Hidden Relationship, Impact of Rowdy Cabinet?

JAKARTA - Rowdy, rowdy and noisy again. This is the reality that the government paraded in front of people. The noise seemed alternated without a settlement. Unfinished old noise, noise appears new tensinya actually more deafening and frustrating public: when the cabinet can be compact and focused to work up to fulfill all the commitments that go on sale during the presidential election?

Very naive to attack each other and each dropped between them is only considered to the extent of dissent. Conflicts that they show like tip of the iceberg of a conflict of interests.

In this context, the logic of politics who get what, when and how very thick felt. Interests which fighting could be a cake project as measured by the amount of rupiah or power measured with the position.

Unwittingly, this noise actually affect the investment climate. The extent to which the analysis of noise in the cabinet Jokowi-JK effect on the economic situation and the investment climate? Consider the analysis below ...


Why Should Rowdy?

One of the factors that drive economic growth and development, especially investment in a country is the calmness or stability, and especially is political stability and security. Naturally otherwise the investment climate will be disturbed when their political uproar in the management and organization of the State.

Not just once, since the Cabinet was sworn in, until the cabinet reshuffle and continues to the present day political uproar continued. Often also a war in the media, social media, print and electronic of several high officials of State, ministers, ministerial level or even above.

For example, when President Joko Widodo (Jokowi) is visiting the United States (US), sudden statement of the Chairman of the Financial Services Authority (FSA) out to the media about the restrictions Net Interest Margin (NIM) for banks. On one hand, the president made a visit in hopes of bringing a lot of new investors in order to accelerate development in Indonesia, while in the country there is some kind of noise with the statement of the Chairman of the FSA.

Restrictions NIM for banks certainly have good intentions for the wider community, recalls the State Owned Enterprises (SOEs) as an institution of mediation between the parties has surplus funds to be kept with those in need of funds, either for productive business or for the needs of the other consumptive. Banks in Indonesia in general is still relying on interest income to support its operations and benefit.

Because the form Limited Liability Company (PT), the original orientation is to benefit as much as possible, while on the other hand as a state there must be a constitutional mandate that must be fulfilled, the welfare of the nation. It seems a bit much to expect contradiction orientation, but in fact the reality and long-term goals will be harmonized, if it can be calm and clear and it's absolutely smart.

It's just that the market always has its own language addressing a statement, let alone a statement by the organizers of the State. Why should rowdy? Because the noise occurs, it will create economic opportunities that can be exploited for profit.

Some are taking the opportunity because it was first aware of information (insider information) so that the transaction because of inside information or information that has not been published (insider trading), there is speculation, in which speculators from the petty to the big fish, domestic and from foreign countries.

There are combining the power of data and funds, they are then referred to as Smart Money, taking momentum racket to profit by building and shaping opinion and steer the market at will and their purpose.

And then who benefited? From the economic side, both traditional and modern market to the capital markets though, the large investors who will benefit, they are the Smart Money. So who then harmed? If it was in the plains of conventional markets are certainly aggrieved small communities in general, and if it happens in the capital market, the small investors were harmed.

Grassroots and small investors are most likely to feel the impact of the chaotic level noise alias above. Little people and small investors will be increasingly marginalized and bounced out of the arena of economic welfare.

Then why are those that are making noise are often of policy holders or a ruler? Do they benefit from all that? Is there a relationship between the ruler and large investors? Or is there a hidden relationship between them? Let the swaying grass that gives an answer.

Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta