July 21st 2016

PT BANK CENTRAL ASIA, Tbk.

Indonesian Banking

and Financial

Industries

2

Indonesia is one of the Fast Growing G-20 Countries

3

Growing Middle Class Population

4

5

Financial Institution Non Bank

6

The Biggest Asset of Financial Institution Non Bank is Insurance

with total assets Rp 852 trillion

Source Otoritas Jasa Keuangan

Indonesian Banking Landscape

Source Bank Indonesia

7

Banking Industry Based on BUKU

8

0

10

20

30

40

50

BUKU 1 BUKU 2 BUKU 3 BUKU 4

No of Banks in Each Category Based on Business Activity (BUKU)

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

BUKU 1 BUKU 2 BUKU 3 BUKU 4

Net Profit in Each Bank Category Based on Business Activity (BUKU) in 2015IDR Bio

42%

42%

43%

43%

44%

44%

45%

2011 2012 2013 2014 2015

% of Total Asset Owned by Banks in BUKU 4

Banks in Indonesia are categorized into 4

Groups based on their Business Activity

There are only 4 Banks in BUKU 4, namely

Bank Mandiri, Bank Central Asia, Bank Rakyat

Indonesia and Bank Negara Indonesia

Those 4 banks dominate both the Net Profit

and Total Asset in Banking Industry in

Indonesia

Source Bank Indonesia

Source Bank Indonesia

Source Bank Indonesia

Solid Banking Sector

9

Top 10 Indonesian Bank

10

161

175

178

179

183

232

509

603

865

907

MayBank

Permata

BTN

Danamon

Panin

CIMB Niaga

BNI

BCA

BRI

Mandiri

97

104

112

126

131

163

309

374

565

567

Danamon

MayBank

Permata

Panin

BTN

CIMB Niaga

BNI

BCA

Mandiri

BRI

107

107

121

125

128

165

354

470

638

655

MayBank

Danamon

BTN

Permata

Panin

CIMB Niaga

BNI

BCA

BRI

Mandiri

41

44

46

51

60

86

211

358

362

407

MayBank

Danamon

Permata

Panin

BTN

CIMB Niaga

BNI

BRI

BCA

Mandiri

The Top 5 Indonesian Bank based on Asset, Loans, Third Party Funds and CASA

are Mandiri, BRI, BCA, BNI and CIMB Niaga

Source Bank Indonesia and Company Data

• Legal

Legal Platform and consistency rule of law

• Infrastructure

Infrastructure is still in development, such as fiber optics, bandwidth, etc

Indonesia is a country with many islands, which is a challenge for Indonesian banks

to capture the whole market and delivering services that needed for customers

• Talent Recruitment, Development and Retention

• Market Infrastructure

Credit Agencies, product development and market segmentation

Policies

• Regulatory

Change, Change, Change

11

Challenges on Indonesian Banking Sector

The Indonesian Banking Architecture (API) is a comprehensive basic

framework for the Indonesian banking system, outlining the

direction, outline, and structure of the banking industry for the next five to

ten years

12

Indonesian Banking Architecture (Launched at 2004)

Source Bank Indonesia

STRUCTURAL REINFORCEMENT OF THE NATIONAL BANKING SYSTEM PROGRAM

The program for improvement of overall capitalization of commercial banks is

expected to produce a more optimum structure for the banking system within the

next ten to fifteen years. This structure is envisaged as follows:

Two or three banks with potential to emerge as international

banks, possessing the capacity and ability to operate with an international

presence and having total capital exceeding Rp 50 trillion;

3 to 5 national banks, having a broad scope of business and operating

nationwide with total capital of between Rp 10 trillion and Rp 50 trillion;

30 to 50 banks operating as focused players, operating in particular business

segments according to the capability and competence of each bank. These

banks will have capital of Rp 100 billion up to Rp 10 trillion;

Rural banks (BPRs) and banks with limited scope of business, having capital of

less than Rp 100 billion.

13

14

STRUCTURAL REINFORCEMENT OF THE NATIONAL BANKING SYSTEM PROGRAM

Source Bank Indonesia

THANK YOU