Grocery price survey showed the tendency of deflation

Grocery price survey, which is conducted by Bank Indonesia in the third week of February 2016, showed the tendency of deflation by 0.13% MoM. The result is very consistent with the survey in the first and the second week, which was 0.15% MoM and 0.14% MoM respectively. The Bank Indonesia predicts the inflation to increase by 3% to 5% YoY this year. In addition, target inflation within the macro state budget 2016 is 4.7%. Since 2010, the inflation in February is relative low compared to the other months. The highest inflation in February was in 2013, which was 0.75% MoM.

Uncertainty in the 30% Local Content Regulation for 4G Mobile Phones

The Ministry of Industry is now considering five schemes for the 30% local content regulation for the 4G LTE mobile phones (see the table below). Previously, the local content regulation only consisted of manufacturing aspect and R&D/software aspects with composition of 80% and 20%, respectively. The Indonesia Association of Indonesia Telematics Devices Industry (AIPTI) has voiced its opposition for the 100% software scheme (which would benefit Apple as it still does not have manufacturing plant in Indonesia) because the 100% software scheme will put mobile phone manufacturers which already setup their manufacturing plants in Indonesia (such as Samsung) at disadvantage.

Figure: Five Schemes Proposed by Ministry of Industry Regarding the 30% Local Content for 4G Mobile Phones

Hardware	Software
0%	100%
25%	75%
50%	50%
75%	25%
100%	0%

Market Maker Definition

Market Maker

Market Maker is the major banks and financial institutions that determine the level of the currency. This is because a significant portion of their operations, which in total have a large volume in the world market. A market maker is a member of market participants who are constantly on the instrument control different trades. While at the same time they also trade using the instrument.

Task market maker is providing liquidity on a specific instrument and make an order to sell or buy. Market maker in the form of major international banks and financial institutions, which runs daily currency operations through purchasing system (buying) or sale (selling) against trade instruments with a value of more than billions of dollars.

Each market has its respective market maker. Similarly with any Forex broker, they have their own personal market makers, namely: the level and exploit the spreads they offer to their clients. Some members market maker include: Deutsche Bank, Mizuho Bank, Barclays Bank, PBS, Citi Bank, Chase Manhattan Bank, Union Bank of Switzerland.

As mentioned earlier, there is a market for a particular market maker itself. Worth pointing out that for the trading instrument USD / CHF, the main market maker is Credit Suisse Bank and Union Bank of Switzerland. As for the trading instrument consisting of Asian currencies, they are a market maker is Standard Chartered Bank.

The ruble instruments, market makernya is the International Moscow Bank and Bank ONEXIM.

Russian Central Bank can also play the role of being one of the most active participants in setting the price of the currency spread vs. the ruble, making interventions of different currencies, if the level exceeds the limit of the ruble exchange rate that is set.

Market makers determine exchange rates today by trading with one another as well as with small banks, which are also market participants. They are a market maker who introduced the rate spread to smaller banks, organizations, and individuals. Thus, another idea emerged at this time that the characteristics of a market participant users (the market).

Market users are financial organizations, brokerage companies, small banks and individuals, which uses a spread rate of prices set by the market participants for their operations.

Market users not aggressive market players, although the total volume of their operations on the market could be significant. Because the market share of each of them relatively small. As a result, the market makerlah more powerful in determining the price, while the user market only plays a role in utilization.

Capital Expenditure (Capex) Definition

Capital Expenditure (Capex)

Capital Expenditure (Capex) are costs that are used by companies to acquire or increase of fixed assets or physical assets such as property, industrial buildings or equipment.

While in another explanation states that the capital expenditure is the expenditure that can generate profits in the future and will be accounted for as a capital expenditure and not as a cost. In general, every company will allocate capital expenditure in its budget.

Diasatas of simple understanding can be concluded that the capital expenditure is very important for the development and growth of the company. For companies likely always allocates capital expenditure in its budget.

If a company does not allocate CapEx, most likely over time its performance will also drop. For example PT. Banget economy is a company engaged in the leasing of vehicles, and, therefore, the company must allocate the cost to maintain the quality and the rejuvenation of the vehicle so that the vehicle leasing can provide the best service.

If the PT. Banget economy does not allocate costs to preserve the quality and the rejuvenation of the vehicle then surely the leased vehicle has a quality that is not always in good condition so it will be more and our earnings will decrease.

Then from the illustration above we can conclude that CapEx is very influential for a company to maintain or increase profits.Usually budgeted apex of profits generated by the company after that if there are remaining profit will be distributed to shareholders as dividends.

Capex is not necessarily derived from the results of the company's profits or internal funds but can also be funded by other parties such as bank loans, issuance of debt securities, asset securitization, etc.