Professional Documents
Culture Documents
by Sando Sasako
Jakarta, 31 July 2017
Last update: 30 September 2017
Contents
Contents .................................................................................................................................................i
List of Tables .........................................................................................................................................i
List of Figure .........................................................................................................................................i
Asset Bubble ........................................................................................................................................1
Excessive Liquidity ..........................................................................................................................3
Excessive Liquidity: The Aftermath ................................................................................................5
The Liquidity Effect .........................................................................................................................7
The Limit of Excessive Debts ..........................................................................................................9
List of Tables
List of Figure
Figure 1 Monetary operation of Bank Indonesia and monetary instruments in Indonesia ...............7
Figure 2 Inflation targetting framework by macroeconomic indicators in Indonesia .......................9
Keywords: asset price, asset bubble, inflation, demand, liquidity, quantitative easing, loose monetary
policy, easy money policy, money glut, commercial real estate, rigged casinos, asset deflation,
monetary operation,
i
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Asset Bubble
The price of any good will remain high as long as quasi demand appears to exist all time. Rare, scarce,
unique, highly differentiated are the common characteristics and attributes embedded in such goods.
Such demand does not need to be real, underlying, and sustainable. Greater expectation of higher
value of the goods is what triggers and keeps the price high and creeping to rise.
Under normal circumstances, land price tends to rise in time. Land, house, building should be consider
the same. As the soil, water, air surroundings the land gets contaminated, land price will jump off the
cliff, and commit free fall. Likewise the other factors such as social and political issues when they
come to play as well.
Label and stigma such as higher level of social crimes, street crimes, economic disadvantages, shifted
economic centers are some instances that keep the price low, relatively. Land price phenomena aint
indifferent with any other classes of assets such as financial assets in terms of stocks, commodities,
gold. They can skyrocket and free fall in just a short moment of time.
Relatively sudden increase and hikes in the price of assets is called bubble. In contrast, relatively
sudden free fall in asset price is called burst. There are signs and indications for every event. Likewise
the trigger. Some people are wise enough to mark, capture, and seize the opportunities knocking their
door in just a brief moment of time.
In macroeconomics, asset bubble is known as asset inflation. It can mean more money chasing limited
asset. It also marks the condition that the interest in the financial markets, namely the bond markets
and bank deposits, fail to attract this money to be invested. As asset price reflects revenues, a steady
and stable price increase does attract the shift of asset allocation from cash in the bank or the similar
to another class of asset. They call it demand-pull inflation.
Superficial demand is deemed to be suffice and necessary for hungry investors. They might not be in
a rush to capitalise the potential profits in the short-term. Some other hungry investors might chase
otherwise, cashing in whenever and whatever possible. The generic terms for these redeemable cash
are capital gains, dividends, yields.
When these quasi demands overshoot and gets hampered by the shortage of supply which is real, the
price will jump. The rarity and scarce relativity of profitable and reliable financial assets has turned
the existing ones to be the only choice of valuable assets to be collected and stacked in their portfolio.
The buying binge will never stop until some other macroeconomic indicators change and turn around.
The termination of quantitative easing (QE) policy, or easy money policy in the past, surely indicates
and signals some rise in the interest rates used as the benchmark. It also marks the beginning time of
tight money policy (TMP). Typical QE might take a form of pouring liquidity into the financial
markets and set some staging of boosting demand just before the monetary authority realise the
actions and implement the policy.
Whichever financial instruments to be bought by the monetary authority usually comes with a price,
the trade-off. As the bond markets become the ultimate choice of liquidity pouring, the intended
course of action triggers widespread selling incidents in the stockmarkets, pushing down the stock
market indices. The unspoken assumption is that such government action should involve significant
amount of money.
The super-easy money policy and financial conditions, indicated by super-low long-term interest
rates, and powered by yield-chasing risk-blind investors creates enormous liquidity in the markets.
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Sando Sasako
The saturated financial markets with liquidity leaves the investors to worry and concern more on QE
tapering, rather than what happen in the real sector, either in terms of economic growth, employment.
Signs of growing trouble in the financial markets began to unveil as commercial real estate (CRE)
transactions began to shrink. Signs of the next bust are starting to pile up. Brick-and-mortar retail is
melting down, likewise the values of retail malls. It is due to widespread store closings and tenants
bankruptcies. Vacant lots percentages can reach a level of 40%-50%.
Store closing can mean that there have been bankruptcies amongst the consumers, commerce, and
business. Bankruptcy is another stage and name of financial distress. It can also mean that the credit
cycle has already turned sour. Debt slaves are beginning to buckle under their loads. The e-markets
eventually have devastated the traditional retailers operating within the brick-and-mortar premises,
but the industrial space such as warehousing and transporting business.
Many CRE loans are structured with a balloon payment due before the full amortisation period. As a
consequence, the cycles become more volatile. The chain reactions of the incoming and next financial
crisis have already started. As the banking institutions are capable to indirectly bankrupt the consumer
and commerce, why wont fiat money be used to fund the consumer directly?
2
Asset Bubble: The Causalities and Its Limiter
Excessive Liquidity
Excessive liquidity has become the culprit causing the (financial) assets to bubble. When you have
cash, there is nothing more interesting and exciting to spend on everything that looks promising. The
buying binge, investment frenzy, has created frenetic trading beyond anyones imagination. Anything
that has values are deemed worth to be collected.
The value of merchandises should be steady, everlasting, ever-increasing, ageless. Typical products
have tapered to something rare, scarce, unique. Land (and its derived products), calligraphy, antiques,
arts are somewhat has become the representation of ones well-being. Whilst the products of financial
markets have remained some games to play and speculate with.
Stocks, bonds, commodities, foreign currencies have become the toys for money managers to play
and slosh with. The dynamic nature of roller coaster within the financial products is their daily joyride
reaping and exploiting the benefits of changing momentums, either upward or downward. Volatilities
in the price of financial products can be easily extracted and manipulated.
The overwhelming easy money has left no spare space to invest in the real economy. The increasingly
small number of investment opportunities has become the chasing target of easy money to torrent
with the price (of anything) as the indicator for approval. This investment binge has been fueled by
low interest rates, easy credit expansion policy, and fiscal stimulus.
In China, such policies are to keep its economy aloft and afloat. Nevertheless, most new cash offered
is not allowed to be extracted out of China. As you may have already known, China has been running
and discriminating its 2 different currencies, that is CNY and CNH. The first symbolises the Chinese
Yuan that is fully controlled by PBoC, while the second symbolises the Hong Kong Yuan that is
controlled by HKMA.1
Price has become the ultimate indicator, reference, and preference as it can rise faster than corporate
earnings. Companies may increase their earnings by cutting costs, not necessarily through the increase
in either sales or revenues. Nowadays, banks worldwide have a way to cut its cost of funds. They call
it as negative interest rates policy (NIRP).
If you dramatically increase the amount of money bidding for a relatively fixed number of assets, the
competition will drive the prices of those assets (stocks, bonds, homes, etc.) higher. Otherwise, the
price shall remain the same, flat. In the opposite direction, when no one bids and the owner initiates
the offer, the price will surely go down in time.
Indeed, loose monetary policy has helped banks, financial markets, and individual countries emerge
from the financial crisis. Nevertheless, every glut and excessive things will and must matter and take
its toll. The ever greater upheaval has produced economic side effects that is hazardous and contaging.
As the worlds economy has become one and fully integrated, many has awaited for the asset bubble
phenomena to burst and provoke a systemic financial crisis, recession, and the destruction of savings.
By economic sectors, wasteful, misplaced, and inefficient government spending has been allocated
and sapped to the private hands financing the rotting infrastructure, free medical care, lavish public
employee pensions, mitigate the global warming effects. By economic actors, royal spenders include
(Chinese) banks, companies, and investment funds.
1
For more information regarding the financial crisis in China in early 2016, see Sando Sasako, Krisis Finansil Cina:
Perspektif Kebijakan Moneter, Corporate Finance (Analisa Laporan Keuangan), dan Investment Banking (Valuasi Nilai),
Serabdi Sakti, Jakarta, March 2016. See the table of contents in this link http://bit.ly/2vMzUt0.
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Sando Sasako
On the other hand, millions of consumers (in China) have converted their savings into new, high-
return investment products, and short-term. In 2015, apartment prices in Shenzhen rose 47.5% from
its previous year. It was the largest increase in the world, followed by Auckland, New Zealand, as the
second place, that rose by 25%.
As most cash is generated through debt financing, profit seeking investors are chasing short-term and
quick yielding businesses, by pouring cash into one asset type after another, increasing volatility and
prices apparently. The speculative and hot money nature of this investment can not necessarily bring
positive and create and add values to the real sectors.
The Chinese stockmarket crash in the summer of 2015 wiped out $5t, or 43%, of value in Chinese
stocks at one point. That was a lesson learnt. To abate the crisis in its financial markets, Chinese state-
owned banks lent the liquidity to a bunch of national team of investors to keep purchasing the (junk)
bonds (and stocks) deemed necessary to be salvaged. Likewise the Feds actions in the US.
At some points, investors were awaken that stock markets are rigged casinos. As a result, stocks are
something not worth to keep as an asset and as an investment. They turn and shy away from stock
holdings to commodity or elses. Deflating the asset bubbles poses a much greater risk (for China).
Some unprofitable state businesses need easy money to roll over other debts that they can't pay.
4
Asset Bubble: The Causalities and Its Limiter
From one scenario to another, most analysts have tried in vain to depict, illustrate, and simplify the
ongoing and upcoming reality, but with confusing new terms and jargons of their own, and not based
on what is common, usual, and regular terms. In applied economics, the boundaries of specialised
branches and disciplines become insignificant and blurs.
Some events in the monetary economics are and can be well defined with other perspectives, points
of view. Instead of classifying and segmenting the analysis, most analysts would go all the way down
in a straight line, without pause and proper introduction how to explain things. As a result, people
barely cant catch up, hold their breath, and make some thinking to what am I reading and processing
now.
Let me tell you one thing. Imagine and put yourself as the owner and authority to set, control, and
maintain the games in the financial markets of your own. Fair play and some usual stuffs are set
according to what has been set and practiced internationally. The games and the shows must go on,
no matter what.
Create games that luring and addicting, add enthusiast players. Anything. The food, the energy, the
balls to play. If something comes up, adjust the games. Some tinkering will do. The point is let the
games running. If none is playing, as the authority, you must create shadow players, puppets to play
your games, your winning games. It is that simple.
Primary dealers and market makers have only one thing to create, keep the games running aloft and
afloat. Liquid funds that have been injected through primary dealers and market makers to the pool
after the crisis, particularly the SPM crisis in 2008, have pumped up the stockmarkets worldwide to
the highest level. Lay persons call the phenomena as the biggest and longest bull markets worldwide.
The audiences, spectators, players are betting against what they deem to fail, success, or both. As
short-selling has been banned, the stock market players and spectators only know one thing in mind.
The index must go up and up, but the individual stocks that dont perform as expected. Nevertheless,
some stocks remain dormant and commit apparent death for decades.
What has been pumped is nothing but bubbles and balloons, assets bubbled and ballooning debts. The
bond financing that injects liquidity only valid and real in the balance sheet. What is real, actual, and
cash redeemable are the bond yields and margin spreads. On a personal level, it is the stimulation to
increase consumers spending and investment.
The liquidity level in one economy is highly dynamic in time. In Indonesia, the liquidity level, the
projected ones, is set during the meeting of board of governors (RDG, Rapat Dewan Gubernur). Prior
to 19 August 2016, the reference interest rate (BI rate) was set on a monthly basis. Nowadays, it is
called BI 7-day repo rate.
The new reference interest rate puts more emphasis on the money market interest rate, transactional,
market tradable. It tries to create and achieve some level of deepening in the financial markets. The
BI 7-day (reverse) repo rate was firstly introduced on 21 April 2016. It was four months of testing
and try out, before fully implemented.
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Sando Sasako
How Indonesian central bank perform and conduct monetary operations in Indonesia has been briefly
illustrated in my book titled by Krisis Finansil Cina, page 48-50.2
2
Sando Sasako, Krisis Finansil Cina: Perspektif Kebijakan Moneter, Corporate Finance (Analisa Laporan
Keuangan), dan Investment Banking (Valuasi Nilai), Serabdi Sakti, Jakarta, March 2016. See the table of contents in this
link http://bit.ly/2vMzUt0.
6
Asset Bubble: The Causalities and Its Limiter
Some times in the past, economic growth rate and/or exchange rate were the sole and/or dual purposes
of an economy. In time, those 2 indicators have been difficult to predict, manage, maintain, as too
many variables have been involved in the process. Partly in terms of immediate effect as some policy
and measures were taken.
Figure 1 Monetary operation of Ban k Indo nesia and monetary instruments in Indonesia
In due time, the achievable economic target has shifted to liquidity, an indicator that relatively easy
to maintain and control through the (expansionary) monetary policy (and operation). In her brief
description regarding the liquidity effect coined firstly by Milton Friedman in 1969,3 Victoria Duff
describe how the available liquidity through expansionary monetary policy affects 3 elements of the
economy, that is interest rates, income, and inflation.4
In another perspective, Thornton of St. Louis Fed asserted that liquidity, income, and price or inflation
expectation are the 3 effects on interest rates caused by an exogenous change in the supply of money.
Due to the inflation expectation effect, an exogenous change in money growth eventually leads to
higher, rather than lower, equilibrium nominal interest rates.5
In the US, through open market operation, the Fed conducts open market purchase of US Treasury
securities (T-bills, notes, bonds) with cash and makes repo agreements that is overnight or short term
interest bearing deposits of money at banks and brokerage firms, secured by US Treasury securities.
Large amount of cash injection to the financial system brings interest rates to go down.
Milton Friedman, Factors Affecting the Level of Interest Rates, in Proceedings of the 1968 Conference on Saving
3
and Residential Financing. Chicago: United States Saving and Loan League, 1969, pp. 11-27. in Thomas M. Havrilesky
and John T. Boorman, eds., Current Issues in Monetary Theory and Policy. Arlington Heights, IL: AHM Publishing,
1976, pp.362-78.
4
Victoria Duff, Liquidity Effect in Economics, Chron, 20100820, Last Update 20161026,
http://smallbusiness.chron.com/liquidity-effect-economics-5212.html
5
Daniel L. Thornton, The Relationship Between the Daily and Policy-Relevant Liquidity Effects, Federal Reserve
Bank of St. Louis Review, January/February 2010, pp.73-88.
7
Sando Sasako
2. Business and personal borrowings rise. Business expansion and increased consumer purchases
causes more business activities aka more employment.
3. More employment means lesser available workers. Higher wages are offered to attract and retain
better employees. Higher wages means higher income, increased demand.
4. Increased demand means higher price aka inflation. The increased demand raise the money supply,
chasing a finite and limited supply of goods and services.
When market liquidity is deemed to be excessive, the Fed will take out the money of the (financial)
system by selling Treasury securities and raising the reserve requirement (RR) at banks. This tight
monetary policy pushes the interest rates higher, causing the banks, businesses, and consumers to
slow (and prioritise) their economic activities. To sum up, low liquidity has the opposite effect on the
economy from high liquidity.
8
Asset Bubble: The Causalities and Its Limiter
The dynamic nature of liquidity, interest rates, exchange rate, and money supply has made those 4
indicators cant be set as the target of the government and the central bank in some middle-term plans.
Likewise the income and economic growth (GDP) as determinants for these 2 indicators vary in time,
period, person (individual or institutional), and place.
This leaves price increase or inflation as the last macroeconomic indicator available to be set as a
target. Simply said, inflation is and sets the limit of excessive liquidity that an economy can cope. In
the balance sheet, the liquidity is treated and regarded as an asset, the left side. The double accounting
principle requires the asset to be recorded as a debt, the right side. Accordingly, inflation is and sets
the limit of excessive debts that an economy can cope.
Price level (P) is highly regarded as the product of money supply (M) and velocity of money (V)
divided by quantity of goods (Q) sold during the year. It was proposed by Irving Fisher in 1911 to
illustrate the identity of monetary exchange, or demand for money. This quantity theory of money
tries to equate the balance in the real sector (P.Q) with the balance in the monetary sector (M.V).
Inflation has become something highly needed to monitor closely and control tightly due to its nature
that capable to destruct and grind the real income and lowering peoples welfare and prosperity. High
level of inflation turns domestic real interest rates unattractive. This in turn adds another pressure to
the rupiah exchange rate. Unstable inflation rates surely create uncertainty discouraging the economy.
The common causals for inflation are demand-pull, cost-push or supply shock, wage-push, deficit-
induced and the short-sighted government action, printing money to cover the budget deficit, bank
loan penalties. Whilst the typical inflations according to its speed or intensity are creeping or mild,
walking, galloping and hyperinflation, stagflation, deflation, imported.
9
Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
Sando Sasako
Asset Bubble,
Bank Rakyat Indonesia
&
Satellite Business in Indonesia
http://bit.ly/1S2Ibr
http://bit.ly/2wFoK9a
Serabdi Sakti
Jakarta, August 2017
How to order: Cara pemesanan:
Kindly send your purchase order by Silahkan order buku ini melalui SMS ke
SMS/texting to +62 851 0518 7118
+62 851 0518 7118 +62 852 1035 6516
+62 852 1035 6516 dengan menyebut nama, email, , dan nomor
by mentioning your name, email, and mobile telpon yang bisa dihubungi.
phone number.
Setelah order pemesanan diterima, kami
Upon receiving your order, we shall notify akan mengirimkan nomor dan nama pemilik
you our bank account number and the name of rekening.
the account holder.
Harap memberikan konfirmasi terhadap
Please notify us regarding your successful pembayaran melalui transfer bank.
payment to our mobile number above.
Setelah dana tercatat efektif di rekening bank
Upon effectiveness of the fund received in kami, kami akan memberikan email berisi link
our bank, we shall email the link to download untuk men-download buku elektronik yang
the ebook you have ordered and paid. telah dipesan.
The link to download shall expire in 24 Link untuk men-download akan expire
hours. dalam waktu 24 jam.
Contents
Contents ...................................................................................................................................... i
List of Tables ........................................................................................................................... vii
List of Figures ........................................................................................................................... xi
Central Banks: The Initiator and Keeper of Widespreading Asset Bubble Phenomena ..........60
How to Detect and Spot Asset Bubble ..................................................................................63
Asset Bubble aka Accounting Frauds: The Causalities ........................................................65
Asset Bubble aka Accounting Frauds: The Red Flags .........................................................66
The Asset Bubble of Wells Fargo .........................................................................................69
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ii
Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
Subsidiaries .............................................................................................................................139
BRI Syariah .........................................................................................................................139
BRI Agro.............................................................................................................................140
BRI Remittance ...................................................................................................................141
BRI Life ..............................................................................................................................142
BRI Finance ........................................................................................................................143
Corporate Profile.....................................................................................................................152
Milestones ...........................................................................................................................154
e-channels ...........................................................................................................................155
Branch and Regional Offices ..............................................................................................155
Head Office .....................................................................................................................155
Special Branch Office .....................................................................................................155
Overseas Branch Offices ................................................................................................155
Regional Offices .............................................................................................................156
Office of Subsidiaries .........................................................................................................157
Banking Divisions...............................................................................................................158
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iv
Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
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Sando Sasako
Foreign Satellite Operators on Indonesian Sky with its client list...................................... 247
References............................................................................................................................... 253
Additional Readings ........................................................................................................... 256
Suggested Readings ............................................................................................................ 257
Readings on Satellites ......................................................................................................... 258
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Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
List of Tables
vii
Sando Sasako
Table 34 Third-party funds structure in Bank Rakyat Indonesia, 2012-2017q2 (Rp mn) ... 108
Table 35 Profile of fund borrowings in US dollar of Bank Rakyat Indonesia based on
loan types and lenders, 2016 (US$ mn) ............................................................... 109
Table 36 The profile of bonds issued by Bank Rakyat Indonesia, 2003-2016 .................... 111
Table 37 The highest peak and lowest trough points of the assets of Bank Rakyat
Indonesia, January 2002 April 2017 (monthly figures) .................................... 112
Table 38 The highest peak and lowest trough points of productive assets of Bank
Rakyat Indonesia, January 2002 April 2017 (monthly figures)........................ 113
Table 39 The highest peak and lowest trough points of third parties funds of Bank
Rakyat Indonesia, January 2002 April 2017 (monthly figures)........................ 113
Table 40 The highest peak and lowest trough points of loans of Bank Rakyat
Indonesia, January 2002 April 2017 (monthly figures) .................................... 114
Table 41 The highest peak and lowest trough points of equity of Bank Rakyat
Indonesia, January 2002 April 2017 (monthly figures) .................................... 114
Table 42 The highest peak and lowest trough points of revenues of Bank Rakyat
Indonesia, January 2002 April 2017 (monthly figures) .................................... 115
Table 43 The highest peak and lowest trough points of net operating profit of Bank
Rakyat Indonesia, January 2002 April 2017 (monthly figures)........................ 116
Table 44 The highest peak and lowest trough points of earnings before tax (EBT) of
Bank Rakyat Indonesia, January 2002 April 2017 (monthly figures) .............. 116
Table 45 The highest peak and lowest trough points of earnings after tax (EAT) of
Bank Rakyat Indonesia, January 2002 April 2017 (monthly figures) .............. 117
Table 46 The highest peak and lowest trough points of retained earnings of Bank
Rakyat Indonesia, January 2002 April 2017 (monthly figures)........................ 117
Table 47 Equity structure of Bank Rakyat Indonesia, 2012-2017q2 (Rp mn) .................... 119
Table 48 Earnings structure and building blocks of Bank Rakyat Indonesia, 2012-
2017q2 ................................................................................................................. 120
Table 49 BRIs stock performance, 2006 Jan. 2014 ......................................................... 121
Table 50 The highest peak and lowest trough points of market capitalitasion of share
of Bank Rakyat Indonesia, 10 November 2003 18 July 2017: Daily value
and change ........................................................................................................... 122
Table 51 The highest peak and lowest trough points of close price of share of Bank
Rakyat Indonesia, adjusted afer split & dividends, 10 November 2003 18
July 2017: Daily value and change ...................................................................... 122
Table 52 The highest peak and lowest trough points of close price of share of Bank
Rakyat Indonesia, adjusted afer split, 10 November 2003 18 July 2017:
Daily value and change ........................................................................................ 123
Table 53 The highest peak and lowest trough points of trading volume of share of
Bank Rakyat Indonesia, 17 November 2003 18 July 2017: Daily value and
change .................................................................................................................. 123
Table 54 The highest peak and lowest trough points of trading value of share of Bank
Rakyat Indonesia, 10 November 2003 18 July 2017: Daily value and
change .................................................................................................................. 124
Table 55 The largest figures in stock trading volume, value, and their daily changes,
20031110-20170718 ............................................................................................ 124
Table 56 Investors preferences on the shares of Bank Rakyat Indonesia, 20170630 ........ 125
Table 57 Financial ratios of Bank Rakyat Indonesia, 2012-2016 ....................................... 126
Table 58 Share valuation of Bank Rakyat Indonesia: Current and Forward, 20170731 ..... 126
Table 59 Price ratios of shares of Bank Rakyat Indonesia, compared with S&P 500,
2007-2016 ............................................................................................................ 127
Table 60 Liquidity ratio of Bank Rakyat Indonesia, December 2007 December 2016 ... 128
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Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
Table 61 Cash flow ratios of Bank Rakyat Indonesia, December 2007 December
2016......................................................................................................................129
Table 62 Profitability of Bank Rakyat Indonesia, December 2007 December 2016 .......130
Table 63 Profit margin profile of Bank Rakyat Indonesia, December 2007 December
2016......................................................................................................................131
Table 64 Revenue profile of Bank Rakyat Indonesia, December 2007 December
2016 (Rp mn) .......................................................................................................132
Table 65 Revenue sustainability of Bank Rakyat Indonesia, December 2007
December 2016 ....................................................................................................133
Table 66 Typical shareholders of Bank Rakyat Indonesia, 2015-2016 ...............................134
Table 67 Institutional shareholders of Bank Rakyat Indonesia, 20161230-20170630 ........136
Table 68 Institutional investors ownership on equity in Bank Rakyat Indonesia,
20170731..............................................................................................................137
Table 69 Funds ownership on equity in Bank Rakyat Indonesia, 20170731 .....................138
Table 70 BRIs subsidiaries, 20161231 ...............................................................................139
Table 71 The acquisition cost of BRIs subsidiaries, 2015-2016 ........................................139
Table 72 The milestones of BRI Syariah .............................................................................139
Table 73 Some financial figures of BRI Syariah, 2015-2016..............................................139
Table 74 The milestones of BRI Agro .................................................................................140
Table 75 Some financial figures of BRI Agro, 2015-2016..................................................141
Table 76 The milestones of BRI Remittance .......................................................................141
Table 77 Some financial figures of BRI Remittance, 2015-2016........................................142
Table 78 The milestones of BRI Life ..................................................................................142
Table 79 Some financial figures of BRI Life, 2015-2016 ...................................................142
Table 80 The milestones of BRI Finance ............................................................................143
Table 81 Some financial figures of BRI Finance, 2015-2016 .............................................143
Table 82 The investments of Bank Rakyat Indonesia (associated companies) by cost
method, 2014-2016 ..............................................................................................144
Table 83 Transactions of Bank Rakyat Indonesia with related parties by transaction
types, 2015-2016 ..................................................................................................145
Table 84 BRIs non-financial investments, 2016 ................................................................145
Table 85 Material commitments of Bank Rakyat Indonesia on capital expenditures,
2015-2016 ............................................................................................................146
Table 86 Typical transactions between Bank Rakyat Indonesia with affiliated parties ......146
Table 87 Transactions of Bank Rakyat Indonesia with related parties by institutions
name and transaction types, 2015-2016 ...............................................................148
Table 88 The registered analysts of Bank Rakyat Indonesia, 2016 .....................................151
Table 89 The e-channels of Bank Rakyat Indonesia, 2012-2016 ........................................155
Table 90 The typical offices of Bank Rakyat Indonesia, 2012-2016 ..................................155
Table 91 The typical offices of Bank Rakyat Indonesia by province, 2016 ........................156
Table 92 Concurrent positions of Commissioners of Bank Rakyat Indonesia,
20161231..............................................................................................................162
Table 93 The commissioners of Bank Rakyat Indonesia: Supervised region and
Committees Membership, 20161231 ...................................................................163
Table 94 The commissioners of Bank Rakyat Indonesia: Risk Management
Certification, 20161231 .......................................................................................164
Table 95 The commissioners of Bank Rakyat Indonesia: Overseas Education,
Training, and Conferences, 2016 .........................................................................165
Table 96 The commissioners of Bank Rakyat Indonesia: Domestic Education,
Training, and Conferences, 2016 .........................................................................166
Table 97 The Board of Directors of Bank Rakyat Indonesia, 2015-2017 ...........................181
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Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
List of Figures
xi
Sando Sasako
Figure 40 The spread between 3-month LIBOR with 3-month eurodollar deposit rate,
2007-April 2008 ..................................................................................................... 50
Figure 41 The spread between 3-month LIBOR with 3-month T-bill, 2007-April 2008 ...... 50
Figure 42 The gap between 3-month LIBOR with 3-month T-bill, April 2007 May
2008 ....................................................................................................................... 50
Figure 43 CITI: The gap between 3-month LIBOR with 3-month T-bill, April 2007
May 2008 ............................................................................................................... 51
Figure 44 HBOS: The gap between 3-month LIBOR with 3-month T-bill, April 2007
May 2008 ............................................................................................................ 51
Figure 45 JP Morgan: The gap between 3-month LIBOR with 3-month T-bill, April
2007 May 2008 ................................................................................................... 51
Figure 46 RBOC: The gap between 3-month LIBOR with 3-month T-bill, April 2007
May 2008 ............................................................................................................ 51
Figure 47 UBS: The gap between 3-month LIBOR with 3-month T-bill, April 2007
May 2008 ............................................................................................................... 51
Figure 48 West LB: The gap between 3-month LIBOR with 3-month T-bill, April
2007 May 2008 ................................................................................................... 51
Figure 49 Penalties paid by banks and region, 2009-2016 .................................................... 56
Figure 50 Exchange-traded derivatives by currency, daily turnover, and regions, Sept.
2008 June 2017 ................................................................................................... 58
Figure 51 Global OTC derivatives markets by notional principal, market value, and
credit exposure, June 2009 Dec 2016 ................................................................. 58
Figure 52 OTC FX derivatives by currency, maturity, and counterparty, June 2009
Dec 2016 ................................................................................................................ 59
Figure 53 OTC interest rate derivatives by currency, maturity, and counterparty, June
2009 Dec 2016 .................................................................................................... 59
Figure 54 OTC equity-linked derivatives by country, maturity, and counterparty, June
2009 Dec 2016 .................................................................................................... 59
Figure 55 The Feds assets, Jan. 2007 Sept. 2017 .............................................................. 60
Figure 56 The outstanding commercial & industrial loans in the US, Jan. 2007 Sept.
2017 ....................................................................................................................... 60
Figure 57 The balance sheets of 5 central banks and when compared with their own
GDP, 2007-2017 .................................................................................................... 61
Figure 58 S&P 500 Composite Index, Jan.2007Sept.2017 ................................................. 61
Figure 59 Emerging markets & corporate bonds, Jan.2007Sept.2017 ................................ 61
Figure 60 Wells Fargo cross-sell ratio, 19982016q2 ........................................................... 69
Figure 61 Federal Funds interest rate target, 2003 Sept. 2017 ........................................... 73
Figure 62 The total assets of Bank Rakyat Indonesia, January 2002 April 2017:
Value and Growth (monthly figures) ................................................................... 112
Figure 63 The earning assets of Bank Rakyat Indonesia, January 2002 April 2017:
Value and Growth (monthly figures) ................................................................... 112
Figure 64 The third parties funds of Bank Rakyat Indonesia, January 2002 April
2017: Value and Growth (monthly figures) ......................................................... 113
Figure 65 Loans of Bank Rakyat Indonesia, January 2002 April 2017: Value and
Growth (monthly figures) .................................................................................... 113
Figure 66 The equity of Bank Rakyat Indonesia, January 2002 April 2017: Value
and Growth (monthly figures) ............................................................................. 114
Figure 67 The revenues of Bank Rakyat Indonesia, January 2002 April 2017: Value
and Growth (monthly figures) ............................................................................. 115
Figure 68 The net operating profit of Bank Rakyat Indonesia, January 2002 April
2017: Value and Growth (monthly figures) ......................................................... 115
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Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
Figure 69 The earnings before tax (EBT) of Bank Rakyat Indonesia, January 2002
April 2017: Value and Growth (monthly figures) ...............................................116
Figure 70 The earnings after tax (EAT) of Bank Rakyat Indonesia, January 2002
April 2017: Value and Growth (monthly figures) ...............................................116
Figure 71 The retained earnings of Bank Rakyat Indonesia, January 2002 April
2017: Value and Growth (monthly figures) .........................................................117
Figure 72 The market capitalisation of share of Bank Rakyat Indonesia, 10 November
2003 18 July 2017: Daily Value and Change ...................................................122
Figure 73 The close price of share of Bank Rakyat Indonesia, 10 November 2003 18
July 2017: Daily Value and Change ....................................................................122
Figure 74 The stock trading volume of Bank Rakyat Indonesia, 17 November 2003
18 July 2017: Daily Value and Change ...............................................................123
Figure 75 The stock trading value of Bank Rakyat Indonesia, 10 November 2003 18
July 2017: Daily Value and Change ....................................................................123
Figure 76 Investors preferences and trends on the share of Bank Rakyat Indonesia,
20170630..............................................................................................................125
Figure 77 The organisation structure of Bank Rakyat Indonesia, 20161231 ......................160
Figure 78 Satellite capabilities, May 2012 ..........................................................................202
Figure 79 Satellites launched by functioning applications, 2006-2015 ...............................203
Figure 80 Satellites launched by economic actors, 2006-2015 ...........................................204
Figure 81 Satellites launched by regional operators, 2006-2015.........................................204
Figure 82 Worlds satellite services revenue by 4 market segments, 2006-2011 (US$
bn) ........................................................................................................................205
Figure 83 Satellite operators wholesale revenue, 2005-2011 ..............................................205
Figure 84 Fized Satellite Services (FSS) wholesale revenues by region, 2015. ..................206
Figure 85 Mobile Satellite Services (MSS) wholesale revenues by region, 2015. ..............206
Figure 86 Global Satellite Ground Equipment Revenues, 2012-2017 ................................207
Figure 87 Global Navigation Satellite System (GNSS) market size, 2006-2015 ................208
Figure 88 Global Navigation Satellite System (GNSS) Revenues by sat apps, 2015 .........208
Figure 89 Satellite data pricing system in Global Navigation Satellite System (GNSS) ....209
Figure 90 Satellite data sales in Global Navigation Satellite System (GNSS) ....................210
Figure 91 Satellite value chain, from upstream to downstream, 2016 ................................210
Figure 92 Revenue generation in global satellite industry by 4 market segments, 2016 ....211
Figure 93 Operational satellites by functions, 2016 ............................................................211
Figure 94 The growth of revenue generation in global satellite industry, 2007-2016.........212
Figure 95 World satellite industry revenues by segment, 2001-2011 (US$ bn)..................212
Figure 96 Satellite services revenue generation, 2012-2016 ...............................................213
Figure 97 Orbits of satellites in 2D ......................................................................................214
Figure 98 Orbits of satellites in 3D ......................................................................................214
Figure 99 Operational satellites by orbit, May 2012 ...........................................................215
Figure 100 Telkom 3 satellite position as of 20170826 104836 Jakarta time .....................216
Figure 101 Telkom 3 satellite position as of 20170826 104752 Jakarta time .....................216
Figure 102 The orbit of Telkom 3S satellite as of 20170826 104636 Jakarta time .............217
Figure 103 The orbit of Telkom 3 satellite as of 20170826 104614 Jakarta time ...............217
Figure 104 The orbit of Telkom 2 satellite as of 20170826 104546 Jakarta time ...............217
Figure 105 The orbit of Telkom 1 satellite as of 20170826 104520 Jakarta time ...............217
Figure 106 Telkom 3 satellite position as of 20170826 125419, Jakarta time ....................218
Figure 107 The initial plan of Proton-M/Breeze-M system trajectory in delivering
Telkom 3 satellite .................................................................................................218
Figure 108 The Proton-M/Breeze-M system trajectory with another angle ........................219
Figure 109 Location of Breeze-M rocket body at likely breakup point ..............................219
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Figure 110 Non-GEO, non-GSO satellites orbiting Indonesian sky, 20170826 144454,
Jakarta time .......................................................................................................... 220
Figure 111 Geostationary communication (GEO) satellites that is in service, inclined,
& planned ............................................................................................................. 222
Figure 112 The geostationary orbit (GEO) satellite belt by frequency band features ......... 222
Figure 113 The geostationary orbit (GEO) satellite belt by frequency band features
(2nd version) ........................................................................................................ 223
Figure 114 The 419 geosynchronous (GSO) satellites mapped by Denton, 20151120....... 223
Figure 115 Commercial communications satellites in geosynchronous orbit (GSO) &
the drifting Palapa C2 .......................................................................................... 224
Figure 116 Commercial communication satellites in GSO & the 88 broadcasting
services satellites (BSS) ....................................................................................... 224
Figure 117 Commercial communications satellites in geosynchronous orbit (GSO) &
the 67 Boeing satellites, 20120630 ...................................................................... 225
Figure 118 SSL satellites in orbit ........................................................................................ 225
Figure 119 Typical satellite orbits seen from above Earths North Pole: Van Allen
Belts; Iridium, ISS, Hubble; MEO (Glonass, Compass, Galileo, GPS), GEO .... 226
Figure 120 Typical satellite orbits: LEO, MEO, Ellipso & Molnya, Glonass, GPS,
GSO (Clarke Belt), Van Allen Belts .................................................................... 227
Figure 121 Typical satellite networks.................................................................................. 230
Figure 122 Network of fixed satellite services with Inter-Satellite Links (ISL)
uncharted .............................................................................................................. 230
Figure 123 Network of mobils satellite services ................................................................. 231
Figure 124 Network of broadcasting satellite services ........................................................ 231
Figure 125 Larger benefits and controls for sat operator in HTS system ............................ 232
Figure 126 Fixed Satellite Services with and without HTS compared ................................ 232
Figure 127 - Frequency band-(specturm) in satcoms ............................................................. 233
Figure 128 Electromagnetic spectrum and the visible spectrum (light) .............................. 235
Figure 129 The relationship between the different types of frequency and other wave
properties ............................................................................................................. 235
Figure 130 Ariane 5: Typical flight events and standard trajectory for geostationary
transfer orbit ......................................................................................................... 239
xiv
Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
Some Background
I was a little bit surprised by mid July 2017 to notify that Bank Rakyat Indonesias assets has
exceeded Bank Mandiri as of April 2017. It led to other questions since when and how about
the other SOEs banks and Bank Central Asia. Some backtracking reveals that it was since
October 2014, BRIs assets began exceeding Bank Mandiri. Their assets were IDR 712.45
trillion and IDR 707.97 accordingly.
Table 1 Assets of 4 SOE s ban ks and BCA, A pril 20 17
With IDR 1,000 trillion of assets, about IDR 996 trillion as of May 2017 to be precise, Bank
BRI has transformed itself to be a behemoth, a gigantic animal. It means they are and get even
hungrier, more starving than ever before. Theyd call it, used to call it, pressures, burdens. Let
me tell you about a fable, a tale.
Let me take you to the Discovery Channel, National Geographic Channel, or whatever you
know and excited about. A whale. A shark. What do they tell you in common? Lets change the
animal type to a tiger and lions. One with an a, the other with an s. An individual versus a herd,
the herd instinct.
Lions orchestrate their attacks on selected, particular individual buffalo, elephant, giraffe, or
any prey. We know nothing on how they communicate, surely not in any human language,
especially in English, how the herd pick and target the victim, one specific interest, potential
candidate.
They slowly move, split, and distancing themselves whilst preparing and get ready to make an
attack and ambush their prey. One prey. One big prey. Enough to feed them all, for some time.
It means that they must have been coordinating and planning and doing it on a regular basis.
Some regular basis. Silently. They need to eat to stay alive and preserve their lives.
Now, apply and implement the analysis on Bank Rakyat Indonesia. To begin with, we used to
think simple. Do the math. Lets see their structures. The assets, the capital, the debts, the cash.
How do BRI grab the cash? There are signs, marks, traffic, traffic lights, trafficking. What do
they traffick?
Which one is worth? Which deal is worth the risk? The elephant risk? What is the most frenemy
of an elephant? An ant. Talking about the ant is always associated with its herd. An army. An
arm with a y letter. A bare hand. Ready to battle. At all times. There must be a queen. There
must be scouts. There are logistics. Chains. Networks. How do ants operate? There are martyrs.
Okay. Lets scrap it out. Enough for todays lesson. and enlightenment.
1
Sando Sasako
Some sites are heavily scripted. Some even have pushed to extract the HTML5 canvas image
data as it can be used to uniquely identify our computer, for every user coming, requesting the
sites web server to respond. On the other hand, some browsers have been equipped with no
script add-on, just like the TOR browser.
Having identified the browser has disabled their unique script to function to run and perform
and provide feedback as required and needed to extract user datas credentials, the web server
will launch and initiate a CAPTCHA to validate if a human is indeed making the request or not.
Some captcha can be figured out easily. Some are not.
Most Australian websites have been intentionally and notoriously denying computers access
from Indonesian IP addresses. Some Australian domains can be easily tricked by using the TOR
browser. Some others implement the captcha filter that is definitely cant be figured out. To
skip this ridiculous captcha, none is better than to disable the no script add-on, restart the TOR
browser, and revisit the url. The browser will tell you then that such web server is so eager to
know your unique computer, such as MAC address or elses.
The user data credentials can take the forms of IP address, username and password, nonce, url,
http method, or others required by the web servers. The IP address can reveal your identity, at
least by internet service provider (ISP) name, domain name, client server name, hostname,
organisational identities such as name and location (of originating access).
User data credentials are somewhat an authentication tool. As they are validated, the web server
will provide some authorisation to the user, web surfer, to get access to the resources provided
by the web server(s). The mechanics of authentication and authorisation is an internet protocol
operating on the application layer, securing the data communication between the web server
and the browser.
As the browser or the client is talking to the web server, the client presents a list of supported
cipher suites (ciphers and hash functions). The browser is asking the web server to provide the
information required, provided by or in the SERP. The web server will pick their desired cipher
and hash function and generates cipher and session key.
The web server will respond by sending its identification in the form of a digital certificate, the
SSL certificate. The certificate contains the server name, the trusted certificate authority (CA),
and the server's public encryption key. Both clients browser and web server will validate each
other the information exchanged. Denied access is given immediately and directly by any party
unsatisfied during the communication process.
For example, the browser will immediately display a warning from any link clicked within a
website logged in or from any SERP. Even if you want to reset the password, the websites
server donot do what they claim to, such as sending a new password and/or a reset link. Here is
the warning claim:
Deceptive Site! This web page at pdfsr.com has been reported as a deceptive site and has been
blocked based on your security preferences. Deceptive sites are designed to trick you into doing
something dangerous, like installing software, or revealing your personal information, like
passwords, phone numbers or credit cards. Entering any information on this web page may
result in identity theft or other fraud.
2
Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
On the other hand, the web server will take forever to respond to the request sent by the browser.
In late July 2017, the IDX web server refused to display the profile of BRI. Even the supposedly
to display the company profile uploaded in pdf. Is my IP address also blocked to access the IDX
website? The answer was a yes, as I knew then that the TOR browser with different IP address
was granted access to see it thru.
In the meantime, Google Chrome team and Mozilla engineers had found that Symantec had
misissued more than 30,000 SSL certificates, by doing shady SSL issuance practices. Google
then announced an intention to gradually remove support for Symantec certificates in Chrome
browser.1
Under Chrome's hood, Google will remove the Symantec's root SSL certificate. SSL certificates
are like giant trees with countless of branches, all converging back to the root certificate. Once
this certificate is removed, all certificates attached to this root will stop working too. It includes
other CAs bought by Symantec such as GeoTrust, Thawte, and RapidSSL.
Until Symantec revamps its SSL issuance procedures and comes up with a system that more
secure and reliable, it's highly unlikely that Google will allow a new Symantec root certificate
in Chrome again. In a similar decision, in November 2016, Google has untrusted the certificates
of WoSign and StartCom.2
1
Catalin Cimpanu, Google Outlines SSL Apocalypse for Symantec Certificates, 20170729,
http://bit.ly/2wdUXAq
2
Catalin Cimpanu, Google Ban Spells the End of Controversial Chinese HTTPS Provider, 20161103,
http://bit.ly/2x8Wqbj
3
Sando Sasako
Like any other cashing in efforts, corporate raiders are more welcomed these days. Side
businesses and moonlightings are the ones they are after. They're not trying to get messy with
the parent company's businesses, but a more wide and deep access to the unthinkable on papers.
Capitalising on stock rides, either in upward and/or downward turns, is just a bonus.
The deep dives in this report are carried on to what had been published publicly by Bank Rakyat
Indonesia, either legal documents and/or financial documents. Some intelligence gathering
techniques3 have been implemented all the way down. Although, the term used in this report is
not what actually defined by the MI5.
This report tries to be a business intelligence report, providing new insights that can empower
the reader of this report to make faster, more informed business decisions.
3
Even Microsoft also uses the same term in its site. Cf. Stephen Northcutt, Network Intrusion Detection: An
Analyst's Handbook, Ch.8, New Riders Publishing, 1999, 20170703, http://bit.ly/2xKJyfS
4
MI5, Gathering Intelligence, The Security Service of GCHQ, http://bit.ly/2xKguFC
4
Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
References
253
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254
Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
Steven Drobny, Inside the house of money: top hedge fund traders on profiting in the global markets,
John Wiley & Sons, Inc., Hoboken, New Jersey, 2006.
The State Council of PRC, State Council issues guideline on overseas investment, 20170818,
http://bit.ly/2vOVZny
Thomas M. Havrilesky and John T. Boorman, eds., Current Issues in Monetary Theory and Policy.
Arlington Heights, IL: AHM Publishing, 1976, pp.362-78.
US Consumer Financial Protection Bureau (CFPB), In the matter of: Wells Fargo Bank, N.A.,
Consent Order, Administrative Proceeding, 2016-CFPB-0015, 20160908, at p. 5, 7,
http://bit.ly/2dpnuyN.
Victoria Duff, Liquidity Effect in Economics, Chron, 20100820, Last Update 20161026,
http://bit.ly/2h7N0e7
Wells Fargo, 1999 Annual Report, p.7, http://bit.ly/2ddwP9O.
Werner Antweiler, European Currency Unit (ECU): A Brief History of the ECU, the Predecessor of
the Euro, The Pacific Exchange Rate Service, Sauder School of Business, University of
British Columbia, Vancouver, Canada, 20110119. http://fx.sauder.ubc.ca/ECU.html
Yue Wang, Betting On Brick-And-Mortar: Alibaba's Billion-Dollar Retail Experiment, Forbes,
20170827, http://bit.ly/2hj18Rz
255
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Additional Readings
Andrew Beattie, The Greatest Currency Trades Ever Made, investopedia, 20080903,
http://bit.ly/1dvS8A9
Ben Moshinsky, George Soros didn't bet against the pound this time, Reuters, Business Insider US,
20160627, http://bit.ly/2f1Aaty
Chris Ratcliffe, RBS instant messages reveal traders skewed Libor, Bloomberg, Financial Post,
20120926, http://bit.ly/2jY6JOe
Guy Faulconbridge; George Soros did not bet against sterling just before Brexit vote: spokesman,
Reuters, 20160627, http://reut.rs/2jwcMcB
Justin Kuepper, Black Wednesday: George Soros' Bet Against Britain: How George Soros Broke the
Bank of England, thebalance.com, 20170828, http://bit.ly/2xFEuKh
Marion Dakers, George Soros: I did not bet against the pound before Brexit , telegraph.co.uk,
20160627, http://bit.ly/29ekKQ3
Mehreen Khan, George Soros did not bet against the pound before Brexit, ft.com, 20160627,
http://on.ft.com/2fpArai
Rohin Dhar, The Trade of the Century: When George Soros Broke the British Pound,
priceonomics.com, 20140515, Last update: 20160617, http://bit.ly/2cOGL7P
Sebastian Mallaby, 'Go for the Jugular', theatlantic.com, 20100604, http://theatln.tc/2xpQLS0
Stephen Gandel, How George Soros Lost Money In a Bad Brexit Bet, Reuters, fortune.com,
20160627, http://for.tn/2xF2b5k
Steve Schaefer, How George Soros Broke The British Pound And Why Hedge Funds Probably Can't
Crack The Euro, Forbes Flashback, 20150707, http://bit.ly/2xoJeTN
Suzanne Plunkett, How emails nailed Barclays, Reuters, Financial Post, 20120628,
http://bit.ly/2hv3Wre
Thomas Jaffe and Dyan Machan, How The Market Overwhelmed The Central Banks, Forbes,
19921109, http://bit.ly/2xoJeTN
Vince Veneziani, The Real Story Of How George Soros Shorted The Pound, Etching His Name Into
Financial History Forever, businessinsider.com, 20100604, http://read.bi/2y4FDY7
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Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
Suggested Readings
Alberto Martin, Origins and macroeconomic implications of asset bubbles, Jaume Ventura,
20110216, http://bit.ly/2xFVb8v
Charles Hugh Smith, The War On Cash: Why Now?, mises.org, 20150729, http://bit.ly/1IKLOUO
Charles Hugh Smith, Will The Crazy Global Debt Bubble Ever End?, blogspot.com,
seekingalpha.com, 20170528, http://bit.ly/2jwUFTL, http://bit.ly/2xp6Nvm
Forensic Accounting Club, Financial Statement Fraud Schemes, 20160228, Last update: 20161122,
http://bit.ly/2x5rABZ
Forensic Accounting Club, Financial Statement Fraud, 20160228, Last update: 20161122,
http://bit.ly/2faKxiu
Forensic Accounting Club, Fraud Detective Analysis of Financial Statements, 20160305, Last update:
20161122, http://bit.ly/2xppe33
Holly Black, Warning over 'mother of all asset bubbles', ftadviser.com, 20170605,
http://bit.ly/2h9bAr5
Izabella Kaminska, Bitcoin's surge fuels fears of asset bubble, afr.com, 20170515,
http://bit.ly/2x3GX0o
Jacob J, Cryptocurrency Bubble Will Burst: Aberdeen Asset Management, cointelegraph.com,
20170624, http://bit.ly/2h8tfzg
John Lyons and Shen Hong, Asset Bubbles From Stocks to Bonds to Iron Ore Threaten China,
wsj.com, 20161101, http://on.wsj.com/2fpkiSg
Kimberly Amadeo, Asset Bubble: Causes, Examples, and How to Protect Yourself, thebalance.com,
20170714, http://bit.ly/2h6Fj7N
Neel Kashkari, Monetary Policy and Bubbles, minneapolisfed.org, 20170517, http://bit.ly/2f1e7mz
Oliver Watts and Richard Hayler, Window Dressing in M&A Transactions, FTI Consulting, Inc,
20170522, http://bit.ly/2xFUQSX
perstirling.com, Per Stirling Capital Outlook - June 2017, 20170630, http://bit.ly/2h5L3Pi
Steve Goldstein, Fed's Kashkari says central bank should avoid fighting asset-price bubbles,
marketwatch.com, 20170517, http://on.mktw.net/2yddnTM
Wolf Richter, Brick & Mortar Retail Meltdown Fueled by Asset Stripping. Details Emerge in
Bankruptcy Courts, wolfstreet.com, 20170731, http://bit.ly/2h9myAv
Wolf Richter, Consumer Bankruptcies Rise for the First Time since 2010, wolfstreet.com, 20170205,
http://bit.ly/2xFx7Cm
Wolf Richter, Great Debt Unwind: Bankruptcies by Consumers and Businesses Jump,
wolfstreet.com, 20170606, http://bit.ly/2xF4ZiS
Wolf Richter, It Just Doesn't Let Up with Wells Fargo, wolfstreet.com, 20170729,
http://bit.ly/2h8HUKY
Wolf Richter, Next Asset Bubble Cracks: It's so Big even the Fed is Fretting, wolfstreet.com,
20170607, http://bit.ly/2qXUwbp, http://read.bi/2x8RSF3
Wolf Richter, Retail Meltdown Demolishes Mall Investors, wolfstreet.com, 20170509,
http://bit.ly/2xGUM5q
Wolf Richter, So When Will China's Debt Bubble Finally Blow Up?, wolfstreet.com, 20170817,
http://bit.ly/2wvFgVh
Wolf Richter, The Economy is Cracking under Too Much Debt, wolfstreet.com, 20161018,
http://bit.ly/2x5iwNu
Wolf Richter, The US Cities with the Biggest Housing Bubbles, wolfstreet.com, 20170829,
http://bit.ly/2iIssJh
257
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Readings on Satellites
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Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
Index
75E-Q, 247 APSTAR, 242, 243, 244, 245, 246, 247 Bagus Hananto, 151
A. Firman Taufick, 197 APSTAR-142E, 247 Bahana Artha Ventura, 179
A. Fuad Rahmany, 162, 163, 164, 166, APSTAR-142E-R, 247 Bahana Securities, 151
182 APSTAR-4, 247 Bahari Media Televisi, 242, 247, 248,
A. Sonny Keraf, 162, 163, 164, 165, 166, APSTAR-5, 247 249, 250, 251, 252
171, 175, 182 APSTAR-6, 242, 243, 244, 246, 247 Bakri, 195
A.Y. Soepadmo, 201 APSTAR-7, 242, 243, 244, 245, 246, 247 Bambang Irianto, 200
A2100A, 237 APSTAR-9, 242, 243, 245, 246, 247 Bambang Krisminarno, 196
A2100AXX, 237 APSTAR-9A, 246, 247 Bambang Soepeno, 141
AB, 136, 137 APSTAR-V, 242, 243, 244, 245, 246, 247 Bambang Supeno, 178
Abing Rabani, 197 APT Satellite Holdings Ltd, 221 Banda Aceh, 156, 163, 182
ABS, 242, 243, 244, 245, 246, 247 Arab Satellite Communications Org, 221 Bandar Lampung, 156, 163, 182, 198,
ABS-2, 242, 243, 244, 245, 246, 247 Arba Xtreme Media, 242, 247, 248, 249, 200, 201
ABS-6, 247 250, 251, 252 Bandung, 143, 156, 163, 166, 168, 172,
ACeS, 237 Argabudhy Sasrawiguna, 196 182, 186, 187, 189, 190, 191, 192,
ACeS 1, 237 Argentina, 221 198, 199, 201
ACeS 2, 237 Ari Setyo Wibowo, 197 Bangkok, 29, 165
Achmad Chairul Ganie, 143 Ariane, xiv, 237, 239 Banjarmasin, 156, 163, 178, 182, 189,
Achmad Fachmi, 141 Ariane 44L-3, 237 199, 201
Adam S. Posen, 42, 254 Ariane 5, xiv, 239 Bank Agroniaga, 85, 140
Adhi Karya, 168 Ariane-42P H10-3, 237 Bank BNI, 1, 147, 148
Adhyaksa Dault, 162, 163, 164, 165, 166, Ariane-44L H10-3, 237 Bank BNI Syariah, 147, 148
170, 175, 182 Ariane-5ECA, 237 Bank BRI, 1, 139, 144, 154, 157, 175,
Adi Setyanto, 192 Arianespace, 238, 239, 258 190, 191
Adolf Hitler, 38 Artacomindo Jejaring Nusa, 242, 249, 251 Bank BRI Agroniaga, 190
ADS, 237 Artha Mas Cipta, 242, 247 Bank BRI Syariah, 139, 154, 157, 175,
AED, 29 Arthamas Cipta, 250 191
Aero System Indonesia, 147 Arthur C. Clarke, 220 Bank BRISyariah, 139
Aero Systems Indonesia, 148 Artisan International Investor, 138 Bank BTN, 1
Aerospatiale, 237 Artisan Partners Limited Partnership, 137 Bank Bukopin, 147, 179, 191
Agila, 237 Asaba Computer Center, 146 Bank Bumi Daya, 152
Agila 1, 237 ASCO, 221 Bank Central Asia, 1
Agila-2, 237 Ashlyn Still, 60, 61, 253 Bank Dagang Negara, 152, 186
AGRO, 140, 141, 178 Asia Broadcast Satellite Ltd, 221 Bank Danahutama, 176
Agus DW Martowardojo, 15 Asia Cellular Satellite, 237 Bank Danamon, 172
Agus Katon Eko Sedyono, 140 Asia Media Mandiri, 242, 248 Bank Ekspor Impor Indonesia, 152
Agus Noorsanto, 182, 193 Asia Panca Mandiri, 242, 248 Bank for International Settlements, 54, 55,
Agus Suprihanto, 198 Asian Development Bank, 169 58, 59, 254
Agus Toni Soetirto, 181 ASIASAT, 242, 243, 244, 245, 246, 247, Bank ICBC Indonesia, 162, 170
Ahmad Fuad, 162, 163, 164, 165, 166, 248, 252 Bank Indonesia, xi, 11, 13, 15, 16, 17, 18,
168, 169, 175, 177, 178, 182 ASIASAT-4, 242, 243, 244, 245, 246, 19, 20, 21, 22, 89, 90, 93, 95, 103,
Ahmad Fuad Rahmany, 168, 175, 177 247, 248 104, 120, 139, 140, 141, 144, 145,
Ahmad Solichin Lutfiyanto, 196 ASIASAT-5, 242, 243, 244, 245, 246, 248 146, 147, 148, 154, 167, 169, 173,
AIA Finl, PT - Ul Equity, 135 ASIASAT-7, 252 176, 178
Airbus Defence and Space, 237 ASIASAT-AK, 247 Bank Indonesia Urusan Koperasi Tani dan
AJ Bringin Jiwa Sejahtera, 179 ASIASAT-AK1, 247 Nelayan, 154
Albert D Metz, 49, 254 ASIASAT-AKS, 247 Bank Internasional Indonesia, 169
Alcatel, 237 ASIASAT-AKX, 247 Bank International Indonesia, 176
Alexander Margaronis, 151 ASIASAT-EKX, 248 Bank Jasa Arta, 139
Algemene Volkscredietbank, 154 Asmawi Syam, 181, 183, 184, 186 Bank Jasa Artha, 154
Alibaba, 77, 78, 255 Astek, 140 Bank Koperasi Tani dan Nelayan, 154
Alioth LLC, 33, 253 Astro Space Center of Moscow, 221 Bank Lippo, 240
Amazon, 77, 254 Asuransi Bringin Jiwa Sejahtera, 139, 157 Bank Mandiri, 1, 147, 148, 152, 153, 187
AmSat, 237 Asuransi Bringin Sejahtera Artamakmur, Bank Mega Group, 172
AMZN, 77, 78 146, 148, 189 Bank Mitraniaga, 172
Anatolia 1, 237 Asuransi Jiwa Bringin Jiwa Sejahtera, 85, Bank Negara Indonesia, 147, 148, 154,
Andalaz Cavis, 242, 247, 248, 250, 251, 142, 144 174
252 Asuransi SIMAS Shariah, 179 Bank Negara Indonesia Unit II Rural
Andik Eko Putro, 198 Atlas-2AS, 237 Division, 154
Andrinof Achir Chaniago, 167 Auckland, 8 Bank of America, 47, 52, 57, 109
Andy Ferdinand, 151 AUD, 29, 46 Bank of England, 23, 31, 39, 44, 45, 254,
Andy Krieger, 32 Australia, 109, 169, 178, 191, 192, 193, 256
Andy Wibowo Gunawan, 151 195, 197, 219, 238, 258 Bank of Montreal, 109, 110
Aneka Vision, 242, 248, 250, 251, 252 Australia and New Zealand Banking Bank of New York Melon, 109, 110
Angga Aditya Assaf, 151 Group Ltd, 109 Bank of Tokyo-Mitsubishi UFJ, 47, 109,
Anggito Abimanyu, 140 Australian, 2, 27, 49, 100, 101, 254 110, 143
Angkasa Pura I, 167 Austria, 221 Bank Pembangunan Indonesia, 152
Anik Hidayati, 195 Austrian, 27 Bank Perkreditan Rakyat, 154
Anityo Nugroho, 227, 258 Azwar Abubakar, 167 Bank Rakyat Indonesia, i, vii, viii, ix, x,
Ann C. Chalstrom, 33, 253 B&M, 77 xii, xiii, 1, 4, 81, 82, 86, 87, 88, 89,
Anna Maria Ciadarma, 195 Ba LC, 237 91, 92, 93, 95, 96, 97, 98, 99, 100,
Ansar Arifin, 142 Ba LC-200/39, 237 101, 103, 104, 105, 106, 107, 108,
ANZ, 110 Ba LC-81/23, 237 109, 110, 111, 112, 113, 114, 115,
APG Asset Management NV, 136 Ba LC-81/24, 237 116, 117, 119, 120, 122, 123, 124,
Aplikanusa Lintasarta, 144, 242, 249 BABA, 77 125, 126, 127, 128, 129, 130, 131,
259
Sando Sasako
132, 133, 134, 135, 136, 137, 138, Blackrock, 135 BTN, 152, 189
139, 140, 142, 143, 144, 145, 146, BlackRock Fund Advisors, 136, 137 Buana Capital, 151
148, 151, 152, 154, 155, 156, 157, Blair, 45 Budi Rustanto, 151
160, 162, 163, 164, 165, 166, 167, BNI, 143, 151, 152, 154, 176, 186 Budi Satria, 198, 238
168, 169, 170, 171, 172, 173, 175, BNI Securities, 151 BULOG, 102, 147, 148, 149
178, 181, 182, 183, 184, 185, 187, BNI Unit II Export Import Division, 154 Bulukumba Citra Visual, 242, 248, 249,
190, 236 BNP Paribas, 47, 109, 110, 151 250
Bank Rakyat Indonesia Agroniaga, 139, BNP Paribas Equity Research, 151 Bundesbank, 33, 34, 35, 36, 38, 39, 42,
140, 157 Board of Governors of the Federal 43, 253
Bank Rakyat Indonesia, PT - Treasury Reserve System, 70 Bungamayang Agroloka, 144
STO, 135 BoE, 23, 32, 34, 42, 45, 53 Busrul Iman, 197
Bank Rakyat Republik Indonesia Serikat, Boeing Satellite System, 237 BWS, 41, 44
154 Boeing SS, 237 CA, 2
Bank Sahabat Sampoerna, 162, 170 BoJ, 60, 61 Cabinet Secretary, 16
Bank Sulut, 172 BOL, 237 CAD, 29, 46
Bank Syariah BRI, 139 Bonn, 36, 43 Cahaya Tunas Pofah, 242, 248
Bank Syariah Mandiri, 147, 148 Borneo Visual Multimedia Pro, 242, 247, Cakrawarta-1, 237
Bank Tabungan Negara, 147, 148 248, 251 Canada, 31, 41, 47, 176, 221, 233, 255,
Bank Tani Nelayan, 154 Boston Consulting Group, 56, 254 258
BankAmerica, 31 Boyke Budiono, 143 Canadian, 27, 101
Bankers Trust, 31, 32 BP, 91 Cantillon Fund, 135
Banque de France, 36 BPJS Ketenagakerjaan JHT, 135 Caprock Communications Indonesia, 242,
Bapepam, 169, 179 BPKP, 176 249, 250, 251
Bapepam-LK, 169 BPP, 146, 150 Carrick Mollenkamp, 49, 253
Bapindo, 152 BPR, 144 Carrie Tolstedt, 71
Bappenas, 16 BRC, 141 CASC, 240
Barclays, 47, 53, 54, 57, 256 Breeze-M, xiii, 218, 219, 258 CAST, 237, 240
Barclays Bank plc, 47, 53 Bretton Woods, 27, 39, 41, 254 Caxton Corp, 31
Barclays Capital Services Ltd, 53 Brexit, 23, 256 Cayman Island, 155
Barclays Directors Limited, 53 BRI, ii, iii, v, vii, viii, ix, 1, 3, 81, 83, 85, CBM, 43
Barclays Group Holdings Ltd, 53 90, 91, 92, 102, 110, 121, 139, 140, CC, 185, 237
Barclays plc, 53 141, 142, 143, 144, 145, 146, 147, CC LC, 237
Barclays Services Jersey Ltd, 53 148, 149, 152, 153, 154, 155, 156, CC LC-17A, 237
Bardiyono Wiyatmojo, 192 157, 158, 159, 161, 174, 175, 176, CC LC-17B, 237
Barings Bank, 45 177, 178, 179, 180, 186, 187, 188, CC LC-36B, 237
Barrick Gold, 24 189, 190, 191, 192, 193, 194, 197, CCK LC-39A, 237
Basle-Nyborg, 33 202, 238, 241 CDBC, 95
Batu Sangkar Multimedia, 242, 247, 248, BRI Agro, ix, 139, 140, 141, 147, 157, CDS, 49, 50, 51
250, 251, 252 178, 179 Cendrawasih Wiputra Mandiri, 242, 247,
BBA, 46, 47, 50, 51, 54 BRI Finance, ix, 139, 143, 147, 157 248, 249, 250, 251
BBA Repo, 54 BRI Life, ix, 139, 142, 157, 179, 180 central bank money stock, 43
BBA standard for interest rate swaps, 46 BRI Multifinance, 85, 139, 143, 144, 157 Centrale Kas Voor Het
BBAIRS, 46 BRI Pension Fund, 178 Volkscredietwezen, 154
BBC, 23 BRI Remittance, ix, 85, 139, 141, 142, CEO, 57, 71, 172, 190
BBD, 152 157 certificate deposit of Bank Indonesia, 20
BBH Boston S/A Vangrd Emg Mkts Stk BRI Syariah, ix, 139, 140, 154, 157, 175, CFETS, vii, 29, 30
Infd, 135 178, 179 CFPB, 70, 71, 255
BBH Luxembourg S/A Fidelity Fd, Sicav, BRI Syariah Unit, 154 CFTC, 57
135 BRILink, 145, 152 CGWIC, 237, 240, 241
BBRI, 126, 127, 154, 237, 238 Bringin Gigantara, 144, 146, 148, 149, Chairman, 57, 71, 163, 167, 168, 169,
BCCI, 45 191 170, 171, 172, 175, 177, 178, 186,
BCG, 57 Bringin Indotama Sejahtera Finance, 188 187, 189, 190
BDH Khusus Bialugri, 150 BRIngin Jiwa Sejahtera, 141 Chairul Tanjung Group, 172
BDN, 152 BRIngin Remittance, 141 Chairwoman, 73
BEF, 31 Bringin Srikandi Finance, 190 Chancellor, 38, 40, 45, 53
BEII, 154 BRIS, 139 Charles de Gaulle, 41
Beijing, 240 BRIsat, vi, 146, 154, 193, 202, 237, 238, Chase Manhattan, 31
Belgian, 27, 31, 33, 36 239, 258 Chemical Banking, 31
Belgium, 31, 39, 171, 172 BRISyariah, 85 CHF, 29, 46, 47
Bendahara Khusus, 146, 150 Brit, 34 Chicago, 11, 254
Bendahara Pengeluaran Pembantu, 146 Britain, 38, 256 China, 7, 8, 24, 27, 29, 30, 73, 74, 78, 95,
Benelux, 39 BRITE Consortium, 221 221, 237, 238, 240, 247, 248, 249,
Benjamin Koo, 151 British, 27, 31, 32, 33, 45, 46, 100, 101, 252, 257
BEP, 78 256 China Academy of Space Technology,
Berlin Wall, 32 British Bankers' Association, 46 237, 240
Bernstein, 151 Briz-M, vi, 216, 218, 258 China Aerospace Science and Technology
BI, xi, 9, 19, 20, 104, 169 BRR, 169 Corp, 240
BI 7-day (reverse) repo rate, 9 Bruce Kovner, 31 China Dev. Bank Corp., 95
BI 7-day repo rate, 9 Brussels, 36 China Foreign Exchange Trade System,
BI rate, 9, 20 Bryce Space and Technology, 207, 258 29
Bialugri, 146 BSMR, 164, 176, 183 China Great Wall Industry Corp, 237, 240
BII, 169 BSS-601HP, 237 China Satcom, 237
Bill Phillips, 44 BT, 32, 237 ChinaSat, 237
BIS, 30, 35, 40, 42, 43 BTMU, 143, 144, 146, 148, 149, 187 ChinaSat 5B, 237
BJA, 139, 154 BTMU BRI Finance, 143 CHINASAT-10, 242, 243, 244, 245, 246,
BJS, 141 BTMU BRI Finance, 144, 146 248, 249
BKTN, 154 BTMU-BRI, 143, 148, 149, 187 CHINASAT-11, 242, 243, 244, 245, 246,
Black Wednesday, 32, 33, 34, 44, 254, BTMU-BRI Finance, 143, 148, 149, 187 249
256 BTM-UFJ, 110 CHINASAT-6, 248, 249, 252
260
Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
CHINASAT-64, 249 Dana Pensiun Lembaga Keuangan, 142 Edy Priyono, 198
CHINASAT-6B, 252 Danareksa, 151, 169 Edy Utomo, 200
Chinese, 3, 7, 8, 27, 28, 29, 73, 74, 240, Daniel L. Thornton, 11, 253 EEC, 33
253 Daniel Plunkett, 54 EIRD, vii, 53, 54, 56, 57
CHIRD, 57 Daniel Schfer, 56, 253 Eka Savitri, 151
CIMB, 151 Danish, 27, 31, 36, 46 Eko Bambang Suharno, 140, 175, 197
Cinta Manis Agroloka, 144 Dany Cahya Rukmana, 195 Eko Wahyudi, 197
Ciptadana Sekuritas, 151 Dapenbun, 140, 141 Ekspress-1000N, 237
Citibank, 47, 54, 109, 135 Datasel, 144 EM, 60
Citicorp, 31 David Caplin, 54 EMARSAT-4S, 252
Citigroup, 50, 51, 53, 54, 57 David Chapman, 41, 253 emerging markets, 49, 73
Citra Buana Cable Vision, 243, 248, 249, David Pieri, 49 Emirates NBD Bank, 109, 110
250 DB, 53, 54, 57 Employees Provident Fund, 135
Citra Ilham Mandiri, 243, 247, 248, 249, DB Group Services (UK) Ltd, 53 EMS, 33, 36, 39
250, 251, 252 DBS, 109, 110, 151, 205, 213, 237 Erasmus, 33, 254
Citra Intel Pratama, 243, 248 DBS Vickers, 151 Erdianto Sigit Cahyono, 140
Citra Mitra Inti Kusuma, 170 De Poerwokertosche Hulp en Spaarbank Eria Desomsoni, 201
Citra Sari Makmur, 236, 237 der Inlandsche Hoofden, 154 Erizal, 198
Clarke, xiv, 227, 228, 229 De Poerwokertosche Hulp Spaar-en ERM, xi, 33, 34, 35, 36, 39, 40, 43, 44,
CLSA, 151 Landbouw Credietbank, 154 254
Club Deal, 95, 109, 110 Dedi Sunardi, 199 Ernawan, 196
Club Loan, 95, 109, 110 Defense Systems Inc, 237 ESA, 221
CME, 46 Delta, 237 ESP, 31
CNH, 7, 29 Delta 2914, 237 Estonia, 57
CNY, 7, 29 Delta 6925-8, 237 Eternal Recession Mechanism, 34
Coface export-credit agency, 240 Delta 7925-8, 237 EU, 23, 25
commercial real estate, 6, 73, 77 Delta-3920 PAM-D, 237 EUMETSAT, 221
Commerzbank, 109, 110 DEM, 31 EUR, xi, 25, 29, 47
Committee on the Peaceful Uses of Outer Denai Kabel Mandiri, 243, 247, 248, 250, EURIBOR, 54, 56, 110
Space, 220 251, 252 euro, vii, 23, 25, 27, 31, 39, 40, 42, 45, 54
composite price index, 33, 45 Denmark, 39 Euro Interest Rate Derivatives, 53
Computer Technology Associates, 237 Denpasar, 156, 163, 182, 186, 192, 196, Euroconsult, 203, 204, 205, 206, 208,
ComSoft VSAT Solutions GmbH, 224, 199, 201 209, 210, 212, 214, 258
258 deposit facility, 20 Europe, 41, 47, 53, 56, 184
Connan Snider, 49, 253 Deutsche, 27, 42, 47, 53, 54, 57, 151, 179, EUROPE*STAR, 249
Connecticut, 49 253 EUROPE*STAR-1, 249
Consumer Financial Protection Bureau, Deutsche Bank, 47, 53, 54, 57, 151, 179 EUROPE*STAR-45E, 249
70, 255 DFA, 70, 138 European Commission, vii, 53, 54, 56, 57
consumer price index, 20, 45 DFA Emerging Markets Core Equity I, European Community, 33, 36, 39, 253
COO, 57 138 European Currency Unit, 31, 255
Cooperative BRI Swakarya, 190 DFH, 237, 240, 248 European Economic Community, 33
Cooperative Rabobank UA, 47 DFH-3A-OB, 248 European Organization for the
Coordinating Minister in Economic DFH-4, 237, 240 Exploitation of Meterological
Affairs, 16 DFH-4E, 237 Satellites, 221
COSPAR, 216, 237 Diah Yuniarti, 231, 258 Eurostar-3000, 237
CPI, 20, 33, 45 Dicky Rozano, 201 Eurosystem, 42
Craig R. Whitney, 35, 253 Didin Hafidhuddin, 140 Euroyen, 49, 57
CRE, 6 Dimensional Fund Advisors LP, 137 Eutelsat, 221
Crdit Agricole, 47, 53, 54 Direktorat Angkatan Darat, 146 EUTELSAT 172A, 242
credit default swaps, 49 Dirgantara Indonesia, 102, 147, 148, 149, Eutelsat Americas, 221
Credit Suisse, 47, 57, 151 150 Eutelsat S.A., 221
Crispin Odey, 23 DITKUAD, 146, 150 EVA Dimensions, 151
CSM, 236, 237 DKK, 29, 31, 46 Evan Lie Hadiwidjaja, 151
CSM-106, 236 DLR-Tubsat, 237 ExactEarth, 209
CSM-111, 236 DM, xi, 27, 31, 32, 33, 34, 35, 36, 37, 39, F.Y. Hari Sistiyasta, 198
CSM-120, 236 43, 46 Fabiola Noralita Sondakh, 142
CSM-137, 236 Dodd-Frank Act, 70 Fahmi Subandi, 195
CT Group, 172 Doha, 29 Falcon-9 v1.2, 237
CTA, 237 DOJ, 57 Farid Hanafi, 200
CTBC Bank, 109 dollar, viii, 25, 27, 28, 29, 32, 109 FASBI, 20
currency union, 31 Donald Trump, 57 Fasindojaya Kabel Televisi, 243, 247,
Cyprus, 57 Dongfanghong-4E, 240 248, 251, 252
CZ-3B, 237 Donsuwan Simatupang, 181, 182, 183, FCA, vii, 54, 57
CZ-3B (Ariane 44L), 237 187 FDIC, 70
CZ-3B (Long March 3B), 237 Douglas J. Keenan, 53, 253 Fed, xii, 8, 11, 12, 25, 35, 41, 53, 57, 60,
CZ-3B/E, 237 DP BRI, 144 61, 63, 73, 76, 77, 253, 257
D. Irwandi Wijaya, 201 DPLK, 142 Federal Deposit Insurance Corporation, 70
D.P. Oka Maharjana, 199 DSI, 237 Federal Housing Finance Agency, 70
Dagota Investama, 179 Duta Media Entertainment, 243, 247, 248, Federal Regulators, 70
Dahlan Iskan, 167 249, 250, 251, 252 Federal Reserve Bank, 11, 63, 253, 254
Daily Express, 23 Dutch, 31, 33, 35, 36 Federal Reserves, 63
Daily Mail, 23 East Germany, 43 FFr, 27
Daily Telegraph, 23 Ebeneser Girsang, 198 FHFA, 70
DAMRI, 147, 149 EC, 35, 39, 236 Fidelity, 135, 136, 137, 138
Dan Meyers, 225, 258 ECB, 37, 42, 45, 61 Fidelity Investment, 135
Dana Pensiun Bank Rakyat Indonesia, EchoStar XVIII, 239, 258 Fidelity Management & Research, 136,
142 ECU, vii, 31, 39, 255 137
Dana Pensiun BRI, 141, 142, 144 Edi Masrianto, 143, 196 Fidri Arnaldy, 199
Dana Pensiun Karyawan Panin Bank, 144 Edouard Balladur, 36
261
Sando Sasako
262
Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
Irianto, 182, 192 Kejar, 144, 148 Lockheed Martin Commercial Space
Irianto Sunardi, 192 Kelola Jasa Artha, 144, 148 Systems, 237
IRIDIUM, 251 Kementerian Keuangan Republik London, 23, 27, 29, 32, 34, 38, 45, 46, 47,
Irish Punt, 31 Indonesia, 149 49, 53, 57, 165, 179, 190, 254
IRNA, 219, 258 Kementerian Pertahanan, 236 London Agreement, 38
Irving Fisher, 13, 45 Kemhan, 146, 237 London International Financial Futures
Irwan Junaedy, 200 Kereta Api Indonesia, 102, 147, 149, 150 Exchange, 53
Irwandi Yusuf, 167 Kevin Kwek, 151 London School of Economics, 27, 254
IS-22, 242, 246, 250 Khairi Setiawan, 142 London Stock Exchange, 23
ISAS, 221 Khairullah, 201 Long March 3B, 240
ISAT, 237 KNPI, 170 Long March CZ-3B/E, 240
ISED, 233, 258 Ko ELA, 237 Loo Kar Weng, 151
iShares Core MSCI Emerging Markets, Ko ELA-2, 237 Loral Global Alliance, 221
138 Ko ELA-3, 237 Loral Skynet Satellite Services, 221
iShares MSCI Indonesia, 138 Kokok Alun Akbar, 196 LSE, 23, 44
ISS, xiv, 226, 237 Komaruddin Hidayat, 140 LSPP, 164, 183
ISS Reshetnev, 237 Kominfo, 236 LUF, 31
IT, iv, 144, 159, 193, 195 Koperasi Karyawan Bank Bukopin Luxembourg, 29, 31, 39, 135, 252
Italian, 27, 31, 33, 35 Jakarta, 144 LUX-G5-25, 252
Italy, 221, 240 Koperasi Karyawan BRI Syariah, 147, LUX-G7-20, 252
ITL, 31 149 Lyall Taylor, 151
J.P. Morgan, 31, 53, 137, 151 Koperasi Swakarya BRI, 146, 147, 149 M. Fankar Umran, 199
Jacob Gyntelberg, 54, 55, 254 KOREASAT-8, 242, 243, 244, 245, 246, M. Gunawan Yasni, 140, 179
Jaj Singh, 151 247 M. Ridwan Rizqi R. Nasution, 142
Jakarta, xi, xiii, xiv, 7, 10, 21, 29, 79, 103, Kourou, 238 M. Sodo Harisetyanto, 142
139, 140, 142, 143, 144, 154, 155, Krakatau Steel, 102, 147, 148, 149 M2A, 237
156, 157, 158, 163, 166, 169, 170, Kraton Imaji Utama, 170 Macquarie, 151, 195
171, 172, 173, 175, 176, 177, 179, Kresna Securities, 151 Mahdi3d, 219, 258
180, 182, 184, 186, 187, 188, 189, krona, 27, 46 Mahmud, 162, 172
192, 193, 194, 195, 196, 197, 198, krone, 27, 46 Mahmuddin Yasin, 142
200, 201, 216, 217, 218, 219, 220, Kuala Lumpur, 29 Makassar, 156, 163, 173, 182, 186, 188,
240, 254 Kuraygeo Service Indonesia, 244, 249, 193, 199, 200, 244, 248, 250, 251
Jakarta Kyoei Medical Center, 144 252 Makassar Multimedia Digital Sistem, 244,
Jakarta Stock Exchange, 154 Kurnia Chaerudin, 143 248, 250, 251
Jaminan Kredit Indonesia, 179 Kustodian Sentral Efek Indonesia, 144 Makianos Network, 244, 248, 252
Janet Yellen, 73 Kuswardono, 196 Malang, 156, 157, 163, 172, 182, 187,
Japan, 41, 53, 143, 221, 251, 252 Kuswiyoto, 181, 182, 183, 184, 188 192, 193, 194, 196, 197, 198, 199, 200
Japanese, 27, 28, 100, 101 Kyle Bass, 24 Malaysia, 251, 252
Jasa Marga, 147, 148 Lampung Mitra Media, 244, 248, 251 Manado, 156, 157, 163, 172, 182, 199,
Jayapura, 156, 163, 182, 189, 198 Laos, 252 200
JCSAT, 242, 243, 244, 245, 246, 251, 252 LAOSAT-1, 252 Mandiri Sarana Informasi, 244, 247, 248,
JCSAT-13, 251 Lapan, 237 249, 250, 251
JCSAT-2A, 252 Lapan A1, 237 Mandiri Sekuritas, 151
JCSAT-3A, 242, 243, 244, 245, 246, 251 Lapan A2, 237 Marcus Agius, 57
JCSAT-4B, 251 Lapan A3, 237 Marine and Fishery Exploration
JCSAT-5A, 251 LAPAN TUBSAT, 236 Department, 167
JCSAT-FO-124E, 251 LAPAN-A3-SAT, 236 Marine and Fishery Ministry, 167
JCSAT-FO-128E, 251 Lapan-ORARI, 237 Mark, 27, 49, 54, 253
Jeffry J. Wurangian, 162, 163, 164, 165, LAPANSAT, 236 Mark Stevenson, 54
166, 182 Lapan-TubSat, 237 Mark Whitehouse, 49, 253
Jeffry Jefta Wurangian, 172, 175, 177 Lausanne Conference, 38 Markit Group, 50, 51
Jeremy Kraft, 54 Lee Bruce Stewart, 54 Marshall Plan, 41
Jerry del Missier, 57 Lee Knight, 49 Martin Brokers, 54
Jezri Mohideen, 49 Leigh-Pemberton, 45 Maxxnet Elde Hawe, 244, 248, 250
Jimmy Tan, 49 Lembaga Pembiayaan Ekspor Indonesia, Maybank Kim Eng, 151
Jiwasraya, 168 147, 148 MBS, 60, 73
John Major, 40 Lembaga Penerbangan dan Antariksa MCI, 237
John Maynard Keynes, 45 Nasional, 236 MEASAT, 242, 243, 244, 245, 246, 251,
John Stumpf, 71 Lembang Selayar Kabel Vision, 244, 248, 252
John T. Boorman, 11, 254, 255 251 MEASAT-1, 251, 252
Joice Farida Rosandi, 197 LEN Industri, 147 MEASAT-1A, 252
Jonathan Spicer, 60, 61, 253 lending facility, 20 MEASAT-3A, 242, 243, 244, 245, 246,
Jones Investments, 31 Leniency Notice, 57 251, 252
Joshua Tanja, 151 LIBOR, vii, xi, xii, 23, 46, 47, 49, 50, 51, MEASAT-3B, 242, 244, 245, 246, 252
Jovent Giovanny, 151 53, 54, 110, 253, 254 Medan, 143, 156, 157, 163, 180, 182, 187,
JP Morgan, xii, 47, 51, 135 LIFFE, 53 192, 197, 198, 200
JP Morgan Chase Bank, 47 Lina Sari, 195 Media Cakrawala Nusantara, 244, 248,
JPM, 61, 72 LIPPOSTAR 1, 251 250
JPMCB, 135 lira, 27, 31, 33, 35, 36, 43 Media Citra Indostar, 236, 237
JPMorgan, 52, 53, 54, 57, 135, 136 Lloyds Bank of Scotland, 54 Media Citra Indovision, 237
JPY, 29, 46, 47, 57 Lloyds Bank plc, 47 Media Televisi Kabel Indonesia, 244, 247,
JSX, 154 Lloyds Banking Group, 47 250, 251
Jurgen Stark, 37 Lloyds TSB Bank plc, 47 Megah Surya Persada, 244, 249
Justin H. Mims, 70, 254 LM, 237 Megasatcom, 244, 247, 249
Kabanjahe Vision Indonesia, 243, 247, Loan and Saving Bank for Noble Meiditomo Sutyarjoko, 197
248, 249, 251, 252 Indigenous, 154 Menara Proteksi Indonesia, 144
Karaimek, 223, 258 Loan and Saving Bank for the Employees Meranti Vision, 244, 247, 248, 249, 250,
Kashkari, 63, 257 of Indigenous Local Leader, 154 251, 252
Keenan, 53 Lockheed Martin, 237 Merapi Gelanggang Wisata, 144
263
Sando Sasako
264
Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia
Phillip Securities, 151 Reuters, 46, 50, 51, 60, 61, 253, 256 Sentral Multi Telemedia, 245, 247, 248,
Phillips, xi, 44 reverse repo, 20 249, 251, 252
Pindad, 147, 148, 149 RHB Securities, 151 Seoul, 29
Pindad Enjiniring Indonesia, 147, 148 rial, 27 SES, 237, 245, 246, 252
Pintar Nusantara Sejahtera, 240 Rianto Ahmadi, 142 SES-7, 237, 252
PKSS, 144 Richard Jerry, 151 SES-9, 245, 246, 252
PLDT, 237 Ridwan Rizki Nasution, 179 SG, 131
PLN, 29 riyal, 27 SGD, 29
PNG, 247, 252 RM, 38, 187 SGX, 46
Portuguese, 31, 36 , 38 Shearman and Sterling, 71
Posen, 35, 40, 42, 43 RMB, xi, 27, 29, 30 Shenzhen, 8
Potemkin villages, 53 Robeco Institutional Asset Mgmt BV, 137 shilling, 27
pound, 27, 33, 256 Robert D. Matson, 219 Shinta Buana Vision, 245, 248, 249, 251,
PP, 106, 154 Robert Diamond, 57 252
PPATK, 176 Robert McNaught, 219 SIA, 207, 208, 211, 212, 213, 258
PRC, 74, 255 Robert Parker, 41, 254 Sichuan, 240
President, 34, 36, 57, 63, 162, 167, 168, Robin Leigh-Pemberton, 39, 45, 254 Sidimpuan Multimedia, 245, 248, 250,
172, 177, 178, 179, 181, 186, 187, root cause analysis, 69 252
190, 191, 192, 254 Rosa M Abrantes-Metz, 49, 254 Sigit Murtiyoso, 196
Presley Hutabarat, 198 Roswita Nilakurnia, 141 Sigma Cakrawala Multimedia, 245, 249,
Prima Karya Sarana Sejahtera, 144 Royal Bank of Canada, 47 250
Primacom Interbuana, 245, 249 Royal Bank of Scotland, 47, 49, 53 Sinarmas Sekuritas, 151
Prime Minister, 36, 40, 45 RP, 54, 233, 258 Singapore, 29, 49, 81, 100, 101, 110, 135,
Priyastomo, 181, 182, 183, 184, 188 RP Martin, 54 136, 155, 168, 252
Proton, vi, xiii, 216, 218, 219, 237 RPI, 45 Singkawang Vision, 245, 247, 248, 249,
Proton-K Blok-DM3, 237 RPIX, 42, 45 251, 252
Proton-M, vi, xiii, 216, 218, 219, 237 RUB, 29 Sino Satellite Communications, 237
Proton-M Briz-M (Ph.2), 237 Rudjito, 144 Sinosat 1, 237
Proton-M Briz-M (Ph.3), 237 Russia, 220, 221, 228, 247 Sis Apik Wijayanto, 181, 182, 183, 189
Protostar, 237 Russian, 57, 221 Sisfo Indonesia, 246, 249
Prudential Life Assurance, 135 Russian Academy of Sciences, 221 Siswarin Dwi Hendarsapti, 142
PSLV, 237 Ryndo Jaya Visual, 245, 247, 248, 249, SKK, 46
PSLV-G, 237 250, 251 Skyreach, 246, 247, 249, 250
PSLV-XL, 237 S&P, viii, xii, 61, 62, 126, 127 Slamet Sugiarto, 201
PSN, 236, 237, 240, 241 Sahala Manalu, 141 SNB, 61
PSN 5, 237 Samuel Sekuritas Indonesia, 151 Social Science Research Network, 49, 254
PSN 6, 237 Sanjay Jain, 151 Socit Gnrale, 33, 47, 53, 54
PSN 7, 237 Santander UK plc, 47 Sofyan Jalil, 167
PSN-146E, 236 Sanwa BRI Finance, 143 SOG Indonesia, 246, 249
PSN-6, 241 Sanwa BRI Leasing, 143 Sol Media Indonesia, 246, 247, 248, 249,
PSN-7, 241 Sanwa Bank, 143 251, 252
PSNS, 237, 240 Saptono Siwi, 141, 192 Sony Harsono WS, 195
PT PNS, 240 SAR, 29, 209 Soros, 23, 24, 31, 32, 34, 39, 256
PTE, 31 Sarana Bersama Pembiayaan Indonesia, South African, 27
Puti Adani, 151 144 Soviet Union, 220
QE, 5, 6, 60, 61, 253 Sarana Mukti Adijaya, 236 Space Systems Loral, 241
quantitative easing, 5, 60, 61 Sarana Multigriya Finansial, 95, 147, 148 Space Systems/Loral, 237, 238, 258
Quantum, 31, 32 Sarana Wana Jaya Foundation, 140 Space Transportation System, 237
R. Denny Soelistyo Adji, 200 Sari Usaha Leasing, 143 Spacebus, 237
Rabobank, 47, 54 Sarina Lesmina, 151 Spacebus-3000A, 237
Rachmad Guntur Kristianto, 198 Saseka Finance, 172 Spacebus-4000B2, 237
Raden Bei Aria Wirjaatmadja, 154 Satelindo, 237 Spacebus-4000B3, 237
Radja Anambas Bersinar, 245, 248, 249, Satelit Palapa Indonesia, 237 SpaceX Falcon 9, 241
251 Satellite Industry Association, 202, 205, Spanish, 27, 31, 36
Rahmi Sari Marina, 151 212, 214, 215, 224, 230, 258 Spicer, 61
Rahul Mittal, 33, 254 SatKomHan 1, 237 SPM, 9, 23, 53, 60
Railink, 147, 150 Satkomindo, 144, 146 Sputnik 1, 220
Rainoc, 174 Satkomindo Mediyasa, 144, 146 Sr SLP, 237
rand, 27 Sauder School of Business, 31, 255 Sri Mulyani Indrawati, 15
Randi Anto, 181, 182, 183, 184, 189 Saudi Arabia, 27, 135 SSB, 135
Rapat Dewan Gubernur, 9 Saudi Arabian Monetary, 135 SSL, xiv, 2, 3, 225, 237, 238, 253, 258
RASCOM, 221 SBI, 20 SSL-1300, 237
Raymond Kosasih, 151 SBIS, 20 SSN, 220, 221
RBS, 49, 54, 56, 253, 256 SBN, 20 St. Louis Fed, 11
RCA, 69 SBSN, 20 ST-1A, 252
RDG, 9 Scapa Flow, 38 ST-2, 242, 243, 244, 245, 246, 252
Reasuransi Indonesia Utama, 174 Schroder Indonesia, 135 Stamford, 49
Regional African Satellite Schroder Investment Management Standard Chartered Bank, 109, 110
Communications Organization, 221 Indonesia, 136 standing facility, 17, 20
Registrar of Companies, 141 Scott Nygaard, 49 Stanley Druckenmiller, 32
Rehabilitation and Reconstruction Agency Scott Peng, 50 Star-2 Bus, 237
for Aceh and Nias, 169 SDBI, 20 State Council, 73, 74, 255
Reichsmark, 38 SDR, vii, 27, 28, 30, 254 Stephan Hasjim, 151
Rekayasa Industri, 147, 150 SEC, 70 sterling, 23, 25, 27, 28, 31, 32, 33, 34, 35,
Reksa Dana Schroder Dana Prestasi, 135 Securities and Exchange Commission, 70 36, 39, 40, 43, 256
renminbi, 27, 28 SEK, 29 Steven Drobny, 35, 255
Rentenmark, 38 Semarang, 156, 157, 163, 166, 171, 172, Still, 61
repo, 11, 20 182, 188, 189, 197, 198, 200 STS, 237
Retno Wahyuni Wijayanti, 195 STS-11 (PAM D), 237
265
Sando Sasako
266