INFLATION

It seems that inflation will return to run throughout the month of May 2010. Central Statistics Agency (BPS) project, during the May 2010 inflation will occur in the range 0.1% to 0.2%. From our observations, the month of May 2010 is almost certainly happening inflation, BPS chief Rusman Heriawan said.

One of the triggers inflation in the months of May 2010 is the price of rice began to rise after a fall during the time of rice harvest season in March and then until April 2010. No movement of rice prices began to rise again, so the rice does not give donations in deflation now, Rusman said.

Besides rice, Rusman expressed, some other basic prices also rose. For example, red chillies and onions so it will take a contributor to inflation during the month was May 2010.

Lucky, Rusman said there were some staple whose price declined. Take for example, cooking oil and cayenne pepper. Thus, this decrease could put the brakes on inflation.
However, Rusman said, during the month of May 2010 there was no remarkable price volatility. So that inflation is expected, at best, only 0.2%. Therefore, the increase in basic electricity tariff (TDL) and consumption for the new school year has not yet occurred.

For information, inflation re-run in April 2010 and had stopped in March after the previous due to the deflation of 0.14%. BPS noted, last month there has been an inflation of 0.15%. That means, the rate of inflation in the first four months of 2010 has reached 1.15%. Meanwhile, inflation for April 2009 April 2010 aka year on year (yoy) 3.91%.

Previously, Bank Indonesia (BI) estimates that, during the May 2010 inflation pressure will be greater than last April 2010. But I do not know yet how much, says Bank deputy governor Hartadi Agus Sarwono.

According Hartadi, the main trigger that sparked the inflation rate in May 2010, the prices of some commodities in global markets that began creeping up, following the world economic downturn continues to rise from the global financial crisis.
That is why, Hartadi revealed, the Central Bank was aware of trigger factors such as inflation is imported inflation. This is what we should watch out because if we import many raw materials like it then can be imported inflation.

Danareksa Research Institute economist Purbaya Yudhi Sadewa projecting, aka no increase in inflation in May 2010, but his ascension is not too significant.


Only for The Joy of Speculation
Decline in the share price of PT Bumi Resources Tbk (BUMI) and Bakrie Group shares yesterday was fair. Because, fundamentally, these companies was less healthy, but its stock price is too high. So, sooner or later the stock price will reflect the fundamentals of a company.

Nevertheless, the decline in stock prices of Bakrie Group is not free from rumors that make investors nervous, especially about the planned rights issue at a specified price EARTH that will lead to investor ownership diluted. On the other hand, look at the debt burden is already too big EARTH, EARTH ahead will be difficult to be able to expand.

EARTH financial cash conditions in 2010 will also be depressed because of the bonds maturing in the second half is worth more than U.S. $ 400 million. If not able to pay it off, EARTH feared to perform debt to equity swap.

In addition to rumors of the rights issue, also influenced the collapsed stocks news EARTH EARTH plan that will sell its stake in PT Delta World Makmur Tbk (DOID). During this time, the news circulating mention, EARTH will acquire through DOID Berau Coal. With the cancellation of the rights issue DOID, Berau Coal plans to acquire EARTH too messy.

At the time Sri Mulyani resign as Minister of Finance, in fact many investors who bought shares of EARTH. They hope this high-flying stock price due to political problems surrounding the Bakrie Group stocks have finished. But apparently, that expectation did not materialize. Finally, investors were many who took off back its shares to the market.
In the near future, investors should not buy shares of the Bakrie Group. These companies are less healthy group and its share price is very volatile. Bakrie shares to be purchased is not good, except for investors who like to speculate.

BANK FUNDS MANAGEMENT RIGHTS IN INDONESIA

Customers or the management rules of ordinary individuals in the call with fund management contracts (KPD) still keeps the problems, particularly concerning the rights of custodian banks to manage the funds of investors who are not in the form of securities. Custodian bank is still have different perceptions about its role as a store, and guard assets to investors.

Just for information, new rules for capital market regulatory bodies and financial institutions on the management of securities for the interests of individual customers or KPD require that all customer funds are stored in a bank custodian. But, there is concern, this provides an opportunity for the custodian bank to take advantage of the money to own investment interests.
For example, as happened at DBS BANK INDONESIA, according to some observers and analysts of banking transactions, customer cash deposits bpleh shaped rupture in use for other banking business interests. Hope can be understood, that Bapepam-LK INDONESIAN about individual contracts allow investment managers to place approximately 25% of funds in certificates of deposit kelolaannya.

Funds to individual contracts in the treatment of MI is basically the same as any other deposit funds, said this in Revealed by a senor vice president as head of HSBC's securities services. In general, funds under management of MI in the custodian bank in the general Depository enter joint bank account with funds of other depositors.

BANK OF WEALTH
It differs in Revealed by a securities fund services head CITIBANK INDONESIA Margaret pliers, he believes that banks can not manage funds konstodian individual contracts. Essentially a capital market laws, that the effect on savings or securities accounts recorded in konstodian not part of the treasure konstodian. konstodian banks are not allowed to use the least funding in place by the MI.

Konstodian bank task was only to safeguard and keep the funds of MI, and should not be involved to manage the fund. even bapepam - lk will give strict punishment to banks caught playing konstodian customer funds that individual contracts. However, opinions about the rights of Bapepam-LK konstodian bank was still split into a number of opinions and decisions, this is the underlying behavior is shown by the chairman of Bapepam-LK Fuad Rahmany, banks may be turning back konstodian individual funds in the form of customer deposits with a record KPD customers agree and allow them to be in turn the bank konstodian.

Fuad Rahmany previously argued that the bank may not play konstodian KPD investor funds because it could damage the reputation and performance konstodian bank. and he added that the customers do not need to worry about this neighbor, because the customers can check their account at any time position of past-lk bapepam site or directly.

MONEY MARKET MUTUAL FUNDS
Money market mutual funds continue to grow in the first quarter of 2010. Funds managed by money market mutual funds grew by about 50% to USD 7.8 trillion in comparison with the position at the end of december 2009 which amounted to Rp 5.2 trillion. Money market mutual funds are often a haven while the funds from the capital market. According to association chairman Indonesian mutual fund managers, high high on the stock market fluctuations due to the absence of certainty of the global economy into the motor performance of money market mutual funds. These mutual funds are often made in place temporarily while awaiting the opportunity of investment in the stock market. Bank interest rates that are still maintained at low levels increased the mutual attraction of this type. Money market mutual funds can bring in bigger profits than on simply want to profit from interest on deposits only.

Profile of Indonesia's mutual fund investors who tend to be conservative most of the more comfortable investing in money market mutual funds. This instrument has a high level of liquidity because it can pull in at any time. These conditions make the money market mutual funds remained in interest by investors.

Stable financial markets are growing every year, because it has its own market, said an analyst, the investment manager of MI much use of this instrument as a storage of unused funds in accordance to realize gains in the stock market. While so many of the anlisa money market and stock market estimates of money market mutual funds will become less attractive when inflation this year reached over 5% and interest rates that have been set by the BANK INDONESIA (BI) remains at 6.5% level . as a result of which was obtained from investments by mutual funds in the money market only range between 8-9% only. Unless more basic assets in bonds, may return to the top 9%.

Apart from money market mutual fund, mutual fund performance is also protected still growing this year. Enabling full taxes in 2013, makes the MI will continue to run a mutual fund that protected until March 2010, protected mutual fund AUM reached USD. 33.17 trillion.