You can contact the author (Teguh Hidayat) by email, The author live in Jakarta, Indonesia.

See my pictures in Instagram, @teguhidx.

Alam Sutera Realty

One of the most memorable experiences of my early years in the Indonesian stock market was when I watched how property stocks, which previously devastated by the global crisis in 2008, gained so much in the next few years, and the rise is in line with the excellent financial performance of property developers at the time, where they had great return on equity on the level 20 – 30%, thanks to the high rate of economic growth in Indonesia (had reached 6.9% in 2011) that boosted the prices of property as many capital owners invest their funds in the property. At those years, a property developer could purchase land at a bargain price, develop it into an elite residential area, and later sell it at exorbitant prices. The areas on the outskirts of Jakarta such as Serpong, Cikarang, Cibubur, developed rapidly during this period.

Tips for Investors: Have a Mentor!

Some time ago I received the question as follows, 'Mr. Teguh, if I read from your writings, it seems that you take Warren Buffett as your only role model. Why Sir? Is it because he is the richest compared to any other investors? While in fact, there are many other investors who, although not as rich as WB, but they had better investment returns, such as Joel Greenblatt, Carl Icahn, Peter Lynch, and so on.’

Repo Cases in Indonesian Stocks

According to Investopedia, the repurchase agreement, or repo, is an agreement between two parties in which the first party borrows some funds from the second party with certain securities as collaterals, such as stocks, bonds, or government securities, with the promise that the first party would buy back the collaterals (thus the second party will get their money back). Usually the value of the loan is lower than the value of the collateral, for example A borrows Rp100,000,000 from B with 100,000 shares of X as collateral, at a price of Rp1,000 per share (so the loan value is Rp100 million), while the stock price of X in the market was higher at Rp1,500. In theory, if A later can not repay the debt, then B could just sell the shares of X that he holds in the market, so he will still make 50% profit.

Bumi Resources: Settlement for Debt Maturity Extension

This morning, Bumi Resources (BUMI) released an announcement on the IDX website ( entitled ‘Debt Exchange’. A friend who read the announcement was shocked: What debt? When BUMI did its right issue, last month, doesn’t it mean that all of their debt problems were settled??

The Visit of Saudi Arabian King, Aramco IPO, Oil Prices, and.. Coal?

As we know, King Salman of Saudi Arabia is currently visiting Indonesia for nine days (March 1 – 9, 2017). And if we look at the fact that it was the first visit of Saudi Arabian King in Indonesia in the last 47 years, then it must be a special visit, and even the King will stay here for no less than nine days straight. The question, what’s so special about the visit?

Prospect of Coal, Compared to Other Commodities

Some time ago a friend complained, ‘Dear Sir, I wonder why the shares of Elnusa (ELSA) keep falling? While on the other hand, I heard that the price of oil rose high’ (FYI, ELSA is a oil drilling service company). Well, if I received question like that, then my answer is usually normative, ‘Related to why the stock goes down, I do not know, but the fundamentals of ELSA are not so good in the first place, so the stock is not worth to buy. Also, the rise in oil prices may have no effect to the company’s financial performance, because even when the oil prices were high in 2011, still ELSA suffered losses in that year.’

'News Framing' in Stock Investing

In the field of journalism, ‘news framing’ is a method used by the media in conveying a news, information, or facts of a particular event, in order to influence the perception or impression from the public about the news or the people in it. In other words, news framing is a method of public opinion making, where the exact same piece of news, events, or someone’s statements can create several different perceptions from its readers, depending on how the media/journalist in delivering the words.

Domestic Investors vs International Fund Managers

If you open IDX website today (, you will find the news that at the end of 2016, domestic investors owned about 45.5% of all outstanding stocks in the market, while the other 54.5% were belonged to foreigners/international stockholders. Although the Indonesian Stock Exchange was still dominated by foreign investors, but the ownership of 45.5% of domestic investors was the highest in the last ten years or longer. Previously, between 2007 and 2015, the local investors owned about only 33 – 41% of all outstanding stocks in the market.