NOW i KNOW !

CIKALDANA NEWSLETTER NO. 1 - 2014

GREETINGS FROM CIKALDANA

On this issue:

We proudly present you the first edition of our quarterly newsletter.

Economic Update Q4 2013
Cikaldana is a financial advisory that focuses its business in personal 2
financial advisory and financial planning services. Part of our
commitment is to provide a thoroughful research that is useful both, Planning For Cambridge,
for our internal needs and for giving insights to our clients through this UK
3
newsletter.
10 Select Mutual Funds
We will release articles in a variety of topics relevant to the economy, (Reksadana) for 2014
financial planning, research and data, as well as light readings. 4

Please do not hesitate to visit our website or contact us should you Jakarta Malls Evolution
need more information. 5
We hope this newsletter could be of use to you and enhance your
financial wisdom.

Regards,

Fitrah Avianti
Marketing Director

Do you know?
by 2025, the life expectancy
at birth of men in Indonesia
is 71.5 years and women is
76.1 years
(Survey Penduduk 2000)

www.cikaldana.com 1
 Economy Corner

ECONOMIC UPDATE
Q4 2013
2013 - Challenging year for Indonesia’s macro economy

Indonesian economy has faced many ups and
downs in 2013, with two major issues being noticed
during the period. On June, the government
increased the price of subsidized fuel which gave
negative impact to the people’s purchasing power
and to the domestic consumption. Rupiah against
US$ has also experienced a rally of depreciations
and stood at Rp 12,270 per US$ by end of 2013,
compared to Rp 9,670 a year before.
The 2013 rate of inflation was reported at 8.38%.
The hike in inflation was seen as the impact of rising
consumer price index (CPI) around late June as the
government raised the price of subsidized fuels.
Looking ahead, the government has set the target of
inflation at a rate of 4.50%±1 in 2014.
The BI rate was kept at 7.50% at end-December,
rose 25 bps from November. This policy was taken
in respond to the large current account deficit amid
global uncertainty.
The Jakarta composite index (IHSG) was closed at
4,274. The index is expected to increase in 2014
following the positive sentiment of Indonesia's
legislative and presidential elections event
scheduled on April 2014. The event is expected to
trigger an increased domestic consumption and
other economic activities.

End-Dec 2013 End-Sep 2013 QoQ Movement End-Dec 2012 YoY Movement

Exchange Rate US$ Rp 12,270 Rp 11,613

 Rp 9,670

Inflation 8.38% 8.40%
 4.30%

BI Rate 7.50% 7.25%
 5.75%

IHSG

Source: Bank Indonesia, IDX

4,274 4,316
 4,317


www.cikaldana.com 2
 Financial Planning Corner
PLANNING FOR CAMBRIDGE, UK
Investing for your children education is better to start earlier
United Kingdom, UK is one of the favorite
destination Indonesians sending their children for
education overseas. Sending children for overseas
education requires quite a significant amount of fund
to cover the tuition fees, college fees, living
expenses and other costs like airfare tickets. To
give you with some ideas of how much it would cost
to send your child to college in UK, this article
describes planning a child’s undergraduate study to
the University of Cambridge.
Let’s say your child is to take the Information and
Computer Engineering course at the University of
Cambridge, the study will take four years to
complete. Assuming that you parents will visit your
child once a year, the estimated total cost needed
right now will be GBP 155,000 or about Rp 3 billion
in current equivalent. Voila!
Once you understand how much the cost you need
to prepare right now, next step you must know is the
“when”. When will your children start the schooling?
Time is of importance as you need to consider the
rising costs or inflations over the time, and as it
determines your strategy to investment. Yes,
investment. Whether you have the money right now
moreover if you don’t, investing is needed.
Child's Age 2 years 8 years
Fund Required (IDR) 5.7 billion 4.3 billion
Lumpsum Investment 115.0 million 335.0 million
Monthly Investment 1.6 million 5.6 million
www.cikaldana.com
If your child is currently at his or her 8 years old, he
or she will start the college 11 years later. The
estimated total cost needs to be prepared later will
be Rp 4.3 billion, inflations considered. With this
number, you can plan to achieve it by investing your
money in total sum of Rp 335 million into an equity
mutual fund, starting right now. Alternatively, an
installment of investment of Rp 5.6 million per-
month into the same investment instrument, starting
right now.
If you have a 2-years old baby, you can also plan
his or her education of 17 years later, right now. The
number is Rp 5.7 billion as for the total cost. As for
the investment, a Rp 115 million for the lump sum
investment or a Rp 1.6 million monthly investment,
into an equity mutual fund.
In the case that your child is currently starting high
school, you have 3 years until the college starts.
The number is Rp 3.0 billion for the total cost need
to be prepared at about right now. One possible
investment advice is to put lump sum investment in
total of Rp 1.8 billion or monthly investment of Rp 62
million, into a mixed instruments of: time deposit,
balanced mutual fund, and equity mutual fund.
16 years
3.0 billion
1.8 billion
62.0 million
3
 Research Corner

10 SELECT MUTUAL FUNDS

(REKSADANA) FOR 2014
Mutual funds continued their charms as investment alternatives

Indonesia’s mutual funds industry has been uplifting
within the past 10 years. The mutual funds are
continuing their charms as alternative investments
particularly amongst the country’s young population.
This is because of better financial literacy, that they
now look upon better investment options than
conventional bank savings; and also that people
can start investing to it with as low as Rp 100,000.
Closing the year 2013, Cikaldana prepared a list of
select mutual funds for consideration on investing in
year 2014. The list is intended for investors in
general, thus in selecting the mutual funds we look
on the following criterias:
“Experience”: We select the funds which have been
in the market for more than five years. The
argument is that these funds have endured and
survived a crashed market. The investment
strategies applied by their fund managers have
proven their past survival and are likely to survive
further in the future.
“Fund size”: The size of funds a product manages
indicates both, the investors’ level of confidence
towards those funds and the fund manager’s
performance in accumulating the funds. We select
funds with a net asset value (NAV) above Rp 1.0
trillion for an equity-mutual-funds and NAV above
Rp 100.0 billion for a balanced-mutual-fund.
“Performance”: The performance refers to fund’s
growth since its inception, in particular the average
annual growth of NAV per unit, as of December
2013. We select 5 highest growth on both equity
and balanced mutual funds.
The list was made based on the data and past
performance of each mutual fund and it does not
reflect a projection for their future performance.
Every investor should consider their investment
objectives and their appetite on risks.
Below is the list of select mutual funds for year 2014
investment by Cikaldana.

No. Product Name Inception Date NAV/Unit Average Annual Growth Net Asset Value
as of Dec 2013 as of Dec 2013 as of Nov 2013
NAV/Unit Average Annual Growth
Asset Under Management (AUM)
Equity-mutual-funds
1 Panin Dana Maxima April 7, 1997 Rp 58,283.44 27.62% Rp 6.12 trillion
2 Schroder Dana Prestasi Plus September 25, 2000 Rp 21,422.89 26.02% Rp 8.36 trillion
3 Manulife Dana Saham August 1, 2003 Rp 9,733.27 24.63% Rp 2.52 trillion
4 BNP Paribas Ekuitas February 28, 2001 Rp 14,429.03 23.12% Rp 5.16 trillion
5 Schroder Dana Prestasi May 29, 1997 Rp 25,595.10 21.59% Rp 2.94 trillion
NAV/Unit Average Annual Growth
Asset Under Management (AUM)
Balanced-mutual-funds
1 Maestro Berimbang December 16, 2006 Rp 3,937.87 21.63% Rp 120.28 billion
2 Panin Dana Unggulan June 13, 2005 Rp 5,275.90 21.61% Rp 320.07 billion
3 SAM Dana Berkembang November 5, 1997 Rp 11,925.86 16.66% Rp 119.57 billion
4 First State Multi Strategy Fund September 6, 2005 Rp 3,159.53 14.96% Rp 107.57 billion
5 Danareksa Syariah Berimbang December 1, 2000 Rp 4,985.24 13.15% Rp 115.72 billion

www.cikaldana.com 4

JAKARTA MALLS EVOLUTION
Changing lifestyle creates new trends in malls’ design
If you have grown up in Jakarta during the 90s,
most likely you know the names like Sarinah, Ratu
Plaza, or Pasar Raya. They are the places for most
of you went for shopping of hanging-out, during that
era. Which places – shopping centers or malls – do
you go for shopping or hang-out now?
You may have seen so many malls established in
Jakarta. You may also see how newer malls have
developed and came up with newer faces and
fresher visitor experiences to offer. You may agree
that until now we have seen three generations of
malls.
The first generation of malls are the ones mentioned
earlier: Sarinah, Ratu Plaza, and Pasar Raya.
These malls are characterized by the department
store styled space, with rows of hanging poles to
showcase clothes, and “narrow” visitors’ walk ways
that you might feel you were walking cramped in a
maze of clothes.
Plaza Indonesia then came as the first mall to
milestone the malls of second generation. These
second generation malls appeared with a row of
boutique-styled stores, a vast walking space for
visitors, and having a plaza at the center for holding
special events or exhibitions. Visitors can just walk
besides shopping. These malls have begun the
Sovereign Plaza 21st Floor, Jl. TB Simatupang Kav.36, Jakarta 12430
www.cikaldana.com
Lifestyle Corner
notion of mall as an alternative place for family
recreation. Malls of the second generation currently
make the majority list of malls in Jakarta. Other
examples are Plaza Senayan, Senayan City,
Pondok Indah Mall 1 and 2, and Gandaria City.
The mall of the third generation has started by the
recently opened Lotte Shopping Avenue, in
Casablanca area in Jakarta. So what differentiate
this third generation mall? First, this is the only mall
that provide so many seats for visitors to sit and
rest, unlike the malls of earlier generation. Not to
mention much better public facilities like restrooms,
mothers’ room and many kids play area. Second,
this is the only mall that appear to have a strong
appreciation to art. More than just being fully
featured with artworks in its interior, it contains a
quite big art school there. The third generation mall
appears to be more humane and try to serve the
needs beyond basics like clothing and food.
Despite the moratorium of new mall development in
Jakarta, I look forward to see more malls evolve to
be more humane.
PT Cikaldana Korpora
P: +62 21 2939 8727, F: +62 21 2939 8898
5