PT. Inter Pan Pasifik Futures Member of Jakarta Futures Exchange and Member of Indonesian Derivatives Clearing House Tamara Building, 3 rd Floor, Suite 302 Jend. Sudirman Kav. 24 Jakarta

PRODUCT I  Stock Indices  Hang Seng Index 43 (HSI 43); combined average of 43 of the blue chip stocks in Hong Kong stock exchange market.  Nikkei 225 (NKI 225); combined average of 225 of the blue chip stocks in Japan stock exchange market.

Trading Fact HSI 4 3  Counter: HSI  Contract: Rp ,-/ point index  Min Tick: 1 point.  Min Deposit: Rp100 million.  Margin Requirement: Rp.6 million (day trade). : Rp.20 million (over night)‏  Commission: Rp ,-/ lot settled  Transaction Time: – Wib (Session I)‏ : – Wib (Session II)‏  Min Transaction: 1 lots.  Profit/ Loss Calculation : (Sell Price – Buy Price) x Contract x no. lot - (commission x no. lot)‏  Spread: 10 point  Confirm Price: + 10 point ( open price only )‏

Trading Fact NKI 225  Counter: NKI  Contract: Rp ,-/ point index  Min Tick: 5 point.  Min Deposit: Rp.100 million  Margin Requirement: Rp.6 million (day trade)‏ : Rp.20 million (over night)‏  Commission: Rp ,-/ lot settled  Transaction Time: – Wib‏  Min Transaction : 1 lots.  Profit/Loss Calculation: (Sell Price – Buy Price)x Contract size x no. lot - (commission x no. lot)‏  Spread: 10 point‏

Two Way Transaction Open Buy Close Sell Profit Open Sell Close Buy Profit

Example  On July 8, 04, Mr. David executed Open Buy transaction of 5 lots HSI at and on the same day he did a Close Sell transaction on for 5 lots. So: P/L = (Sell Price – Buy Price) x Contract x no. lot – Commission = (12000 – 11800) x Rp.50,000 x 5 lot – (Rp. 55,000 x 5)‏ = (12000 – 11800) x Rp.50,000 x 5 lot – (Rp. 55,000 x 5)‏ = Rp.49, 725,000. = Rp.49, 725,000.  On July 9, 04, Ms. Jane executed an Open Sell transaction for 5 lots NKI at and on July 12, 04 she did a Close Buy transaction for 5 lot NKI at , so: P/L = ( Sell Price – Buy Price) x Contract x no. lot – Commission = ( – ) x Rp.50,000 x 5 lot – (Rp.55,000 x 5)‏ = ( – ) x Rp.50,000 x 5 lot – (Rp.55,000 x 5)‏ = Rp.37,225,000. = Rp.37,225,000.

Common Stock Vs Stock Indices Common Stock Stock exchange Stock exchange 100 % Principal 100 % Principal 1-way Transaction 1-way Transaction Limited Risk Management Methods. Limited Risk Management Methods. Limited Buyer and Seller. Limited Buyer and Seller. Withdrawal T+5 Withdrawal T+5 Stock Indices Future Stock Exchange Future Stock Exchange 2 – 10 % Principal 2 – 10 % Principal 2-way Transaction 2-way Transaction Many Risk Management Methods. Many Risk Management Methods. Buyer and Seller is always available. Buyer and Seller is always available. Withdrawal T+1 Withdrawal T+1

Reksadana Vs Stock Indices Reksadana 1. Investor’s not directly involved. 2. Balance Sheet is sent periodically, ex: monthly. 3. Long Term Investment. 4. Withdrawal T+5 Stock Indices 1. Investor’s in control. 2. Balance Sheet is sent daily when there’s transaction. 3. No time commitment. 4. Withdrawal T+1.

PT. Inter Pan Pasifik Futures  The company that acts as a Future Indices’ Broker with authorization from BAPPEPTI.  The company acts on clients’ instruction to trade.

BAPPEBTI  The organization that acts as the regulator of all future trading in Indonesia.  Responsible to the Minister of Trade.

JAKARTA FUTURE EXCHANGE & INDONESIAN DERIVATIVES CLEARING HOUSE JAKARTA FUTURE EXCHANGE  The organization that provides facilities to conduct future exchanges in Jakarta. INDONESIAN DERIVATIVES CLEARING HOUSE  The organization that acts as the system and facilities providers for fund clearing processes and the transaction guarantor in futures exchange market.

GOVERNING LAWS  UU No: 32, December 5,1997 About Future Trading.  PP No: 09, January 27,1999 About Future Trading actions and conducts.  PP No: 10, January 27,1999 About ways to investigate the Future Trading.

ADVANTAGES TO INVEST IN FUTURES MARKET 1. SAFE  The existence of law to protect the investors.  The existence of Jakarta Derivatives Clearing House to govern the future trading, provide facilities, and guarantee the validity of the investor’s transaction.  The existence of Bappebti that acts as the governor and regulator of the Future Exchange Market to guarantee the investor’s and brokerage firm’s rights and obligations.

ADVANTAGES TO INVEST IN FUTURES MARKET 1. BENEFICIAL  Profit can be gained in both up trend and down trend market (two way opportunity).  Small principal, high profit business (high leverage).  Maximize profit and minimize risks.  Profit can be achieved in a relatively short amount of time (in matters of days, hours, or even minutes).

ADVANTAGES TO INVEST IN FUTURES MARKET 1. EASY  Liquid investment, principal and profit can be withdrawn at anytime T+1.  Uncomplicated administration procedures.  Buyer and seller are always available. 1. TRANSPARENT  Investor can supervise trading directly.  Information is vastly available (on TV, newspaper, Internet, etc.)‏  High tech, accurate, and up to date information facility is provided (Winquote).  Investor will receive a daily statement promptly.

Risk Management  Cut Loss Is a precaution action to stop loss by submitting a Stop Loss Order at opposite direction from the opening position. EX: Mr. Joe does and an Open Buy HSI transaction for 5 lots at with up trend market expectation. But to anticipate the risk he put in a stop loss order Close Sell for 5 lots at Market then drops to If he didn’t put in the stop loss order he would have loss 300 points/lot. Instead he only suffers the loss of 100 point/ lot. Open Buy di Stop Loss Sell di 13000

Risk Management  Switching Is a risk management action to close the opening position and to open a new position at the opposite direction from the first position. Open Buy di Stop Loss Order Sell + Open Sell di Close Buy di 12600

Risk Management  Hedging Is to lock the loss suffered by locking the position at opposite direction from the first position. Open Buy di Open Sell di Close Buy di Profit 1200 point Close Sell di Loss 700 point Total Profit = 500 point

Risk Management  Averaging Is an action to anticipate risk by adding new position with twice as many lots at the same interval. Open Buy 2 lot di Open Buy 4 lot di Open Buy 8 lot di Open Buy 16 lot Di Close Sell 30 lot di Profit 8 x 500 = 4000 point Profit 16 x 1000 = point Loss 2 x 500 = 1000 point Total profit = point

FUTURE TRADING AND FUTURE CONTRACT Future Trading  Trading based on Future Contract.  Two way transaction. Future Contract Future Contract  A contract standard to buy or sell in a preset quantity, quality, and type.

PRODUCT II  Foreign Exchange/ Forex:  USD/ JPY  USD/ CHF  EUR/ USD  GBP/ USD  AUD/ USD

Forex Market Participator  Central Bank -Bank Indonesia -The Federal Reserve (USA)‏ -Bank Of Japan (BOJ/ Japan)‏ -European Central Bank (ECB/ EU)‏ -Etc.  Bank Fiscal  Non Bank Financial Organization -Fund Manager -Insurance -Money Changer -Etc.  Exporter and Importer  Individuals

Trading Fact Forex  Counter: USD/ JPY; USD/CHF; EUR/USD; GBP/USD; AUD/USD  Contract:  USD/ JPY: US$ 100,000.  USD/ CHF: US$ 100,000.  EUR/ USD: € 100,000.  GBP/ USD: £ 100,000.  AUD/ USD: AU$ 100,000.  Min Deposit: US$ 12,500. atau : Rp. 100 juta (Fix: Rp. 6,000/ US$)‏  Margin Requirement: $ 1,000 / lot (day trade)‏ : $ 1,000/ lot (over night)‏  Commission: $ 66 / lot settled  Interest: adjusted to the ongoing inter-bank interest rate.  Spread: 6 point  Confirm Price - USD/ JPY, USD/ CHF: ± 6 point (open position)‏ - USD/ JPY, USD/ CHF: ± 6 point (open position)‏ - EUR/ USD, GBP/ USD,: ± 5 point (open position)‏ - EUR/ USD, GBP/ USD,: ± 5 point (open position)‏ AUD/ USD AUD/ USD

CALCULATION  USD/ JPY; USD/ CHF P/L = ( Sell Price – Buy Price ) x Contract x No. Lot – commission P/L = ( Sell Price – Buy Price ) x Contract x No. Lot – commission Close Price  EUR/ USD; GBP/ USD; AUD/ USD P/L = (Sell Price – Buy Price) x Contract x No. lot - Commission

Example  On July 7, ‘04, Mr. Jimmy does an Open Buy USD/ JPY transaction for 5 lots at and on that day did a closing transaction with Close Sell USD/ JPY 5 lot at , so: P/L= ( Sell Price – Buy Price ) x Contract x no. lot -Commission Close Price Close Price = ( – ) x $ 100,000 x 5 lot – ($ 10 x 5)‏ = $ 6, $ 50 = $ 6,799.3  On July 8, ‘04, Ms. Anita does an Open Sell EUR/ USD transaction for 5 lot at and on the same day she does a Close Buy EUR/ USD for 5 lot at , so: P/L= (Sell Price – Buy Price) x Contract x no.lot – Commission = ( – ) x € 100,000 x 5 – ($ 10 x 5)‏ = $ 10,000 - $ 100 = $ 9,950

TRANSPARENT  Every transaction is well documented.  Every transaction is directly reported to the investor.  Balance Sheet Trading includes:  Open Transaction.  Settled Transaction  Previous Balance  Profit/ Loss  New Balance, etc.

FOREX vs Money Changer FOREX  Margin trading.  Only 1% principal required from the transaction value.  Two-way transaction.  Buyer ad seller is always there (high liquidity). Money Changer  Physical trading.  100 % principal required from the transaction value.  One-way transaction.  Limited buyer and seller.

Thank you PT. Inter Pan Pasifik Futures Your Best Partner for Profiting from the Futures