Hi, Anyone invest in Indonesia stock exchange? When did you first invest in Indonesia? What's the gain or loss? What's the pro and con? Which brokerage did you go through?

I did try to look at Indonesian company last year. But the valuation of these company is a bit on the high side and they aren't much that have good ROA and ROE. Plus, some of them does not even have a website, so it is quite hard to understand the business and obtain the annual report. But, if you have stay there and understand that place, by all means invest in Indonesia. But I think the market there has been pushed up a lot by the foreign funds coming into that country.

I can invest in Jakarta Stock Exchange via POEMS.

I agree. The companies are pretty backward but i think that's the beauty of investing there. The valuation is getting higher, the highest in Asia after Taiwan and exceeding Shanghai Composite. But if you look at the forward valuation it is still reasonable. POEMS from Singapore? So can u watch it real time and do internet trading through POEMS?

why indonesia?
their currency are of no value.
devalue like hell. how much you earn also cant beat the inflation there.
this mainly due to political instability.
play composite, i rather go hkse.
the only stock worth consider in indonesia is gudang garam and unilever.

what is the broker fee to invest in indonesia?

I did not have any indonesian stock yet. I find a few last year that do have good valuation. One of them I think the name is PT Sepatu something. There is a higher risk level involve in investing in Indonesian stock,as there is no information. Since there is no website, I can't e-mail or call them to ask about their company business. So, due to the lack of information, I did not proceed further. But, if you are working there or know that place well enough, you can give it a try. But, most of the good ones already been pushed up a lot. I can use POEMS from Singapore to do internet trading for Indonesian stock as well as Thailand, Hong Kong, London, US and a few others. But, I rarely trade, don't really have time to monitor the market. So, I am those buy and hold kind but take advantage of the cheap transaction cost of internet trading. BTW, you can look at some Indonesian company listed in Singapore too. Anything that have the lable "PT" is Indonesian company, it is kinda like our Berhad.

I have to admit that I am not an expert in Indonesian politics. But, Indonesia under SBY have done quite a lot of good. There are more transparent now then say Indonesia of a few years back. There even have an anti-racism law. In the macro economics wise, there are building up their FOREX researves under the guidance of Sri Muliyati( who is very competent like our Zeti). Now, there are a bit of a problem with the Bank Century bailout and causes the two architect of Indonesia growth, Sri Muliyati and Boediono under pressure to resign. I hope they can stay on cause both of them do a lot to regain foreign investor confidence. Inflation is still a major problem there, this is due to their dependence on imported oil. During the oil boom, they have to jack up the subsidized fuel price.

But, if you look beyond all this, Indonesia is a resource-rich country that is close to China and have a huge domestic population to support their own private consumption. They import oil due to years of under investment in oil. Malaysia's per acre palm oil yield is twice of Indonesia. Just imagine the they are able to let their oil fields pumping oil again (they are an OPEC member and have the most oil among ASEAN nation) and bring the yield of their palm oil up. It may depress palm oil prices but the one suffering will be Malaysian palm oil who have no volume growth and have to take a lower price. They have a few others resources too like coal which is imported into few east asian countries. So, all in all, if China and India keep on consuming natural resources, they will need to buy from Indonesia, this will drive up their domestic income and domestic consumption and it will be a 400m population country with a growing middle class consumer.

Ever wonder why Obama go to Indonesia for his leg of Asian tour? Coz, Indonesia is turning into a major player in this region.

Obviously, you can go to HKSE or anywhere to trade. There is no "the market". I like to look at companies and do not care about the market that much. Good company are everywhere regardless of which market. I like to look at businesses, so, I just look at all the countries. There are some cheap ones in Hong Kong as well as Indonesia. Obviously, if you are trading, HKSE do offer you better liquidity and stuff. But, I don't really concern about that. Don't limit your options.

This post has been edited by the snowball: Mar 21 2010, 04:32 PM

1. high growth
2. currency appreciation has been very strong from 12,500 to 9,000 per dollar
3. Political risk eased

The one I used 0.75%. Not sure about others.

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Added on March 22, 2010, 12:53 pmSeems you are pretty optimistic about Indonesia. I agree with your view that Indonesia is moving forwards socially, politically and economically. I only shifted my portfolio into Indonesia towards end of last year, kind of late compared to others. Returns are pretty good considering I only bought those better managed financial stocks. My indonesian home helper has been complaining why she is not getting as much rupiah from her ringgit denominated salary lately...

Just hope that Boediono and Sri Mulyani can maintain their position in the cabinet..

This post has been edited by newbie99: Mar 22 2010, 12:53 PM

i would rather invest in india....hehe..

I am not familiar with Indian's company. But it has huge potential. Which Indian counters are u looking at, if u dont mind sharing?

Hi, can I know how you manage to invest in India (apart from ETF)? As far as I know, if you are a foreigner,India is only open for Institutional Investor and High Net Worth Individual only. Any method that you know that can circumvent this rule? Please share...

Indonesia Stock exchange has broken its all time high record.. now at 3040. Up around 25% since beginning of Jan 10.


This post has been edited by newbie99: Jul 24 2010, 11:31 AM

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Added on December 5, 2012, 11:31 amFor those who are interested, Indonesian SE has gone up from 1100 to 4250 since GFC, up 286% in roughly 4 years.

This post has been edited by newbie99: Dec 5 2012, 11:31 AM

I have started research on indonesian equities after the recent crash. What i found is the bigger stocks are way overvalue but the smaller ones are preety much neglected. Foreigner institution dominate the market here, with >80% of the volume. Retailers are hardly here.

The stocks have been on a tear recently, with companies posting cagr of 30 to 50 pct per annum. There are a lot of good companies selling at decent valuations. The market is highly inefficient, so there much gems to be unearthed.

Is there anyway to access indo market beside having an broker account in indo?

Do jakarta stock exchange have stndard format for listed companies (like bursa) to publish quaterly financial results? in engish? or need to get indo wifu

Most malaysian brokers allow you to invest in indonesia. However cost wise would be quite expensive.

Google bursa efek for the website. All reports are dual language, english and bahasa. Last time only bahasa.

Some bigger companies have thier report in english seperately, following singapore financial format.

I will start posting my picks here for those who are interested to see what kind of gems can be found....

This post has been edited by gark: Sep 15 2013, 11:22 AM

ok thks. can save cost already, no need indo waifu anymore

On diff matters, can share What is current components stocks in JCI index?

Fuhh....

for me
KLSE oso never master/expert yet
wanna think of Indon market?

Here is the list of stock for the index...

http://finance.yahoo.com/q/cp?s=^JKSE+Components

Ok first stock recommendation for IDX..

Stock Code : BTPN
Current Price : Rp 4,000
Liquidity : Very Low !
Current PE : 10.8x (Reasonable)
Current DY : 0
PBV : 3.2x (quite high)
5 Year Growth : Averaging 40-50% per YEAR
Future Growth : Expect to moderate between 25-30% per year



Share price has exploded from Rp 500 to Rp 4000 in 5 years, a 800% return...

Since it is a bank we will use bank metrics...

NPL : 0.6% (very good)
CAR : 21% (very good for a bank, very good capital position)
NIM : 11.5% (the highest I have ever seen!)
Net Profit Margin : 30% (very good)

FY13 EPS : Expected Rp 385/share
FY14 EPS : Expected Rp 450/share

Investment Moats

1. This bank has captured 95% of government servants pensioners loan, which accounts for 70% of BTPN total loans. This loan has been growing at 15-20% p.a. The loan is 100% secured by pension payments, which is like Malaysia's Angkasa which is impossible to default. Also life insurance will be bought together with the loan to ensure 70% payback in case the pensioners die. Due to this the NPL of this sector is <0.1%.

2. Pioneer in super micro loans (less than Rp 5 million/loan), concentrating on the 'productive poor'. Productive poor means low income group with self sufficient business, often uneducated, no income satements and previously have zero access to financial products (except loan sharks). They represents 40% of Indonesia's population but got left behind by mainstream development. Loan are small and unsecured, but surprisingly NPL is very low at 2%, means poor people tend to pay their loans. The loans also include 3 day course at managing a business, cash flow and basic accounting (must be taken). Since most of these productive poor is illiterate, the bank will go to them instead of they going to bank. All transaction is via fingerprint machine. They have people roaming the markets, traders location with portable machine. This sector is growing at a blistering 50% per year.

3. Has recently started 'empowering' the female to be financially independent through business. Most married females (poor income group) in Indonesia tend to be housewife, so this bank has been giving seminar, courses to help this women to uplift their family finances by doing some small business. They will have a bank appointed guide (previously successful women) per kampong to teach and ensure that they can succeed at their small ventures. First loan is small and gets bigger once their repayment schedule is smooth. This business is shariah based has only started last year and growth is currently >100%.

4. This bank has some very powerful backers with years of experience in banking industry. 40% is owned by TPG group, a private equity funds which concentrate on banking with holding in china and korea banks. 24% is owned by SUmitomo Mitsui Bank from Japan which recently bought the stake from TPG group in May 2013 under private a deal and paying a huge premium of Rp 6,500 per share.

Target price : PE 14x FY14 = Rp 6,500/share

For more info on how the bank is empowering the poor...

https://www.youtube.com/watch?v=IeXBACouh9Q

https://www.youtube.com/watch?v=CHiUkl38hXA

This post has been edited by gark: Sep 16 2013, 11:41 AM

Thanks for sharing man. But I am not very familiar with the indo market, how these bank compete with each other, international bank playing in the market, how the capital market etc... really need to do a lot of research. No US investment bank holding large stake in this company ?

Anyway this could be a good start.

There is no US bank holding large stake in Indon bank.. CIMB is holding to CIMB Niaga, Maybank is holding BII, Sumitomo Mitsui bank in BTPN, that's about it...

Agree. It's was irrationally high earlier on so I decided to sell 60% of my Indon stocks in May. Retrospectively I should have listened to my rational self and sold everything. It seems Indonesia is experiencing structural change, which may take some time to rectify - a potent mix of increasing inflation, depreciating currency, worsening current account deficit and a presidential election next year... Vietnam experienced something similar 5-6 years ago and it took them many years to recover.

Which gems have you uncovered? I bought into Alam Sutera, Malindo feedmill, Bekasi fajar, Metropolitan land, CIMB niaga, Surya Semesta etc in the recent crash.. probably an unwise decision since there are better stocks in other countries with less currency fluctuation.

What a coincidence! This is exactly the first Indon stock i bought in 2009. I bought it at Rp3400 and sold at Rp5600 2 months later. But why when i checked financa.yahoo for historical price it showed the price was rp300+ in 2009? Has the stock been split so many times?

Along the way there is private placement, stock split, bonus issue etc... overall if you have kept your stocks until today you will reap ~600% gain..

Now it is selling at Rp4.1k after dropping 30% recently, the FA still looks good. But the liquidity is terrible...

This post has been edited by gark: Sep 21 2013, 05:58 PM

You seems to be quite heavy into developers, recently interest rate has gone up...so it might be dangerous

I have ..

Semen Indonesia (Highest Margin cement producer & owns Than Loong cement in Vietnam),
Indocement ( Biggest producer with net cash of 10 trillion rupiah)
BTPN (as previously mentioned),
Summerecon Agung (Developer of high class residential BUT 33% recurring income comes from shopping mall& office& hotels)
Bank Mandiri (Undervalue bank with good growth)
BW Plantation (Plantation run by ex Boustead CEO, largest unplanted land bank, youngest trees)

I believe these stocks have good potential to withstand the roller coaster...but the growth story is still here in Indonesia, not gonna dissipate anytime soon.

This post has been edited by gark: Sep 21 2013, 06:10 PM

By the way, Indon stocks consist a small part of my portfolio, I have moved on to other countries.

anyone know the affordable and simple way to invest stock in Indonesia Stock exchange?