Sabtu, 02 Juni 2012

EKONOMI


About the economy

In the era of globalization, where economic barriers fade, shift the flow of funds from the surplus to a deficit will be more quickly and without hassle. Capital Markets as an investing doors to the flow of funds from the excess wealth (surplus) to the parties that lack of funds (deficit) to act as financial intermediaries. Investors here are the parties in connection with a financial surplus.
Who are the parties of this surplus? In relation to the investment and use of sources of funds, investors can be divided. First, the domestic investor is the investor who comes from a portfolio of domestic assets in domestic capital markets. The second is the foreign investor, the investor who has a number of funds from abroad that make up the portfolio of assets on a number of different countries.

Foreign investment coming to other countries actually have classical motifs which include, motif search for raw materials or natural resources, find new markets and minimize costs. Of classical motifs such investors sometimes have another motive, namely the motive to develop the technology. Investors to channel funds to other countries usually do not only carry a single motif alone but could be due to several motives at once.

There are at least four ways investors can enter a country: distressed asset investment, strategic investment, direct investment and portfolio investment. Distressed asset investment is the investment made to obtain possession or purchase the debt of a company in financial difficulties. Second, the strategic investment of foreign investors in general have acquired a large enough market share and be in the business segment as well as location factors that support the company's expansion strategy of the investor. The third direct investment (direct investment) usually takes place in the underdeveloped sector, for example, the technology-laden construction or development in the automotive sector, usually the company. The fourth is an investment portfolio that is invested in bonds and shares in the capital market.

Portfolio investment is what has been a concern of many practitioners in the field of capital markets. Why is that? Because this type of investor is the fastest moving the exposure in a country if there is turmoil (political, economic, exchange rate) which is interpreted as uncertainty. They also are investors who have the most extensive selection compared to the above three types of investors. So that if certain events occur both at the macro level, sekoral or government regulation, then the investor is more vulnerable and sensitive to the reflection on that information. The amount of foreign investment in or out, practically will also affect the overall market due to the large volume of transactions.

The role of foreign capital in the country's development has long been discussed by development economists. Broadly speaking, according to the first Chereney and Carter, external funding sources (foreign capital) can be exploited by emerging country as a base to accelerate investment and economic growth. Second, increased economic growth needs to be followed by changes in the structure of production and trade. Third, foreign capital can play an important role in the mobilization of funds and structural transformation. Fourth, the need for foreign capital to be dropped soon after the structural change actually occurred (even if foreign capital is more productive later in life).
Emerging Markets Emerging IN COUNTRY

Indonesia had experienced economic devastation that had been built through the joints of the new order policy began to crawl back up the foundation of its economy. International Financial Corporation (IFC) classification relate to the classification of the stock market. If the country is still classified as a developing country, then the market in the country are also in the developing stage, although the stock market is fully functional and well organized.

Developing capital markets can be identified through a country, whether the country is classified as developed countries or developing countries. Indicator is the income per capita of a country, usually included in the low to middle income countries. But the most striking characteristic is seen its market capitalization is the number of listed companies, the cumulative trading volume, the tightness of capital markets regulation, to the domestic investor sophistication and culture.

Consequences of developing the capital market is a small market capitalization value. The size of the market capitalization ratio is usually seen from the comparison with the value of a country's gross domestic product. Besides other consequences is the presence of the thin trading volume (thin trading) caused by ketidaksingkronan trade (non-syncronous trading) on
​​the market. Trades that are not synchronized due to the number of securities traded teracatat not entirely, meaning that there are some specific time in which a securities transaction does not occur (Hartono, 2003).

Indonesia which is still listed on the IFC is still a developing country with the worst investment climate in East Asia region. Even with a record like that, in fact we still ogled by foreign investors. The fact that there are national companies with a strategic sector in fact be in the country, offered by a foreign institution through the acquisition of shares. The presence of inflows as investments which are generally foreign investment should be a macro economic levers.

The main reason foreign investors transfer funds to developing countries is that developing countries have the potential untapped business entirely, as in the classic pattern of investment to other countries. Michael Fairbanks and Stace Lindsay senior consultant at Monitor Company suggested destination of foreign investors coming to poor countries is usually just see the opportunity to appeal to natural resources, cheap labor and wages as the target product or service that is not good quality.

But there are other reasons that accompany such a motive, which is a striking difference with the developed countries. If we use life-cycle approach to the business of developing countries into the category of growth (growth) than developed countries that fall within the mature (mature). It means that there is the allure of high economic growth which of course is accompanied by a high return as well, because economic growth is an aggregate indicator of the industry in a country. For example, the mobile telecommunications business in Indonesia is explored in a new compact on the island of Java alone, whereas outside it is still a high potential to serve new markets.
ROLE OF GOVERNMENT AND DOMESTIC INVESTORS IN CAPITAL MARKET GROWING

Mark Mobius practitioners and experts in the international investment industry argued that the introduction of foreign investors into the market of course serves as a catalyst, which encourage local investment. Foreign capital entry into certain countries allow businesses in the country to grow at a rate faster than if only mobilize domestic resources.

Only cash flows from investment portfolios are often concerned only the flow of hot money from other countries. Flows are often known as the capital of this fight is viewed by government as a speculative investment, are unreliable and tend to be full of activities to take profit (profit taking) in the capital market. At a later stage funds, as this will cause instability in the domestic economy.

The problem that has always been a scourge in the stock market has actually voiced by many economists, and regulatory practitioners in the industry. It's just that we just like to hear the information coming from out of left ear right ear. The problem is to create a quality flow of investment funds is not the quantity of flow of funds. The quality of investment is the amount of funds invested over the long term that is used to construct the real sector.

Is simply to maintain a stable macro economy (eg inflation, economic growth, etc.), one way to make it happen is by creating a system of fair and competitive market. Competitive and fair means that there are no beneficiaries in excess due to the biased information and vice versa. As an example of extortion are rampant in our country are performed by actors who netted in a particular syndicate, to pay these charges, for example, the company facilitated the licensing arrangement rather than a company that does not do that. Illegal fees also contain a high price uncertainty because there are no clear standards and conducted illegally. Illegal fees can be categorized as a cost burden due to the risks that cause higher production costs.

Douglass North argued many transaction costs associated with the overall economic performance, the lower the transaction costs of a country will experience more economic growth can be maintained. Specifically, Gayle P. W. Jackson in his article entitled Government for Modern Markets suggests that to reduce the uncertainty due to transaction costs can be done with the cover, a clear system of ownership, the use of standard, wide and increasing resources, regulators stringent, having a data base and ensure the smooth dissemination of information resulting in competitive climate to reduce asymmetric information.

 Sources: Mobius on Emerging Markets, 1998

The role of government as regulator function is not quite as sophisticated as any restrictive regulations and if not done with the consciousness (awareness) is high for sure will go next half and each actor will always find a gap of regulation. The Government should also be a role as a guarantor that provides assurance to both domestic and foreign investors. Economic assurance is not enough, the government must somehow be able to give legal certainty and the certainty of political conditions. Because the two factors are also closely related to cultured human resource factor.

Utopian trinkets that had been used as a massive campaign by the government should start to really run. The hope is that the effect can seep down (trickle-down effect) is to change the culture, behavior and the behavior of government that gives moral support to the community. But this is not necessarily able to succeed on its own, the government also must be able to guide people to dare to be a domestic invetor resulting in a movement from bottom to top (bottom up).
Capital markets such as these have a tendency to higher return but higher the risk. Momentum flow of foreign funds during the time that adorn the Indonesia capital market should also be welcomed by the domestic flow of funds to be able to increase the market capitalization. In this way, the role of capital markets as the driving wheel of development and enhancing the welfare of society can be realized. The capital market is not only controlled by one or two groups only, but is an integrated system to move together between government, business, and society.


Comment:

We as citizens of Indonesia must have a lot to know that the economy we are facing now is that the economy is at its nadir. Why do we conclude that, because there are times now that the government run the economy for the sake of people and certain groups, but the government can not even touch on the economy to alleviate the subaltern, we certainly have heard that the government has disbursed the funds in the stream can rarely felt the commoners, the funds that they often-heralded gembar already clogged and unstoppable in certain instances. And if there's a certain instani peranh there would be no party is responsible, they just finger-pointing and scapegoating encari, and at the end of a corruption case was lost like a swallow the earth,
there are many examples of soft money (KUK) (KUR) and so on. After all, we only know the extent of advertising has never been realized in a real and evenly on the small people.


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