Tour and Travel business opportunities increasingly stretched.

The number of people needs for tourism

services makes the existence of Agent Tour and Travel is needed and demanded. The Association of
Indonesian Tours and Travel Agencies (ASITA) revealed that there are currently 7,000 travel companies
registered in Indonesia.

Meanwhile, the number of Indonesian people who travel abroad (outbound) continues to increase. The
reason is the cost to travel to sites in other countries is actually cheaper than domestic trips. The cost of flying
to Papua is much more expensive than a trip to Thailand, Malaysia, and Singapore.

For the next several years, most of the total population of the upper-middle class people will remain in five
provinces of Java.

Meanwhile, middle-class consumer population in several other islands of the country is expected to grow
faster. Sulawesi, for example, will experience a 109% increase in the number of upper-middle class
consumers in the period of 2012-2020.

Based on the data from Bank Indonesia, the number of Indonesian tourists visiting abroad reached 6.4 million
in 2010 and continued to jump to 8.5 million in 2016. However, the growth of this segment is relatively slower
than the visits of foreign tourists to Indonesia.

The growth of overseas travel business has been very stable in recent years. All the conveniences offered
to range from banks, travel agencies, and airlines make people who previously did not have the desire to
travel abroad became interested.

Currently, it is hard for conventional travel agents to compete against online travel agents such as
TripAdvisor, Traveloka, and Travelio. Based on research by UNWTO in 2017, about 82% of the tourists prefer
to seek information about specific tourism destination directly by using a digital platform.

Meanwhile, we predicted that by the second semester of 2019, Indonesia's economic growth will escalate up
to 5.08%-5.19%. The stated value has evidently aligned with the Government's decision of cutting the growth
projection in the second semester of 2019 at the level of 5.2%.

Meanwhile, the World Bank predicts that world economic growth this year will only be 2.6%, lower than the
previous projection of 2.9%. The World Bank in its Global Economic Risks and Implications for Indonesia
report also predicts that the Indonesian economy in 2020 will grow below 5% due to the impact of a slowing
world economy.

Based on this fact, we believe that the tourism industry will continue to grow positively in 2019. Yet, to
secure its existence, the conventional tourism industry players should immediately adapt to the digital
system, so that they will not be crushed by other business players that have used the digital system. On the
other hand, the slowing down of the Indonesian economy this year to 2020 is a caution for all industry
players.