Belcanto Business Studio

Archive for December, 2011

If we read the writing on the media or hear the news, so many horror stories of investment products offered by people who sometimes do not we know it. Still remember the case about 10 years ago in Qurnia Natural estate investment Kingdom or abbreviated QSAR who consume a lot of casualties? Guess, the case was repeated in investment in China is also widely claimed that in the end many victims are shut up in shame. Even up to the latest case of fraud bulging Fund at Century Bank also occur.

In addition, investments in financial products like Mutual Funds were also often reap the storm. Mutual Funds in Indonesia several times has decreased quite dramatically that in 2003, 2005, and 2008 when the global crisis yesterday, and lately in the presence of uncertainty due to the European case. Well, then there is no safe place to invest ? Should not we saved money at home alone cupboard or under the pillow?

Saving money at home is equally risky to put money in financial institutions. Risk is stolen by a man of the house, stolen the thief can cause the money we save at home is reduced or lost. How to save money in the bank? Despite the relative safety of the decline or loss of our money (because the government guarantee), but there is a risk of inflation on our savings because the savings we flowering is very small compared to the current inflation.
In Indonesia there are still many people who can not distinguish between saving money and investing. If saving money at home or in the form of savings Citibank contain the risk, let alone the name investing. One thing to always remember is that no investment has no risk at all. Due to this risk, therefore we have to do an analysis before investing to minimize his risk (not eliminate).

Many ways you can do. The first should always be remembered that investment risk is always proportional to their investment. That is, the higher the interest rate or the expected results (or offered), the higher the risk. As for now there are several investment products that can provide a competitive return on investment (not high) but with the risks that were controls (managed). However, there are many investors in Indonesia alone who are not using common sense to invest in products that promise high yields.

Do not ever in terms of a put Eggs in One Basket? Or it can be interpreted if we have a lot of eggs that do not put all your eggs in one basket. So if the basket falls, the eggs will break all. This proverb can also be used in our investments. Because no single type of investment that is 100% safe, then the investment should be made into several baskets (financial products) investments. In the financial world this is known as diversification. Unfortunately there are still many who have misunderstood this diversification.

Investments can be done using investment products offered by financial institutions and non-financial products. Using a combination of these products also help reduce the risk. Some non-financial products that can be used to invest is: Property (house, apartment, shop, kiosk, etc.), Motor Vehicles, Gold / Precious Metals (jewelry and gold pieces / bars), diamonds and precious jewelry, paintings, goods antique, and many other products that can be used.

While financial products including banking products such as savings deposits, time deposits and SBI, capital market products such as stocks, bonds (bonds), mutual funds, insurance products such as whole life and unit linked, foreign exchange (currency), indexes, futures and more investment products are offered both locally and are sold abroad. Then see the profile of each product. Whether the product is high risk, medium, or small. The risk of this product who later adapted to our risk tolerance. And finally use a combination of these products to produce a set of investment products known as the portfolio or portfolios in the Indonesian language. Where the percentage of each product to be used tailored to their respective investment objectives. By using these methods are expected investment risk can be minimized.

Why say “again”? Because of this fact issue that has been discussed at the beginning of 2011 but again became the talk in the last week. So actually like it or not, willing or unwilling, slowly but surely turned out to plan the Government has continued to perform Rupiah Redenomination on our beloved. This is evident with the approval of the draft Redenomination by the government in mid-March 2011 yesterday. Now we just wait to see whether the proposal would be approved by Parliament to be implemented.

In concept Redenomination is the process whereby a government, in this case Indonesia discard 000 alias three zeros behind our rupiah currency with the aim to simplify the writing, recording, and mention of future transactions, but does not reduce the value of the transaction. So if we now have the money Rp. 1,000,000, – (one million rupiahs), then after Redenomination our money would be “only” Rp. 1.000, – (one thousand dollars) the new currency. This new value of one thousand dollars will be used to buy items (transactions) whose value is equivalent to one million today.

Why? If so simple then why do so many people talk about it? And there are several groups of people who actually oppose it? This is not apart from the trauma of the past where there is never an incident when cutting the value of money (sanering) on ​​the years 1959-1966. Hyper-inflation conditions at that time that caused the government to take action sanering where the dollar value of Rp. 500 cut to Rp. 50 and Rp. Cut to $ 1.000. 100, -.

Although different types, many community members will still be unable to distinguish between the two. It is feared could cause panic. Although in practice in several other countries have done Redenomination had been a hyper-inflation in the first few years of this policy is applied. Hyper-inflation itself is often the case for many things. One of the is the effect of panic psychology of people who “do not believe it” holds its currency so that the spending / buying assets. As a result the law of supply demand occurs and commodity prices could rise. Other causes can occur because the act of businessmen / traders who may be “naughty” that went along with raising the selling price of goods / services because they think their prices are too low. Recent increase in the goods that cause hyper-inflation could have occurred because of rounding prices up if there is no small change for the new currency.

Therefore will need the cooperation of various parties so there are no parties who stole the opportunity “raise the price of” selling their wares because suddenly the price is “impressed” cheap. Example we eat steak “side of the road” for Rp. 75.000 to Rp. 100.000, – with the sudden price redenominasi so “only” USD. 75 and easily impressed, then the steak  so Rp. 150, -.  same steak was immediately increased to 100% of the price duration. Still good if only rose 100%, once wrote elevated from Rp. 75 to Rp. 750 could wrote it? This is what makes the hyper-inflation.

Hyper-inflation will then fall and subside a few years later. This will be greatly influenced by the readiness of the government in this Redenomination to socialize and conduct market operations to prevent employers and rogue traders who raise the selling price of their goods. Or if this is not done carefully could have an impact on people who think the panic is cutting money again. So consequently people will buy other currencies and gold (LM) plus hyperinflasi going to get worse. Many countries especially developing countries that have done this redenominasi. While the last country to successfully perform the Turkish Lira Redenomination her. Within the last 10 years they Redenomination their currencies and quite successful and unsuccessful.

Back to the beginning of the Government’s intentions for his redenominasi the rupiah. For the longer term this will indeed be very useful and beneficial to the people and the dignity of the Unitary State of Republic of Indonesia and our currency. However, once again the process of implementation should be done and heavily guarded. And the socialization process that must be done in the long run so that no parties who seek an advantage in this condition. So that was one of them redenominasi intended to curb inflation even have caused the prolonged hyper-inflation.

In the UK, the installation of PV solar panels (the type which generate electricity) is a relatively simple job to get done. The installation can be done in one day and almost all the work in done outside so there is little disruption to your family’s routine.  There are plenty of solar panel installation companies to choose from, just make sure that you select a company that has MSC accreditation.  MCS which stands for Microgeneration Certification Scheme and only installations with MSC accreditation are eligible for the feed-in tariff.

Very, very few people in the UK purchase PV solar panels without the intention of joining a the feed-in tariff and earning a tax-free income generating by generating electricity for their own use and to sell back to the national electric grid.

If you are a homeowner interested in generating electricity with PV solar panels, you might first want to check with your electricity provider for a quote on the solar panels and installation. You are free to use any MSC certified installer you wish, of course. Installations can run anywhere from £8,000 to£14,000 depending on the system you choose. Most people arrange for financing, your electricity provider or PV solar panel installer may have a finance plan for you. Consider the installation an investment that will increase the value of your home.