CONTENTS
01 FINANCIAL HIGHLIGHTS
03 MANAGEMENT REPORT
07 CORPORATE PROFILE
20 MANAGEMENT
DISCUSSION & ANALYSIS
39 GOOD CORPORATE
GOVERNANCE
64 CORPORATE SOCIAL
RESPONSIBILITY
01
FINANCIAL HIGHLIGHTS
The following figures on the tables are stated in million Rupiah, except Basic Earnings (Loss) Per Share and financial ratios.
DESCRIPTION 2016 2015 2014 2013 2012
Total Revenues 7.943 19.182 16.752 27.885 34.928 Gain (Loss) from Operations (13.353) (2.924) (3.710) 7.329 18.645 Income (Loss) for the Year (9.634) 3.084 2.663 7.474 22.335 Total Comprehensive Income (Loss) for the Year (3.601) 1.345 11.405 14.208 10.144 Basic Earnings (Loss) Per Share for the Year (in full Rupiah) -0,85 1,09 1,06 4,36 17,25 Basic Comprehensive Earnings (Loss) Per Share for the Year (in full Rupiah) -0,32 0,48 4,38 8,28 7,83
Total Assets 471.889 517.137 550.859 497.983 413.917 Total Investments 5.867 5.867 5.867 5.867 5.867 Total Liabilities 26.312 67.990 99.935 58.464 55.873 Total Equity 445.577 449.147 450.924 439.520 358.044
Income (Loss) for the Year to Total Assets Ratio -2,04% 0,60% 0,48% 1,50% 5,40% Income (Loss) for the Year to Total Equity Ratio -2,16% 0,69% 0,59% 1,70% 6,24% Income (Loss) for the Year to Total Revenues Ratio -121,29% 16,08% 15,91% 26,80% 63,95% Current Ratio 1.561,97% 655,34% 506,79% 786,00% 671,99% Debt to Equity Ratio 5,91% 15,14% 22,36% 13,30% 15,61% Debt to Assets Ratio 5,58% 13,15% 18,28% 11,74% 13,50%
Total Shares Outstanding (in million shares) 11.307,25 2.826,81 2.826,81 2.174,47 1.300,17
Total Assets Total Liabilities Total Equity
(in million Rupiah) (in million Rupiah) (in million Rupiah)
Total Revenues Gain (Loss) from Operations Income (Loss) for the Year
(in million Rupiah) (in million Rupiah) (in million Rupiah)
4 1 3 .9 1 7 4 9 7 .9 8 3 5 5 0 .8 5 9 5 1 7 .1 3 7 4 7 1 .8 8 9 0 100 200 300 400 500 600
2012 2013 2014 2015 2016
5 5 .8 7 3 5 8 .4 6 4 9 9 .9 3 5 67 .99 2 6 .3 1 2 0 20 40 60 80 100 120
2012 2013 2014 2015 2016
3 5 8 .0 4 4 4 3 9 .5 2 4 5 0 .9 2 4 4 4 9 .1 4 7 4 4 5 .5 7 7 0 50 100 150 200 250 300 350 400 450 500
2012 2013 2014 2015 2016
34 .92 8 2 7 .8 8 5 16 .75 2 19 .18 2 7 .9 4 3 0 5 10 15 20 25 30 35 40
2012 2013 2014 2015 2016
18 .64 5 7 .3 2 9 -3 .7 1 -2. 92 4 -13 .35 3 -15 -10 -5 0 5 10 15 20 25
2012 2013 2014 2015 2016
22 .33 5 7 .4 7 4 2. 66 3 3 .0 8 4 -9 .6 3 4 -15 -10 -5 0 5 10 15 20 25
STOCK HIGHLIGHTS
Based on the decision of Extraordinary General Shareholders Meeting as stated in the minutes of the Extraordinary General Shareholders Meeting of PT Minna Padi Investama Tbk. No. 243, dated 22-06-2016 (twenty-two June two thousand and sixteen), the Company had conducted stock split with the following details:
1. The stock split is to be done on July 14th 2016.
2. The ratio of the stock split is 1:4, which means for every one old share with par value of Rp100 (one hundred Rupiah) will become four news shares with the par value of Rp25 (twenty-five Rupiah).
3. The previous number of shares outstanding was 2.826.811.631 shares, and after the split the
Q I Q II Q III* Q IV Q I Q II Q III Q IV
Opening Price (Rp) 745 930 900 262 620 615 565 695
Highest Price (Rp) 930 1.010 322 510 725 660 705 780
Lowest Price (Rp) 645 800 208 260 585 500 410 615
Closing Price (Rp) 930 920 262 402 615 565 700 745
Market Capitalization (in billion Rupiah) 2.629 2.601 2.962 5.382 1.738 2.219 1.979 2.106 Transaction Volume (in thousand shares) 950.393 397.054 3.079.101 4.228.379 339.276 428.344 882.687 636.201 Transaction Value (in million Rupiah) 708.412 339.898 865.233 1.429.640 227.943 264.674 523.329 477.679 Trade Frequency (times) 4.164 1.314 10.803 6.162 15.636 1.769 18.648 981 * Stock split 1:4 on July 14th 2016
Description 2016 2015
0 200 400 600 800 1000 1200
Q I - 2015 Q II - 2015 Q III - 2015 Q IV - 2015 Q I - 2016 Q II - 2016 Q III - 2016 Q IV - 2016
02
REPORT OF THE BOARD OF DIRECTORS
Dear Shareholders and Stakeholders,
We have journeyed throughout the year 2016 which, remained a challenging year as global economic growth continued to underperform as well as political shocks happening along the way. Domestically, the slowdown in economic growth persisted despite some more policy packages were issued by the Government. Two key themes for 6 were the Government’s tax amnesty program and the heightened political tension rising from the gubernatorial elections held simultaneously in several provinces in Indonesia but with DKI Jakarta as the main focus.
Based on the data from the World Bank, after growing at the pace of 2.7% (Y/Y) in 2014 and 2015, the world economy was estimated to have grown at 2.3% (Y/Y) in 2016. In the United States, growth actually slipped to 1.6% (Y/Y) in 2016, compared to 2.6% (Y/Y) in 2015. In Euro Area, growth had slowed to 1.6% (Y/Y) in 2016 after it grew by 2% (Y/Y) in 2015. Elsewhere, in East Asia and Pacific, Chinese economy grew by 6.7% (Y/Y) in 2016, further slowing from 6.9% (Y/Y) in 2015 and 7. % Y Y in . Indonesia’s economic growth also slowed to hit .9 % Y Y in 6 after it expanded by 5.01% (Y/Y) in 2015.
News from Britain had surprised the market as referendum in Britain had favored exit from Euro. Late in 2016, the U.S. election resulted in the appointment of Donald Trump as the President of the United States, sending waves of uncertainties regarding the outlook of the economy in the United States. Both events are expected to continue to bear influence throughout 2017 along with the path of the Federal Reserve’s monetary policy.
Domestically, the beginning of monetary tightening in the United States has presented a challenge for Bank Indonesia’s own monetary policy. BI is to seek a balance in its efforts to foster economic growth while also maintaining the stability of Rupiah exchange rate. In addition, it needs to continue monitoring the price stability. On the downside, political stability remained an issue for investors, especially as gubernatorial election in DKI Jakarta has triggered waves of protests which caused some concerns for investors. The Government’s tax amnesty program had a slow start last year before it eventually ended up with around Rp4,866 trillion of assets declared during the nine-month program duration, with Rp147 trillion came from repatriated assets.
full year losses amounted to Rp9.6 billion in 2016 compared to Rp3.1 billion of profit booked in 2015.
Despite the Jakarta Composite Index’s increase in 6, some stocks remained underperformed and this had put constraints over the Company’s financial performance with the addition of tight competition against other brokerages. In an effort to improve the Company’s services to the customers as well to increase the number of customers, the Company had participated in the Sekolah Pasar Modal, a program initiated by the Indonesia Stock Exchange to increase the public awareness about the stock market. Also, the development of mobile trading platform made available for Android Operating System (OS) is aimed at enhancing the trading experience for clients. On the other hand, the Company’s plan to commence with the fixed income trading has remained unrealized in 2016.
In 2017, we see several key issues stemming from the external sides of the world: the Trump policy for the United States, elections in several key European countries such as France and Germany which can heightened the risk for European breakup, and the outlook of the U.S. Federal Reserve as the federal funds rate is set to rise. From the domestic side, the political tension is seen coming from the gubernatorial race in DKI Jakarta, while the continuation of more constructions of infrastructures will remain in focus. With the U.S. rates heading higher, it will present a challenge for the Bank Indonesia to find the right balance between maintaining a healthy economic growth and maintaining exchange rate stability in addition to price stability. Over the longer-term, we see Indonesia will benefit greatly from more and better infrastructures which will support price stability and wealth distribution in the country.
Finally, we would like to thank our valued shareholders and stakeholders for the support given to the Company throughout 2016. To the Board of Commissioners, we would like to thank you for the supervision and the advices given to us throughout 2016. To everyone else who had supported us in conducting our work in 2016 we would also like to thank you all. On this occasion, we want to ask everyone from the Company’s management and employees to continue to provide the support for the year 2017.
Jakarta, April 28th 2017 On behalf of the Board of Directors
Djoko Joelijanto
BOARD OF COMMISSIONERS’ REPORT
Dear respected Shareholders and Stakeholders,
First, we would like to thank to all Shareholders and Stakeholders who had entrusted us in supervising the Company throughout 2016.
The year 2016 was a period full of challenges as the global economic condition has not yet recovered from the aftermath of global crisis occurred in 2008. Consequently, this has led to the decline in financial performance as the Company posted full year losses amounting to Rp9.6 billion in 2016 against Rp3.1 billion of profit booked in 2015. Noticeably, the brokerage revenue declined to Rp3.8 billion from Rp9.4 billion, while underwriting revenue was sharply lower at Rp1.78 million compared to Rp4.7 billion in 2015 in line with less companies going public in 2016. From dividend and interest, revenue were also lower at Rp4.1 billion compared to Rp5.0 billion posted in 2015. Overall, total revenues were more than halved to Rp7.9 billion in 2016 against Rp19.2 billion in 2015.
Total assets were down in 2016 to Rp417.9 billion from Rp517.1 billion in 2015, but total liabilities were also down from Rp67.9 billion in 2015 to Rp26.3 billion in 2016. As for total equity, the figure was slightly lower at Rp445.6 billion in 2016 against Rp449.1 billion in 2015.
In 2016 the Company had decided not to distribute dividends to the Shareholders, but the Company decided to conduct stock split using the ratio of 1:4 or for one old share will become four new shares. As a result, the nominal value of the shares were reduced from Rp100 per share to Rp25 per share and this changed the subscribed and fully paid capital increased from 2.83 billion shares to 11.31 billion shares.
The Board of Commissioners had conducted the supervisory function over the Company’s operations, reviewing each decision taken by the Board of Directors, attended Board of Commissioners meetings routinely, as well as supervising the implementation of principle of prudence and also providing inputs and considerations to the Board of Directors. We also continuously monitored the Company’s developments while at the same time complying to new regulations issued by relevant institutions.
REVIEW ON THE AUDIT COMMITTEE PERFORMANCE
The Audit Committee is a committee formed to assist the Board of Commissioners in supervising the Company’s operations. Throughout 6, the Audit Committee had performed its functions responsibly while at the same time provided significant contributions for the continuity of the Company’s business. Supervisory of financial reporting and the implementation of both internal and external audits were among functions performed by the Audit Committee. Also, the Audit Committee helped the Company in implementing a sound risk management as well as ensuring the integrity of the Public Accountant hired by the Company. In conducting its functions, the Audit Committee also periodically withheld meetings and reported the results to the Board of Commissioners.
03
PT. MINNA PADI INVESTAMA SEKURITAS TBK.
PT. Minna Padi Investama Sekuritas Tbk. (Minna Padi) was established in 1998 under the name PT Batavia Artatama Securindo. As mandated by the Regulation of Financial Services Authority no. 20/POJK.04/2016 regarding the business permit for securities companies conducting underwriting and stock brokerage businesses, Minna Padi has changed its name from PT. Minna Padi Investama Tbk. to PT. Minna Padi Investama Sekuritas Tbk.
Minna Padi held its business license as a stock brokerage and as underwriter which were issued on August 30th 1999 and April 3rd 2000, respectively, by Badan Pengawas Pasar Modal (now Otoritas Jasa Keuangan) and also obtained the License as the Member of the Indonesia Stock Exchange in 2004.
In developing its business, Minna Padi had conducted Initial Public Offering (IPO) to the public and listed its shares in the Indonesia Stock Exchange on January 9th using the stock ticker NPADIO.
Every Minna Padi’s client can conduct shares trading both using conventional means through broker representatives as well as through online trading facility (MASTER-ONLINE) where the client can conduct the trade by him/herself anywhere and anytime.
In its activities as a stock broker, Minna Padi provides margin facility that can be used by eligible clients.
HEAD OFFICE
JAKARTA
Equity Tower Lantai 11, SCBD Lot 9
Jl. Jendral Sudirman Kav. 52-53, Jakarta Selatan 12190
Telp.: (021) 525-5555 & 525-6666
Fax.: (021) 527-1527
Website: www.minnapadi.com
BRANCH OFFICES
Jakarta
–
Intercon
Ruko Plaza Intercon
Tmn Kebon Jeruk Blok A15-16, Lt. 2 Intercon, Jakarta Barat 11630 Telp. : (021) 585-6655
Fax. : (021) 585-7755
Jakarta
–
Kemang
Promenade 20 Unit M & N Jl Bangka Raya No. 20 Jakarta Selatan 12720 Telp. : (021) 719-9855 Fax. : (021) 719-2755
Bandung
Jl. Veteran No. 42 Bandung 40112
Semarang
Jl. Sriwijaya No. 8A Semarang 50257 Telp. : (024) 8411-555 Fax. : (024) 8313-032
Solo
Jl. Wolter Monginsidi No. 27 A/B Kel. Kepatihan Kulon Jebres Surakarta 57129
Telp.: (0271) 667-679 Fax.: (0271) 635-470
Surabaya
PROFILE OF BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS
Arys Ilyas
President Commissioner (Independent Commissioner)
Aged 72, Indonesian citizen. Graduated from the Economic Faculty of Universitas Indonesia in 1976. Appointed as the President Commissioner (Independent Commissioner) in 2010 and was re-appointed based on the decision of Extraordinary General Shareholders Meeting in 2015 based on the Act No. 25, dated 3 July 2015, made before Buntario Tigris Darmawa Ng., SH, SE, MH., Notary in Jakarta, as its notification received by the Minister of Law and Human Rights according to the Letter of Notification of Company’s Change of Data No. AHU-AH.01.03-0950921 dated 13 July 2015, and as registered in the List of the Company no. AHU-3532737.AH.01.011. dated 13 July 2015, with terms of service until the financial year of 2019.
Responsible in monitoring the implementation of Good Corporate Government (GCG) in the Company and to conduct adjustments whenever necessary.
Work Experience:
2005 - October 2011 Commissioner at PT Sarana Multigriya Finansial (Persero) 2004 - June 2009 President Commissioner at PT Kustodian Sentral Efek Indonesia
1997 - 2005 Head of Transaction Bureau and Securities Institution at Bapepam-LK (now OJK) 1995 - 2005 Commissioner & President Commissioner at PT Kliring dan Jaminan Bursa Komoditi 1991 - 1997 Head of Administration Bureau and Research at Bapepam-LK (now OJK)
Wijaya Mulia
Commissioner
Djoko Joelijanto
President Director
Aged 50, Indonesian citizen. Graduated as the Bachelor of Economics Management from Universitas Atma Jaya Yogyakarta in 1992 and completed his Master of Business Administration study in Finance from Cleveland State University, Ohio, USA in 1995. Appointed as the President Director since 2004 and was re-appointed based on the result of Extraordinary General Shareholders Meeting in 2015 as stated in the Act No. 25, dated 3 July 2015, made before Buntario Tigris Darmawa Ng., SH, SE, MH., Notary in Jakarta, as its notification received by the Minister of Law and Human Rights according to the Letter of Notification of Company’s Change of Data No. AHU-AH.01.03-0950921 dated 13 July 2015, and as registered in the List of the Company no. AHU-3532737.AH.01.011. dated 13 July 2015, with terms of service until the financial year of 2019.
Responsible for the Company’s compliance on every rule and regulation, strengthening of GCG alongside the audit committee, independent commissioner and corporate secretary, including but not limited to the policy and strategy of new products development.
Work Experience:
2004 – Now President Director at PT Minna Padi Investama Sekuritas Tbk. 1997 - 2004 Corporate Finance at PT Transpacific Securindo
1996 - 1997 Research Analyst at PT Bhakti Investama
Triny Talesu
Independent Director
Aged 51, Indonesian citizen. Graduated as Bachelor of Business Administration from Universitas Advent Indonesia in 1987, Bandung and obtained her Master in Business Administration degree from Philippine Christian University Manila, Philippines in 1989. Appointed as Director since 2004 and was re-appointed based on the result of Extraordinary General Shareholders Meeting in 2015 as stated in the Act No. 25, dated 3 July 2015, made before Buntario Tigris Darmawa Ng., SH, SE, MH., Notary in Jakarta, as its notification received by the Minister of Law and Human Rights according to the Letter of Notification of Company’s Change of Data No. AHU-AH.01.03-0950921 dated 13 July 2015, and as registered in the List of the Company no. AHU-3532737.AH.01.011. dated 13 July 2015, with terms of service until the financial year of 2019.
Fully responsible over the Company’s operational activities, including finance, strategic decisions as well as conducting supervision over Company’s operational activities.
Work Experience:
2004 – Now Independent Director at PT Minna Padi Investama Sekuritas Tbk. May 2004 - Oct 2004 Director at PT Prime Capital Securities
Jan 2000 - Apr 2004 Director at PT Multi Sarana Investama Sekuritas Oct 1997 – Dec 1999 Director at PT Layang Mega Securities
Martha Susanti
Independent Director
Aged 47, Indonesian citizen.
Graduated from the Economic Faculty of Universitas Trisakti, Jakarta in 1992.
Appointed as Director based on the Act No. 243, dated 22 June 2016, made before Buntario Tigris Darmawa Ng., SH, SE, MH., Notary in Jakarta, as its notification received by the Minister of Law and Human Rights according to the Letter of Notification of Company’s Change of Data No. AHU-AH.01.03-0059923 dated 22 June 2016, with terms of service until the financial year of 2019.
Responsible for the underwriting division as well as the Company’s Corporate Secretary.
Work Experience:
Jun 2016 – Now Independent Director at PT Minna Padi Investama Sekuritas Tbk. Jun 2013 – Jun 2016 Head of Investment Banking at PT. Minna Padi Investama Sekuritas Tbk. Jan 2013 - Jun 2013 Head of Investment Banking at PT. MNC Securities
Jun 1997 - Dec 2012 Vice President di PT. BCA Sekuritas (previously PT. Dinamika Usaha Jaya) May 1996 - May 1997 Head of Research at PT. Bhakti Investama
HUMAN RESOURCES
Human Resources are a vital aspect for the Company as a partner to achieve success in every business activity. The Company has placed the development of human resources as an important part to boost the Company’s growth, therefore the Company has developed a comprehensive policy related to the human resources, including the employee recruitment process, training and development as well as work performance evaluation of employees. Also, the management policy regarding the human resources is aimed at fulfilling Government regulation related to labor, such as:
Providing salary compliant to the minimum wage regulation;
Register all of the Company’s employees in the BPJS (Badan Penyelenggara Jaminan Sosial) Ketenagakerjaan as well as BPJS Kesehatan compliant to the regulation;
Reimbursement of employees’ medical expenses;
Development of employees’ potentials through various trainings;
Facilitate employees recreational events; and
Providing post-employment benefits according to the Labor Law No. 13/2003.
In order to improve the quality of the human resources both in terms of skills and knowledge, the Company has conducted various educational programs continuously.
The Company had conducted the following programs:
1. In-House Trainings
To develop the quality of human resources, the Company had held seminars and independent trainings. These events were aimed at improving the knowledge and skills of the employees in each of their respective fields.
2. External Trainings
The Company had sent its employees to participate in seminars and courses related to the Company’s business activities.
The Company’s employees had participated in the following trainings and seminars:
Capital Market Training and Seminars
Financial Analysis Training and Seminars
Tax Seminars
Know Your Customers Seminars
Money Laundry Training and Seminars
Information Technology Training and Seminars
Risk Management Training and Seminars
The Company has no labor union, however the Company’s management continuously strive to maintain a harmonious relationship between the management and the employees which has already went well. The number of Company’s employees as of 31 December 2016 was 60 employees.
Employee By Organization Level* Employee by Age*
Employee by Education Level* Employee by Seniority*
*As of 31 Desember 2016
Manager 23%
Director 5%
Staff 72%
High School
33%
Diploma 8% S1
47% S2 12%
21-30 Years 23%
30-40 Years 52% > 40
Years 25%
< 3 Years 13%
3 - 6 Years 35% > 7 Years
SHAREHOLDERS COMPOSITION
SHAREHOLDERS COMPOSITION*
INSTITUTIONAL AND INDIVIDUAL SHAREHOLDERS*
MANAGEMENT SHAREHOLDERS COMPOSITION*
Eveline Listijosuputro** 1.360.718.600 12,03% 34.017.965.000 898.650.480 31,79% 89.865.048.000
PT Swakaryajaya 781.250.100 6,91% 19.531.252.500 - -
-Henry Kurniawan Latief 26.130.000 0,23% 653.250.000 6.532.500 0,23% 653.250.000 Public (< 5%) 9.139.147.824 80,83% 228.478.695.600 1.921.628.651 67,98% 192.162.865.100 Total 11.307.246.524 100,00% 282.681.163.100 2.826.811.631 100,00% 282.681.163.100 *As of 31 December 2016
**Ultimate and Controlling Shareholder
Shareholder
2016 2015
Number of
Shares % Ownership Total
Number of
Shares % Ownership Total
Local Institution 781.250.100 22.09% 42
Foreign Institution 323.264.120 2,68% 8
Local Individual 10.202.732.304 75,05% 1.391
Foreign Individual - 0,18% 4
Total 11.307.246.524 100,00% 1.445
Type of Investors Number of
Shares Percentage
Number of Shareholders
Wijaya Mulia Commissioner 23.400.000 0,21% 5.850.000 0,21%
Djoko Joelijanto President Director 11.000.000 0,10% 2.750.000 0,10% Triny Talesu Independent Director 46.033.600 0,41% 5.850.000 0,21%
*As of 31 December 2016
Shareholder Position
2016 2015
Number of
Shares % Ownership
Number of
SHARES LISTING CHRONOLOGY
DIVIDEND DISTRIBUTION CHRONOLOGY
Corporate Action Listing Date Number of Shares Listed (Shares)
Initial Public Offering 9-Jan-12 1.300.000.000
Warrant Execution 8-Jul-13 149.647.000
Issuance of Bonus Shares 19-Jul-13 724.823.500
Issuance of Bonus Shares 23-Jun-14 652.341.131
Stock Split 14-Jul-16 8.480.434.893
11.307.246.524 Number of Shares
Financial Year Final Dividend Payment Date Number of Shares Total Dividend
SHARES OWNERSHIP STRUCTURE*
*As of 31 December 2016
CAPITAL MARKET SUPPORTING INSTITUTIONS
PUBLIC ACCOUNTANT Joachim Poltak Lian & Rekan Graha Mandiri Lantai 24 Jl. Imam Bonjol No. 61
Tel.: (021) 392-7208, 391-6421, 391-6436 Fax.: (021) 392-7192
Website: www.lea-id.com
NOTARY
Buntario Tigris Darmawa Ng, S.H., S.E., M.H. Wisma Tigris
Jl. Batu Ceper No. 19 D,E,F Jakarta 10120
Tel.: (021) 351-2437/38/39 Fax.: (021) 351-2442
SHARE REGISTRAR PT Adimitra Jasa Korpora (d/h: PT Adimitra Transferindo) Kirana Boutique Office
Jl Kirana Avenue Blok F3 No 5 Kelapa Gading - Jakarta Utara Jakarta 14250
Ph: 02129745222 Fx: 02129289961
Email: opr@adimitra-jk.co.id
CUSTODIAN
PT Kustodian Sentral Efek Indonesia Gedung Bursa Efek Indonesia, Lt. 5 Jln. Jend. Sudirman Kav. 52-53 Jakarta 12190
Tlp. (021) 5299-1099 Fax. (021) 5299-119
Name Address Business
04
MANAGEMENT
DISCUSSION
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 Company's Trade Value (in million Rupiah)
IDX Trade Value (in million Rupiah)
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 31st 2016, Total Equity stood at Rp445.577 million, down by Rp3.570 juta or 0,79% from Rp449.147 million recorded on December 31st 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)
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 31st 2016 and 2015, audited by the Public Accountant Joachim Poltak Lian & Rekan dated April 3rd 2017:
0 100 200 300 400 500 600
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)
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 and/or 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 31st 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
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)
Details of Operating Expenses of the Company for the years ended in December 31st 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)
Details of Other Income (Expenses) – Net for the Years ended in December 31st 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 31st 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 31st 2016 compared to the market value of the unrealized portfolio of securities owned and available for sale on December 31st 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)
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 31st 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)
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 31st 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 31st 2016 and 2015 which stood at 1.561,97% and 655,34%, respectively. The increase in liquidity during the period ending December 31st 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.
2016 2015
Description
(in million Rupiah)
TOTAL LIABILITIES TO TOTAL ASSETS RATIO
Total lliabilities to total assets ratio of the Company on December 31st 2016 was at 5,58% compared to that of December 31st 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 31st 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 31st 2016 compared to that of December 31st 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 Liabilities/Total Assets (Asset Solvability) 5,58% 13,15% Total Liabilities/Total 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)
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 31st 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 31st 2016 and 2015 are -2,04% and 0,60%, respectively.
Return on Assets for the year ended in December 31st 2016 stood at -2,04%, down 2,64% from return on assets of the year ended in December 31st 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
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)
Return on Equity for the year ending December 31st 2016 stood at -2,16%, declining by 2,85% compared to the return on equity for the year ending December 31st 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.153/PMK.010/2010 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 31st 2016 are Rp 800.000 million and Rp 282.681 million, respectively.
CHRONOLOGY OF CHANGES IN CAPITAL STRUCTURE*
*As of December 31st 2016
Changes in the Company’s capital structure on July 14th 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 Company's 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
The Company always monitors the liabilities ratio of asset and equity that shows the company's ability to meet its obligations both short-term and long-term liabilities. The policy to do initial public offering is also one of the company's strategy to obtain additional fund.
MATERIAL FACTS AFTER THE FINANCIAL REPORTING DATE
On February 23rd 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 20/POJK.04/2016 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 3rd 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.
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
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 TARGET/INITIAL PROJECTION AND RESULTS
b.
Income (Loss) for the Year
The Company booked losses in 2016 worth Rp9.633.987.993, primarily caused by the decline in Revenues and due to Operating Expenses worth Rp21.295.588.255 which in turn, resulted in Loss in Operations worth Rp13.352.646.299.
THE COMPANY’S TARGET PROJECTION FOR ONE YEAR AHEAD
a)
Revenues
The Company projected its Revenues to increase by 211% in 2017 to Rp24.731.171.899.
b)
Net Profit
The Company projected Net Profit to be at Rp7.891.859.404 in 2017.
c)
Capital Structure
At the time this Annual Report 2016 was being made, the Company has yet to have a plan to conduct changes in its Capital Structure.
d)
Dividend Policy
Compliant to the regulations prevailing in Indonesia and the Company’s Articles of Association, if the Company booked net profit during a financial year, then the Company may distribute dividend to the Shareholders based on the recommendation from the Board of Directors with the approval of General Meeting of Shareholders.
The Company’s dividend policy as stated in the Prospectus of the Initial Public Offering is as follows:
Projection (Rp) Results (Rp) % Achieved
-624.022.425 -9.633.987.993
-Description 2016 2017F % Growth
Revenues 7.942.941.956 24.731.171.899 211 Income (Loss) for the Period -9.633.987.993 7.891.859.404 -Capital Stock 282.681.163.100 282.681.163.100
-Net Profit after Tax Cash Dividend (% of Net Profit)
Up to Rp 20 billion 15%
Rp 20 billion to Rp 50 billion 20%
MARKETING ASPECT
One of the key aspects related both directly and indirectly to the Company’s revenues is the marketing aspect. The Company’s marketing activities include many things, starting from the efforts to introduce the Company to the clients and potential clients, establishing consistent and ongoing relationships with clients and potential clients, as well as doing interesting programs to attract the attentions of clients and potential clients.
To increase the Company’s revenues, marketing activities are needed as a means for socialization, to stimulate the desire to invest as well as assuring clients to trade through the capital markets. It is a part of the Company’s working plan to be actively providing training, education and socialization as well as seminars related to the economy and the capital markets, issuing reports in the form of fundamental and technical analysis of stocks traded at the bourse, and by providing excellent and prompt services, timely and matching the needs of each client.
Education programs for clients and potential clients were done by the Company in the form of free seminars about the capital markets and the economy, providing direct training on how to analyze stocks using both fundamental and technical approaches while also continuously providing up-to-date information through daily publications regarding the economic conditions, the stock market, money market, commodities, futures indexes, and other information related to the listed companies that can help clients and potential clients in taking their investment decisions so that they may obtain optimum return with minimum risk. In 2016 the Company held educational event with Universitas Petra Surabaya.
The marketing activities to introduce the Company to the Public at large are done by promoting and by becoming sponsor to certain events, both social and commercial. This strategy is expected to be able to introduce the Company to all Indonesian people and the world, including business activities undertaken by the Company so that it is expected to increase customer confidence to invest, and increasing the number of clients which will ultimately provide benefit the Company.
To achieve its target to increase existing transactions, the Company is planning to provide promotions for target investors according to their classification, increasing securities financing transactions and day trading transactions.
Actions of listed companies, including their financial reports. This facility is expected to provide convenience for clients with limited time and location to be able to monitor and follow market development as well as conducting trades from where the customer is located. The Company’s target for 2016 was to complete the development of mobile trading through Android-based application to provide additional convenience for clients to engage in transactions.
In underwriting business, the Company actively participates in various syndications of Initial Public Offerings and relies on its business network.
The Company also participates in the events held by Indonesia Stock Exchange related to the underwriting business such as IPO Fair in Surabaya in April 2016 which targeted companies in East Java; and other related activities.
DIVIDEND POLICY
In 2015, the Company had distributed dividends which were paid on July 3rd 2015, with total dividend per share of Rp0,90 (Ninety cent Rupiah), and the total dividends distributed in 2015 amounted to Rp2.544.130.467,90 (two billion five hundred forty four million one hundred and thirty thousand and four hundred sixty seven and nine cents Rupiah)
In 2016 the Company had decided not to distribute dividends.
General and Mandatory Reserves on December 31st 2016 amounted to Rp900.000.000 (Nine hundred million Rupiah). These reserves were formed compliant to the Undang-Undang Republik Indonesia No. 1/1995 which had been replaced by Undang-Undang No. 40/2007 which was effective since August 16th 2007 regarding Limited Liability Company, which requires companies to set general reserves at least 20% of total subscribed and paid-up capital. The regulation does not regulate the time required to form such reserves.
REPORT ON USAGE OF INITIAL PUBLIC OFFERING FUNDS 2012
REGULATORY CHANGES
The Company keeps abreast of legislative developments and takes all necessary measures to adapt to the development of legislation where appropriate. Amendments to the Regulation include:
Initial Public Offering 30 December
2011 118.500.000.000 2.945.727.627 115.554.272.373
Type of Public Offering Effective Date
IPO Realization Value
Total Results from the Offering
Costs of Public
Offering Net Result
Strengthening the Working Capital Structure Expansions and Opening of Branches Debt Repayment at BAG Development of IT System
83,88% 12,5% 1,12% 2,5%
96,926,699,666 14,444,284,047 1,338,436,344 2,844,852,316 115,554,272,373 96,926,699,666 14,444,284,047 1,338,436,344 1,829,386,685 114,538,806,742 1,015,465,631
Funds Usage Plan Funds Usage Realization
Income Tax Article 21 ("PPh 21") Regulation of the Minister of Finance of the Republic of Indonesia ("PMK") Number 101 / PMK.010 / 2016 dated 27 June 2016 ("PMK 101"), in respect of "non taxable income" (PTKP) and the determination of employee income. The PMK 101 sets out the new effective PTKP as of January 1, 2017 (retroactively applicable). Increasing PTKP will reduce the amount of PPh 21 on the salary of employees who must be cut and further deposited to the government by the company.
Tax Amnesty ("TA") Law no. 11 of 2016 on Tax Amnesty ("Law 11/2016"), along with relevant implementing regulations.
OJK Regulation as Securities Company Regulation of Financial Services Authority Number 20 /pojk.04/2016 concerning Licensing of Securities Company Conducting Business Activities as Underwriter and Broker Dealer.
Regulation of the Financial Services Authority Number 10 / POJK.04 / 2017 concerning Changes to the POJK on the Plan and Implementation of the General Meeting of Shareholders.
The amendments of this Regulation do not have a significant impact on the course of the Company, but with the amendment of the Regulations, the Company shall make adjustments to those rules.
CHANGES IN ACCOUNTING STANDARDS
The adoption of the following amendments and revised accounting standards and new interpretation of the accounting standard, effective from January 1st 2016 and the adoption of the new standards effective from July 1st 6, did not result in substantial changes to the Company’s accounting policieis and had no material effect on the amounts reported for the current year’s Financial Statements.
i. Amendments to Statement of Financial Accounting Standards (SFAS)
The amendments to SFAS No. , NSeparate Financial Statements – Equity Method in Separate Financial StatementsO.
The amendments to SFAS No. , NInvestments in Associates and Joint Ventures – Investment Entities: Applying the Consolidation ExceptionO
The amendments to SFAS No. 6, NProperty, Plant and Equipment – Clarification of Acceptable Methods of Depreciation and AmortizationO
The amendments to SFAS No. 19, NIntangible Assets – Clarification of Acceptable Methods of Depreciation and AmortizationO
iii. New Statements of Financial Accounting Standards (SFAS)
SFAS No. 7 , NAccounting for Tax Amnesty Assets and LiabilitiesO
iv. Improvements of SFAS
SFAS No. Revised , NOperating SegmentsO SFAS No. 7 Revised , NRelated Party DisclosuresO SFAS No. Revised , NInvestment PropertyO
SFAS No. 6 Revised , NProperty, Plant and EquipmentO SFAS No. 19 (Revised 2015), NIntangible AssetsO
SFAS No. Revised , NBusiness CombinationsO
SFAS No. Revised , NAccounting Policies, Changes in Accounting Estiamtes and ErrorsO
SFAS No. Revised , NShare Based PaymentsO
SFAS No. 68 (Revised 2015), NFair Value MeasurementONew standards, amendments and interpretations issued but not yet effective for the financial year beginning January 1, 2016 are as follows:
The amendments to SFAS No. , NPresentation of Financial Statements – Disclosure InitiativeO
ISFAS No. , NInterpretation of Scope of SFAS No. , NInvestment PropertyO
SFAS No. 69, NAgricultureO
The amendments to SFAS No. 6, NProperty, Plant and Equipment – Agriculture: Bearer PlantsO
The amendments to SFAS No. , NStatements of Cash Flows –Disclosure IntiativeO
The amendments to SFAS No. 6, NIncome Taxes – Recognition of Deferred Tax Assets for Unrealized LossO
SFAS No. Revised 6 , NInterim Financial ReportingO SFAS No. 2 Revised 6 , NEmployee BenefitsO
SFAS No. 8 Revised 6 , NNon-current Assets Held for Sale and Discontinued OperationsO
SFAS No. 6 Revised 6 , NFinancial Instruments: DisclosuresO
The amendments to SFAS No. NPresentation of Financial StatementsO, ISFAS No. NInterpretation of the Scope of SFAS No. , NInvestment PropertyO, SFAS No. Revised 6 , NInterim Financial ReportingO, SFAS No. Revised 6 , NEmployee BenefitsO, SFAS No. 8 Revised 6 , NNon-current Assets Held for Sale and Discontinued OperationsO, and SFAS No. 6 Revised 6 , NFinancial Instruments: DisclosuresO, are effective on January , 7 while the other standards are effective on January 1, 2018. Early adoption of the above standards is permitted.
05
In managing its risks, the Company performs its activities based on Good Corporate Governance (GCG) where its daily operational activities are based on written Standard Operating Procedure
SOP that is adapted to the Company’s business needs The Board of Directors regularly
arranges the Board of Directors Meetings in order to discuss the Company’s business activities,
so that they can anticipate every problem encountered by the Company. In implementing GCG, the Company always socializes policy to be enforced so that such policy can be applied and implemented appropriately. Each strategic policy and decision stipulated by Directors is always consulted first to the Board of Commissioners. The Company has Independent Commissioner and Independent Director as well as Audit Committee and Internal Audit who are experienced in their respective field.
PRINCIPLES OF GOOD CORPORATE GOVERNANCE
In maintaining and creating added value for all parties related to Company’s business activities
such as Shareholders, the management, Government, employees and all other stakeholders, there is a need to adopt a GCG principles. The GCG principles that is always and will be applied by the Company are:
FAIRNESS PRINCIPLE
Protection of all interests of Shareholders, by establishing Independent Commissioner that is intended to protect minority Shareholders; and
The management of the Company always pays attention to the interests of all stakeholders on the basis of justice and equality in accordance with prevailing regulations of law.
TRANSPARENCY PRINCIPLE
Company’s Financial Statement is audited by a Public Accountant that is registered to OJK and
reported to OJK, Indonesia Stock Exchange and regularly announced on newspaper with
national circulation and at the Company’s website
Each time to take material corporate action, the Company always announces to the public through Indonesia Stock Exchange and OJK;
Asset and investment management is made carefully and responsibly, among others, with
Report on Realization of the Use of Fund from Result of Public Offering of Shareholders; and
Issuing Company’s Annual Report to be published through the Company’s website and to
arrange annual Public Expose.
ACCOUNTABILITY PRINCIPLE
Regulating the clarity of functions, rights and obligations, authorities and responsibilities of Shareholders, Board of Commissioners and Board of Directors; and
Establishing independent Audit Committee to be led by Independent Commissioner.
RESPONSIBILITY PRINCIPLE
The Company had its employees participat
