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Joey talk: Capitalism in Indonesia

This morning I saw a new apartment near a crowd road. And I was thinking, what the hell do the developer thinking by placed an apartment there; it’s already full of vehicles almost every time. Well, as we all know, Jakarta has rare vacant land due to non-stop infrastructure development. And the jakartans are like, beleaguered by those skyscrapers. It’s because many businesspeople feel that Jakarta is a potential city to grow their business, so they only thinking about build profitable building without concern to environment.

There are small shops and houses near the apartment, and I think it is the ironic scenery that showing the high level people and low people living inequality together. But that’s how the economic system goes. The businesspeople always think about obtaining more and more profit, and who doesn't get profit, will end up in poverty.

You must think that the ‘economy system’ that I mentioned is capitalism, which is bad. The Marxism might show in your head, says that equality in economy is a must. The government should let people take over the industry, and give the profit back to people, not to keep it and ignoring others suffering.

However, I think now our country is still trying to find perfect economy system in modern and better way. Every element in our society should working together to make our economy better.

This modernized society, instead of capitalist economy, should be called mixed economy. Generally speaking, it’s founded by three elements, Individual, enterprise, and government.

Individuals consists of labor, land, capital goods etc, and provides services for other economic entities in return for remuneration. Vice versa, enterprises depend on individuals and other enterprises’ services’ remuneration to earn intermediary fees from the production services.

Well, this is not a lecture from me. I just hope that young generation in Indonesia to be ready to lead our economy in the future, to create better economy and environment.

Therefore, if you have any idea or opinion about what should happen in Indonesia’s economy, feel free to comment here. See you in the future, business leaders!

Introduction to Joey: our business advisory

Hi, this is Joey.

I am the new ambassador for this blog, yeah the writer created me with the name from one of ‘Friends’ series star. The writer told me that I had to give some tips or inspiration to readers about business/economy. That should fun, because our readers segmented for young, wild, and passionate people who want to know more about business. 

How to Manage Your Monthly Salary Better

Do you find yourself struggling to stretch your salary to the end of the month? Living from pay cheque to pay cheque can't be much fun. But often it's not the money we earn but rather how we handle it that makes all the difference. Here are 10 ways to manage your monthly salary more effectively.

Check your salary statement.

The first thing you should do when your salary is credited into your account is go through your salary statement. Check all amounts ie basic salary, travel allowance, medical allowance and other reimbursements to see if you have got your dues. In case of any incorrect amounts, notify your HR/finance department immediately about the discrepancy. This way you can ensure the arrears are credited with your next month's salary.

Pay off all your bills.

Activate an Electronic Clearing Service (ECS) facility for the payment of your credit card, phone, electricity and other bills so that they are paid on time every month. This will help you to avoid late payment fees which can eat into your savings. If ECS is not the way you want to go, write out your cheques at the start of the month and simply add amounts when the bills are generated.

Plan your tax-saving strategy.

Often people find themselves facing a cash crunch at the year-end thanks to bad financial planning the whole year through. You could opt for a tax-saving scheme that allows for monthly payment or simply save a certain amount each month for a lump sum investment at the year end. You could even put this amount in a recurring deposit or a liquid plus fund to earn some money on it.

Save that bonus!

If you received a bonus around Diwali time, we hope you didn't just splurge. You can spend a little of your yearly bonus (say 20 per cent). The rest should be saved. You never know when you might want to go on a spontaneous vacation or just throw a fancy cocktail party for your friends.

Budget for the month.

List out your standard monthly expenses like groceries, building outgoings, tuition fees, car fuel etc and make a rough budget for each of them. Don't forget to include amounts that go towards savings, investments and of course, your contingency fund. This way you know how much money is left at your disposal.

Save and invest.

Salaries ensure a regular flow of income which makes Systematic Investment Plans (SIPs) a great investment avenue. In about five years, you will reap rich dividends. Liquid plus funds make for great short-term avenues.

Give to charity.

Some of the richest people in the world make it a point to give a part of their earnings to charity. Now we're not saying give with the motive of receiving, but be generous. Donate to charity, give to beggars (food or money) and you won't find yourself crying poverty every month. It's the law of sowing and reaping!

(Source: idiva.com)

China's central bank warns of inflation

BEIJING - China's central bank on Wednesday warned of inflationary pressure, saying theinfluence of rebounding demand, labor supply changes and global monetary easing on pricesmust be watched closely.

The recovery in the economy and in demand may translate into consumer price movements veryquickly and "particular attention needs to be paid to the effect of changing expectations on futureprices," the People's Bank of China (PBOC) said in its quarterly monetary policy report.

"During the stage of economic transition, the prevention of inflation risks should always be ahighlight in financial macro-control," the report said.

World in figures: Industries

Media

Nov 21st 2012 |From The World In 2013 print edition

Despite the absence of big-ticket events like the Olympics and the US presidential election, spending on advertising will grow by 4.5% in 2013, up from 3.8% the year before, according to ZenithOptimedia, an ad agency. Spending in Latin America will rise by a robust 10%.

Related topics

• 2012 Election
• Elections and voting
• World politics
• Government and politics
• American presidential election

Internet advertising will grow by 15%, more than three times as fast as any other category, and comprise a fifth of all spending. Advertisers are particularly keen on social-media sites, aiming to become “friends” with potential customers; spending on this category will grow by 31%.

In absolute terms, the amount spent for online ads will surpass that for (offline) newspapers for the first time. Print-media ads will fall for a third consecutive year. As a result, a growing number of media outlets will announce that revenues from subscriptions exceed sales from advertising. Even so, the steady loss of high-margin print ads will ensure that the industry’s endless restructuring grinds on.

From The World In 2013 print edition

How to Measure Your Social Media Return On Investment

Most business follow a simple rule when it comes to adopting new technologies or paradigms – If it boosts my business’ Return of Investments (ROI), it’s worth the investment. Social Media is no exception to this rule. Unless, businesses see value addition from social media, they are not going to take the plunge.

Therefore, as a social media activist, one of my primary responsibilities is to educate businesses on how they can measure their social media ROI. This helps them understand and appreciate the impact of social media on their business. This post explains the various aspects of Social media ROI from a business’ perspective.

Is Social Media ROI Measurable?

Of course, it is. Otherwise the social media world won’t be full of millions of success stories for boosting ROI using innovative social networking tools. Now, that the “If” hurdle has been cleared, comes the all important question of “How”.

How to measure Social Media ROI?

I’ve come across many social media marketers who claim that it’s a challenging task to measure social media ROI because there are no rules/ guidelines to do so. I beg to differ. Though I admit that there are a number of variables and qualitative factors in the equation, measuring the ROI is a critical part of the social media adoption policy for any business.

Simply put, ROI is (Revenue – Investment)/ Investment. Social Media helps boost an ROI because it

1)    Helps in boosting a business revenue therefore increasing the numerator

2)    Requires minimal investment therefore decreasing the denominator

Define Goals & Create a baseline

It may sound difficult to believe but a majority of businesses find it difficult to come up with clear and concise goals for social media adoption. It is crucial to create a baseline with the current status-quo as it helps to quantitatively access the gains from social media.

Jot down your current numbers and your goals. It is equally important to know where you stand now as it is to know where you want to get. No ROI calculation is complete without a concrete baseline.

From a social media perspective, a baseline may involve the following numbers

* Twitter Followers

* Facebook Fans

* Retweets

* Unique Impressions from Twitter & Facebook etc.

Is it just revenue?

While in financial terms, ROI usually relates to revenue and profits, it’s a different proposition when it comes to social media. The gains from Twitter, Facebook and any other social network may not always be measurable in financial terms. They may help boost traffic on your business website or simply spread brand awareness or improve your goodwill in the customer community. Of course, one of social media’s ROI contributors to boosting ROI is the enormous amount of savings. A well-planned social media strategy can help a business drastically reduce its advertising and marketing budgets.

Periodically monitor and Act

Most businesses join the social media bandwagon and are so awe-struck by its sheer powers that they are happy with whatever returns they get. In fact, a majority of businesses end up underutilizing social media when compared with its true benefits.

It is important to periodically assess and review your business’ progress by matching it with the baseline. If your business is not achieving the set targets, there’s time for retrospection and action. If your social media strategy achieved the desired results, do not sit back and relax. It is time you take your social media efforts to the next level.

(Source: Smedio )

Fashion: 10 Pieces of Clothing Worth the Investment

Ladies, if you're looking for investment that match with your passion, fashion branded items are win-win solution. You will get beauty and money-saving although those prices are expensive. However, you can keep them, and could sell it when the mode trends became perfect match for your old items. So it's really worth to give it an exception for buying expensive stuff. Beside, Fashion branded items are hype, right?

1. The (Not So Little) Black Dress

Staying on top of current-season fashion trends can be costly. Today's hot maxi dress is tomorrow's back-of-the-closet military jacket -- so spring 2011. If you're a dedicated follower of fashion, bank on these eternally in-style pieces. You'll know what a good investment you've made 10 years from now -- when you're still wearing them.

If you're going to splurge on just one item, make it the simple black dress in a style that suits your body type. For slender or evenly proportioned figures, choose a sheath or A-line. An empire waist works for apple, pear and rectangle shapes while a V-neck flatters full figures or large busts. Avoid trendy looks, lace and embellishments. Think of your dress as a blank canvas; use jewelry, scarves and accessories to add color and texture, and to stay current with changing fashions.

2. The Tailored White Dress Shirt

Classic, chic, polished and appropriate for any situation, the crisp white button-front dress shirt is a wardrobe essential that many women overlook. Yet no other item can go from the boardroom to the beach. Choose a 100-percent cotton shirt with a single seam down the sides and under the arms rather than double stitching -- this indicates a better-quality shirt. Other necklines come and go, but the standard pointed collar is tried-and-true. When it's not about business but pleasure, wear it unbuttoned over a T-shirt and jeans.

3. The Cashmere Sweater

If you've never worn cashmere, you don't know what you're missing. The essence of understated elegance, cashmere sweaters can run the gamut of cable knit, crew neck, V-neck, cardigan, mock turtleneck and sleeveless shell. Classic colors include grey, oatmeal, camel, ivory, and pale pink. Two-ply yarn and long fibers indicate better quality while short fibers will pill. Expect to pay hundreds for a new high-quality cashmere sweater.

4. The 10-Mile Heels

Are good shoes worth it? Yes, but only if you resist current trends. The black pump in a medium heel is your best option. Expensive shoes feel better and wear longer due to quality construction and materials. When you put them on, you should be unafraid to walk 10 miles in them -- that's how comfortable they should be. No matter how drop-dead gorgeous they are, if they hurt within seconds they're not worth the price.

5. The Pencil Skirt

You can't go wrong spending money on a good pencil skirt; it's the most useful item of clothing in any woman's closet. It fits well when it hugs your hips and tapers inward, ending at knee length or up to an inch above. Black, navy, brown, grey or beige are versatile neutrals that you can mix and match for years with other essential wardrobe items to dress up or down.

6. The Leather Jacket

Jennifer Aniston shelled out $12,000 for James Dean's leather jacket, but you can do better for a fraction of the price. Although a motorcycle jacket is hip and timeless, a mid-length fitted jacket is more enduring. For the softest, most supple leather, look for a jacket made of lambskin. Don't waste your money on inferior pieced-together patchwork leather.

7. The Perfect Pair of Jeans

Jeans may not seem like an extravagant purchase, but some brands cost hundreds or even thousands of dollars. Why spend so much? High-end manufacturers use a finer weave of denim and some wearers claim certain cuts make them look thinner. If you do invest in a pair, mid-rise dark jeans with a boot cut or straight leg never go out of style, while those with 1 percent or 2 percent spandex have a more flattering fit and hold their shape better after repeated washings.

8. The Lightweight Wool Blazer

If you want to impress but a suit feels too formal, a high-quality blazer of lightweight wool paired with pants or a skirt communicates style and sophistication. A well-made blazer will have lapels that lie flat, seams that don't pucker, and a lining that doesn't bunch. Buy one that fits you in the shoulders -- slight alterations can always be done on the sleeves and the torso.

9. The Tailored Trouser

There are pants...and then there are tailored trousers. Mimicking menswear but with a decidedly feminine shape, an elegant pair of trousers that fit perfectly can make your rear appear firmer and your belly flatter. Fabrics like wool crepe have a luxurious drape and resist wrinkles. Choose a mid-rise straight leg trouser that fits just below the waist, and opt for solids such as black, grey or brown, or a small herringbone pattern or fine stripes. 

10. The Belted Trench Coat

The November 1918 issue of Harper's Bazaar recommended the trench coat as a gift "For the Woman in Service at Home and Abroad." Price tag: $65. Almost a century later, the classic trench is still fashionable, but today Burberry's traditional cotton gabardine coat begins at $1,295. Yet if you wore yours twice a week for 50 years, your cost per wear would be 25 cents -- an unbeatable investment. Imagine the savings if your great-grandmother had bought one back in 1918 and passed it down to you.

(Source: msn-life.com)

STOCK NEWS INDONESIA-Property owners to benefit from retail sector demand-Nomura

Strong demand growth in the Indonesian retail sector could lead to a pricing power shift to property owners due to higher rental costs, Nomura Equity Research said.

"While demand for leased retail space has grown with the influx of retailers and existing retailers' aggressive expansion, supply growth has been slower. In Jakarta, leased retail space has grown 16 percent over the past three years as of 1H12, vs supply growth of only 11 percent. We expect this trend to push rental rates for leased retail space up further (especially in big cities) as pricing power shifts to property owners (landlords)," Nomura analysts Janni Asman and Wilianto Ie said in a note to clients on Tuesday.

"We expect strong growth in demand, along with likely limited supply upside, especially in premium areas, to lead to a shift in pricing power to property owners (landlords) and a higher increase in rental costs," they said.

The research house remained positive on Indonesia's consumption growth in the long-term, but said rising competition may affect corporate earningsperformance as the intensity of competition varies across sub-sectors.

Nomura's preferred company is departmental store chain Ramayana Lestari Tbk with a 'buy' rating, given its relatively more diversified revenue sources and greater resilience in facing rental cost increases.

The research house put a 'neutral' rating on commercial and industrial supplies company Ace Hardware Tbk and fashion retailer Mitra Adiperkasa Tbk, saying despite growth in lifestyle retail in Indonesia, the market is pricing in high expectations and it will be difficult not to disappoint.

By 0621 GMT, the Jakarta Consumer Index was up 0.03 percent, while the broader Jakarta Composite Index was up 0.06 percent.

 (Reporting by Andjarsari Paramaditha in Jakarta)

STOCKS NEWS INDONESIA-Bumi Resources shares hammered on financial probe

Shares in Indonesia's Bumi Resources, Asia's biggest thermal coal exporter, dropped as much as 13.23 percent on Tuesday after parent company Bumi Plc launched an investigation into alleged financial irregularities at its subsidiaries.

Bumi said on Monday it had commissioned an independent investigation after allegations over the use of company funds at its affiliates, including 29 percent-owned PT Bumi Resources, which is controlled by Indonesia's influential Bakrie family.

Bumi Resources CEO Ari Hudaya stepped down from the London-listed parent company's board hours after the probe was announced. The stock was down 5.88 percent at 640 rupiah with 179.7 million shares traded, the highest turnover on the Indonesian stock exchange. The Jakarta Composite Index was up 0.10 percent. 1051 (0351 GMT) (Reporting by Andjarsari Paramaditha in Jakarta)

Source: Reuters

The beginner's guide to investment: Are you ready to invest?

Taking the decision to begin investing your money is a big step. Many of you are doing so in order to increase the capital value of your money or to get an income and maintain the level of your savings. 

Investment means introducing risk to your money. This is not necessarily a bad thing, as increased risk can help you grow your cash. But, conversely, there is the possibility that you could lose some, or all, of your money.

There are four key activities that you must undertake before considering investing your money:

1) Sort out your debt

It's imperative to ensure that your debts are under control before considering investment. Debt is generally much more expensive to service than the returns you'll get from investments and large debt repayments may stop you from reaching your financial goals. 

Additionally, if you do lose money by investing, you risk defaulting on your debt repayments. Focus on reducing debt to levels that you're comfortable to manage or, ideally, pay off all debt before investing. Readour guide to dealing with debt for more information. 

2) Get protected

Make sure your finances are protected if you cannot work due to illness for an extended period of time. Check your sick pay scheme at work to see how long you would be covered for and consider taking out income protection insurance if you are self employed. 

Other insurance, like critical illness cover if you become seriously ill, could also be an option if you have a mortgage or dependents, although this can be expensive.

In addition to this, life insurance is an essential item you need to take out before thinking of investment, especially if you have a family. Your work may offer a death in service benefit, but consider an additional policy, in case you change jobs or are out of work. 

Find out more in our guide How to buy life insurance. 

3) Think about retirement

One of the biggest problems in the UK is that people are not saving enough for their retirement. Relying on the state to provide a pension for you in older age may not be enough to maintain the lifestyle you have now or leave you comfortable in retirement. 

It's vital that you start saving for your later years as early as possible. Make sure you're contributing to youremployee pension scheme or a private pension before investing any spare cash – pension savers benefit from employer contributions and generous tax breaks. 

4) Make sure you’ve got savings

Have you got spare cash to fall back on? Before introducing risk to your money, you need some core savingsas an emergency fund for those unseen events. 

The generally accepted rule is to have three months' salary in savings before you invest. And make sure that these savings are in a high-rate savings account.

Source: http://www.which.co.uk

Dell’s ‘Mr Denali’ Talks Said to Break Up a Few Times Over Price

By Serena Saitto and Jeffrey McCracken
February 05, 2013 10:48 PM EST

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Last August Michael Dell approached the board of the computer company he had founded in 1984. He had a proposition: He wanted to take Dell Inc. private and told the board he was the right person to do so, according to people familiar with the matter.

Soon after, serious talks began, moving from Round Rock, Texas, where Dell is based, to California to New York. The code name for the potential deal: Mr. Denali. The discussions broke up several times over price, especially in the final weeks of the deal, according to the people. The price ranged from an initial offer of $12 a share to the final price of $13.65.

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Edward Conard on Dell Going Private, LBO (7:07) 16 hours ago

Analyst Srinivasan on Dell Going Private, LBO (4:26) 20 hours ago

Dell Taken Private in $24.4 Billion Buyout Deal (1:45) 21 hours ago

After six months of negotiations, Dell and private-equity firm Silver Lake Management LLC agreed yesterday to buy the computer company for $24.4 billion in the biggest leveraged buyout since 2007. While other leveraged buyouts are often initiated by LBO firms, this was Michael Dell’s deal from the start, an effort to ensure his legacy and reinvent the struggling company he founded in a University of Texas dormitory almost three decades ago.

Michael Dell is committed to his job as chairman and chief executive officer, said Dell Chief Financial Officer Brian Gladden.

“Financially, he’s putting a lot of capital into this process,” Gladden said.

Under the deal, Dell will contribute his 15.7 percent stake, valued at more than $3.6 billion, as well as $700 million, a person familiar with the matter said, giving him a majority stake in the company. Silver Lake will invest about $1.4 billion in the buyout and Microsoft Corp. will invest about $2 billion, one of the people said. Another $13 billion will be financed by banks.

Going private will enable CEO Dell, 47, to reposition the company amid shrinking personal computer sales and the industry’s shift to mobile and cloud computing without the scrutiny and stock fluctuations that come with being publicly traded.

The deal took several twists as board members tried to ensure that shareholders were protected in a buyout that was being led by management. Dell recused himself from the board to let it work independently on the potential deal, according to people familiar with the situation.

Alex Mandl, the board’s lead director, formed a special committee with three directors, Laura Conigliaro, Ken Duberstein and Janet Clark. The committee hired as financial advisers three of JPMorgan Chase & Co.’s top dealmakers -- James B. Lee, vice chairman, Jim Woolery, co-head of North America M&A, and Kurt Simon, head of technology, media & telecommunications. Goldman Sachs Group Inc. also advised Dell.

JPMorgan didn’t advise Dell on any of its recent deals, according to data compiled by Bloomberg, avoiding a potential conflict of interest with management.

“The independent directors will usually pick a bank that is independent, which means it didn’t have a great deal of contact with the management that is participating in the buyout,” Mort Pierce, partner in the M&A group of law firm White & Case LLP in New York.

Jennifer Zuccarelli, a spokeswoman for JPMorgan, and David Frink, a spokesman for Dell, declined to comment.

One of the first moves by the board was to make Dell agree he would work with any and all potential partners, said one of these people. Whether it was Silver Lake or TPG Capital or another private-equity firm, Michael Dell would have to negotiate with them in good faith if they made the best offer, said this person.

Meanwhile, the board had hired Boston Consulting Group Inc. to consider alternatives, according to people familiar with the matter. One idea discussed by BCG and Dell executives: Break the company in two, splitting off the personal computer business from units that focused on data-center hardware and software, the people said.

The board and advisers at JPMorgan also explored a dividend recapitalization as a way to boost shareholder value. The board decided a buyout of the entire company was the best deal for investors, said the people.

The special committee later invited Silver Lake to join the buyout talks, said the people. Silver Lake, the world’s largest private equity fund focused on technology investment, was a natural candidate to be Dell’s financial partner.

Egon Durban, a managing partner at Menlo Park, California- based Silver Lake who led the deal, is a neighbor of Michael Dell’s in Hawaii, and Dell was an early investor in Silver Lake. A spokesman for Silver Lake declined to comment.

The special committee and its advisers also invited other funds, such as TPG and KKR & Co., which later dropped out of the talks, according to the same people.

There was also a tie between Durban and Microsoft. Durban, who joined Silver Lake in 1999, had led the firm’s buyout of Skype Technologies SA, which Microsoft later bought. Microsoft joined the Dell talks and agreed to contribute a $2 billion loan to help finance the deal.

That loan was discussed by Dell and Microsoft CEO Steve Ballmer, according to two people familiar with the negotiations. The loan is intended to bolster one of the largest makers of computers using Windows software.

Microsoft opted for a loan rather than an equity investment to avoid rankling other PC that use Windows, said one of the people, who asked not to be named because the matter isn’t public.

With the financing lined up, the two sides were still debating price as recently as last week, said a person familiar with the matter.

When Bloomberg News broke news of Dell going private on Jan. 14, the parties were considering a deal priced at around $12 to $12.50 a share, said one person. Dell shares, which traded around $10.99 at the time of the story, jumped 18 percent to $12.83 that day, before closing at $12.29. The final price was $13.65, representing a 25 percent premium to Dell’s closing price Jan. 11, the last trading day before the talks were reported.

Dell’s board and Silver Lake also battled over restrictions Dell wanted to place on the firm, such as a larger-than-normal fee of $750 million if Silver Lake tried to back out and the ability to sue Silver Lake to follow through on the deal if it got cold feet, said one of these people.

Dell’s board and its advisers also wanted to limit the ability of Silver Lake to match any new bid to just once, said these people. The restrictions, intended to protect shareholder interests, were later included in the deal’s terms, according to people familiar with the matter.

Evercore Partners Inc., which is advising the special committee, has 45 days to seek higher bids, known as a go-shop period. The task might be impossible, said Pierce of White & Case.

“Go-shops are very infrequently successful because other private equity firms are reluctant to compete against each other,” he said.

To contact the reporter on this story: Serena Saitto in New York at ssaitto@bloomberg.net.

To contact the editor responsible for this story: Jeffrey McCracken in New York at jmccracken3@bloomberg.net