CIMB Infrastructure Strategy - Roadshow feedback

We held meetings with 22 fund managers in Singapore and Hong Kong. Not many are now Overweight on Indonesia though most still like Indonesia. They are looking to re-enter on any weakness. Investors are also moving towards bottom-up stock-picking for 2H09. Infrastructure appears to be gaining traction among. Most believe that infrastructure spending would play a bigger role in Indonesia going forward, as this has featured in the campaign themes of all the presidential hopefuls. Investors are surprised by developments in the power sector but the problem here is that there is no stock with direct exposure to the sector. Most are still Underweight on coal and cement but Overweight on heavy equipment, though we see rising interest in coal and cement. Most also agree on the fundamental strength of our top picks: UNTR, ADRO, and INTP, while Bumi continues to draw interest.