PT. MINNA PADI INVESTAMA SEKURITAS TBK.
20
BUSINESS ACTIVITIES
EQUITY BROKERAGE DIVISION
The Company’s total shares trading at the Indonesia Stock Exchange from recent years can be seen on the following table:
CORPORATE FINANCE DIVISION
This division conducts three main activities:
a. Underwriting
The Company conducted underwriting activities for initial public offerings and rights issues, bonds or other convertible bonds as well as acting as arranger in private placements. From
2004 until the end of 2016, the Company had acted as underwriter for shares and bonds on the behalf of more than 145 companies. For 2016 alone, the Company had conducted
underwriting activities for three companies.
b. Financial Advisory
The financial advisory activities are provided for customers who need professional advisory services. This service is tailored according to each specific needs of the customer.
c. Shares Financing
Shares financing is given in the form of margin and reverse repo repurchase agreement. Margin is the financing of shares bought by clients, while reverse repo is shares purchases by
the Company with the resale agreement. Both kinds of financing are done under the principle of prudentiality and are reported to the Indonesia Stock Exchange on daily basis.
FIXED INCOME DIVISION
This division is currently under development and its capacity will be optimized soon when the time is right.
2007 3.386.960
2.100.308.602 0,16
2008 10.414.916
2.129.055.029 0,49
2009 4.371.454
1.950.269.518 0,22
2010 7.235.932
2.352.474.839 0,31
2011 3.530.948
1.229.352.400 0,29
2012 5.414.998
2.232.226.504 0,24
2013 21.929.870
3.044.244.715 0,72
2014 13.639.275
2.906.784.722 0,47
2015 7.162.756
2.812.724.732 0,25
2016 8.767.102
3.689.175.149 0,24
Year Companys Trade Value
in million Rupiah IDX Trade Value
in million Rupiah Companys Market
Share
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
21
COMPREHENSIVE ANALYSIS OF FINANCIAL PERFORMANCE
FINANCIAL POSITION
The following table summarizes the Company’s balance sheet for the period ending on 31 December 2016 dan 2015:
ASSETS ANALYSIS
The Company’s Total Assets in 6 fell by Rp . 8 million or 8,7 from 2015. The decline was
attributed to the decline in the Customer Receivables from Related and Third Parties. This shows that there was a decline in the customers’ shares transaction at the end of the year.
LIABILITIES ANALYSIS
The Company’s Total Liabilities at 31 December 2016 stood at Rp26.312 million, down by Rp41.678 million or 61,30 from Rp67.990 million in 31 December 2015. The decline is caused by the decline
in Customer Payables to the Related Parties. This shows that there was a decline in the customers’
shares transaction at the end of the year.
EQUITY ANALYSIS
Equity consists of Subscribed and Fully Paid Capital, Additional Paid-in Capital – Net of
Subscription Fees, Retained Earnings and other Equity Components. In December 31
st
2016, Total Equity stood at Rp445.577 million, down by Rp3.570 juta or 0,79 from Rp449.147 million recorded on December 31
st
2015. The decline was mainly caused by unrealized losses of shares during the year.
2016 2015
Total Assets 471.889
517.137 Total Liabilities
26.312 67.990
Total Equity 445.577
449.147
Description in million Rupiah
For the Year Ended on December 31st
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
22
Development of Total Assets, Liabilities and Equity
in million Rupiah
COMPREHENSIVE INCOME LOSS
The following table presents some information regarding the Company’s operations for the year ending December 31
st
2016 and 2015, audited by the Public Accountant Joachim Poltak Lian Rekan dated April 3
rd
2017: 100
200 300
400 500
600 471.889
517.137
26.312 67.990
445.577 449.147
Total Assets Total Liabilities
Total Equity
2016 2015
Total Revenues 7.943
19.182 Total Operating Expenses
21.296 22.106
Gain Loss From Operations 13.353
2.924 Other Income Expenses
3.481 5.781
Income before Provision for Income Tax 9.872
2.857 Total Provision for Income Tax
238 227
Income Loss for the Year 9.634
3.084 Other Comprehensive Income
6.033 1.739
Total Comprehensive Income Loss for the Year 3.601
1.345
Description in million Rupiah
For the Year Ended on December 31st
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
23
TOTAL REVENUES
Total Revenues consist of Brokerage Revenues, Underwriting Revenues, and Net Dividend and Interest Income. Brokerage Revenues include Commissions from Transactions, Realized Income
Loss of Sales of Shares, Unrealized Income Loss of Shares and Margin Interests. Dividend and Interest Income consist of Revenue from Reverse Repo, Revenue from Bonds Coupons and
Dividend Income. The following explains the components of Total Revenues: Transaction Commissions is the
commissions obtained from the Company’s activities as a stock brokerage. The Company set the commissions to be 0,1 - 0,25 of the transaction
value. Realized Gain Loss on Sale of Securities is the realized net gain loss on shares transactions
of the Company’s portfolio.
Unrealized Gain Loss on Securities is the unrealized gain loss of shares transactions of the Company’s portfolio.
Margin Interest is the interest income related to the shares financing provided by the Company to its customers. The margin income is ranging between 18 and 21 per year.
Underwriting Revenues are obtained from its services as an underwriter and sales agent of initial public offerings and bonds offerings as well as rights issue andor mutual funds with
the fees set at 0,25 of total transaction value. Revenue from Reverse Repo is the income obtained by the Company from its activity in
purchasing shares with resell agreement in a mutually agreed date. Revenue from Bonds Interest and Dividend Income are interest income and dividends
obtained by the Company related to the ownership of bonds and shares within the Company’s portfolio.
Details of the Company’s Total Revenues for the year ended in December 31
st
2016 and 2015 are as follow:
Total Revenues slipped from Rp19.182 million to Rp7.943 million or by Rp11.239 million or 58,59 lower than Total Revenues posted in 2015. The decline was caused by the decline in the
Company’s Brokerage Revenues due to Unrealized Loss on Securities amounting to Rp17.597 million in 2016.
OPERATING EXPENSES
Operating Expenses consist of expenses such as Personnel Expenses, Depreciation, General and Administrative Expenses, Office Rentals, Custodians, Advertising and Promotion, Entertainment
and Donations, Telecommunications, System Maintenance, Professional Fees, Travelling, Education and Training, and Other Expenses.
2016 2015
Brokerage Revenues 3.825
9.404 Underwriting Revenues
2 4.739
Dividend and Interest Income - Net 4.116
5.039
Total Revenues 7.943
19.182 Description
in million Rupiah For the Year Ended on December 31st
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
24
Details of Operating Expenses of the Company for the years ended in December 31
st
2016 and 2015 are as follow:
Total Operating Expenses in 2016 stood at Rp21.296 million, down by Rp810 million or 3,66 from Rp22.106 million in 2015. The drop in Operating Expenses in 2016 was mainly caused by the
decline in Personnel Expenses.
GAIN LOSS FROM OPERATIONS
The Company incurred Operating Losses in 2016 amounting to Rp13.353 juta, or an increase in losses by Rp10.429 juta or 356,67 compared to the Loss from Operations booked in 2015 which
was Rp2.924 juta. Decline in the Company’s Total Revenues by 8, 9 were attributed to the
decline.
OTHER INCOME EXPENSES - NET
Other Income Expenses were comprised of Gain Loss on Foreign Exchange, Gain on Sale of Equipment , Interest and Finance Expenses, and Others
– Net, such as Taxes and Tax Penalties, Late Payment Penalties, Rental Income, Interest on Bank Current Accounts and Time Deposits.
2016 2015
Personnel Expenses 8.454
10.085 Depreciation
5.619 5.732
General and Administrative 2.024
2.290 Office Rentals
2.736 1.329
Custodians 687
769 Advertising and Promotion
47 163
Entertainment and Donations 595
255 Telecommunication
407 435
System Maintenance 312
269 Professional Fees
162 324
Travelling 76
175 Education and Training
51 42
Others 126
238
Total Operating Expenses 21.296
22.106 Description
in million Rupiah For the Year Ended on December 31st
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
25
Details of Other Income Expenses – Net for the Years ended in December 31
st
2016 and 2015 are as follow:
Other Income Expenses – Net for 2016 were at Rp3.481 million, down Rp2.300 million or 39,79
from Rp5.781 million in 2015. The decline was mainly caused by the lower Others – Net as Interest
on Bank Current Accounts and Time Deposits were lower.
INCOME LOSS FOR THE YEAR
For 6, the Company’s Loss for the Year stood at Rp9.634 million, down by Rp12.718 million or
412,39 from previous income of Rp3.804 million in 2015. The decline was due to lower Total Revenues recorded by the Company in 2016 which, compared to 2015 were down by 58,59.
OTHER COMPREHENSIVE INCOME
In 2015, the Company recorded Other Comprehensive Income amounting to Rp6.033 million, up by Rp7.773 million from Other Comprehensive Expenses in 2015 worth Rp1.739 million. This was
caused by the increase in Unrealized Gain on Changes in Fair Value of Securities Owned Available for Sale in December 31
st
2016 which consists of shares and mutual funds. The gain was attributed to the increase in the market value of the unrealized portfolio of securities owned available for
sale on December 31
st
2016 compared to the market value of the unrealized portfolio of securities owned and available for sale on December 31
st
2015.
COMPREHENSIVE INCOME LOSS FOR THE YEAR
The Comprehensive Loss for the Year of the Company for 2016 was at Rp3.601 million, fell by Rp4.946 million or 367,73 from the Comprehensive Income for 2015 which stood at Rp1.345
million. The decline was caused by the lower Total Revenue recorded in 2016 compared to that of 2015.
2016 2015
Gain Loss on Foreign Exchange 36
147 Gain on Sale of Equipment
388 -
Interest and Finance Expenses 43
55 Others - Net
3.172 5.689
Other Income Expenses - Net
3.481 5.781
Description in million Rupiah
For the Year Ended on December 31st
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
26
Development of Total Revenues, Total Operating Expenses, Total Income Loss from Operations, Income Loss for the Year, and Comprehensive Income Loss for the Year
in million Rupiah
CASH FLOW ANALYSIS
The following table highlights the statement of cash flows for the years ended in December 31
st
2016 and 2015:
CASH FLOWS FROM OPERATIONS
The Company’s Cash Flows from Operating Activities consist of Receipt from Brokerage Commissions, Receipt from Interest Income, Receipt from Underwriting and Selling Fees, Receipt
from Margin Customers, Receipt from Payment to Clearing and Guarantee Institution – Net,
Receipt from Payment to Customers, Receipt of Dividend, Payment to Others – Net, Payment of
Income Taxes, Sale of Securities Owned and Purchase of Securities Owned. Net Cash Provided by Operating Activities amounted to Rp15.767 million, increased by
Rp13.306 million or 540,67 compared to that of 2015 when the Company obtained Net Cash from Operating Activities worth Rp2.461 million. The increase was mainly caused by
higher Receipt from Clearing and Guarantee Institution. 15.000
10.000 5.000
0.000 5.000
10.000 15.000
20.000 25.000
7.943 19.182
21.296 22.106
13.353 2.924
9.634 3.084
3.601 1.345
Total Revenues Total Operating Expenses
Total Income Losses from Operations
Income Losses for the Year Comprehensive income Loss for the
Year
2016 2015
Net Cash Provided by Operating Activities 15.767
2.461 Net Cash Used in Investing Activities
5.188 2.735
Net Cash Used in Financing Activities 220
403
Net Increase Decrease in Cash Cash Equivalents
10.359 677
Cash and Cash Equivalents, Beginning 19.500
20.177
Cash and Cash Equivalents, Ending 29.859
19.500 Description
in million Rupiah For the Year Ended on December 31st
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
27
CASH FLOWS FROM INVESTING ACTIVITIES
Cash Flows from Investing Activities consist of Acquisition of Property, Plant and Equipment, Acquisition of Investment Properties, Proceeds from Sale of Equipment, Increase in Investment
in Shares of Stock, and Time Deposit Placement.
The Company’s Cash Flows Used in Investing Activities for 2016 stood at Rp5.188 million, falling by Rp2.453 million or 89,69 compared to the Cash Flows Used in Investing
Activities in 2015 which amounted to Rp2.735 million. This increase in cash flows used in investing activities was mostly caused by the increase in the Investment in PT Kustodian
Sentral Efek Indonesia’ shares in
6.
CASH FLOWS FROM FINANCING ACTIVITIES
Cash Flows from Financing Activities came from Payment of Interest, Payment of Other Payable – Consumer Financing, Receipt of Reverse Repo Receivables, and Payment of Cash Dividend.
The Company booked Cash Flows from Financing Activities for the year ended in December 31
st
2016 amounting to Rp220 million, down by Rp183 million or 45,41 compared to that of 2015 when the Company used the Cash Flows in Financing Activities
worth Rp403 million. The decline was caused by the absence of Payment of Cash Dividend in 2016.
RATIO ANALYSIS
LIQUIDITY
Liquidity level reflects the Company’s capability in fulfilling its obligation, especially in terms of short-term liabilities to KSEI and the customers. The Company manages liquidity by maintaining
sufficient reserves, as well as continuously monitoring the planning and the realization of cash flows by matching the profiles of financial assets and liabilities.
Liquidity ratio is the comparison between total current assets and total current liabilities on December 31
st
2016 and 2015 which stood at 1.561,97 and 655,34, respectively. The increase in liquidity during the period ending December 31
st
6 showed the increase in the Company’s capability in servicing its liabilities, especially over short-term liabilities. The increase in the ratio
was caused by the decline in Payables to Customers in 2016.
SOLVABILITY
Solvability is calculated by comparing the Total Liabilities, both short-term and long-term liabilities against Total Assets and Equity, whereas the ratio indicates the Company’s capability to
service its short-term and long-term liabilities.
2016 2015
Current Assets 400.802
440.610 Current Liabilities
25.660 67.234
Liquidity Ratio 1.561,97
655,34 Description
in million Rupiah For the Year Ended on December 31st
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
28 TOTAL LIABILITIES TO TOTAL ASSETS RATIO
Total lliabilities to total assets ratio of the Company on December 31
st
2016 was at 5,58 compared to that of December 31
st
2015 which was at 13,15. The decline in the ratio by 7,57 showed that the Company’s capability in servicing existing liabilities have improved. The decline
in the ratio was mainly caused by the decline in the Company’s Payables to Customers.
TOTAL LIABILITIES TO TOTAL EQUITY RATIO
Total liabilities to total equity ratio on December 31
st
2016 was at 5,91 compared to that of 31 Desember 2015 which stood at 15,14. The drop in the ratio by 9,23 showed that there was an
increase in the Company’s capability to service existing liabilities. The decline in the ratio is primarily caused by the
decline in the Company’s total liabilities.
COLLECTABILITY
The Company did not set allowance for impairment of receivables both in 2016 and 2015 because based on the experience and review, the Company believed that all receivables were collectible.
RENTABILITY
Rentability is the Company’s indicator of capability to produce profit during certain period.
Rentability can be seen from the net profit margin, return on assets and return on equity.
PROFIT MARGIN
Profit Margin is the ratio of Net Income for the Year compared to the Total Revenues. The Company’s Profit Margin for the years ending on December
st
2016 and 2015 stood at -121,29 dan 16,08, respectively.
This ratio shows the Company’s capability in producing profit from the total revenues.
The decline in profit margin for the year ending on December 31
st
2016 compared to that of December 31
st
was primarily caused by the decline in the Company’s Total Revenues coming from Unrealized Loss on Securities.
2016 2015
Total Assets 471.889
517.137 Total Liabilities
26.312 67.990
Total Equity 445.577
449.147
Solvability Ratio
Total LiabilitiesTotal Assets Asset Solvability 5,58
13,15 Total LiabilitiesTotal Equity Equity Solvability
5,91 15,14
Description in million Rupiah
For the Year Ended on December 31st
2016 2015
Income Loss for the Year -9.634
3.084 Total Revenues
7.943 19.182
Income Loss Margin for the Year -121,29
16,08 Description
in million Rupiah For the Year Ended on December 31st
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
29 COMPREHENSIVE PROFIT MARGIN FOR THE YEAR
Comprehensive Profit Margin for the Year is the ratio of profit after the addition deduction of unrealized gain loss on changes in fair value of available for sale securities owned.
Comprehensive Profit Margin of the Company for years ended on December 31
st
2016 and 2015 stood at -45,34 dan 7,01, respectively.
For 2016, Comprehensive Profit Margin was at -45,34 down by 52,35 from Comprehensive Profit Margin in 2015 which was at 7,01, mainly caused by the decline in the Total Revenues
coming from Unrealized Loss on Securities.
RETURN ON ASSETS
Return on Assets is a ratio between Income Loss for the Year to Total Assets of the Company. It is a measure of the Company’s capability to produce net income by using the total assets owned
by the Company. Return on Investment of the Company for the years ended in December 31
st
2016 and 2015 are -2,04 and 0,60, respectively.
Return on Assets for the year ended in December 31
st
2016 stood at -2,04, down 2,64 from return on assets of the year ended in December 31
st
2015 which was at 0,60. The decline was caused by the decline in the total revenues, especially due to the increase of Unrealized Loss on
Securities.
RETURN ON EQUITY
Return on Equity is a ratio between Income Loss for the Year to Total Equity of the Company. It is a measure of the Company’s capability to produce net income by using its equity. Return on
Equity for the years ended in December 31
st
2016 and 2015 are -2,16 and 0,69, respectively.
2016 2015
Total Comprehensive Income Loss for the Year -3.601
1.345 Total Revenues
7.943 19.182
Total Comprehensive Income Loss for the Year -45,34
7,01 Description
in million Rupiah For the Year Ended on December 31st
2016 2015
Income Loss for the Year -9.634
3.084 Total Assets
471.889 517.137
Return on Assets -2,04
0,60 Description
in million Rupiah For the Year Ended on December 31st
2016 2015
Income Loss for the Year -9.634
3.084 Total Equity
445.577 449.147
Return on Equity -2,16
0,69 Description
in million Rupiah For the Year Ended on December 31st
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
30
Return on Equity for the year ending December 31
st
2016 stood at -2,16, declining by 2,85 compared to the return on equity for the year ending December 31
st
2015 which stood at 0,69. The decline in return on equity was caused by lower income for the year due to decline in Total
Revenues.
CAPITAL STRUCTURE
The Company has complied to the Ministry of Finance Regulation No.153PMK.0102010 regarding Shares Ownership and the Financing of Shares Brokerage of which the Company who
conducts activities as stock brokerage and underwriter is required to have paid-in capital worth at least Rp 50.000.000.000 fifty billion Rupiah. Authorized Capital and Paid-in Capital of the
Company as of December 31
st
2016 are Rp 800.000 million and Rp 282.681 million, respectively.
CHRONOLOGY OF CHANGES IN CAPITAL STRUCTURE
As of December 31
st
2016
Changes in the Company’s capital structure on July 14
th
2016 were due to the stock split with the following details:
1. The stock split ratio of 1:4, meaning for one old share with the par value of Rp100 one hundred Rupiah would become four new shares with par value of Rp25 twenty five Rupiah.
2. The number of shares outstanding before the split was 2.826.811.631 shares and after the split the number of shares outstanding would become 11.307.246.524 shares.
ADJUSTED NET WORKING CAPITAL MKBD
As securities company enganged in brokerage and underwriter activities, the Company is required to maintain minimum MKBD in accordance with Bapepam and LK Regulations now OJK
no. KEP-566 BL 2011, which among others determines the minimum MKBD value for securities companies operating as securities brokers and underwriters amounting to Rp25.000.000.000
twenty five billion Rupiah or 6,25 of total liabilities minus Sub-ordinated loans and loans in conjunction with the public offering right issue plus the rank of liabilities, whichever is higher.
Should MKBD levels are not monitored and adjusted, hence MKBD could be under the requirements level of MKBD. Those will be resulting sanctions started from penalties to
termination of part or all of the business. To mitigate these risks, the Company continues to evaluate the level of required MKBD and monitoring the regulations of MKBD as well as to
prepare the minimum required limits in accordance with applicable regulations. The Companys MKBD as of December 31, 2016 and 2015 has met the requirements stipulated under Bapepam
and LK Regulations amounting to Rp 185.476 million and Rp 141.425 million, respectively. To ensure adequate capital adequacy in conducting its business, the Company closely monitors
the capital structure on a daily basis by paying particular attention to changes in the value of the securities portfolio owned by the company and the amount of outstanding customer debt.
Descripton 2016
2015 2014
2103 2012
Authorized Capital Rupiah 800.000.000.000 800.000.000.000 800.000.000.000 800.000.000.000 380.000.000.000
Capital Stock Rupiah 282.681.163.100 282.681.163.100 282.681.163.100 217.447.050.000 130.016.500.000
Par Value per Share Rupiah 25
100 100
100 100
Number of Shares Shares 11.307.246.524
2.826.811.631 2.826.811.631
2174.470.500 1.300.165.000
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
31
The Company always monitors the liabilities ratio of asset and equity that shows the companys ability to meet its obligations both short-term and long-term liabilities. The policy to do initial
public offering is also one of the companys strategy to obtain additional fund.
MATERIAL FACTS AFTER THE FINANCIAL REPORTING DATE
On February 23
rd
2017, the General Meeting of Shareholders had decided to change the Company’s name in compliance to the Otoritas Jasa Keuangan Regulation Pasal 73 ayat 2 Nomor
20POJK.042016 about the Licensing of Stock Brokerage that Conducts Brokerage and Underwriting Businesses hereafter stated as
OPOJK 6O . Previously, the Company’s name
was PT. Minna Padi Investama Tbk, changed into PT. Minna Padi Investama Sekuritas Tbk. The change was effective upon the receipt of Letter of Decree from the Ministry of Law and Human
Rights dated March 3
rd
2017 nomor AHU-0005381.AH.01.02. - 2017.
BUSINESS OUTLOOK
The global economic growth is expected to continue improving. Global growth will continue to be supported mainly by the economic recovery in the United States and the emerging market
economies along with rebounding commodity prices. The United States economic growth has been supported by consumption and investment, followed by better labor market and income.
Global commodity prices including oil price and Indonesian export commodities also increased. Several global risks require caution, including inflationary pressure in advanced economies which
may trigger the monetary policy tightening in these countries. Meanwhile, continued increases in the federal funds rate are potentially strengthening the American currency and this will raise
the cost of borrowing. Brexit issue and geopolitical risks in several European countries are linked to the strengthening of the wave of populism as well as the risk of Greek debt resolution which
may heightened global uncertainties. From the monetary side, the transmission of monetary policy easing both through interest rate
mechanism and credit channeling are expected to continue. Bank Indonesia expects economic growth in 2017 will be better than that of 2016. The investment performance is also expected to
increase, supported by the continued construction of infrastructures by the Government, coupled with the improvement in private investments. Exports are also seen increasing alongside
improving commodity prices of major export commodities. From the consumption side, the increase in the public income along with manageable inflation are supportive to the strong
domestic demand in 2017. Meanwhile, major economic sectors are seen growing and continue to provide major boost to the economy. Overall, the Indonesian economy is expected to grow
higher than that of 2016, which was at 5,0-5,4. Besides, in line with picking-up of economic activities and the impact of monetary policy easing and macroprudential adopted by the
Governement, credit growth and third-party funds in 2017 is seen better at 10-12 and 9-11, respectively. Inflation in 2017 is still seen manageable and expected be with the range of 4-4,1.
In the financial market, stock market and bonds market are seen strengthening further, boosted by positive sentiment among global investors. Non-bank financing is also seen continuing its
uptrend. Domestic stock market continues to be influenced by the positive sentiment coming from global and domestic sides. From the global side, positive sentiment is primarily related to
the market expectation on the rise of the fed funds rate in the United States which, will depend on the economic outlook of the United States. Interest rate normalization policy by the Federal
Reserve remains likely and will be done gradually. Strengthening of the domestic market is
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
32
expected to be influenced by other positive sentiments from the global side, such as the rising global oil price and the better-than-expected Chinese manufacturing data.
On the domestic side, the strengthening of the stock market will be supported by the market’s positive expectations on the national economic outlook. Optimism among others, is coming from
better-than-expected corporate financial reports, data on economic growth, manageable inflation as well as better trade balance. Bank Indonesia on the other hand, has decided to
maintain its 7-day Reverse Repo Rate at 4,75, while deposit facility rate is maintained at 4, lending facility at
, and the upgraded rating outlook of Indonesia to positive by Moody’s has also able to maintain the positive sentiment. This decision came in amidst global uncertainties
and is expected to preserve the macroeconomic stability in Indonesia. Even as on overall the Indonesia Stock Exchange performance is seen improving this year, some
sectors continue to warrant caution, such as the mining sector and agriculture. Banking sector is expected to experience improvement as BI rate remains unchanged. Shares of listed companies
exposed to the exchange rate of U.S. dollar to the Rupiah will stay exposed to the negative impact from the weak Rupiah. On the contrary, along with the improvement in purchasing power, shares
in the consumer sector have the potential to shine in 2017. Other sectors with better outlook are property sector and the construction as they are positively affected by the construction of
infrastructures by the Government. Improvement in the outlook of the Indonesian stock market performance this year is also seen
to bring impact to the shares trading activities both generally as well as specifically to the Company.
Robust transaction activities may increase the Company’s revenues, while on the Corporate Finance side, brighter outlook of the stock market can become an incentive for non-
listed companies to consider listing their shares at the bourse. This means opportunity for the Company to be active again as an underwriter for companies planning for Initial Public Offerings.
To increase the number of clients as well as a realization of the Financial Literacy program, the Company in 2017 will be participating in Sekolah Pasar Modal SPM events held by the Indonesia
Stock Exchange where the Company conducts a series of presentations about trading mechanism by using the Company’s online trading application. Also, the Company conducts presentations
about fundamental and technical analysis which can be used by the participants for stock analysis. It is hoped that such events can serve as a marketing tool for the Company, which may
potentially increase the number of clients at the Company. Risks faced by the Company are of course, coming from the domestic economy itself. Worsening
economic outlook may further suppress investors’ sentiment which may result in the decline of
trading activities in the stock market. Consequently, the Company’s stock trading activity will also be influenced and may experience decline should this such thing happens. Should economic
outlook turns grim, the attractiveness for companies to list their shares in the stock exchange through IPO will also deteriorate, and this will in turn worsen the potential for the Company to
see an increased in revenues from corporate finance activities.
COMPANY’S PROJECTION
In facing the year 2017, the Company is confident. Even on the back of uncertainties haunting the global economy, the Indonesian economy is expected to continue growing on a positive note.
The Indonesian Government is maintaining the economic growth by issuing a series of economic policy packages as stimulus for the business and investment in Indonesia. Currently, the
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
33
Government has allocated its State Budget a bigger portion for infrastructure projects such as electricity, toll roads, seaports and airports, bridges and other infrastructures supporting rural
economies. Private sector is also seen benefited by the projects, resulted in more foreign investors willing to invest in Indonesia.
Improvement in the industry means more capital are needed and this creates an opportunity for the Company to play its part in the Indonesian capital market. The Company as an underwriter is
confident that in 2017 there will be more companies in Indonesia seeking funding for business expansions by doing shares offerings or by issuing bonds or notes. PT Bursa Efek Indonesia BEI
has also provided many simplicities for companies to seek funding through the Indonesian capital market.
In 2017, the Company plans to be more active in doing corporate finance activities such as seeking companies planning to list their shares at the stock exchange by doing socialization and
education directly to potential companies. The Company also engages in syndicated partnerships with other underwriters. Besides, the Company is planning to participate in IPO Fair, becoming a
source in IPO consulting for companies potential for going public. The support from the Bourse for this activity is expected to attract more companies to participate in the consulting session to
be provided by the Company. For its plan for engaging in fixed income activities such as traing of bonds
– both private and Government -, the Company is still facing an issue such as lack of qualified human resources. Still,
the Company will proceed with the plan as soon as the issue is resolved. Economic policy packages have been issued by the Government which ease and support
investment in Indonesia. In the coming years, it is expected that more investments will come into Indonesia as it is expected to be the investment destination for industrial countries. This can be
seen from more foreign companies committed to building new factories in Indonesia. This has caught the Company’s attention to further optimize its services in investment banking because
more companies are seen expanding and they will need financing from the capital market, either in the form of shares offering or bonds.
The Company continues to strive in meeting its target already set in terms of revenues, income loss, financing and to maintain its profitability ratios by conducting its business with prudence
and compliant to the regulations in the capital market.
COMPARISON BETWEEN TARGETINITIAL PROJECTION AND RESULTS
a. Revenues
