Posted in Uncategorized on November 3, 2009 by apriliawijayati


bank mandiri logo




Bank Mandiri was formed on 2 October 1998. In July 1999, four state-owned banks which were Bank Bumi Daya, Bank Dagang Negara, Bank Exim and Bapindo, were fused into Bank Mandiri.

Industrial sector: banking industry

Bank Mandiri is the biggest assets in Indonesia enroll their stock in Bursa Efek Jakarta (BEJ) in 14 June, 2003.

With assets that have grown to more than Rp 319 trillion today, and more than 21 thousand employees spread among 956 domestic branch offices and 6 overseas branches and representatives Bank Mandiri has committed to delivering excellence in banking services and to provide wide-ranging financial solutions in investment and sharia’ products as well as bancassurance for our private and state-owned corporate, commercial, small business and micro customers in addition to our consumer clients.



Mandiri Saving Account Mandiri Current Account Mandiri Deposit
Mandiri Business Saving Mandiri Foreign Currency Deposit
Mandiri Plan Saving
Mandiri Hajj Saving
Mandiri Foreign Currency Deposit
Mandiri Debit Gaz Card Mandiri Visa
Indomaret Card Mandiri Mastercard
e-Toll Card
Mandiri KPR Mandiri Priority Service Mutual Fund
Mandiri KPR Multiguna Merchant Relations Program ORI & Sukuk Ritel
Mandiri Personal Loan
Mandiri Mitrakarya
Mandiri Tunas KPM
AXA Mandiri Financial Services Retail Brokerage Consumer Banking Treasury
Mandiri Investasi Sejahtera
Mandiri Jiwa Sejahtera
Mandiri Rencana Sejahtera



Analysis of average and standard deviation of stock return, market return, and beta:

Standard deviation is:

  1. A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.
  2. A statistical measurement that sheds light on historical volatility. A volatile stock will have a high standard deviation while the deviation of a stable blue chip stock will be lower.

Beta is the tendency of a security’s returns to respond to swings in the market.


  • Beta = 1 indicates that the security’s price will move with the market.
  • Beta < 1 means that the security will be less volatile than the market.
  • Beta > 1 indicates that the security’s price will be more volatile than the market.

Based on the data collected from daily data of closing price of BMRI stock and Indonesia Capital Market Composite Index (IHSG) period January 2, 2008 till September 30, 2009, the calculation of average and standard deviation is presented:

Average return -2,0284 0,0015
Standard deviation 0,0218 0,0393


The beta calculation by regression data analysis:

The beta coefficient for BMRI stock is 0,217686974. It means the volatility of BMRI stock return is smaller than the market volatility. BMRI is a defensive, low beta stock. It is not highly sensitive to market movements, usually lagging when the market rise and yet doing better when the market fall.


Factors influence the fluctuation of stock return and market return:

Stock return is the profit that is got by the investor because of their stock investment. The profit can be a capital gain (the difference between bid and ask) and dividend (profit allocation from the company to the investor).

The factors influencing the fluctuation of BMRI are:

Company profit

BMRI can get profit by managing the fund and credit from the clients. When the company gets more profit, it will generate the higher stock return to the investor.

Return on Total Assets and Return on Common Equity

Return on Total Assets (ROA) measures the rate of return on common stockholders’ investment. ROA can be calculated as net income divided by total assets. Return on Common Equity (ROE) measures the rate of return on common stockholder investments. ROE can be calculated as net income divided by total equity.

Stock split

A stock split is a decision by the company’s board of directors to increase the number of shares that are outstanding by issuing more shares to current shareholders. Company decides to do stock split because the company is lack of fund to expansion project, then they give dividend as stocks. When company makes expansion, there is probability to make higher income. The higher income can generate higher return to the investor.

Debt to equity ratio

Fundamental risk can be known by the emittent financial that is leverage or debt equity ratio. The higher the leverage makes the change of net income cash flow is higher. Leverage will cause debt interest expense, and it will influence the relation of the return.

BI rate

BI rate influence the interest rate. There are two type interest rate which is interest rate asset product (credit) and interest rate liability product (saving, deposit). If BI rate decrease, then the interest rate will decrease. Many credits can be done, and then bank will get more income from it.


The return on the market as a whole, called the market portfolio.

The factors influencing the fluctuation of IHSG are:

BI rate

If BI rate increase, the interest rate on the bank will increase as well. It will make people tend to do saving than investment, because they will get higher interest rate from their saving. When the capital market is not attractive anymore, the price of stock market will decrease and as well as the market return. It is as the same as the contrary.


Inflation has a relation with the previous factor which is BI rate. Inflation is a condition when there is much money supply in the market and price of goods and services increase significantly. When there is an inflation, BI rate will go higher, it makes saving is more attractive than investing.

Company stocks return activity

Because market return is a bunch of returns from all the companies in capital market, so it is absolutely has relation between stocks return and market return. If the stocks return from the companies is good, it will be resulted in a good market return. It is as the same as the contrary.

Political factor

One of the examples of political factor that influences the market return is general election. If the process of general election can not be successfully reached for example if there is a riot, it might be resulted with the low stock prices that affect the low return.



Boston Consulting Group Matrix (BCG Matrix) is the simplest way to portray a corporation’s portfolio of investments.

It is categorized into one of four types for the purpose of funding decision:

  • Question marks (sometimes called “problem children” or “wildcats”) are new products with the potential for success, but they need a lot of cash for development.
  • Stars are market leaders that are typically at the peak of their product life cycle and are usually able to generate enough cash to maintain their high share of the market.
  • Cash cows typically bring in far more money than is needed to maintain their market share. In this declining stage, of their stage of their
  • Dogs have low market share and do not have the potential (because they are in an unattractive industry) to bring much cash. Dogs should be either sold off or managed carefully for the small amount of cash they can generate.

For the BMRI BCG analysis, I choose one of the products which are the Mandiri Consumer Loan by SBU.

This is the data growth of Mandiri Consumer Loan:

Growth of Mandiri Consumer Loan









Bank Rating Based on Credit








From the data above, we can plot those data in to the BCG graph:

Boston Consulting Group Matrix











From the graph, we can analyze that the Mandiri Consumer Loan is including as the product with high market share that is 12.2%. It means that it has a relative competitive position comparing to other business in the same industry. From the loan by SBU, the highest growth is in the micro loan that is 25.3%. Whereas, the lowest growth is in the international loan with the percentage is 3.9%.



From the analysis above, we can conclude some important points which are:

  • Average return, standard deviation, and beta have a relation.  The standard deviation is often used by investors to measure the risk of a stock or a stock portfolio. The basic idea is that the standard deviation is a measure of volatility: the more a stock’s returns vary from the stock’s average return, the more volatile the stock. Beta is the tendency of a security’s returns to respond to swings in the market. BMRI is a defensive, low beta stock. It is not highly sensitive to market movements, usually lagging when the market rise and yet doing better when the market fall.
  • There are several factors that can influence the fluctuation of the stock return and market return. The factors influencing the fluctuation of BMRI are: company profit, Return on Total Assets and Return on Common Equity, stock split, debt to equity ratio, and BI rate. Whereas factors influencing the fluctuation of IHSG are: BI rate, inflation, company stocks return activity, and political factor.
  • The simplest way to portray a corporation’s portfolio of investments is by using Boston Consulting Group Matrix (categorized into four: question marks, stars, cash cows, dogs). Mandiri Consumer Loan is including as the product with high market share that is 12.2%. It means that it has a relative competitive position comparing to other business in the same industry.




‘Devy Salon Deals with Risks’

Posted in Uncategorized with tags on August 25, 2009 by apriliawijayati


The complete definition about risk, risk is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for. Risk can be defined as any issue that affects an institution’s ability to meet its objective. There are two types of risks, which are negative risk and positive risk. Negative risk is a condition when the realized return is smaller than the expected return, we can call it loss. Positive risk is a condition when the realized return is greater than the expected return, we can call it as a gain.

This paper addresses about risks faced in a business. I choose a type of businesses that runs in hair and beauty service. The reason I pick this business type in this paper because I am excited about hair and beauty problem and it is interesting to explore what the risks faced when we run a business like hair salon, hair and beauty service. For the sample of this paper, I choose DEVY SALON.


Devy Salon was established at February 1985. Mrs. Yetty Gitri Setyawati ran this business in her own house, located at Karang Waru Kidul TR II no. 505 Jogjakarta. The name Devy came from her first daughter who had just born in 1984. In the beginning, she had no parlor, she did it all by herself. The services were cutting and coloring hair. The orders came from her neighbor because just few people known about Devy Salon.

As the time goes by, Devy Salon was getting bigger and bigger. More people knew about the fame and good skill that Mrs. Yetty had. Devy Salon was more popular and popular. Word of mouth was the good way to Devy Salon to meet many orders. Therefore, in 1995, Devy Salon moved at Magelang Street. The strategic location made Devy Salon more exist. In 2005, Devy Salon moved next to the previous place. Finally, from 2006 until now, Devy Salon located at Magelang Street 196 Jogjakarta.

Here is the recent information about Devy Salon:

Owner             : Mrs. Yetty Gitri Setyawati

Location          : Magelang Street 196 Jogjakarta

Telephone       : 0274 – 7891924

Time order      : Monday – Saturday at 9am – 8pm

Sunday at 10am – 8pm

Services          : Facial Services (eyebrow waxing and makeover)

Body Service (steam and body scrub)

Nail Services (manicures and pedicures)

Hair Care Services

(tints, highlights, perm, style, rebonding, hair extension    and hair cut)

Vision              : Committed to meet the needs and satisfied of consumers and believe the importance of feeling confident and comfortable with one’ self.


From the information above, I can conclude that business is not a gambling that hoping to get lucky. We have to manage the risks to control the business in order we can meet our objective from that business.

Devy salon, as the business in a hair and beauty service sector, has many risk factors that can affect the business to meet the objective. The factors are needs and consumer satisfaction, the professional parlors, technology, location, competitor and supplier.


In facing the risks, Devy Salon has to manage and control it. This business is not like gambling that hope to get lucky. Devy Salon has to move, find the way to minimize the risk so it can meet the gain from this business. In this session, I will address how the Devy Salon deals with the risks.

Stay in the vision

The vision of Devy Salon has already addressed above that is committed to meet the needs and satisfied of consumers and believe the importance of feeling confident and comfortable with one’ self. It can be the guideline of Devy Salon to treat the consumer as good as it can do.

Promote routinely

To keep the existence, Devy Salon can promote its business through advertising in local newspaper, or by making flyer about the services and specialization. It is very helpful that make Devy Salon more known by people.

Special treatment

To keep the consumer always stay, Devy Salon gives extra service, may be it can be said as a bonus service. Devy Salon gives one time extra service for consumer who has already done four times same services. For example, when I have already done manicure for four times, I will get free service manicure for one time service. Beside that, Salon Devy also gives free mineral water for its consumer. It is a simple way, but it can make the consumer comfort to be there.

Recruitment and selection

Dealing with the professional parlors who worked, Devy Salon does a good recruitment and selection when it wants to seek additional parlor. It is very important to have a good skill and good personality parlor. It will help the salon to keep the consumer feel satisfied. Nice and friendly parlors make the consumer feel comfort and happy when they go to Devy Salon. The honest parlors can help the owner maintain the cash flow because there is no corruption in money, equipment, etc.

Update the technology and salon tools

Nowadays, technology is developed very fast. Updating technology can support Devy Salon in the case of giving services. For example, when consumer wants to curl her hair, with the newest technology, it can be done with digital hair curling that will give better result. With new technology and salon tools, consumer can get better result quickly.

Understand more the target market and specialization

The specialization if Devy Salon is makes a curl hair with manual or digital curling. With many competitors out there, Devy Salon has to compete hardly. Beside through promotion, bonuses and special treatment for consumer, Devy Salon has to know the target market for the business. For this case, the target markets of Devy Salon are students, college, and people who have low-middle income. Devy Salon gives prices for the services from Rp 20,000.00 for cutting until hundreds for hair extension and curl; it depends on the brand of equipment and the portion used.

Control and monitor the stocks of equipment

The equipment can be like shampoo, masker, hair dye, tonic, etc. If the condition is in emerge (not enough stocks of equipments) and it is too long to wait the supplier, Mrs. Yetty buys the equipment by herself, it is a pity with higher price than if she orders is in large quantity from her supplier. To minimize the run out of equipment stocks, Mrs. Yetty as the owner has to control and monitor the availability equipment in Devy Salon. She orders it from the supplier before the stocks are getting very low.

The Comparison of Capital Markets ASX, KLSE, and IDX

Posted in Uncategorized on May 5, 2009 by apriliawijayati

This paper address about capital market, which are:
1. developed capital market: Australia capital market ASX
2. emerging capital market: Bursa Malaysia KLSE
3. Indonesia capital market: Indonesia Stock Exchange IDX

The ASX (Australian Stock Exchange Limited) was formed in 1987 by legislation of the Australian Parliament which operated in the state capital cities. (The brief table 1.1 of chronological history is presented in appendix.)

There are 2189 company listed in ASX from many industry groups, for example materials, consumer services, materials, food beverage & tobacco, real estate, and many more.

• Shares
Shares also knwn as securities. The return is a share in the company’s profit that can be given as dividends or capital growth through the value of increasing shares.
• Futures & Options
This is used by trader or investors in a wide variety of investment to achieve a broad range: equities (index futures and options), interest rates (interest rate futures and options), energy, (coal, electricity futures and options), agriculture (wool futures and options) and environtment (emissions trading and water futures and options).
There are 70 Australian Real Estate Investment Trusts (A-REITs).
• Infrastructure Funds
Infrastructure funds invest in public infrastructure assets. Examples include toll roads, airports, oil/gas pipelines and broadcasting towers. There are 24 companies listed.
• Warrants
A warrant is a form of derivative that derives its value from an underlying instrument. That gives holders the right to buy or to sell the underlying instrument.
• ETFs & ETCs
Exchange Traded Funds (ETFs) & Exchange Traded Commodities (ETCs) invest in a portfolio of securities that include Australian shares, international shares, commodities, listed property trusts, or a combination of asset classes and can provide investor with a diversified portfolio in the one transaction.
• Managed Funds
Managed Funds can provide exposure to a professionally managed and diversified portfolio of assets. These may include Australian shares, international shares, fixed income securities, unlisted private companies and specialist sectors.

• ASX Listed CFDs
A CFD (contract for difference) is an agreement between a buyer and a seller to exchange the difference in value of a contract, between when the contract is opened and when it is closed.
• Interest Rate Securities
An interest rate security is a security that pays a fixed or floating rate of return. This return can be in the form of interest or dividends.
• Energy & Environment
This is including thermal coal, natural gas, emissions trading, Australian electricity, etc.

There are 25 Australian market indices in ASX.
All Industrials, All Resources, S&P/ASX 300, S&P/ASX 200, S&P/ASX 100, S&P/ASX 50, S&P/ASX 20, S&P/ASX Small Ordinaries, S&P/ASX Small Industrials, S&P/ASX Small Resources, S&P/ASX Midcap 50, S&P/ASX Mid Cap Industrials, S&P/ASX Mid Cap Resources, S&P/ASX 200 Consumer Staples (Sector), S&P/ASX 200 Energy (Sector), S&P/ASX 200 Financial-x-Property Trusts (Sector), S&P/ASX 200 Financials (Sector), S&P/ASX 200 Health Care (Sector), S&P/ASX 200 Industrials (Sector), S&P/ASX 200 Information Technology (Sector), S&P/ASX 200 Materials (Sector), S&P/ASX 200 Telecommunication Services (Sector), S&P/ASX 200 Utilities (Sector).

Year S&P/ASX 200 Price Index
2004 4050.6
2005 4763.4
2006 5669.9
2007 6339.8
2008 3722.3

Year Transaction volume
2004 54,467,201
2005 64,313,679
2006 79,951,181
2007 92,714,486
2008 76,082,968

Year Market capitalization $million
2004 10,267,410
2005 11,897,821
2006 14,809,649
2007 18,447,684
2008 14,878,035


In 1964, the Stock Exchange of Malaysia was established. With the secession of Singapore from Malaysia in 1965, the Stock Exchange of Malaysia known as the Stock Exchange of Malaysia and Singapore. In 1973, currency interchangeability between Malaysia and Singapore ceased, and the Stock Exchange of Malaysia and Singapore was divided into the Kuala Lumpur Stock Exchange Berhad and the Stock Exchange of Singapore. The Kuala Lumpur Stock Exchange formed on December 14, 1976. On April 14, 2004, the name changed to Bursa Malaysia Berhad.

There are 267 company listed in Bursa Malaysia.

 Equities
Share capital, Fixed income securities (the holders are creditors who have no rights in the company beyond the payment of a fixed interest on their loans and repayment of the loans), Exchange Traded Fund (is designed to track performance of an index. It offers additional benefits of diversification and market tracking while retaining the features of convenience and flexibility of ordinary stocks), and warrants.
 Derivatives
Derivatives can be futures and options. The products served are: equity derivatives, commodity derivatives, and financial derivatives.
ETFs invest in a group of stocks or bonds or other instruments.
 Offshore
The offshore exchange facilitates the listing and trading of various financial instruments and securities which are based on both conventional and Islamic principles.
 Islamic Capital Market (ICM)
ICM products are equities, derivatives, commodities, to debt securities, across all sectors and industries.

Bursa Malaysia index series are: Kuala Lumpur Composite Index (KLCI), Industrial Index, Technology Index, Sectoral Index (consumer product, construction, finance, industrial product, mining, plantation, and property).

Year KLCI (RM)
2004 907
2005 900
2006 1096
2007 1445
2008 877

Year Transaction volume (billion)
2004 123
2005 119
2006 216
2007 384
2008 155

Year Market capitalization (RM billion)
2004 722
2005 695
2006 849
2007 1106
2008 664


The capital market in Indonesia was born before the Independence of Indonesia. The first stock exchange in Indonesia was established on 1912 in Batavia during the Dutch colonial era. In that era, the capital market grew slowly and even became inactive for a period of time because of many conditions, such as World War I and II, power transition from the Dutch government to Indonesian government, etc. It was reactivated in 1977, and it grew rapidly along with the support of incentives and regulations issued by the government. (The brief table 3.1 of chronological history is presented in appendix.)

There are 396 companies listed in Indonesia Stock Exchange. It is coming from many sectors, which are: bank, telecommunication, finance, pulp, food, building, etc.

 Equities
Stock is investors’ most favorites investment instrument because it offers them an interesting return rate. There are two benefits the investor can get by buying or having stock, which are dividend (profit sharing given by company and comes from the income) and capital gain (the different between buying price and selling price.).
 Derivatives
Derivatives listed in the Exchange are financial derivatives, which derived from financial instruments such as stock, bond, stock index, bond index, currency, interest rate and other financial instruments. Financial derivatives are often used by Investors and Issuers to perform hedging on their portfolios.
 Syariah Products
Commercial paper represents the equity participation in a company. In syariah-based capital market, the equity participation can be done in companies, which business activities are not against the Islamic principles such as gambling, usury, and manufacturing prohibited things in Islamic Law like beer, etc.
 Bonds
Bond is a debt security, it is like a loan: the issuer is the borrower, the bond holder is the lender, and the coupon is the interest.
 Mutual Funds
Mutual Fund is defined as a mean to collect fund from the investment society to be invested in portfolios by the fund manager. It is an investment alternative for investors, especially for small investors and those who have less time and skill to count the risks of their investments. Mutual Fund is designed as tool to gather fund from public that have the capital, will to invest, but only have limited time and knowledge.

There are 17 market index used in IDX, which are Composite, AGRI, MINING, BASIC-IND, MISC-IND, Consumer, Property, Infrastructure, Finance, Trade, Manufacture, LQ4, JII, and MBX.

Year IHSG (Rp)
2004 1,000.233
2005 1,162.635
2006 1,805.523
2007 2,745.826
2008 1,355.408

year Volume of transaction (million)
2004 1,708.6
2005 1,653.8
2006 1,805.5
2007 4,225.8
2008 3,282.7
From the table shown, the trend of volume transaction is getting higher, even though in 2005 the amount was decreasing.

year Market capitalization (Rp trillion)
2004 680
2005 801
2006 1249
2007 1988
2008 1076

ASX 2189 companies
KLSE 267 companies
IDX 396 companies
The higher the company listed reflects that many companies are interested in capital market.
ASX shares, futures & options, REITS, infrastructure funds, warrants, ETF & ETC, CFD
KLSE equities, derivatives, ETF, offshore, ICM
IDX equities, derivatives, Syariah products, bonds, mutual funds
ASX provides more products than KLSE and IDX. Actually the vary the products from capital market is better off because ti provides investors many ways or choices to invest their money to the capital market.
It is including market index, transaction volume, and market capitalization. The market index reflects the market price. The increasing level of market index measure that the movement of market stock price is good. It means that the performance of companies is good as well. The increasing transaction volumes and market capitalization reflects that the trading activities run well, many people invest their money to the companies and many companies using capital market to fin more resources. The trends for ASX, KLSE and IDX are the same, which are, there is increasing level from 2004 to 2007, but in 2008 the level gets decrease, it might be happened because of there was world financial crisis.


Posted in Uncategorized with tags on February 10, 2009 by apriliawijayati


There is no country in this world that can fulfill its needs without having relation with other countries. The relation is done by both, developed countries as well as underdeveloped countries.

Multinational or global corporation is defined as a firm that operates in an integrated fashion in a number of countries. Multinational firms now make direct investments in fully integrated operations, from extraction of raw materials, through the manufacturing process, to distribution to consumers throughout the world. Today, multinational corporate networks control a large and growing share of the world.

Companies go global for 6 primary reasons:
1. to broaden their market
After a company has succeeded in its home market, growth opportunities are often better in foreign markets. And also, as products become more complex, and development becomes more expensive, it is necessary to sell more units to cover the costs, so larger markets are critical.
2. to seek raw materials
Many oil companies (in U.S.) have major subsidiaries around the world to ensure access the basic resources needed to sustain the companies’ primary business line.
3. to seek new technology
Companies explore the globe for leading scientific and design ideas, because there is no single nation has a commanding advantage in all technologies.
4. to seek production efficiency
Companies in high cost countries are shifting production to low cost regions.
5. to avoid political and regulatory hurdles
When a country has a legal and political issue, then the company will try to found any other place where the controversies have resolved.
6. to diversify
By establishing worldwide production facilities and markets, firm can protect the impact of adverse economic trends in any single country.

Subsidiary company, in business matters, is defined as an entity that is controlled by a bigger and more powerful entity. The controlled entity is called a company, corporation, or limited liability company, and the controlling entity is called its parent (or the parent company).

In Indonesia we can find many subsidiary companies such as BMW Indonesia, Cadbury Indonesia, PT, Carrefour, Electrolux Indonesia, PT, Ericsson Indonesia, Johnson & Johnson Indonesia, PT, Merck Indonesia, PT, Nestle Indonesia, PT, Nokia Networks, Qantas Airways Ltd, Reebok Worldwide Trading Company, PT, Unilever Indonesia Tbk, and so on.


Nowadays, Indonesian government does many efforts to attract foreign investor to Indonesia. But in reality, there is no sufficient policy system, no regulation, no bureaucracy and safety guarantee to protect them who want to invest in Indonesia. Actually, public have a hope that this foreign investment can help Indonesia to recover the economics condition that felt getting worst.

Government’s invitation to the foreigner to invest in Indonesia has never been stop to be yelled. Even in the Megawati era, year 2003 is defined as investment year.

Not only by giving a hope in the consumption level from people and the export of goods and services, the government also has an optimism to the number of investment target.

But, I think many things have not ready yet to support the government seriousness to attract foreign investor to built subsidiaries. In the case of giving safety guarantee, for example in the some regions in Indonesia, I think the condition is not safe enough to attract foreign companies to have subsidiaries in Indonesia. Many crimes like robbery, plunder, and destruction that are shown to the foreign companies, can make the investor think many times to invest, to make subsidiaries or expand their business here. This is added by the regulation in Indonesia that is not well provided; much more make the safety issues being a worry to the investor. Instantly, the business law or regulation in Indonesia is still not well enough to support the foreign investor.

Actually, many foreign companies give statements that they want to be investor, investing and having their subsidiary companies in Indonesia. But in fact, it is just only a statement.

Many constraints from Indonesia make them all cancel their investment. Not only by safety issues, but it is including the bureaucracy and the business policy in Indonesia that is still not profitable enough to the investor.

Public also realize that it is becoming the constraints for the foreign investor to enter Indonesia’s market or to have subsidiary companies in Indonesia. Along this time, it has became public understanding that the bureaucracy permission in Indonesia needs long process and long time, yet by charging other cost that can be said relatively huge.

Beside those issues above, the investors have to meet with the taxation regulation, customs duties and also illegal extraction. Many foreign companies that are gathered by an association have ever asked the government to review the taxation system, especially in the case of production sharing contracts in Penanaman Modal Asing (PMA). Also the regulation is always changing. It is not only the taxation, or other retribution, but it is applied in the case of employment regulation and minimum province wages that always increasing.


There are advantages and disadvantages when foreign subsidiary companies enter Indonesia’s market.

The advantages:
1. to cut down the unemployment
When the company, even the foreign subsidiary company are standing in Indonesia, it is automatically need like workers to be worked there. And since it is getting bigger then it will need more workers and it can cut down the unemployment in Indonesia.
2. price stabilization
If the price of something inside the country is high or expensive, or the quantity is not enough or can not fulfill the demand of the market, it needs to be added by the other things that can be the other choices to make the balance of demand and supply, and then the price will be stable.
3. to increase the consumption quality
For example when we can not produce a good that the quality is not as good as the foreign has. By the presence of foreign subsidiary company here with the high goods quality, it will become our motivation to try and try more to increase our product quality.
4. speeding up the movement of technologies
Automatically by standing together with foreign subsidiary companies that have better technology system, we need to adapt. It makes the local company little bit understand and encouraged to explore the other technology system.

Then the disadvantage is the worries of public that is considering of the foreign generally entering Indonesia’s market with good management system, better than the local companies, in the long period, it is possible for them to dominate Indonesia’s economics and to kill the local businesses.


Because of the worries of public, event though we support the foreign investor to come, but we have to be careful showing up our agreement to the entering of investor in the certain sectors. Especially to the energy strategic sector like fuel and oil and electricity power plant, and agricultural product processing sector like agriculture, plantation business, and forestry.


Posted in Uncategorized with tags on February 10, 2009 by apriliawijayati

This paper addresses the major economic indicators of a country as well as the impact of it in the economic condition.

The 5 major economic indicators:
1. GDP (Gross Domestic Product)
2. international trade
3. financial flows
4. national savings
5. income distribution

GDP (Gross Domestic Product)

If you judge how a person is doing economically, you might first look at his or her income. A person with a high income can more easily fulfill life’s necessities and luxuries. It is no surprise that people with higher incomes enjoy higher standards of living.

The same logic applies to nation’s overall economy. When judging whether the economy is doing well or not. It is natural to look at the total income that everyone in the economy is earning. That is Gross Domestic Product (GDP). GDP is defined as the market value of all final goods and services produced within a country in a given period of time.

We can compute GDP for this economy in one of two ways: by adding up the total expenditure by households or by adding up the total income (wages, rent, and profit) pay by firms.

International trade

The benefits of international trade:
1. increased variety of goods
2. lower cost through economies of scale
3. increased competition
4. enhanced flow of ideas

The effects can be determined by comparing the domestic price without trade to the world price. A low domestic price indicates that the country has a comparative advantage in producing the good and the country will become an exporter. A high domestic price indicates that the rest of the world has a comparative advantage in producing the good and that the country will become an importer.

Financial flows

Financial flow is relevant to the development of an effective and appropriate international response to climate change, with particular focus on developing countries need, including their medium to long term requirements for investment and finance.

If the development is high, it is good for the country, because it reflects the productivity that will affect in high income and GDP.

National savings

National saving (saving) is defined as the total income in the economy that remains after paying for consumption and government purchases.

Private saving is the income that households have left after paying for taxes and consumption.
Public saving is the tax revenue that the government has left after paying for its spending.
National saving equals private saving plus public saving.

A government budget deficit represents negative public saving and reduces national saving and the supply of loanable funds available to finance investment. When a government budget deficit decreases investment, then, it will reduce the growth of productivity and GDP.

Income distribution

Income distribution is the distribution of wages earned across a company, industry, or country.

When the income distribution of a country spread through its people inside the country, it means that the poverty rate is low. It reflects that the economic condition of the country is good; because the productivity has spread all over the country and all the people have contributions to national income GDP.

hi world….!!!

Posted in Uncategorized with tags on February 9, 2009 by apriliawijayati
hihiii here i am ^^

hihiii here i am ^^

this is april from IBMP 16845
do you know about that?? if you don’t know, you act like know hehehheheeee

thankz for Mr Alex, who introduced me about this blog idea ^^

ya, that’s just my first posting,
c u soon!

Hello world!

Posted in Uncategorized on February 2, 2009 by apriliawijayati

Welcome to This is your first post. Edit or delete it and start blogging!