Preface
According to JISDOR (Jakarta interchange
spot dollar rate), rupiah’s exchange rate to US in 2 October 2015 was at 14,709
/ USD. The weakened rupiah may be occurred due to the capital outflow which is
bigger than the capital inflow.
It has been occurred persistently
during the year. The Fed was printing money in large amount and they implement
the rate at almost zero level. It was called quantitative easing. As a result
of that, people at US have been able to get loan with low interest cost compared
to others and this money is used to invest in many countries. The money commonly
is used to invest asset in capital market.
Their bank regulation allowed them to borrow
money for investing in stock and bonds which tend to use for speculation or
short term investment. On other hand price of commodity is still not improved,
the export amount was difficult to be increased. China, the biggest market for
commodity
As long as the inhabitant is able
to buy the basic food with suitable price and people have job with sufficient
salary, the politic situation will be save.
They abandoned Gold
standard for war
The central bank of US and
several European countries started to left gold standard since World War I, in
the era of Woodrow Wilson, the US government decided to increase money supply
significantly since 1917 until 1919. The federal outlay in 1917 was USD 1,954
million which is much lower than federal outlay in 1919; it was amounting to
USD 18,493 million. The France government was borrowing money from US to
finance the war.
In gold standard the nation which
experiences persistent trade deficit, their gold reserve is pulled a way to cover
their deficit. The Gold is used to back up the currencies. Central bankers from
countries usually conduct a meeting to settle the imbalance with gold. In 1914
there were more than 44 countries which were in Gold Standard.
Company Analysis
The major part of income of the
company in 2014 was contributed by its trading and distributor segment which
was more 90 % of its total revenue. In 2014, the sales was higher than sales in
2013. It slightly increased 0.6 % than 2013. The company was chosen as the
subsidized petroleum distributor by BPH Migas in 2014 with quota amounted to
650,000 Kl.
Since 2005 government has allowed
the private sector to distribute to subsidized petroleum and the company was
the first private company which was elected as distributor. The subsidized products
are High speed diesel and gasoline Ron 88.
The revenue in petroleum
distributor segment is expected to increase in the future as the petro station
to population ratio is still low in 2014. They expected to get more quotas and
distribute more petroleum product.
The company has also run in basic
chemical trading, it is selling basic
chemical which is used as raw material in various industry such solvent,
organic and inorganic chemical. The basic chemicals are Hydrocholic achid, Soda
Ash Dense, Sodium sulphate and etc.
The company has also operated in
non subsidized petroleum distribution; the allocation of subsidy for petroleum
was also opening new opportunity for business in petroleum trading for the
company.
Integrated industrial estate
In 2014 the company started to
establish integrated industrial estate in east java. It combined industrial
estate with its logistic at deep seaport and energy solution. The company
joined cooperation with Pelindo III to build Java Integrated industrial and
port estate in Gresik – east Java. The company has acquired land with total
area more than 3000 hectare.
According to its financial
statement the clients which have more than 10 % of its total income are PLN and
Freeport Indonesia. (source : annual report)
