After having 4 (four) ETF Mutual Funds that are already traded at Indonesia Stock Exchange (“IDX”), PT Indo Premier Investment Management (“IPIM”) is back launching equity based ETF Mutual Fund. This Mutual Fund product that can be traded at any time during IDX trading hours is called Premier ETF SMinfra18 Mutual Fund with trading code XISI.
“Premier ETF SMinfra18 Mutual Fund is the fifth (5th) ETF Mutual Fund that we launched. The Mutual Fund, where its Investment Unit (“UP”) is traded at IDX, has its stock portfolio composition listed in SMinfra18 Index”, said John D. Item, President Director of IPIM.
IPIM cooperates with PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) as the owner of SMinfra18 Index. “We chose infrastructure theme due to considering the needs of infrastructure development in Indonesia that must be fulfilled immediately in order to support Indonesia to enter the big 10 of world economics in 2025, with total Gross Domestic Product (GDP) of USD 4.5 trillion through infrastructure development. In the midst of uncertain market condition at the moment, ETF can be the right investment instrument to reduce the fluctuation as well as to provide transparency and freedom for the Investors to make transactions at any time during trading hours”, explained John.
SMinfra18 Index is a collection of 18 stocks, where each constituent is chosen from infrastructure sector and its supporting sector. Selecting the stocks included in SMinfra18 Index constituent is done by PT SMI based on certain criteria. Then, the screening is done by IDX and it is periodically reviewed by an Index Independent Committee once every 6 month.
“As a State-Owned Enterprise (“BUMN”) in Infrastructure Financing sector, PT SMI was established with the objective to support the acceleration of national infrastructure development. The cooperation to form infrastructure index with IDX, followed by the plan to form ETF SMinfra 18 Mutual Fund with IPIM, is a form of PT SMI’s mission to synergize with a third party in increasing funding capacity and national infrastructure development”, said the President Director of PT SMI, Emma Sri Martini.
For Premier ETF SMinfra18 product, IPIM engages Deutcshe Bank, AG Jakarta branch as the Custodian Bank, and PT Indo Premier Securities as the Participant Dealer.
Elwin Karyadi, Indonesia Head of Global Transaction Banking and Direct Securities Services from Deutsche Bank AG Jakarta Branch, said:”It is an honor for us to be chosen again by IPIM as the Custodian Bank for their newly launched ETF product, after the previous appointment in 2013 as the Custodian Bank for the other ETF products. We hope to keep improving our cooperation with IPIM.”
“The launching of Premier ETF SMinfra18 today, with the trading code XISI, adds the number of ETF in Indonesia to be 6 (six) ETF, which means it is already the same number of ETF in our neighboring country, Malaysia,” said Ito Warsito, the President Director of IDX.
“It is expected that by launching XISI, it can participate well in Indonesia Stock Market as well as can increase Indonesia’s GDP indirectly,” explained Ito.
“ETF is an investment vehicle that has high flexibility and simplifies your investment in Indonesia’s stock market,” John concluded enthusiastically.
ABOUT PT INDO PREMIER INVESTMENT MANAGEMENT (”IPIM”)
PT Indo Premier Investment Management (“IPIM”) is a subsidiary of PT Indo Premier Securities. IPIM was established in 2003 and have obtained license as an Investment Manager from the Capital Markets Supervisory Board (Bapepam & LK). Since 18 January 2011, IPIM has done a process of spin-off and has renewed its license as an Investment Manager.
With full support from the parent company, where PT Indo Premier Securities is a company specializing in technological advances in making innovation in the capital market industry, it makes IPIM possible to make innovation in creating a unique product with technological utilization as well as strong back office system.
IPIM is an Investment Manager that launched the first ETF Equity Fund in Indonesia, which was Premier ETF LQ-45 on 18 December 2007. Aside from the newly launched ETF Mutual Fund, Premier ETF Shariah JII and Premier ETF Indonesia Consumer, our primary Mutual Fund products are Premier ETF LQ-45 (Index based), Premier ETF IDX30 (Index based), Premier Campuran Fleksibel and Premier Makro Plus.
Currently, IPIM has 14 Mutual Fund products, wherein the last 1 year IPIM has issued 5 (five) new Mutual Funds. The objective of issuing new Mutual Fund products is to enrich the variety of Mutual Funds that can be chosen by the investors following their investment needs. IPIM’s Mutual Fund products among others are: Fixed Income Mutual Fund, Mixed Mutual Fund, Equity Mutual Fund, and ETF, as well as Protected Mutual Fund.
ABOUT PT SARANA MULTI INFRASTRUKTUR (PERSERO) (”PT SMI”)
As a catalyst in the acceleration of the infrastructure development in Indonesia, PT SMI was established in 2009 with 100% of the stocks are owned by the Government of the Republic of Indonesia under the Ministry of Finance. In the beginning of the establishment, PT SMI carried mandate as an Infrastructure Financing Company. In line with the development, the needs for infrastructure development do not involve solely the Financing & Investment side. Therefore, PT SMI expands its business scope by providing Advisory Service and Project Development Service.
The three business pillars of PT SMI (Financing & Investment, Advisry and Project Development) are solutions in Indonesia’s infrastructure development. In order to give added value in the infrastructure development, PT SMI always gives effort to increase its capacity through partnership with private party or multilateral institution. One of the efforts to increase the capacity is by improving active participation in the capital market.
Since the establishment, PT SMI’s infrastructure project portfolio already covers almost all over Indonesia, with various diversity sectors in accordance with the provision of PMK No. 100/PMK.010/2009 Year 2009 concerning Infrastructure Financing Company. Until the end of 2013, PT SMI has given a total financing commitment of Rp 4.4 trillion for a total project cost of Rp 38.89 trillion and has generated a multiplier effect of 8.7 times. Furthermore, PT SMI also keeps promoting infrastructure development with Public-Private Partnership Scheme (PPP) scheme. Through preparation of SPAM Umbulan PPP Project, Soekarno Hatta Airport Railway PPP Project and Batam Waste Management PPP Project, PT SMI actively participates in developing PPP projects in Indonesia.
ABOUT DEUTSCHE BANK AG, CABANG JAKARTA
Deutsche Bank AG, Jakarta Branch – Custodian Bank – is a branch office of Deutsche Bank Aktiengesellschaft (”Deutsche Bank AG”), a banking institution established based on laws and legislations of the Federal Republic of German.
Deutsche Bank AG Jakarta Branch – Direct Securities Services has obtained approval as a Custodian in stock market from the Capital Market Supervisory Board (“BAPEPAM”) based on the Decision Decree of the Head of BAPEPAM Number Kep-07/PM/1994 dated 19 January 1994, and has started providing service since 1994.
The business of Direct Securities Services from Deutsche Bank AG Jakarta Branch provides custodian service, fund administration services, and other related services to domestic and international customers, such as global custodian, asset management company, insurance company, Mutual Fund, pension fund, investment bank, Securities broker-dealer, and companies.
For further information, contact:
PT Sarana Multi Infrastruktur (Persero)
Phone. +62 (21) 5785-1499
Fax. +62 (21) 5785-4298
Mobile. +62 811-19-7750
PT Indo Premier Investment Management
Phone. +62 (21) 5793-1260
Fax. +62 (21) 5793-1222
Mobile. +62 815-935-6887