Portfolio Details

As of September 6, 2013
Equity ASII ASRI BMTR ERAA KAEF Total Quantity 12,000,000 401,030,500 160,000,000 400,000,000 196,000,000 Avg. Price (Rp) 5,300 485 1,460 1,030 475 Cost (Rp '000) Market Value (Rp '000) Unrealized Gain (Loss) (Rp '000) 4,800,000 -10,025,763 32,000,000 16,000,000 -4,900,000 37,874,238 3.79% 1.13% 2.66%

63,600,000 68,400,000 194,499,793 184,474,030 236,800,000 268,800,000 412,000,000 428,000,000 93,100,000 88,200,000 999,999,793 1,037,874,030 Weekly Percentage Change in Portfolio Value (1) Weekly Percentage Change in IHSG (2) Relative Results (1)-(2)

Price is what we pay. Value is what we get.

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Investment Breakdown
As of September 6, 2013

Market Value
ASII ASRI BMTR ERAA KAEF

8%

7% 18%

41% 26%

Price is what we pay. Value is what we get.

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Portfolio Performance Analysis

As depicted by the graph, the market remains residing in bearish trend this week (August, 30 September, 6). The JKSE (green line) moved downward by -3%

Following are the major drivers of this weeks trend. 1. US plan of military action toward Syria Geopolitic tension has deeply taken its toll toward the IHSGs price movement. On September 4, 2013 it has put one feet on the military action as President Obama's call for a limited military campaign against the Syrian government in retaliation for the use of chemical weapons by Syrian President Bashar Assad's regime has been endorsed by the Foreign Relations Committee of the Senate. The next step would be the approval of the House of Representatives, after which there would be no reason to delay the military action. Such an announcement has event covered the positive sign from US manufacturing data announced this week, along with those of China and Europe. 2. Net sell by foreign investor The major victims are the blue chip companies. 3. Foreign exchange depreciation This week Rupiah weakens again, hitting record low of Rp 11.700/US$.

Price is what we pay. Value is what we get.

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Following are our response towards those three issues. 1. US plan of military action toward Syria The market has apparently overreacted to this issue. It should be corroborated that this is merely a limited military action involving merely air strike, with a fixed and specified time constraint of 90 days. Such a folly, we believe, would be eventually recognized by the market 2. Net sell by foreign investor As this clearly strike our majority holding of blue chip companies, we believe that this trend would not perpetuated up to the end of our partnership. By the time, as the market rebalance itself, we would eventually trump. 3. Foreign exchange depreciation As this trend still has yet to show no sign of reversal, we hopefully would witness it prior to the end of November.

Price is what we pay. Value is what we get.

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From Monday to Thursday, the price trend for the company still reflected the bearish trend with a decrease of 550 points or 9.02%, from Rp 6,100.00 to Rp 5,550.00. The main contributor of the fall was the sell offers made by foreign securities, as did happen with other blue chip companies.

Nonetheless, during the last days trade, the price was closed at 5,700 rupiah, with a sign of trend shift. Time and again, it was due to the foreign securities that made high bids. As we believe with every fiber of our being that its intrinsic value still remain beyond the current price, we remain faithful to expect a further increase in price.

Price is what we pay. Value is what we get.

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The price of ASRI moved in a bearish trend this week. From the opening price of 570.00 rupiah, it went down as much as 110 points, which accounted for 19.3% of the opening price. The word bearish itself should be closely set as the cornerstone of our response. Such a cheap price, no matter how volatile it is amidst of the irrational exuberance, should be seen in perspective.

Price is what we pay. Value is what we get.

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It has been officially confirmed by Corporate Secretary Global Mediacom Arya Sinulingga on September 3, 2013 through the information disclosure to the Indonesian Stock Exchange that two buybacks round have been conducted in the past week: - 13.67 Million shares of BMTR has been purchased by company through buyback scheme on Rp 1.694,00 per share on August 30, 2013. Through a simple math, Rp 23.17 Billion is the total funds required to conduct such a buyback. - 3.49 Million shares of BMTR has been purchased by company through buyback scheme on Rp 1.716,00 per share on September 3, 2013. Thus, a total of Rp 6.004 Billion is involved in this process. Whilst the implication on price shares are insignificant, we believe that in the medium run by medium run we mean our three-month-period partnership the effect would be reflected in a better manner. In other words, we currently possess a larger portion of pizza slice than we did the previous week.

Price is what we pay. Value is what we get.

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Last week, we underscored our attitude that we are engaged in a partnership rushing toward our longterm goal. Simply put, weekly volatility is nothing of significant importance. While the price of ERAA enjoyed a spike from its lowest Rp 1020 to Rp 1320 last week, the price erratically move from Rp 1320 to Rp 1070 on the closing price this week with the price decline all the way from Monday to Thursday, only for a slight rebound on Friday. Given those two statements earlier, we could deduct an important corollary: this weeks erratic move should not be responded with overreaction that would lead us to join the group of irrational investors (or dumb investors, in Benjamin Grahams words). Its the exactly same position that we corroborate last week, thus it is by no means a desperate apology.

Price is what we pay. Value is what we get.

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The decline this week is in accordance with all other stocks the pharmaceutical industry, namely KLBF, INAF, DVLA, PYFA, SQBI, TSPC, SCPI, MERK (KAEF is the green line).

Price is what we pay. Value is what we get.

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Nonetheless such a temporary discounted price would not linger for a long period of time as the market irrationality would eventually end as the history pinpoints very palpably.

Price is what we pay. Value is what we get.

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