BCA Vista Morning Digest DECEMBER 3, 2014

Vol TODAY'S HEADLINES INDICES Last Chg (%) YTD (%) (US$ m) ASEAN Economy Indonesia (IDX) 5,175.79 0.22 21.09 429.54 Land Issues to Hamper Power Plant Projects ( Post) (KLCI) 1,785.97 0.43 (4.62) 294.63 (PCOMP) 7,344.23 0.17 24.69 136.92 Corporate/Industry Singapore (STI) 3,322.32 0.50 5.36 536.36 Telkomsel (TLKM.JK) Eyes Android Smartphone's Subscribers to Grow 350% in (SET) 1,594.00 0.01 22.74 1,313.79 2015 (Indonesia Finance Today) REGIONAL & USA Garuda (GIAA.JK) Will Spend US$ 200 M Capex in 2015 (Investor Daily) China (SHCOMP) 2,763.55 3.11 31.75 64,565.54 Timah (TINS.JK) Sells Stake in Its Subsidiary (Indonesia Finance Today) Hongkong (Hang Seng) 23,654.30 1.23 1.76 5,018.58 Kalbe Farma (KLBF.JK) Raises 2015 Capex to Rp1.5 T (Indonesia Finance Today) India (SENSEX) 28,444.01 (0.40) 34.53 90.96 Sritex (SRIL.JK) Budgets US$104 M Capex for 2015 (Indonesia Finance Today) Japan (Nikkei) 17,663.22 0.42 8.42 11,651.21 Sritex (SRIL.JK) Sets Aside US$ 100 M for Retail Expansion (Jakarta Post) Korea (KOSPI) 1,965.83 0.03 (2.26) 3,323.54 Taiwan (TWSE) 9,034.79 (0.91) 4.77 2,897.39 USA (Dow Jones) 17,879.55 0.58 8.33 5,419.53 Source: Bloomberg

CURRENCIES & RATES Last -1 Week -1 Month EoP 2013

IDR/USD 12,271 12,164 12,085 12,210 IDR/USD (1-month NDF) 12,349 12,165 12,125 12,328 BI Rate 7.75 7.75 7.50 7.50 JIBOR (ON / 1 yr) 5.80 / 8.19 5.80 / 8.21 5.83 / 8.23 6.00 / 8.22 FASBI ON / SBI 9 mth 5.75 / 6.87 5.75 / 6.87 5.75 / 6.85 5.75 / 7.22 Term Deposit ( 1 mth / 6 mth) 4.70 / 4.85 4.70 / 4.85 4.70 / 4.85 4.70 / 4.85 Base Lending Avg (IDR / USD) 14.73 / 5.50 14.43 / 5.95 14.48 / 5.91 14.63 / 5.71 CDS - 5 year (bps) 141.31 138.01 141.35 237.99 Source: Bloomberg

COMMODITIES Last Chg (%) MoM (%) YTD (%)

Coal (USD/ton) 63.60 - 0.95 (24.82) Cocoa (USD/mt) 2,859.00 (1.28) (1.18) 6.52 Corn (USD/mt) 381.25 (2.18) (2.06) (17.43) Crude oil (USD/b) 70.54 (2.76) (18.30) (33.70) Gold (USD/toz) 1,198.28 (1.14) 2.16 0.14 Nickel (USD/mt) 16,330.00 0.18 3.49 15.61 Palm oil (MYR/mt) 2,142.00 1.56 (7.11) (18.59) Pulp (USD/t) 932.50 (0.13) 0.02 2.92 Sugar (USD/lb) 15.24 (2.25) (4.99) (13.85) Tin (USD/mt) 20,380.00 0.39 3.56 (9.82) Wheat (USD/bsh) 603.25 (0.58) 10.54 (6.33) Source: Bloomberg

ETF & ADR Last Chg (%) MoM (%) YTD (%)

EIDO US (USD) 27.70 0.25 0.47 23.17 TLK US (USD) 46.55 0.04 2.65 30.83 Please see the overleaf for news details BUMI LN (GBP) #N/A #N/A #N/A #N/A Source: Bloomberg Turnover IDX - TOP MOVERS AND LAGGARDS Last Chg (%) INDONESIAN GOVERNMENT BOND YIELD - GENERIC (IDR m) MOVERS Yield 2Y Yield 5Y Yield 10Y % BBCA BANK CENTRAL ASIA 13,200 0.96 231,435.3 9.5 BMRI BANK MANDIRI 10,750 1.18 374,732 9.0 PGAS PERUSAHAAN GAS NEGARA 6,050 1.68 119,568 SCMA 3,435 3.93 46,004 8.5 KLBF KALBE FARMA 1,795 1.70 66,482 8.0 LAGGARDS ASII 7,000 (1.75) 199,841 7.5 EXCL XL AXIATA 4,880 (4.31) 71,708 7.0 SMAR SINAR MAS AGRO 7,500 (6.25) 4 6.5 SMGR SEMEN INDONESIA 16,500 (1.05) 163,631 26-Sep 9-Oct 22-Oct 4-Nov 17-Nov 30-Nov SCBD DANAYASA ARTHATAMA 1,825 (12.05) 4 Source: Bloomberg Source: Bloomberg

Page 1 of 3 BCA Vista Indonesia Morning Digest DECEMBER 3, 2014

DISCLAIMER

TODAY'S NEWS

ECONOMICS

Land Issues to Hamper Power Plant Projects Land-acquisition woes look poised to frustrate the government’s ambitious 5 years plan to add 35,000 megawatts. PLN revealed that out of 35,000 MW goal, SOE electricity firm, PLN would develop 15,500 MW and private companies would develop the rest. To develop all the power plants, they will need a total of USD53.2 billion over the next 5years. (Jakarta Post)

CORPORATE

Telkomsel (TLKM.JK) Eyes Android Smartphone's Subscribers to Grow 350% in 2015 The company partners with 17 local and global handset vendors by way of Telkomsel Android United (TAU) program. The company eyes the subscribers using Android- powered smartphones to grow 350% in its network by next year. Now, subscribers using Android smartphones in Telkomsel’s network have reached 17.6 million subscribers. (Indonesia Finance Today)

Garuda (GIAA.JK) Will Spend US$ 200 M Capex in 2015 The company will allocate capex of US$ 200 million or about Rp 2.4 trillion. The company will buy 23 aircraft where 5 of them to be utilized by its unit Citilink, citing Finance Director Handrito Hardjono. The company seeks US$ 100 million loan to finance capital expenditure next year. (Investor Daily)

Timah (TINS.JK) Sells Stake in Its Subsidiary Timah (TINS) and its arm, Timah Investasi Mineral, sold stake in Tanjung Alam Jaya to Duta Perwira Nusantara for US$30 million. The company has signed share selling contract for 50% stake in Tanjung Alam Jaya. Timah Investasi Mineral sold 40% stake in Tanjung Alam Jaya. Total sales accounted for 7.23% of Timah’s equity as of December 2013, hence the transaction is not material. (Indonesia Finance Today)

Kalbe Farma (KLBF.JK) Raises 2015 Capex to Rp1.5 T The company allots around Rp1.5 trillion for its 2015 capital expenditure (capex), or an increase of 25% from 2014’s capex of Rp1.2 trillion. The company plans to use the capex for 2015 to fund three expansion plans. The first expansion plan is the upgrading of pharmaceutical and nutrition production capacity of around 30-50%. The budget for the production expansion reaches around 80% of total 2015 capex, or at around Rp800 billion to Rp1.2 trillion. The company will launch 10-15 new pharmaceutical, health, and nutrition products. Kalbe Farma will set aside around Rp150 billion to Rp225 billion for new production, or at around 15% of total 2015 capex. (Indonesia Finance Today)

Sritex (SRIL.JK) Budgets US$104 M Capex for 2015 The company is budgeting US$104 million in capex for 2015. The capex will be allocated for finishing and garment. US$45 million will be allocated for investments in finishing segment, and US$10 million for weaving and spinning. Fund source is US$70 million in medium term notes and corporate profit. The company is also planning to increase yarn and clothes selling prices. (Indonesia Finance Today)

Sritex (SRIL.JK) Sets Aside US$ 100 M for Retail Expansion The company spend up to US$ 100 million over 3 years to finance retail expansion. The company could acquire foreign or local retailers. They want to become a global supplier of apparel by 2017. If things go according to plan, their retail unit will contribute around Rp2trillion to their revenue. (Jakarta Post)

Page 2 of 3 BCA Vista Indonesia Morning Digest DECEMBER 3, 2014

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