CPO Supporting Fund And what it does to prices

09 JULY 2015

INDONESIA | PLANTATION | SECTOR VIEW What is CPO Supporting Fund? With intention to cut the oil import bill and combating the sluggish CPO prices led by a slowing demand and consumption from both export and local markets, the Indonesian government promoted the use of biodiesel to soak up the excess supplies of the world’s most-traded cooking oil. The country raised its mandatory blending rate for biodiesel to 15 percent in May this year from 10 percent in 2014 and 7.5 percent in 2013. The government also ordered power plants to mix at least 20 percent since 2014. Instead of further subsidizing the biodiesel productions that are economically uncompetitive, the nation has decided to impose export levies from domestic shippers to alternatively fund the gap between the market index price of conventional diesel and the market index price of biodiesel. The special agency to handle funding for palm oil plantation, called the CPO Supporting Fund (CSF), has been approved by the President; the government and presidential regulations that will serve as the legal framework for the government’s CSF policy have also been signed. Originally, the levy of between USD 10 to USD 50 to be imposed on CPO and its derivates exports would take effect in the fourth week of May. However, the levies collection has been delayed due to some administrative hiccups and also lags in establishing the special public service body who will be in charge of collecting and managing the fund. The implementation then rescheduled to July 1 and is now pushed back to July 16. Old Biodiesel Mandatory (MEMR Regulation 32/2008) 2015

Transportation (PSO) Transportation(Non PSO) Industry Electricity

2020

2025

2015

2020

20 %

15 %

20 %

30 %

10 %

15 %

20 %

25 %

30 %

30 %

10 % 15 %

20 % 20 %

Note: the percentage refers to total diesel oil use in the sector

15 % 15 %

20 % 20 %

18,775 SELL SELL 40.27 3.03

PRICE TARGET (IDR) CURRENT RATING PREVIOUS RATING MARKET CAP (IDR TN) MARKET CAP (USD BN)

LONDON SUMATRA INDONESIA PRICE TARGET (IDR) CURRENT RATING PREVIOUS RATING MARKET CAP (IDR TN) MARKET CAP (USD BN)

1,700 ACCUMULATE ACCUMULATE 10.85 0.82

SAWIT SUMBERMAS SARANA PRICE TARGET (IDR) CURRENT RATING PREVIOUS RATING MARKET CAP (IDR TN) MARKET CAP (USD BN)

1,965 NEUTRAL REDUCE 18.43 1.38

30 % 30 %

Infrastructure issues Given all of the system and regulations in place, we think that the government’s push to support the stumbling CPO price might face major headwinds ahead. Lack of adequate infrastructure has always been a classic hindrance to Indonesia’s economic development. Several business groups have acknowledged that the government needs to improve its port infrastructure to support the smooth running of export and domestic distribution activities. Page | 1 | PHILLIP SECURITIES INDONESIA

ASTRA AGRO LESTARI

2025

10 %

7%

STOCKS UNDER COVERAGE:

New Biodiesel Mandatory (MEMR Regulation 12/2015)

5%

10 %

UNDERWEIGHT

Edward Lowis

(62-21) 57 900 800 ext. 301 [email protected] Phillip Securities Indonesia

CPO SUPPORTING FUND SECTOR VIEW

Take for instance, Fatty Acid Methyl Ester (FAME) producers in Kalimantan might need to ship their FAME to Sumatra or Java due to the lack of biodiesel blending facilities in their area. However, because of the high transportation costs caused by poor port infrastructure, many of the local biodiesel players are forced to build their own port and/or biodiesel processing plant which often requires an intensive capital in some of their strategic areas in order to minimize the transportation costs. The lack of infrastructure is also one of the biggest challenges in distributing the biodiesel on a nationwide basis to maximize the consumption rate. Losing competitiveness Even if the government and the industry players could solve this problem temporarily to increase the biodiesel production output, we still think that this plan might not work, at least in the short-run. Output is expected to miss target as producers remain reluctant given the current low crude oil price that makes biodiesel processing costs more expensive than the selling price of the crude oil itself. Producers view this negatively considering it could hamper their already-low profitability margins as distributors (biodiesel blenders) will ask for a more competitive price. CPO vs. Crude oil price gap, USD per Kiloliters 1000

WTI

CPO

900 800 700 600 500 400 300 Jan 13

Jul 13

Jan 14

Jul 14

Jan 15

Jul 15

Source: Bloomberg, PSI Research

Unclear subsidy policy The government has set the biodiesel index price based on CPO base price plus USD 125 conversion cost. The conversion cost is now lower than USD 188 previously in order to reduce the purchase price by distributors. Producers apparently agree and willing to share the pain of lower margins. But more importantly, the government has to quickly decide the amount of subsidies (from CSF) to encourage further purchases by the distributors. The state energy firm and also Indonesia’s largest biofuel distributor, PERTAMINA, has held back from holding tenders for biodiesel made from palm due to the lack of clarity over subsidy scheme. Without the subsidies, there will certainly be less blending activities from distributors and that will definitely cause the government to miss its blending target for this year. PHILLIP SECURITIES INDONESIA | 2 | P a g e

CPO SUPPORTING FUND SECTOR VIEW

Data from the Energy and Mineral Resources Ministry showed the volume of biofuel blend in the first quarter this year was only 224,025 kiloliters, with PERTAMINA contributing 180,456 kiloliters and the rest were coming from other companies. The volume was way lower than 350,000 kiloliters of biofuel blend produced in the same period last year. Indonesian Vegetable Oil Refiners Association (GIMNI) also indicates that domestic biodiesel consumption in the first half of the year only recorded at 159,200 tons, far from its initial target of 435,600 tons. Similarly, biodiesel exported also seen at 105,200 tons in 6M15, far below the 953,200 tons targeted export volume. Clarity over the subsidy scheme is extremely important to ensure that producers can continue supplying and distributors can continue purchasing FAME to be blended with diesel fuel to comply with the government’s policy on biodiesel blending amid ongoing decline in the price of crude oil. The CSF body did mention that around 80 percent from levy proceeds will be used to subsidize the price gap but unfortunately, they have yet to come out with the exact figure for now. Indonesian Biodiesel Production Capacity, yearly No. 1. 2.

Metric ton 40,000 Eternal Buana Chemical Industries, PT 60,000 Indo Biofuels Energy, PT

2014 Kiloliters 45,977 68,966

40,000 40,000

45,977 45,977

Gresik

1,050,000 100,000 150,000 200,000

1,206,897 114,943 172,414 229,885

Dumai

850,000 30,450

977,011 35,000

Batam

20,880 20,000 400,000 130,500 66,000

24,000 22,989 459,770 150,000 75,862

Pluit Jakarta

10,240 13,200 11,000 137,931 579,310

South Cikarang

Company Name

3.

Anugrah Inti Gemanusa, PT

4.

Eterindo Nusa Graha, PT

5.

Wilmar Bio Energy Indonesia, PT

6.

Sumi Asih Oleochemical, PT

7.

Darmex Biofuels, PT

8.

Pelita Agung Agriindustri, PT

9.

Musim Mas, PT

10.

Sintong Abadi, PT

11.

Primanusa Palma Energi, PT

12.

Multi Energi Nabati, PT

13.

Cemerlang Energi Perkasa, PT

14.

Petro Andalan Nusantara, PT

Location Tangerang Cilegon Gresik Tambun Bekasi North Bekasi Bengkalis North Sumatra Cikarang Dumai Dumai

15.

Bioenergi Pratama Jaya, PT

16.

Pasadena Biofuels Mandiri, PT

17.

Wahana Abdi Tritatehnika Sejati, PT

18.

Alia Mada Perkasa, PT

19.

Damai Sentosa Cooking, PT

20.

Oil Tanking Merak, PT

8,909 11,484 9,570 120,000 504,000

21.

Ciliandra Perkasa, PT

250,000

287,356

Pekanbaru

22.

Tjengkareng Djaya, PT Energi Alternatif, PT

24.

Wilmar Nabati Indonesia, PT

72,000 7,000 690,000

82,759 8,046 793,103

Jakarta

23. 25.

Sinar Alam Permai, PT

41,400

47,586

Kalimantan

26.

Alpha Global Cynergy, PT

10,440

12,000

Banten

4,922,633

5,658,199

TOTAL

East Kutai Angke Jakarta Tangerang Surabaya Cilegon

Priok Jakarta Gresik

Source: New energy, renewable and energy conservation statistics, 2014.

PHILLIP SECURITIES INDONESIA | 3 | P a g e

CPO SUPPORTING FUND SECTOR VIEW

Car engine failures Automotives industry has warned against the use of B15 in their vehicles as it could cause severe damages to engine. The German manufacturer, BMW, in Malaysia have found that the use of B10 biodiesel worldwide inflict technical challenges. Checks found that the FAME in palm oil could thin motor oil, which led to oil sludge and reduced lubricity with the risk of severe engine damages. The car-maker claimed that their current diesel engines can only run on B7 level of biodiesel. Same opinions have also been disclosed by Mercedes-Benz AG claiming that their diesel-powered vehicle can also use up to 7% biodiesel, while for the Fuso truck models were only fitted to take maximum of 5% blend. State-owned PERTAMINA also admitted that they have received complaints from automotive producers that their engines would not be able to adapt to higher bio-content. Many users are reluctant to use the higher biofuel content diesel as they fear that the fuel does not meet the vehicles’ engine specifications which could result in the cancelation of guarantees. Fuel Usage Projections, Indonesia (Million Kilo Liters), 2015 - 2024 2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Gasoline Total

31.00

33.00

35.00

37.00

39.00

42.00

45.00

48.00

51.00

54.00

Diesel Total

28.13

29.42

30.83

32.34

33.93

35.64

37.46

39.40

41.48

43.70

On-road

20.61

21.95

23.38

24.90

26.51

28.24

30.07

32.03

34.11

36.07

Agriculture

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Construction/mining

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Shipping/rail

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Industry

6.87

6.88

6.90

6.93

6.95

6.96

6.98

7.00

7.02

7.30

Heating

0.65

0.59

0.55

0.52

0.47

0.44

0.41

0.37

0.35

0.33

6.81 65.95

6.68 69.11

7.23 73.06

7.82 77.16

8.46 81.39

9.14 86.78

9.89 92.35

10.69 98.09

11.56 104.05

12.36 110.06

Jet Fuel Total Total Fuel Markets

Source: Centre for Energy and Mineral Resources Data and Information.

Given the high fuel consumption in the transportation sector, it is very crucial that government and the biodiesel players to come out with a solution to these issues. Transportation sector is expected to consume 20.61 million kiloliters of diesel this year; assuming the B-15 mandatory blending rate to be successfully implemented since the beginning of the year, the potential usage of FAME would reach up to 3.1 million kiloliters which equivalents to 2.7 million tons of CPO (8.5% of Indonesia’s total CPO output) for the transportation sector alone. Low power plants uptake As the second-largest consumer apart from the automotive sectors, power plants are also expected to absorb an ample amount of biodiesel. Stateowned electricity company, PT PLN, last year targeted to mix up to 800,000 kiloliters of biodiesel (Approximately 700,000 tons of CPO) to feed its power plants. However, due to uncertainty of supply from PHILLIP SECURITIES INDONESIA | 4 | P a g e

CPO SUPPORTING FUND SECTOR VIEW

PERTAMINA, PLN could only absorb 85,000 kiloliters during the January to June period last year, which was less than 12% of its initial target for the full year. Unlike automotive engines, power plants are more adaptable to the use of biodiesel with potential blending rate of up to B-30. Although it requires some costly tweaks to the engines, the government could nourish this potential to push its biodiesel mandate by making sure that PERTAMINA to be able to supply a steady amount of biodiesel to PLN. Challenges faced by PLN includes finding price competitive suppliers outside PERTAMINA, upgrading/creating its own blending facilities, and assuring that biodiesel will perform financially. Exports challenges During 2008 to 2012, Europe became a growing export market for Indonesian biodiesel exports. In 2012, nearly 1.3 million kiloliters of biodiesel were exported to Europe. But unfortunately, due to the non-tariff trade barriers imposed by the European Commission, the exports figure dropped 60% to only 0.521 million kiloliters in 2013. Indonesia has faced several challenges in finding other exports market outside Europe as the other countries such as the US and Canada have their own feedstock supplies namely corn, soybean oil, and canola oil. Environmental issues, combined with ample supplies in North America, also discourage Indonesian biodiesel exports to the US. Biodiesel exports to India, China, Philippines, Thailand, as well as Japan are seen increasing over the years but these markets remain small, unsustainable, and highly variable. Mounting CPO stocks Up to FY15, Indonesia has produced nearly 12 million tons of CPO or equals to 37.5 percent of its total targeted output of 32 million tons. CPO output is expected to increase as trees entered a stronger production period before reaching its peak by the end of the year. Likewise, inventories level is also expected to increase accordingly. Reuters poll shows that Indonesian CPO stocks as of May at 2.54 million tons level while industry players estimated that the inventory level could go up to 3 million tons this year despite the recent restocking activities by China and India ahead of Ramadan. Quiet export activities this year combined with reserved CPO stocks for biodiesel is expected to drive the inventory level higher.

PHILLIP SECURITIES INDONESIA | 5 | P a g e

CPO SUPPORTING FUND SECTOR VIEW

Median Reuters CPO Survey Results & GAPKI export data for 2014/2015 (in million tons) Month

Output

Exports

Inventories

GAPKI export data

May

2.774

2.150

2.540

2.22

April

2.662

2.046

2.602

2.25

March

2.397

1.800

2.667

2.03

February

2.049

1.750

2.425

1.79

January

2.056

1.658

2.413

1.81

December

2.165

1.837

2.325

1.97

November

2.306

2.100

2.225

2.26

October

2.385

1.820

2.378

2.47

September

2.675

1.750

2.500

1.70

August

2.750

1.720

2.575

1.72

Source: Reuters, Indonesian Palm Oil Association

Price assumption CPO average selling price in the first half of the year recorded at MYR 2,230 per ton which traded at the lower range of our initial forecast of MYR 2,200 – 2,400. Given the tendency of higher CPO output in the second half of the year combined with flattish CPO consumption around the globe as well as low biodiesel blending activities, we decided to reduce our FY15 CPO price range to MYR 2,150 – 2,300 per ton. An expected increase in global soybean inventories is also one of our main concerns for the medium-term. A data from the United States Department of Agriculture (USDA) indicated that the global soybean oil inventory is expected to increase to 3.41 million tons this year and to increase further to 3.60 million tons in 2015/2016. As a substitute to CPO, an ample supply of soybean oil will dilute CPO’s competitive advantage and hence limit its gains. Our forecast also portrait a weaker-than-expected El Nino event this year as it is still immature to predict the severity of the event and how significant the magnitude will be in reducing the output level. Indonesian Biodiesel Market

2013

2014

5,100,000 2,500,000

1,641,000 2,110,000 4,280,966 2012

4,000,000 2,600,000

1,297,000 1,450,000 3,936,138 2011

2,017,000 2,300,000

1,076,051 35,000 3,936,138 2010

6,875,000

Capacity

5,600,000

Production

5,600,000

Mandatory

2015*

Source: Association of Indonesian Biodiesel Producers (APROBI), KONTAN Research.

PHILLIP SECURITIES INDONESIA | 6 | P a g e

CPO SUPPORTING FUND SECTOR VIEW

Astra Agro Lestari (AALI IJ) Current Rating: SELL; Previous Rating: SELL Current Price Target: IDR 18,775; Previous Price Target: IDR 19,250 Downgrade Price Target, Maintain Rating • • • •

• • •

FFB production up to 5M15 dropped -4.7% yoy to 2.17 million ton. 5M15 FFB processed stayed at 3.2 million tons while CPO production recorded at 691,525 tons (-2.2% yoy). Significant drop in average selling price for CPO to IDR 7,638 per kg in 5M15. Sales dropped 13.2 percent yoy to IDR 3.23 tn in 1Q15, mostly contributed by softer average selling prices for palm products. Booked significant net Forex losses of IDR 246 bn vs. IDR 156.1 bn gains in 1Q14. CPO production is targeted to grow by 5 percent this year supported by external FFB purchases. We maintain our “Sell” rating with a revised price target of IDR 18,775 per share, reflecting FY15’s EPS of IDR 1,427 per share and PER at 13.16x.

MAJOR SHAREHOLDERS, % ASTRA INTERNATIONAL, PT BLACKROCK SCHRODER INVESTMENT MANAG VANGUARD GROUP INC NORDEA BANK AB HANDELSBANKEN FONDER AB FIDELITY INTERNATIONAL DIMENSIONAL FUND ADVISORS LP

79.68% 0.77% 0.66% 0.63% 0.27% 0.25% 0.20% 0.17%

PRICE VS. JCI 115 110 105 100 95 90 85 80 75 70 Jun-14

Sep-14

Dec-14

AALI IJ

Mar-15

Jun-15

JCI Rebased

London Sumatra Indonesia (LSIP IJ) Current Rating: ACCUMULATE; Previous Rating: ACCUMULATE Current Price Target: IDR 1,700; Previous Price Target: IDR 1,740 Downgrade Price Target; Maintain Rating •

•

•

•

• • •

London Sumatra acquired 50% stake in Asian Asset Management Pte. Ltd. (AAM) with total investment of USD 39 mn fully-financed from internal cash. AAM has direct ownership in PT. Aston Inti Makmur who owns and operates Ariobimo Sentral office tower in Kuningan, Jakarta. We view that this transaction has little effect on London Sumatra’s main business activities and its financial position except for the changes in its assets accounts. For the record, London Sumatra booked 30.6% revenue drop in 1Q15 to IDR 888.5 bn while net profit recorded at IDR 153 bn (-32.3% yoy). 1Q15 was a relatively bad quarter due to lower sales volume as well as lower average selling prices for its palm and rubber products. FFB production in 1Q15 dropped to 260,600 tons (-15.5% yoy) due to droughts that the company experienced last year. FFB yield declined to 3.3 tons/ha while CPO and Palm Kernel extraction rate remained in-line with our expectation. We maintain our Accumulate rating and downgrade our price target to IDR 1,700 per share reflecting the lower FFB production and flattish average selling prices for its commodities produced.

MAJOR SHAREHOLDERS, % SALIM IVOMAS PRATAMA TBK PT DIMENSIONAL FUND ADVISORS LP NORDEA BANK AB LANDESBANK BERLIN INVESTMENT GMB SCHRODER INVESTMENT MANAG VANGUARD GROUP INC DAIWA ASSET MANAGEMENT SCHRODER INVESTMENT MGMT LTD

59.48% 1.65% 0.69% 0.42% 0.41% 0.36% 0.35% 0.34%

PRICE VS. JCI 115 105 95 85 75 65 55 Jun-14

Sep-14

LSIP IJ

Dec-14

Mar-15

Jun-15

JCI Rebased

PH

CPO SUPPORTING FUND SECTOR VIEW

Sawit Sumbermas Sarana (SSMS IJ) Current Rating: NEUTRAL; Previous Rating: REDUCE Current Price Target: IDR 1,965; Previous Price Target: IDR 1,985 Downgrade Price Target, Upgrade Rating •

•

• • •

•

•

SSMS finalized IDR 1.5 tn bank loans for refinancing purposes and USD 120 mn (IDR 1.6 tn) bank loans to support its operation and M&A plan. Interest rates for rupiah-dominated and USD-dominated loans are set at 10.5% and 6%+LIBOR, respectively. The shareholders of the company have agreed to collateralize the company’s assets to obtain these loans facilities. The company plans to acquire another 2 plantation companies located nearby its estates in Pangkalan Bun with total landbank equals to 20,000 hectares. This acquisition plan is now on-going and is expected to be done by 2H15 or early next year after the acquiree companies completed the necessary documents needed. We take these loans facility positively as its purpose is to grow the company organically and through M&A. SSMS booked 14.1% yoy revenue increase in 1Q15 supported by an increase in production and sales volume. FFB production in 1Q15 has reached 20.7% of total targeted production while CPO production has delivered up to 25% of target. This year’s FFB production is expected to increase by 30% yoy to 1,054,000 tons and CPO production to increase to more than 300,000 tons. We upgraded our “Reduce” rating to “Neutral” as its recent market valuation has plunged near to our price target, however, we thinly cut our price target to IDR 1,965 per share reflecing the softer average selling price for the year. As the acquisition plan has yet to be realized, it will not have any material impact to the company in the mean time.

MAJOR SHAREHOLDERS, % CBI GROUP BESSEMER INVESTMENT MGMT LTD BLACKROCK FUND ADVISORS OKASAN ASSET MANAGEMENT CO LTD MITSUB UFJ FINANCIAL GROUP RUSSELL INVESTMENTS IRELAND LTD INDEXIQ ADVISORS LLC JOHN HANCOCK ADVISERS LLC

84.27% 0.09% 0.07% 0.06% 0.04% 0.01% 0.01% 0.01%

PRICE VS. JCI 175 155 135 115 95 75 Jun-14

Sep-14

SSMS IJ

Dec-14

Mar-15

Jun-15

JCI Rebased

PH

CPO SUPPORTING FUND SECTOR VIEW

Important Information Rating for Sectors: Overweight Neutral Underweight

: We expect the industry to perform better than the primary market index (JCI) over the next 12 months. : We expect the industry to perform in line with the primary market index (JCI) over the next 12 months. : We expect the industry to under-perform the primary market index (JCI) over the next 12 months.

Rating for Stocks: Buy : The stock is expected to give total return (price appreciation + dividend yield) of > +20% over the next 12 months. Accumulate : The stock is expected to give total return (price appreciation + dividend yield) of +5% to +20% over the next 12 months. Neutral : The stock is expected to give total return of between -5% and +5% over the next 12 months. Reduce : The stock is expected to give total return of between -5% and -20% over the next 12 months. Sell : The stock is expected to give total return of -20% or lower over the next 12 months. Outperform : The stock is expected to do slightly better than the market return. Equal to “accumulate” or “moderate buy” Underperform : The stock is expected to do slightly worse than the market return. Equal to “weak hold” or “moderate sell” Analyst Certification The research analyst(s) primarily responsible for the preparation of this research report hereby certify that all of the views expressed in this research report accurately reflect their personal views about any and all of the subject securities or issuers. The research analyst(s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report. Disclaimers This document has been prepared for general circulation based on information obtained from sources believed to be reliable. But we do not make any representations as to its accuracy or completeness. Phillip Securities Indonesia (PSI) accept no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. PSI and its directors, officials and/or employees may have positions in, and may affect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealing with respect to these companies. PSI may also seek investment banking business with companies covered in its research reports. As a result investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

PHILLIP SECURITIES INDONESIA | 9 | P a g e

CPO SUPPORTING FUND SECTOR VIEW

Management

Contact Information (Indonesia Research Team)

Gunawan Sutanto (Head, Research - Equities)

+62 21 57 900 800 [email protected]

Automotive | Strategy Gunawan Sutanto +62 21 57 900 800 [email protected]

Cement | Construction | Property | Toll Road Martha Christina +62 21 57 900 800 [email protected]

Banking | Telecommunication Milka Mutiara +62 21 57 900 800 [email protected]

Agriculture | Consumer Goods Edward Lowis +62 21 57 900 800 [email protected]

Retail Trade | Poultry Muhamad Farhan [email protected]

Gas | Mining | Heavy Equipment Destya Faishal +62 21 57 900 800 [email protected]

+62 21 57 900 800

Research Assistant Fardini Dewi +62 21 57 900 800 [email protected]

Contact Information (Regional Member Companies) SINGAPORE Phillip Securities Pte Ltd Raffles City Tower 250, North Bridge Road #06-00 Singapore 179101 Tel +65 6533 6001 Fax +65 6535 6631 Website: www.poems.com.sg

MALAYSIA Phillip Capital Management Sdn Bhd B-3-6 Block B Level 3 Megan Avenue II, No. 12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel +603 2162 8841 Fax +603 2166 5099 Website: www.poems.com.my

HONG KONG Phillip Securities (HK) Ltd 11/F United Centre 95 Queensway Hong Kong Tel +852 2277 6600 Fax +852 2868 5307 Websites: www.phillip.com.hk

JAPAN Phillip Securities Japan, Ltd. 4-2 Nihonbashi Kabuto-cho Chuo-ku, Tokyo 103-0026 Tel +81-3 3666 2101 Fax +81-3 3666 6090 Website:www.phillip.co.jp

INDONESIA PT Phillip Securities Indonesia ANZ Tower Level 23B, Jl Jend Sudirman Kav 33A Jakarta 10220 – Indonesia Tel +62-21 5790 0800 Fax +62-21 5790 0809 Website: www.phillip.co.id

CHINA Phillip Financial Advisory (Shanghai) Co Ltd No 550 Yan An East Road, Ocean Tower Unit 2318, Postal code 200001 Tel +86-21 5169 9200 Fax +86-21 6351 2940 Website: www.phillip.com.cn

THAILAND Phillip Securities (Thailand) Public Co. Ltd 15th Floor, Vorawat Building, 849 Silom Road, Silom, Bangrak, Bangkok 10500 Thailand Tel +66-2 6351700 / 22680999 Fax +66-2 22680921 Website www.phillip.co.th

FRANCE King & Shaxson Capital Limited 3rd Floor, 35 Rue de la Bienfaisance 75008 Paris France Tel +33-1 45633100 Fax +33-1 45636017 Website: www.kingandshaxson.com

UNITED KINGDOM King & Shaxson Capital Limited 6th Floor, Candlewick House, 120 Cannon Street, London, EC4N 6AS Tel +44-20 7426 5950 Fax +44-20 7626 1757 Website: www.kingandshaxson.com

UNITED STATES Phillip Futures Inc 141 W Jackson Blvd Ste 3050 The Chicago Board of Trade Building Chicago, IL 60604 USA Tel +1-312 356 9000 Fax +1-312 356 9005

AUSTRALIA PhillipCapital Level 12, 15 William Street, Melbourne, Victoria 3000, Australia Tel +61-03 9629 8288 Fax +61-03 9629 8882 Website: www.phillipcapital.com.au

SRI LANKA Asha Phillip Securities Limited No 10, Prince Alfred Tower, Alfred House Gardens, Colombo 3, Sri Lanka Tel: (94) 11 2429 100 Fax: (94) 11 2429 199 Website: www.ashaphillip.net/home.htm

INDIA PhillipCapital (India) Private Limited No. 1, C‐Block, 2nd Floor, Modern Center , Jacob Circle, K. K. Marg, Mahalaxmi Mumbai 400011 Tel: (9122) 2300 2999 Fax: (9122) 6667 9955 Website: www.phillipcapital.in

PHILLIP SECURITIES INDONESIA | 10 | P a g e

CPO SUPPORTING FUND SECTOR VIEW

ANZ Tower Level 23B, Jl. Jendral Sudirman Kav 33A, Jakarta, 10220 - Indonesia Telp. (62-21) 57 900 800, Fax. (62-21) 57 900 809, Email : [email protected] Website: www.phillip.co.id | www.poems.co.id | www.poems.web.id

Jakarta Komp. Ruko Mega Grosir Cempaka Mas Jl. Let. Jend. Soeprapto Blok D No. 7 Jakarta, 10640 Telp. (62-21) 4288 5051 / 52; Fax. (62-21) 4288 5049 E-Mail: [email protected]

Mangga Dua Ruko Bahan Bangunan Mangga Dua Blok F1/8 Jl. Mangga Dua Selatan Jakarta 10730 Telp. (62-21) 6220 3589; Fax. (62-21) 6220 3602 E-Mail: [email protected]

Rukan Sentra Latumenten Jl.Prof.Dr Latumenten no.50 Blk AA 12 Jakarta, 11460 Telp. (62-21) 5694 1781; Fax. (62-21) 5694 1791 E-Mail: [email protected]

Roxy Pusat Niaga Roxy Mas Blok B2/2 Jl. KH. Hasyim Ashari - Jakarta Barat Telp. (62-21) 6386 8308; Fax. (62-21) 6333 420 E-Mail: [email protected]

Pantai Indah Kapuk Jl. Pantai Indah Barat Rukan Ekslusif BGM Blok B-6 Telp. (62-21) 5694 5791/92/93; Fax. (62-21) 56945790 E-Mail: [email protected]

Taman Palem Rukan Malibu Blok H No. 23 Cengkareng, Jakbar 11730 Telp. (62-21) 5694 5055 / 5077; Fax. (62-21) 5694 5013; E-Mail: [email protected]

Tanah Abang Pusat Grosir Metro Tanah Abang (PGMTA) Lantai 6, Jl.Fachrudin Tanah Abang - Jakarta Pusat 10250 Telp : (021) 3003 6745 / 3003 6746; Fax : (021) 3003 6748 E-Mail: [email protected]

Kelapa Gading Jl. Boulevard Raya Blok WB2/27 Kelapa Gading Jakarta Utara Telp. (62-21) 7070 0050/4587/9264; Fax. (62-21) 453 2939; EMail: [email protected]

Citra Garden 2 Komp. Citra Niaga Blok A No.18 Citra Garden 2 - Kalideres, JakBar Telp. (62-21) 5436 0175; Fax. (62-21) 5436 0174 E-mail: [email protected]

Alam Sutera Ruko Prominence Blok 38 – G. No. 18 Jl. Sutra Barat Boulevard, Alam Sutera, Tangerang 15143 Telp. (62-21) 5031 4300

Jawa Tengah Purwokerto Jln. Perintis Kemerdekaan No. 38 Purwokerto - Jawa Tengah, 53110 Telp. (62-281) 626 899; Fax. (62-281) 891 150 E-Mail: [email protected]

Yogyakarta Kantor Perwakilan (KP) BEI Yogyakarta Jl. Mangkubumi No. 111 Yogyakarta Telp. (0274) 557367 E-mail: [email protected]

Semarang Jl. Karang Wulan Timur No. 2 - 4 Semarang Indonesia Telp. (62-24) 355 5959; Fax. (62-24) 351 3194 E-Mail: [email protected]

Tegal Kompleks Nirmala Square Blok C no.7 Jl. Yos Sudarso - Tegal 52121 Telp. (62-283) 340773; Fax. (62-283) 340774 E-mail: [email protected]

Jawa Barat Komp.Paskal Hypersquare Blok C-21 Jl Pasirkaliki 25-27 Bandung Telp. (62-22) 8606 0690; Fax. (62-22) 8606 0765 E-Mail: [email protected]

Batam Kompleks Mahkota Raya Blok A no. 10 Batam Centre, Kota Batam 29456, Kepri Telp. (62-778) 748 3337/3030/3131; Fax. (62-778) 748 3117; EMail: [email protected]

Jawa Timur Jln. Flores No. 11 Surabaya, 60281 Telp. (62-31) 501 5777; Fax. (62-31) 501 0567 E-Mail: [email protected]

Kalimantan Barat Jl. Teuku Umar Komplek Pontianak Mal C 23-24 Pontianak, Kalimantan Barat Telp. (62-561) 777 887; Fax. (62-561) 745 103 E-Mail: [email protected]

Jambi Jln. GR. Djamin Datuk Bagindo No. 56A Jambi, 36142 Telp. (0741) 707 8260, 7555 699 E-Mail: [email protected]

Denpasar Kantor Perwakilan (KP) BEI Denpasar Jl. P.B. Sudirman 10 X Kav. 2 Denpasar - Bali (0361) 255 900

Lampung Jl. Ikan Tongkol No. 33 Blok 7-8 Teluk Betung - Bandar Lampung, 35223 Telp. (62-721) 474 234; Fax. (62-721) 474 108 E-Mail: [email protected]

PHILLIP SECURITIES INDONESIA | 11 | P a g e