UPDATE OF FINANCE COMPANIES IN INDONESIA

UPDATE OF FINANCE COMPANIES IN INDONESIA

Number of NBFI Companies (Q 1/2014) 263 27% 141 15% 14 1% 278 29% 265 28% Insurance Companies Financing Institutions Supporting Services Industry - NBFIs Pension Funds Specific Financing Institutions In terms of the number of companies, there are 961 companies engaged in the Non Bank Financial Institutions (NBFI) industry, consisting of 278 companies engaged in the Financing Institutions industry, 265 in the Pension Fund, 263 in the Supporting Services Industry NBFIs and 141 in the Insurance industry. Of the such companies, there are 98 companies conducting business with sharia principles (9 fullysharia companies and 89 Sharia units ). 2

Financial Highlights The Growth of NBFI Asset (trillion) No. Industry 2011 2012 2013 *) 2014 **) 1 Insurance 2 BPJS 3 Pension Fund 4 Financing Institutions 5 Specific Financing Institutions QI 481.75 569.32 638.23 483,35 - - - 185,22 142.03 158.37 162.06 166.29 294.55 356.08 420.45 421.29 62.44 75.79 96.06 98.54 6 Supporting Services Industry - NBFIs 2.43 3.49 4.29 4.29 Total Aset 983.20 1.163.05 1.320.78 1.358,98 The performance of non-bank financial Institutions (NBFI) during the first quarter of 2014 in general was a positive trend. Total NBFI assets at the end of the first quarter of 2014 increased about 1% compared to the previous quarter, to Rp1.358.98 trillion. NBFI industry's largest market share is the insurance industry with assets amounting to 41% of the total assets of NBFIs, followed by the Financing Institutions and pension funds with 31% and 12% respectively. 3

Profile of Financing Institutions Number of Financing Institutions Period of March 2014 Market Share of Financing Institutions Asset Period of March 2014 250 200 201 8.24 2% 10.73 3% 150 100 75 402.14 95% PP PMV PPI 50 2 0 PP PMV PPI The Financing Institutions Industry consists of 201 Finance Companies (PP), 75 Venture Capital (PMV), and 2 Infrastructure Financing (PPI). The Financing Institutions industry is still dominated by the Finance Companies which has a market share of 95% of total industry. 4

Profile of Finance Companies Number of Finance based on Ownership Category 137 Total Asset of each Category (In Trillions Rupiah) 140 120 100 80 60 40 20 1 64 198.19 49% 3.22 1% 200.71 50% State-owned Joint Venture National Private - State-owned Joint Venture National Private There are 64 PP directly owned by a foreign company (Joint Venture), 137 national private and 1 state-owned company. The composition of the assets of the Joint Venture Companies amounted to Rp200.7 trillion or 50% of total industry and National Private companies amounted to Rp198.2 trillion or 49%. 5

Profile of Finance Companies The Composition of Banking-Owned Finance Companies Total Asset of each Category (In Billions Rupiah) 182 200 150 100 50 20 82.15 20% 319.98 80% Banking-owned Non Bankingowned 0 Banking-owned Non Banking-owned There are 20 PP which is owned directly by banks with total assets amounting to Rp82.2 trillion. The detail of 20 banking-owned companies is as follows: 7 Joint Venture companies 13 National Private companies 6

The Growth of Finance Companies Asset 450,000 400.62 400,000 402.13 341.77 350,000 291.38 300,000 250,000 348.02 230.30 352.44 302.07 200,000 245.29 150,000 186.35 100,000 50,000 2010 In Trillions Rupiah 2011 Assets 2012 2013 Mar-14 Financing Receivables In the last 4-year period, the asset of finance companies industry experienced a positive growth with an average growth of 23.9%. However, in 2013 the average growth of industry assets fell to 14.8%. At the end of the first quarter of 2014, the growth of industry assets amounted to 15.91% yoy. 7

The Growth of Finance Companies Receivables The Growth of Financing Receivables Period of Between 2010 and March 2014 (in millions rupiah) The Composition of Fianncing Receivables Period of March 2014 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000-222,968 229,743 191,841 198,531 164,791 130,016 105,088 105,532 117,363 114,773 53,167 76,592 2010 2011 2012 Mar-13 2013 Mar-14 229,743 65% 5 0% 114,773 33% 7,926 2% Leasing Factoring Credit Card Consumer Finance Leasing Factoring Credit Card Consumer Finance In the last 4-year period, the financing receivables of Finance Companies industry experienced a positive growth. As of the first quarter of 2014, the financing receivables grew by 13.84% y-o-y compared to March 2013. The composition of financing receivables is still dominated by consumer finance receivables amounting to Rp229, 7 billion or 65% of total receivables, followed by finance lease amounted to Rp114, 8 trillion or controls 33% market share of total industry s financing. 8

Non Performing Financing Criteria December 2013(%) March 2014(%) Current 98,42 98,67 Doubtful 1,19 0,93 Loss 0,39 0,40 The Quality of Financing Receivables 100 100 The Composition of Finance Companies based on Non Performing Financing (NPF) 16 8% 31 15% 154 77% Normal - NPF <3% Alert - NPF 3% - 5% Serious - NPF >5% There is an increase in the quality of financing receivables of Finance Companies Industry. Doubtful category fell to 0.93% while Loss category rose slightly to 0.40% in March 2014. There are 31 Finance Companies with NPF more than 5%, consisting of 24 small companies, 4 medium and 3 big companies. 4 13% 24 77% 3 10% 0 0% Small Firm (0-500M) Medium Firm (500 M - 1 T) Big Firm (1T - 5T) Very Significant Firm (> 5 T) 9