Beware of the European crisis, Hatta: A lot of work, not polemics

The Indonesian government deeply wary of the debt crisis that occurred in Europe. At least there are some things that need to be done, one of which focus on work and do not need to be debated.

It is delivered by the Coordinating Minister Hatta Rajasa to detikFinance when on the sidelines of his visit to Astana, Kazakhstan, Wednesday (05/23/2012).

"The crisis of Europe can not be taken lightly. Greece's financial crisis is compounded by the political situation and declining ratings in several countries as well as the weakening of the euro and the declining confidence in financial markets could make the financial crisis triggering the economic crisis," said Hatta.

He said Indonesia needs to be aware of the situation in Europe as an indirect debt crisis conditions in Europe could affect the current lack of investment into ASEAN and East Asia including Indonesia.

"The funds will be sucked into many European banks are experiencing a liquidity crisis. But we are somewhat optimistic with the stimulus of the G8 countries," he explained.

Current financial capacity of the large European countries such as Germany and France are very limited which causes stunted economy. Not to mention the United States still has a huge PR boost for the economy and unemployment.

Hatta said there are some things that will do the government to Indonesia to be immune from the impact of the economic crisis that occurred in Europe.

"The first is the coordination of fiscal and monetary matters. For stable rupiah, inflation maintained, and maintain the momentum of investment and balance of payments," said Hatta.

And second, keep the state budget remains healthy and reduce unnecessary spending. "The focus of the infrastructure capital expenditures, to prevent leakage (budget), and increase state revenues (non-tax revenues)," he added.

Third, continued Hatta, the government would expand the exports and increase in the domestic market as well as preventing imports increased sharply.

"Increase public savings because we are saving a very small, only 32% of GDP, or the smallest compared to other countries. It's one of the factors of domestic sources of financing are very limited," said Hatta.

The Government is also committed to reduce the debt, unless the government takes the economic stimulus funding to do in the face of the crisis of Europe.

"Fourth, a lot of work, do not talk much and unnecessary polemic," he said.

Source : Detik Finance, 23 May 2012

Characteristics of foreign exchange trading

There is no uniformity in the foreign exchange market. With the transaction outside the stock exchange trading (over the counter) as the traditional market of foreign exchange trading, a lot of foreign exchange markets are interconnected to each other where different currencies are traded, so it indirectly means that "there is no exchange rate but a single dollar exchange rate varies depending on what bank or market maker is trading ". However, in practice the difference is often very thin. The main trading centers are in London, New York, Tokyo and Singapore, but banks throughout the world to its participants. Foreign exchange trading occurs throughout the day. If the Asian markets ended the European market was opened and at the European markets ended the American market starting and return to Asian markets, except on weekends. Very little or even no "insider trading" or information "insiders" (Insider trading) which occurs in the foreign exchange market. Fluctuations in currency exchange rates are usually caused by actual monetary flows as well as by expectations of monetary flows caused by changes in the growth of Gross Domestic Product (GDP / GDP), inflation, interest rates, budget and trade deficits or trade surpluses, mergers and acquisitions as well as other macroeconomic conditions. Major news is released publicly, so that more people can access the news at the same time. However, large banks have an important value that they can see the current movement of "order" currency from customers. Currencies are traded with each other and each pair is a separate product, such as EUR / USD, USD / JPY, GBP / USD and others. Factor on one of the currencies eg USD will affect the market value of the USD / JPY and GBP / USD, this is a correlation between USD / JPY and GBP / USD. In the spot market, according to research conducted by the Bank for International Settlements (BIS), the most heavily traded products are EUR / USD - 28% USD / JPY - 18% GBP / USD (also called sterling or cable) - 14% and U.S. dollars "involved" in 89% of transactions conducted, followed by the euro (37%), yen (20%) and Pound Sterling (17%). Although trading in euros increased rapidly since the currency was issued in January 1999 1999, still dominates the U.S. dollar foreign exchange market. For instance, in trade between Euro and non-European currencies (XXX), usually always involves two types of trade are EUR / USD and USD / XXX, the exception only to trade EUR / JPY is the currency pairs that are still traded in the spot market between banks.

The foreign exchange market (forex)

The foreign exchange market (forex) or abbreviated exchange is a type of trading or currency trading transactions of a country against another country's currency (the currency pair / pair) that involves major financial markets in the world for 24 hours continuously.

Rotating movement of the foreign exchange market from New Zealand and Australia market which took place at 05:00 to 14:00 pm, continued into the Asian markets of Japan, Singapore, and Hong Kong which took place at 07:00 to 16:00 pm, to European markets, namely Germany and the UK which took place at 13.00 -22.00 pm, up to the U.S. market which took place at 20:30 to 10:30 pm. In its historical development, the central bank's countries with foreign exchange reserves that can be defeated by even the largest foreign exchange market forces are free.

According to the survey BIS (Bank for International Settlements, the world's central bank), conducted in late 2004, the foreign exchange market transactions reached more than USD $ 1.4 trillion per day.

Given the level of liquidity and accelerating the movement of high prices, foreign exchange has also become the most popular alternative because the ROI (return on investment or return on investment) and profit to be gained could exceed the average trade in general. As a result of such rapid movements, the foreign exchange market also has a high risk.

Commodities definition

Commodities can be interpreted as follows:

1. Something tangible objects that are relatively easy to trade, can be physically delivered, can be stored for a certain period and can be interchanged with other products with the same type, which usually can be bought or sold by investors through the stock futures
2. More generally, a product that is traded, including foreign exchange, financial instruments and indexes.

Characteristics of the commodity price is determined by market supply and demand rather than determined by your dealer or the seller and the price is based on the calculation of the price of each offender Commodity example is (but not limited to): mineral and agricultural products such as iron ore, oil, ethanol , sugar, coffee, aluminum, rice, wheat, gold, diamond or silver, but there is also a product called "commoditized" (no longer distinguished by brand) such as computer

In linguistics, the word "commodity" is becoming known and used in England in the 15th century from French is "commodité" which means "something fun" in quality and service.

The Latin root is called commoditas which refers to a variety of ways for precise measurements of things, circumstances or conditions the right time, good quality: the ability to produce something, or property, and value-added or profit.

In Germany the so-called die Ware, ie the products or goods offered for sale.

In France called "produit de base" like energy, goods, or industrial raw materials.

In Indonesia can be defined as: merchandise, trade objects, or raw materials that can be classified according to their quality in accordance with international trade standards, such as wheat, rubber, coffee.

Public Offering (Go Public)

In the initial stage, the company must conduct a public offering. Public offering (go public) is the activity of the company to obtain funds from public investors by selling stocks or bonds. Public offering by the issuer to sell securities to the public so that people from different walks of buying and holding stocks helped the company issuing the stock. By doing go public, the company gets the benefits are as follows:  
- Obtain substantial funds for business development and improve its capital structure, as they are received directly without going through the various stages (installments) 
- The shareholding spread in the community, the company is required to conduct its business in a transparent and professional that spurred the company to grow.
- Expand opportunities for people to invest by way of share ownership. 
- Better known by the public so that indirectly helped run promotional activity.Here are steps that must be done in the company's public offering went public.- The preparation stageCompanies that will issue shares prior to the General Meeting of Shareholders (AGM) to form a consensus among the shareholders in the context of a public offering of shares. Once agreed, issuers and underwriters to determine the supporting institutions and markets that include the following institutions.
  1. Underwriter, is a party to assist issuers in the issuance of shares. His job, among others, to prepare various documents, helped prepare the prospectus, and provide a blanket guarantee for publication.
  2. Public accountant (independent auditor), is in charge of the audit and examination of financial reports for issuers.
  3. Assessors, ie that the assessment of the company's fixed assets and determine the feasibility.
  4. Legal counsel (legal opinion) to help and give an opinion from the legal side.
  5. Notary in charge of making the figures amendments, the deeds of the agreement, and the minutes of the meeting

- Stage Registration Statement FilingFor issuers to register with the supporting documents furnished to Bapepam. Then Bapepam decided issuer meets the requirements or not.
- Phase Stock QuotesAt this stage issuers offer shares to public investors through agents designated sellers. In this stage the desire of investors to own shares are sometimes not met. For example, shares are released into the primary market of 150 million shares, while investors are interested in a number of 250 million shares. Investors who do not get to buy shares in the secondary market after the shares are listed on stock exchanges. 
- Phase Shares on the Stock Exchange Listing Once the shares offered in the primary market, then the securities are listed on the Indonesia Stock Exchange. Listing of shares can be done in the stock market.

Controversy in the storage of funds directly or through a form of collective investment business

The biggest advantage of investing in the funds raised were access to the expertise of a professional investor and a diversification of the deposit of the fund. Investors also receive services associated with such funds, periodic written reports and dividend payments (where appropriate). It is quite a disadvantage of investing in the fund to the payment of fees collected are the managers of these funds (generally payable at the beginning and every year and sometimes on the way out) and the diversification of the fund which may or may not match the background of the needs of investors.

It is possible for the occurrence of excessive diversification. If the investor to save some money, risk and the structure of the overall position is an amalgam of storage in all the different funds and can also be questioned by the investors of storage compared with the index or market risk is estimated to be successful.

Costs or fees paid to professional fund management organization should monitor carefully. In many cases that is not good (such as fees and other costs which the fee is less visible and hidden in the work environment of the organization) is greater than the payment of dividend income and profit after tax return which investors expect in an average year.

Equity investments

Equity investments are generally associated with the purchase and storage of capital stock on a stock market by investors, both individual (individual) or company (institution) in anticipation of income from dividends and capital gains as the stock value increases. It also sometimes refers to the acquisition of equity (ownership) to participate in a private company (not listed) or a new company (a company being created or newly created). When investments are made in the new company, it is referred to as venture capital investment and is generally understood to have a greater risk than investments in situations where the shares are listed on the stock.

Indirect investments are generally made by individuals through mutual funds or other forms of storage that particular investment money has been raised most of their list prices displayed on the financial newspaper or magazine business magazine.

According to the Capital Market Law in Indonesia No. 8 of 1995 article 1, paragraph (27): "Mutual fund is a vehicle used to collect funds from the Investor to be invested in portfolio securities by the Investment Manager."

Mutual funds are generally managed by a well-known fund management companies (for example: Fidelity or Vanguard). By doing such a deposit of funds of individual investors the opportunity to diversify risk with a small capital as well as gaining access to the managing partner of professional expertise in the management of these funds. An alternative is generally carried out by investors and large institutions (such as large pension funds) is to hold the stock directly; the institutional environment many clients who have their own portfolios have what are called segregated funds in the opposite sense to, or in addition, collected, such as alternative to mutual funds.