1. TREASURY MANAGEMENT (1) Program Magister Manajemen Fakultas Ekonomi Universitas Indonesia Dosen: Edgar Ekaputra SE, MM. FEB 02, 2010

2. Tata Cara Penilaian:-100% 1.Keaktifan di kelas - 20% (presentasi dan diskusi) 2. Tugas tertulis/Test/Quiz/Simul- 40% 3. Ujian akhir Cawu- 40% Tata Tertib: 1.Jangan terlambat 2.Berbicara angkat tangan, HP dimatikan 3.Participant Learning Class, saling mendengar & menghargai pendapat orang lain. 4.Duduk ditempat yang sama + Nama 5.Membuat kelompok 6.Ketua kelas

3. LECTURER BACKGROUND 2008-President Director, CEO - PT (Persero) Danareksa President Commisioner, Danareksa Sekuritas 2006-2007President Director - NC Securities Lecturer Program S1 & MM, FEUI 2002-2006: President Commissioner - PT Nusantara Capital Commissioner - PT Nusantara Investments Entrepreneur 1995-2001: Managing Director, CFO & COO - PT (Persero) Danareksa President Director - PT Danareksa Finance Com - PT Danareksa Sekuritas Com - PT Danareksa Investment Management Com - PT Danareksa Futures Com - PT Danareksa Daiwa Ventures Com - PT Danareksa Jakarta International 1993-1995: Director - American Express Bank 1985-1993: Vice President - JP Morgan Chase Contact:HP 0855 100 8838 E-mail : edgar@danareksa.com

5. 2009 :1 Gold 2 Silver Medal, Team DKI Jaya – National Hanggliding Championship 2009, Bali 2008 : Athlete PON XVII Gantolle DKI Jaya & Team Manager. The team Won 1 Gold and 1 Bronze Medal. 2007 : Gold Medalist holder/Overall Champion (Juara Umum), Team DKI Jaya – National Hang Gliding Championship, Lanud Sulaiman, Jawa Barat Silver Medalist holder, Team DKI - 3rd National Microlight Championship, Lanud Adisucipto, DI Yogyakarta 2006:Silver medalist holder, Team DKI Jaya – National Hang Gliding Championship, Wonogiri, Jawa Tengah 2005:Silver & Bronze medalist holder, 2nd National Microlight Aircraft Championship 2005, Lanud Sulaiman,Bandung – Jawa Barat 2004:Overall Champion (Juara Umum), Team DKI - National Hang-Gliding Championship, Telomoyo – Central Jawa. Gold Medalist, Target Landing Hang-Gliding Open Championship, Puncak, West Java. 2003: Overall Champion, (Juara Umum), Team DKI - National Hang-Gliding Championship, Telomoyo – Central Jawa. 2002: 2nd Overall Runner-up (Juara Umum II), Team DKI) - National Hang-Gliding Championship, Telomoyo – Central Jawa. Diangkat Ketua FASI Gantolle 2001: Gold Medalist, Target Landing – 1st National Microlight Championship, Solo – Central Jawa.. 1996: Silver Medalist holder, Indonesian National Team, International Open Hang-Gliding Championship, Wonogiri – Central Jawa. 1988: Indonesian Team – World Hang Gliding Championship, Mount Buffalo - Australia. 1984:Ranked 21st international top rated pilot – International Hang Gliding Championship, Sydney Australia. 1982: 1st position in 2nd Div Indonesian Team – International Hang Gliding Championship, Sydney -Australia, 1980-1984: Ranked # 1, National Champion-Certified Hang Glider Pilot (Master Rating 4)

6. WHO ARE YOU ? Name & Calling name Name & Calling name Where did you graduate s1 Where did you graduate s1 Working Experience Working Experience Mention 2 of your strengths Mention 2 of your strengths Mention 2 of your weaknesses Mention 2 of your weaknesses What you want to be in 5 years from now What you want to be in 5 years from now How are you going to get there ? How are you going to get there ? What do you want to learn from Treasury Management ? What do you want to learn from Treasury Management ?

7. What we will Discuss on The First Part: Treasury of Financial Institutions Managing Liquidity RiskManaging Liquidity Risk Managing Interest Rate RiskManaging Interest Rate Risk Asset Liability Management –ALMAAsset Liability Management –ALMA Debt and Capital Structure and RestructureDebt and Capital Structure and Restructure Market Indicators and What they meanMarket Indicators and What they mean Case DiscussionsCase Discussions Treasury Simulation with real marketTreasury Simulation with real market Overviews & ConclusionsOverviews & Conclusions

8. Questions What is the difference between systematic and unsystematic Risk? What are the four elements of Risk? What different types of Risks are financial institutions faced with? What is the most important financial risk? How does a treasury manager manages liquidity Risk ?

9. TREASURY MANAGEMENT (1) 13-14 MANAGING LIQUIDITY RISK A. PRUDENTIAL PRINCIPLE B. LOAN SALES C. SECURITIZATION d. SETTING UP THE “BAD” BANK

10. DEFINITION OF An Occurrence that will happen in the future that we do not want. What are Major Risk Categories ? Systematic and Unsystematic Risk

11. THE FOUR ELEMENTS OF 1.Scale of potential harm 2.Likelihood of occurrence 3.Capability to Respond 4.Probability of that capability Deployed

12. TYPES OF FINANCIAL 1.Liquidity Risk 2.Credit Risk 3.Interest Rate Risk 4.Market Risk 5.Foreign Exchange Risk 6.Off-Balance Sheet Risk 7.Country or Sovereign Risk 8.Technology & Operation Risk 9.Insolvency Risk

13. WHAT IS LIQUIDITY RISK ? The possibility that a Financial institution will have to incur losses to meet cash demands. It is generally explained as a ratio comparing available liquidity to the demands of funds. ”

14. BANK BALANCE SHEET 1.Cash1.Deposit CashGiro, Deposit Marketable SecuritiesTabungan 2.Earning Assets2. Purchase Funds LoansBanks Non Banks FI 3. Non Earning Assets3. Capital

15. The Bank Balance Sheet

16. The Bank Balance Sheet-Cont.d

17. PRUDENTIAL PRINCIPLE Amount Liquidity required Timing of Liquidity required Purpose of Use Sources of Liquidity

18. Cause and Manage Causes of Liquidity Risk 1. Liability Side 2. Asset Side Managing Liquidity Risk 1. Purchased Fund 2. Stored liquidity

19. LOAN SALES 1.Cash1.Deposit CashGiro, Deposit Marketable SecuritiesTabungan 2.Earning Assets2. Purchase Funds LoansBanks Non Banks FI 3. Non Earning Assets3. Capital

20. SECURITIZATIONS “Conversions of Bank Loans and other assets Into marketable securities for sale to investors.” It’s main purpose is to exchange Loans for Liquidity. Most common are Mortgage Backed Securities. Two general types of securitization: With Recourse and Without (Non) Recourse

21. THE FINANCIAL CRISIS Please Choose 1 Topic a.SHOULD THE GOVERNMENT BAIL OUT BANK CENTURY? b.THE CRISIS DIFFERENCE BETWEEN 1998 AND 2008 IN INDONESIA c.THE CURRENT US FINANCIAL PROBLEM d.IDENTIFYING TRIGGERS FOR A FINANCIAL CRISIS Minimum 10 pages, 1.5 spacing, font 12 arial. Complete with conclusions & recommendations

22. TREASURY MANAGEMENT(1) 13-14 LIQUIDITY MANAGEMENT CONCLUSION PRUDENTIAL PRINCIPLE LOAN SALES SECURITIZATION SETTING UP “THE BAD BANK”

23. END OF LECTURE (1)

24. The Treasury Game

25. JCI 2.588

26. SBI 6.45%

27. USD/RP 9.408

28. OIL PRICE BRENT $74.43/b

29. RP BOND 114.16

30. You are now Treasurers given US$ 1 million to manage/invest Alternative Investment: Stay in US Dollar at 0.5% p.a. (gross) Sell USD against Rp at Rp9.408and deposit at SBI at 6.49%(gross) p.a. or buy bonds at 114.16 Sell USD against Rp at Rp 9.408 and buy the ISX Index at Rp 2.588 Buy Oil at US$ 74.43/Barrel Must gather 3 information from public info as your rationale. Highest yield gets 100 mark & prize

31. Questions for 2 nd Lecture 1.What is the price of funds? 2.Why is interest rate risk important to a financial institution? 3.What is Gap Analysis? 4.How is gap analysis different from Duration Match Strategy? 5.What are the basic forms of derivatives?