Time Currency Detail Forecast Previous All Day EUR Italian Bank Holiday All Day EUR German Prelim CPI m/m 0.1% 0.1% 3:00am EUR Spanish Flash CPI y/y -0.1% -0.2% 4:30am GBP Net Lending to Individuals m/m 3.3B 2.9B 4:30am GBP M4 Money Supply m/m 0.5% 0.4% 4:30am GBP Mortgage Approvals 69K 68K 8:30am CAD RMPI m/m 4.4% 3.8% 8:30am CAD IPPI m/m 0.4% -0.9% 10:00am USD Pending Home Sales m/m 1.3% 3.4% 6:45pm NZD Building Consents m/m -1.7% 7:05pm GBP GfK Consumer Confidence 2 1 9:00pm AUD HIA New Home Sales m/m 0.6% 9:00pm NZD ANZ Business Confidence :30pm AUD Private Sector Credit m/m 0.5% 0.3% 9:30pm JPY Average Cash Earnings y/y 0.7% 0.7% Note: Time is based on Indonesian local time Source: Forex Factory Disclaimers This report is prepared strictly for private circulation only to clients of PT Daewoo Securities Indonesia (DWS). It is purpo sed only to person having professional experience in matters relating to investments. The information contained in this report has been taken from sources which we deem reliable. No warranty (express or implied) is made to the accuracy or completeness of the information. All opinions and estimates included in this report constitute our judgments as of this date, without regards to its fairness, and are subject to change without notice. However, none of DWS and/or its affiliated companies and/or their respective employees and/or agents makes any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information or opinions remaining unchanged after the issue thereof. We expressly disclaim any responsibility or liability (express or implied) of DWS, its affiliated companies and their respective employees and agents whatsoever and howsoever arising (including, without limitation for any claims, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a results of acting in reliance upon the whole or any part of the contents of this report and neither DWS, its affiliated companies or their respective employees or agents accepts liability for any errors, omissions or misstatements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy therein or omission there from which might otherwise arise is hereby expresses disclaimed. This document is not an offer to sell or a solicitation to buy any securities. This firms and its affiliates and their officers and employees may have a position, make markets, act as principal or engage in transaction in securities or related investments of any company mentioned herein, may perform services for or solicit business from any company mentioned herein, and may have acted upon or used any of the recommendations herein before they have been provided to you. PT Daewoo Securities Indonesia

Daily Focus. Indonesia. Jul 08, For subscription of our Daily Focus, please contact us at The best time is yet to come

Daily Focus. Indonesia. Jul 08, For subscription of our Daily Focus, please contact us at The best time is yet to come Indonesia Daily Focus Mimi Halimin +62-21-515-1140 mimi.halimin@dwsec-id.com For subscription of our Daily Focus, please contact us at research@dwsec-id.com Market Index Last Trade Chg (%) MoM YoY JCI