A Recovery Year

Michael T. Tjoajadi - President Director

PT Schroder Investment Management Indonesia

Jakarta, 7 October 2021

Schroders Global GDP Growth Outlook
We upgraded 2021 forecast to 5.9% YoY driven by US and China recoveries

3
Source : Schroders
Indonesia’s COVID-19 conditions significantly improved
Cases and infection rates fell to lowest points in months

4
Source : Ministry of Health, Verdhana,
US inflation rise is transitory, but remain above pre-covid
Low base effect and higher commodity prices temporarily push up inflation

5
Source : Schroders
EM countries at risk of Fed tapering?
Indonesia is at a better position in terms of CAD and real rates compared to other EMs

6
Recent Evergrande collapse impact is limited to Indonesia
Impact would be seen on the CAD and FX side while impact to GDP would be limited

7
Source : Indopremier
Investment continued to grow strong in 1H21
FDI posted 18% YoY growth in 2Q21
FDI has been booking positive growth despite pandemic FDI on Base Metal industry grew strong

Aside from China, FDI from western countries are starting to recover

Source: BKPM, Mandiri Sekuritas

8
Investments for the new economy
There are still much prospects in investment into EV and batteries in auto sector

9
Source: Ministry of Industry
Indonesia is the world’s largest nickel producer
Growing demand of battery will also induce higher nickel demand

10
Source: Coordinating Ministry of Maritime and Investment, US Geological Survey, Bloomberg
JCI booked slight positive return YTD
The index posted 5.1% return in 2021 YTD
JCI posted return of 5.1% while bond yield climbed up to 6.3% JCI lags behind peers
6450.0 6.8 YTD Performance
Index Names 31-Dec-20 30-Sep-21 P/E Ratio FY21
6.7 (%)
6350.0 NIFTY Index 13,981.8 17,618.2 26.0% 24.16
6.6
6250.0 CAC Index 5,551.4 6,520.0 17.4% 15.59
6.5
SPX Index 3,756.1 4,307.5 14.7% 21.34
6150.0 6.4 CCMP Index 12,888.3 14,448.6 12.1% 31.90
6.3 DAX Index 13,718.8 15,260.7 11.2% 15.04
6050.0 6.2 SET Index 1,449.4 1,605.7 10.8% 18.89
5950.0 6.1 INDU Index 30,606.5 33,843.9 10.6% 18.37
6 UKX Index 6,460.5 7,086.4 9.7% 12.42
5850.0 STI Index 2,843.8 3,086.7 8.5% 14.29
5.9
NKY Index 27,444.2 29,452.7 7.3% 17.64
5750.0 5.8
KOSPI Index 2,873.5 3,068.8 6.8% 11.10
JCI Index 5,979.1 6,286.9 5.1% 18.09
SHCOMP Index 3,473.1 3,568.2 2.7% 13.00
PCOMP Index 7,139.7 6,952.9 -2.6% 19.73
JCI Index (Rp) Indo 10-Yr Bond Yield (%) FBMKLCI Index 1,627.2 1,537.8 -5.5% 16.32
HSI Index 27,231.1 24,575.6 -9.8% 12.32

Source: Schroders, Bloomberg

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New opportunities in Indonesia Tech?
China’s recent crackdown in its tech sector may make Indonesia tech space more appealing

12
Source : Trimegah Securities
Evolution of blue chip names in the market
There will always be a cycle
# 2008 2011 2014 2017 2020 Latest
Indonesia
1 Telkom Indonesia Persero Tbk PT Astra International Tbk PT Bank Central Asia Tbk PT Hanjaya Mandala Sampoerna Tbk PT Bank Central Asia Tbk PT Bank Central Asia Tbk PT
2 Bank Central Asia Tbk PT Bank Central Asia Tbk PT Astra International Tbk PT Bank Central Asia Tbk PT Bank Rakyat Indonesia Persero Tbk PT Bank Rakyat Indonesia Persero Tbk PT
3 Unilever Indonesia Tbk PT Bank Rakyat Indonesia Persero Tbk PT Telkom Indonesia Persero Tbk PT Telkom Indonesia Persero Tbk PT Telkom Indonesia Persero Tbk PT Telkom Indonesia Persero Tbk PT
4 Bank Rakyat Indonesia Persero Tbk PT Bank Mandiri Persero Tbk PT Bank Rakyat Indonesia Persero Tbk PT Bank Rakyat Indonesia Persero Tbk PT Bank Mandiri Persero Tbk PT Bank Mandiri Persero Tbk PT
5 Perusahaan Gas Negara Tbk PT Unilever Indonesia Tbk PT Bank Mandiri Persero Tbk PT Unilever Indonesia Tbk PT Unilever Indonesia Tbk PT Bank Jago Tbk PT
6 Astra International Tbk PT Telkom Indonesia Persero Tbk PT Unilever Indonesia Tbk PT Bank Mandiri Persero Tbk PT Astra International Tbk PT Astra International Tbk PT
7 Bank Mandiri Persero Tbk PT Gudang Garam Tbk PT Perusahaan Gas Negara Tbk PT Astra International Tbk PT Hanjaya Mandala Sampoerna Tbk PT Unilever Indonesia Tbk PT
8 Indosat Tbk PT United Tractors Tbk PT Gudang Garam Tbk PT Bank Negara Indonesia Persero Tbk PT Chandra Asri Petrochemical Tbk PT Chandra Asri Petrochemical Tbk PT
9 Semen Indonesia Persero Tbk PT Perusahaan Gas Negara Tbk PT Bank Negara Indonesia Persero Tbk PT Gudang Garam Tbk PT Bank Negara Indonesia Persero Tbk PT Elang Mahkota Teknologi Tbk PT
10 Vale Indonesia Tbk PT Bank Negara Indonesia Persero Tbk PT Semen Indonesia Persero Tbk PT United Tractors Tbk PT Indofood CBP Sukses Makmur Tbk PT DCI Indonesia Tbk PT
United States
1 Exxon Mobil Corp Exxon Mobil Corp Apple Inc Apple Inc Apple Inc Apple Inc
2 Walmart Inc Apple Inc Exxon Mobil Corp Alphabet Inc Microsoft Corp Microsoft Corp
3 Procter & Gamble Co/The Microsoft Corp Microsoft Corp Microsoft Corp Amazon.com Inc Amazon.com Inc
4 Microsoft Corp International Business Machines Corp Berkshire Hathaway Inc Amazon.com Inc Alphabet Inc Alphabet Inc
5 General Electric Co Chevron Corp Alphabet Inc Facebook Inc Facebook Inc Facebook Inc
6 AT&T Inc Alphabet Inc Johnson & Johnson Berkshire Hathaway Inc Tesla Inc Berkshire Hathaway Inc
7 Johnson & Johnson Walmart Inc Wells Fargo & Co Johnson & Johnson Berkshire Hathaway Inc Tesla Inc
8 Chevron Corp Berkshire Hathaway Inc Walmart Inc JPMorgan Chase & Co Visa Inc Visa Inc
9 Pfizer Inc General Electric Co General Electric Co Exxon Mobil Corp Johnson & Johnson JPMorgan Chase & Co
10 JPMorgan Chase & Co Procter & Gamble Co/The Procter & Gamble Co/The Bank of America Corp Walmart Inc NVIDIA Corp
Hong Kong
1 PetroChina Co Ltd PetroChina Co Ltd PetroChina Co Ltd Tencent Holdings Ltd Tencent Holdings Ltd Tencent Holdings Ltd
2 China Mobile Ltd ICBC ICBC ICBC Alibaba Group Holding Ltd Alibaba Group Holding Ltd
3 ICBC China Mobile Ltd China Mobile Ltd China Construction Bank Corp ICBC ICBC
4 China Construction Bank Corp China Construction Bank Corp China Construction Bank Corp PetroChina Co Ltd Ping An Insurance Group Co of China Ltd Meituan
5 HSBC Holdings PLC HSBC Holdings PLC Bank of China Ltd China Mobile Ltd Meituan China Construction Bank Corp
6 Bank of China Ltd Bank of China Ltd HSBC Holdings PLC HSBC Holdings PLC China Construction Bank Corp Ping An Insurance Group Co of China Ltd
7 China Petroleum & Chemical Corp China Petroleum & Chemical Corp China Life Insurance Co Ltd Ping An Insurance Group Co of China Ltd AIA Group Ltd AIA Group Ltd
8 China Life Insurance Co Ltd China Shenhua Energy Co Ltd Tencent Holdings Ltd Bank of China Ltd China Life Insurance Co Ltd PetroChina Co Ltd
9 China Shenhua Energy Co Ltd CNOOC Ltd China Petroleum & Chemical Corp China Life Insurance Co Ltd Bank of China Ltd Bank of China Ltd
10 CNOOC Ltd China Life Insurance Co Ltd Ping An Insurance Group Co of China Ltd China Petroleum & Chemical Corp China Mobile Ltd China Mobile Ltd

Source: Bloomberg
Disclaimer
The information and opinions contained in this document have been compiled or arrived at by PT Schroder Investment Management Indonesia (“Schroders
Indonesia”) from sources honestly believed by Schroders Indonesia to be reliable and in good faith, and Schroders Indonesia may not have undergone
verification or due diligence examination into the accuracy of such information. All opinions or estimates contained in these documents are entirely Schroders
Indonesia’s judgment as of the date of this document and are subject to change without notice. The information contained in this document is provided for
information purposes only, and cannot be regarded as warranty as to performance or profitability of the portfolio under Schroders Indonesia’s management.
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