INDONESIA GOVERMENT BOND (FR Series)

IDR Denomination, Tenor Up to 10 Years

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INDONESIA GOVERNMENT BOND (FR Series)

IMPORTANT RISK WARNING! 1. Price of Bond is exposed to market fluctuation. Investor may suffer loss of invested capital. 2. Bond purchased at premium price will converge to nominal value at maturity, which is lower than the initial principal invested. 3. This Bond is NOT guaranteed by The Hongkong and Shanghai Banking Corporation Limited, Indonesia (HSBC) and/or members of the HSBC Group (HSBC Holdings Plc and its subsidiaries and associates companies or any of its branches) and is NOT covered by the Government of Indonesia blanket guarantee program or deposit insurance schemes. 4. This Product is NOT available to U.S. Person. 5. Other risks related to this Product are available in Risk Disclosure and we recommend you have it carefully read before deciding in purchasing this Product.

INVESTOR DECLARATION I/We confirm that HSBC has provided sufficient explanation on all information given in this Product Feature Document. I/We have received, read, and understood the Prospectus, Terms of Business Letter and the relevant Terms and Condition (including characteristic, benefits, risks and fees associated with this product).

_______city________, ______dd-mm-yyyy________

S.V.

____________________________________________ Investor Name:

SALES PERSON DECLARATION I confirm that sufficient explanation on all information in this Product Feature Document has been given. I have provided the Prospectus, Terms of Business Letter, and the relevant Terms and Condition (including characteristic, benefits, risks and fees associated with this product).

_______city________, ______dd-mm-yyyy________

____________________________________________ Sales Person Name:

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INDONESIA GOVERNMENT BOND (FR Series) IDR Denomination, Tenor Up to 10 Years The authorised sales staff of The Hongkong and Shanghai Banking Corporation Limited, acting through any of its offices in Indonesia (HSBC) is required to go through this document with you before you decide to purchase this product. This Product Feature Document is designed to highlight the key points of the product. It is not exhaustive and should not substitute reading and understanding the products Terms and Conditions and brochure. We trust you find this document helpful. Product Type Indonesian Government Bonds FR Series (FR0027, FR0028, FR0036, FR0063, FR0069) Direktorat Pengelolaan Surat Utang Negara Direktorat Jenderal Perbendaharaan Departemen Keuangan Republik Indonesia Gedung Frans Seda Lantai 4 Jl. DR. Wahidin Raya No 1- Jakarta 10710 The Hongkong and Shanghai Banking Corporation Limited, Jakarta Branch Menara Mulia, 25th Floor Jl. Jend. Gatot Subroto Kav. 9-11 Jakarta 12930 Objective from investing in bonds is to earn regular fixed income in the form of a coupon and potential gain from capital appreciation. Government bond FR Series is a fixed income instrument issued by Government of Republic of Indonesia at certain time with a fixed coupon, whereas in this case the issuer guarantee the capital at maturity added with a coupon payment paid in regular basis. Government bond price is the value of each participation in government bond FR series. FR0027 FR0028 FR0063 : 9.50% p.a : 10.00% p.a : 8.375% p.a FR0036 : 11.50% p.a FR0069 : 7.875% p.a

Issuer

Sub Registry Bank

Investment Objective

Definition

Government Bond Pricing

Government Bond Coupon

Dealing Frequency Maturity Date

Every Jakarta bourse day FR0027 FR0028 FR0063 : 15 June 2015 : 15 July 2017 : 15 May 2023 FR0036 FR0069 : 15 September 2019 : 15 April 2019

Investment Update

Information on Bond pricing is published daily in Bisnis Indonesia newspaper. IDR 50,000,000 (Fifty million rupiah), with a multiplication of IDR 1,000,000 (One million rupiah) thereafter According to the initial placement partial redemption is not allowed FR0027, FR0028, FR0036, FR0063, FR0069 : Low to Medium (Risk Rating: 2) There is risk of losing portion of capital over the term of the investment. This product is expected to demonstrate moderately low level of price fluctuations over short period of times. This product may be suitable for investors who are happy to accept low to medium level of investment risk.
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Minimum Investment Amount

Minimum Redemption Amount Risk Profile

Fee

NIL

RISK DISCLOSURE
Investment in this product involves certain risks, including without limitation to the risks described below. This section does not purport to describe all risks in the product, either as such risks exists at the Launch Date or as such risks may change in the future. Ultimately, the Investor shall be solely responsible for identifying and agreeing to any other risks that may be applicable to it in making the investment. The main risks associated with investing in this product, include:

1. Market Risk
Many factors can affect the movement of the relevant Bonds price, including the political and economic environment, business conditions, investor sentiment and confidence.

2. Default Risk
If the Bond issuer defaulted in fulfilling their obligations, then this will affect the return on the Bond.

3. Re-investment Risk
Investor needs to consider the ability to re-invest the principal investment amount plus the coupon in other suitable products with similar return and tenor.

4. Liquidity Risk
This Bond can only be sold or redeemed within bourse day in Jakarta, Hongkong and New York.

5. Return Risk
Bond prices and interest rates fluctuate; as such there is no guarantee that this Bond will produce yields in excess of those available on other investments products.

6. Regulatory Risk
Any changes to the valid laws and regulations as well as taxation and Government policies especially in macro economic field that relates to Bond may affect the return and investment result that will be received by this Bond and it may impact the Investors investment return.

INVESTOR COMMITMENT
This Product is likely to be suitable for you if you take a stable to moderate bullish view on the underlying throughout the investment period. In order to guard against over exposure to any investment risks, you should avoid excessive investment in a single type of investment in regards to total proportion of your overall portfolio, This investment is likely to be suitable for investors who have relevant experience in investing in mutual fund and Bond. Investors are required to complete Risk Profiling Questionnaire to determine their investment risk profile before investing in Bond. Customer-Directed Transaction must be completed, if investor decide to invest in Bond with higher risk profile compared to the investors risk profile. Investors should carefully consider if the Bond is a suitable investment given their personal circumstances, including the tolerance to risks, time horizons, investment objectives and other financial arrangements. Investors should regard Bond as investment product and should make sure that appropriate cash are retained to meet any unforeseen circumstances. If Investors wish to discuss their Bond holdings, which were purchased through HSBC, Investors can contact Relationship Manager or Customer Service Representatives or through HSBC PhoneBanking Services at telephone (021) 5291 4722 or 0804 186 4722 or through mobile phone at 64722.

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IMPORTANT NOTES
This Bond product feature document is indicative and its content is subject to change based on issuer policies. If there is a change, our sales staff will inform the changes to Investors as a material of investment reconsideration over this Bond. Prior to applying to this product, you must carefully read and consider the following important matters: You are the sole beneficial owner/s of all monies to be invested, free from any charge, encumbrance or claim whatsoever; You are not using any borrowed money (whether in the form of an overdraft or otherwise) or any other form of financing, whether from the Bank or a third party, in order to enter into this investment product set out herein or any part thereof; You shall have made your own investigations to your satisfaction, and shall solely be responsible for determining whether or not you are permitted to purchase and to hold this Bond under any laws, regulations or any other restrictions applicable to you and you shall have to be fully informed of, and shall have to have sufficient knowledge and experience to be able to evaluate, the tax and accounting implications, the potential financial benefits and risks, the appropriateness in light of your individual financial circumstances, business affairs, and risk management capabilities, and the conformity to any policy and objectives, of this Product. Without limiting the foregoing, you must read, understand and accept fully the risks disclosed in the section Risk Disclosure; You will act in reliance on your own judgment and evaluation or upon professional advice you have obtained independently of HSBC as to such issues, you are not relying upon the views or advice of HSBC and upon such evaluation, prepared to bear for your own account the risks inherent in this product; If, by reason of any law, act of state, an illegality or force majeure, HSBC is prevented from making any payment or delivery under this Product through any of its branches or offices in Indonesia, there shall be no obligation upon any branch/office of The Hongkong and Shanghai Banking Corporation Limited outside Indonesia to make such payment or delivery. Furthermore, HSBC will not be liable for any losses incurred as a result thereof; The giving of your agreements, representations, warranties and undertakings contained herein and in any other document related to this Product will not conflict with or breach of any provision within your constitution or any law, regulation, licence or court decree to which you are subject to, and all necessary notifications and registrations shall have to be duly effected, and shall remain in full force and effect, such that the execution and performance of your obligations under this Bond and the giving of your agreements, representations, warranties and undertakings contained in any document related to this Bond is valid, legal and binding in accordance with the terms thereof under all relevant laws; Your right (if any) to take any action (in court or otherwise) to invoke, or to otherwise seek, the nullity of this Product or any part thereof shall be waived; HSBC and its affiliates shall be fully indemnified from any and all costs, losses and liabilities incurred as a result of the breach of any of the agreements, representations, warranties and undertakings contained herein.

The information in this document is derived from sources believed to be reliable but which have not been independently verified. The Hongkong and Shanghai Banking Corporation Limited makes no guarantee of its accuracy and completeness and is not responsible for errors of transmission of factual or analytical data, nor is it liable for any direct or consequential damages arising out of any persons reliance upon this information. All charts and graphs are from publicly available sources or proprietary data. HSBC in its full discretion has the right to reject applications for this product. This document must be distributed in its entirety.

Issued by:

Distributed by:

Ministry of Finance of Republic of Indonesia

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This Product Feature Document and any statement and terms contemplated herein is made in English and Indonesian version, whereby the English version provided herein is for reference purpose only. Therefore, whenever there is a discrepancy between the English version and the Indonesian version, the Indonesian version shall prevail.

DISCLAIMER
INVESTMENT IN THE FORM OF BOND CONTAINS RISK. A PROSPECTIVE INVESTOR MUST READ AND UNDERSTAND THE PROSPECTUS PRIOR TO DECIDING TO INVEST IN BOND. PAST PERFORMANCE DOES NOT INDICATE FUTURE PERFORMANCE. HSBC is merely acting in the capacity as selling agent. This investment product is NOT a bank product and only distributed by HSBC therefore it is not guaranteed by HSBC and/or members of the HSBC Group (HSBC Holdings Plc and its subsidiaries and associates company or any of its branches). This investment is subject to investment risk including possible loss of principal amount invested. HSBC does not give any advice on the investment decision of the prospective investors. The corporate logo of HSBC used in any investment merely evidences the distribution agreement between HSBC and Ministry of Finance of Republic of Indonesia managing the investment. This document does not constitute the dissemination of the information, and offer to sell, or a solicitation of an offer to buy any investment in any jurisdiction where, or to any person to whom, it is unlawful to make any such offer or solicitation.

Issued by The Hongkong and Shanghai Banking Corporation Limited. HSBC is one of the worlds largest banking and financial services organisations. With around 6,900 offices in both established and faster-growing markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and ultimately helping people to fulfill their hopes and realise their ambitions. We serve around 60 million customers through our four global businesses: Retail Banking and Wealth Management, Commercial Banking,Global Banking and Markets, and Global Private Banking. Our network covers 84 countries and territories in 6 geographical areas: Europe, Asia Pacific region, the Middle East, Africa, North America and Latin America. Our aim is to be acknowledged as the worlds leading international bank. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by over 221,000 shareholders in 134 countries and territories.

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