Megapolitan Developments

A few days ago, the Government of Republic of Indonesia issued at least two regulations that are expected to have a positive impact on the growth of property industry in the country, which began to slowing down along with the slowdown of national economy. First regulation is the reduction in the minimum down payment for purchase of property, from previously 30% to 20% (from the value of the property) only. Second regulation, foreign investors and individuals are now allowed to buy property/real estate assets in Indonesia. The announcement of these regulations are responded positively by investors in the Indonesia Stock Exchange, where the property stocks jumped significantly in the last two to three days.

Why You Should Invest in Indonesia

With a market cap of Rp5,070 trillion or equal to US$ 381 billion on June 19, 2015 the Indonesia Stock Exchange or IDX is of course not one of the largest stock exchanges in the world. However, if we're talking about its history, the IDX has a historical background that was more complex than you might imagine. Including, believe it or not, the first public company in the world whose shares are traded on the Stock Exchange, they were not based in London, New York, or Tokyo, but.. Jakarta!

‘Drama Queen’ of Stock Market

A few days ago I had a small incident with my family at home. So my 3-year-old daughter was running around and fell, so her knee scuffed. The next morning, she refused to shower because afraid that her ‘wound’ would be hurt when exposed to water. Her mother repeatedly explained that it was just a little sore so it will not hurt, but she kept shouted 'I said no!' Losing patience, her mom also shouted. As a result, it was an uproar morning at home just because of a small blister on the knee, and the papa (it’s me) should intervene. After taking her to a playground and slowly explaining about her ‘injuries’, she finally willing to shower.

How to Deal with the Bear Market

After rose 22.3% in 2014, the Jakarta Composite Index (JCI) seems to having a hard time in this 2015. When this article was written, the stock index fell to 4,887 or down 6.5% from year to date. Considering about the poor conditions of national economy (we've discussed about this in this website many times before, try to read our articles since last March), then this situation is not surprising at all, and has been anticipated before (or at least we’ve anticipate it, I don’t know about others). If there is no fundamental change in months to come, then most likely this condition will continue, and consequently the JCI would grow negatively in this 2015. The question, what should we do?

Trada Maritime

In the first quarter of 2015, Trada Maritime posted a net profit (attributable to the shareholders of parent entity) of US$ 0.4 million. Although the figure has risen significantly over the same period of the previous year, but it is very small compared to the value of the company's equity of US$ 86.7 million. However, an interesting story about this TRAM probably not related to its financial performance, but rather related to its share price that currently slumped at the level of Rp50’s per share, or extremely low compared to its peak price (in the last one year) which was Rp1,900 per share. If you read the company’s financial statements that, although don’t show good fundamentals but also not that bad (the company still posted a profit, and the equity was still positive), and its PBV at current prices is only 0.5 times, then as a bargain hunter, you may ask: Is there an opportunity here?