Credit Suisse - Indonesia Banks Sector – Feedback from the UK marketing trip: in a good shape

Teddy Oetomo / Research Analyst / 62 21 2553 7911 / teddy.oetomo@credit-suisse.com

We have just completed five days of marketing in the UK. Generally, we found UK investors to be:
1) comfortable with the macro outlook and political situation in Indonesia;
2) interested to play on improvement in Indonesia’s mass market purchasing power. We believe that BBRI and BDMN are well positioned to
benefit from such catalyst;
3) comfortable and believe that Indonesian banking sector is currently in a good shape, though not completely immune from global softening;
4) still in an underowned position for Indonesian banks;
5) somewhat cautious with the valuations of Indonesian banks (based on P/B basis). However, we believe that adjusting for their higher ROEs,
Indonesian banks are currently trading in line with their regional peers.