Indonesian Stocks: Investor33 Index Outperforms Jakarta Composite Index

The Investor33 Index is a stock index launched by Beritasatu Media Holdings in cooperation with the Indonesia Stock Exchange (IDX) on 21 March 2014. The index contains 33 Indonesian publicly-listed companies that are selected through technical and fundamental analyses and meet the following criteria:

• The company releases its financial figures on time
• The company has been listed on the IDX for at least one year
• No adverse or disclaimer audit opinion letters have been released
• The company did not report a loss at the year of assessment
• Equity is at least IDR 50 billion (USD $4.4 million) and has been positive in the last two years
• The company's stocks are actively traded
• The company has more than 300 shareholders
• At least 20 percent of the company's stocks are publicly listed

Every six months the composition of the Investor33 Index is evaluated and changed, if necessary. Evaluations generally take place in the months of May and November. The index only includes blue chips with large market capitalization. The total amount of listed companies on the IDX is around 500 companies.

The current composition of the Investor33 Index is dominated by companies engaged in the following three sectors: infrastructure, banking, and consumer goods. Infrastructure stocks are attractive as the Indonesian government aims to boost infrastructure development to improve inter- and intra-island connectivity. The next government, which will be inaugurated in October 2014, is in fact expected to enhance infrastructure spending further. Meanwhile, the banking sector and consumer goods sector have been attractive for a while. Indonesian banks have been among the world’s most profitable banks in recent years, while the consumer goods sector is supported by Indonesian household consumption (which accounts for about 55 percent of Indonesia’s economic growth) amid a rapidly expanding middle class segment.

There are also several property companies in the Investor33 Index. This sector experienced great growth, especially in 2012 and 2013. However, after the central bank embraced a tighter monetary policy (involving a higher benchmark interest rate at 7.50 percent and tighter rules for lending for the purchase of houses), growth in this sector has slowed.

There are not many Indonesian construction companies in the current composition as this sector tends to show relatively high volatility.

Investor33 Index:

Company	Growth %  Jan-Jun 2014
1. Astra International	+6.99
2. Bank Central Asia	+14.58
3. Bank Mandiri	+23.89
4. Telekomunikasi Indonesia	+14.65
5. Bank Rakyat Indonesia	+42.41
6. Perusahaan Gas Negara	+24.58
7. Semen Indonesia	+6.54
8. Bank Negara Indonesia	+20.63
9. Indocement Tunggal Prakasa	+12.75
10. Charoen Pokphand Indonesia	+11.70
11. United Tractors	+21.58
12. Indofood Sukses Makmur	+1.52
13. Kalbe Farma	+32.80
14. Bank Danamon Indonesia	+9.80
15. XL Axiata	-1.92
16. Jasa Marga	+26.46
17. Indo Tambangraya Megah	-5.26
18. Media Nusantara Citra	+5.14
19. Elang Mahkota Teknologi	+8.09
20. Global Mediacom	+11.84
21. Lippo Karawaci	+5.49
22. Bank Tabungan Pensiunan Nasional	-1.16
23. Bumi Serpong Damai	+15.12
24. Astra Agro Lestari	+12.25
25. Tower Bersama Infrastructure	+38.79
26. Sumber Alfaria Trijaya	+14.44
27. Alam Sutera Realty	+2.79
28. Japfa Comfeed Indonesia	+0.00
29. AKR Corporindo	-1.03
30. Pakuwon Jati	+29.26
31. Summarecon Agung	+45.51
32. Bank Tabungan Negara	+19.54
33. Tempo Scan Pacific	-7.69

^{Source: Investor Daily}

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