Indonesia Real Estate, New maximum mortgage LTV of 70%, JP Morgan

Concerned with a potential real estate bubble, Bank of Indonesia has
restricted the maximum mortgage Loan to Total Value (LTV) from 80% to
70%. Banks would need to comply with the rule starting June 15th. We
believe the bulk of Indonesia real estate buyers (for our listed universe of
developers) are mainly affluent, with only a minority using mortgages,
hence the impact on marketing sales should be modest. The rule, in our
view, would only provide modest impact in the short term and hence we
see it as a buying opportunity. Long-term however, this introduces a risk
that rapid increases in ASPs may invite regulatory scrutiny. Our top pick
is SMRA.

Asean Forum 2012, Asean’s investment trinity, CLSA

You could argue that ASEAN growth and demographics have long been
overlooked in favour of China. Not this year though. CLSA’s Myanmar-Thai
nexus and Asean Arising reports paint the picture of a region buzzing
with young, cheap labour and increasing wealthy consumers. CLSA’s
Asean Forum showcased corporates from economies as divergent as
Singapore and Myanmar and industries as diverse as telecoms and
alcohol. Outlook is mixed for sure, but Asean’s long-term investment
trinity of global brands, fertile FDI and primed domestic consumption
were all well represented.