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U.S. stocks on Wall Street fell nine percent in the last two hours of trading Thursday (05/06/2010) local time, before returning back some losses because of the crisis increased the debt crisis in Europe prompted fears of new credit crisis.

Dow’s biggest point decline ever recorded in the daily trading (intraday), which may be caused by any trade that is entered by someone at a big Wall Street banks, some market sources said.

Index restore some of their losses toward the close of the equity but have removed most of their profits for this year to end down just three percent, the biggest decline since April 2009.

“We do not know what stocks are worth today, and it is a serious problem,” said Joe Saluzzi of Themis Trading in New Jersey.

Traders in the whole world was shaken and told to start trading in the middle of decline as investors tried to reduce losses in markets that were hit by indiscriminate selling fast.

Total shares fell in New York Stock Exchange exceeds the number of shares rose more than 17 to one. Volume soared to its highest level so far this year.

Nasdaq said the are investigating the possibility of any transaction involving multiple securities held between 2:40 and 3:00 o’clock in the afternoon.

Investors have been on edge all day trading after European Central Bank did not discuss the direct purchase of debt of European countries because some hope they can calm the markets, but gave verbal support, not for the savings plan of Greece, disappointing investors.

The Dow Jones Industrial Average fell 347.80 points, or 3.20 percent, to 10520.32. Index Standard & Poor’s 500 fell 37.75 points, or 3.24 percent, to 1128.15. The Nasdaq Composite Index lost 82.65 points, or 3.44 percent, to 2319.64.

Action sell wide and deep with all 10 sectors of the S & P 500 fell two to four percent. The financial sector was the worst with a decline of 4.1 percent.

Indiscriminate selling hitting some big berkapitalisasi stock. Bank of America suffered the largest percentage decline in the Dow, falling 7.1 percent to 16.28 U.S. dollars. All components of the Dow which consists of 30 listed companies closed lower.

An index known as Wall Street’s fear gauge, CBOE Volatility index closed up more than 30 percent in the highest closing price since May 2009. The index earlier rose as much as 50 percent.

Mounting fears about the debt crisis spread across Europe restrain appetite for risk and place a report of weak U.S. retail sales help to decrease more sharply. The most prominent retail chain reported worse-than-expected sales for April, triggering fears about consumer spending, the main engine of the U.S. economy.

Indonesia will become the 12th most advanced country in the world economy in 2020. One driving factor is the increasing of gross domestic product or GDP per capita which is currently happening in Indonesia.

The remark was made the founder of private equity firm Saratoga Capital, Sandiaga S Uno, in Jakarta, Friday (5/7/2010), when speaking as a guest lecturer at the Faculty of Management Master Program in Economics, University of Indonesia in the context of “Strategic Investment in Indonesia: A Perspective of the Private Industry Equity “.

According Sandiaga, in the year 2009, GDP per capita of Indonesia has reached U.S. $ 4149.4. Nominal GDP per capita is likely to increase since Indonesia was hit by the economic and monetary crisis in 1997. With this trend, GDP per capita is expected to continue rising.

Data also showed that the number of Indonesian people who have incomes above U.S. $ 4000 or about USD 37 million to 20 million people. In addition, there are 20 million other people who have income above 7000 U.S. dollars, or about USD 65 million.

“This shows an increase in quality middle-income group in Indonesia. This is good news. The data show the number of population who have a lot of money in Indonesia will be more and more. Entrepreneur of consumption goods will love it,” said Sandiaga.

The increase in GDP per capita was significantly increased the average purchasing power in Indonesian society. Increased buying power to show the potential future increase in consumption which is the fertile field for entrepreneurs in developing its business.

“The middle class who got it would push Indonesia into a country with the 12th largest economy in the year 2020,” said Sandiaga.

According Sandiaga, economic growth and future potential is very clear to Indonesia. There are three sectors in Indonesia, which is always very promising, namely agriculture, mining, and manufacturing industries.

For this reason, Saratoga Capital is always direct investment in key sectors was third. “The agricultural sector and processing industry is the largest contributor to GDP in Indonesia in 2009, namely 16.3 percent and 26.2 percent,” he said.

Industrial estates to attract the most investors who have invested through private equity, such as Saratoga Capital is a crude palm oil (CPO), which is making Indonesia the world’s largest producer with production of 16.8 million tons in 2007.

CPO always promised benefits so that coverage continues to increase its plantation area of 5 million hectares in 2008 to 5.5 million hectares in 2009.

“In addition, rubber and cocoa beans. Rubber is still very promising because there is a surprising phenomenon, ie, with Indonesia lagging compared to Thailand. Thailand seems to always covered the problems and conflicts, but the rubber market share could reach 34 percent, beating Indonesia’s 32 percent,” he said.

As a maritime nation, Indonesia is targeting will be the largest fish producing country in the world in 2015. DG Enterprise and Investment Ministry of Fisheries and Marine Viktor Nikijulu optimistic that the target will be realized with a variety of product development of fisheries in Indonesia.

“The first must be addressed is the fisheries infrastructure and facilities owned by the fishermen,” he said during a visit to Gorontalo, Saturday (17/4/2010).

If the infrastructure and conditions can be overcome with a good fisherman, he said, it is not impossible that it will support the quantity and quality of fishery products.

Viktor revealed, it was penetrated the market in the Middle East and Africa, by relying on processed fishery products.

According to him, if not immediately change the marketing strategy, then Indonesia can not compete with Vietnam which is a newcomer to the business. “We must immediately change the product into something that has value added to the best-selling in world markets,” he said.

Directorate General of Taxation appealed to the taxpayers manage their tax liabilities to the banks own perceptions. It is intended to cut abuse of power done by unscrupulous-specific elements.

“What is important, in implementing this tax liability is better if do it yourself and not give into people who are not trusted,” said Mochamad Tjiptardjo Direktur General of Taxation before the taxpayer entity may, on the sidelines of the Annual Campaign (SPT) Tax Income (Income Tax) Agency, Office of the Tax Directorate General, Jakarta, Monday (19/4/2010).

Submit a tax arrangement to other parties, he said, opening opportunities for corruption, as recently revealed in Surabaya. In the town hero, a defrauded taxpayers by the tax consultants who handle tax. Tax consultants working with unscrupulous tax officials and employees of the bank made a deposit fictitious letter. Tax money should not deposited into the Tax Office.

“Case in Surabaya, pay taxes be submitted to the competent baseball people.” Working with actors in the bank, so money is handed over, it created a fictitious CNS through the system, the money baseball signed, evidence (a false tax deposits) are made, “he explained.

The case was finally revealed by the Directorate General of Taxes. Tjiptardjo said this during his side many cases dealing with tax engineered, such as tax evasion or illegal use of tax invoices. He threatened, it would demand accountability of individual employees of companies that conduct fraud

Chief Economist of Bank CIMB Niaga Winang Budoyo assess that case a case a broker (markus) tax had no impact on the Indonesian banking industry. “The case of tax markus almost no impact on the banking system,” he said as quoted by Antara in Jakarta, Thursday (8/4/2010).

According to him, most of the banking industry has the compliance to pay higher taxes due to be reported in financial statements.

Winang say, the banking industry will be affected if one of the major debtors markus related taxes and go to court so that affects the performance and repayment of loans to banks.

He hopes these tax cases quickly resolved and did not give serious impact on the Indonesian economy.

This concern arose because the proclamation was previously reported that there are 149 firms with tax problems associated with Gaius Tambunan, officials at the Directorate General of Taxation.

A total of 149 companies related to this tax is disclosed by Bambang Soesatyo, member of DPR Commission III of Legal Affairs, after meeting with National Police Chief General (Pol), Bambang Hendarso Danuri at the Police headquarters in Jakarta, Thursday (1/4/2010) last week.

Bambang explained, the disclosure of suspicious accounts amounting to USD 25 billion Gaius suspected cases related to taxation, money laundering, and corruption is a crime just the smallest part.

In terms of assets, the national banking industry is actually very dominant on the Indonesian economy. Understandably, the banking industry controlled almost 80 percent of financial assets in Indonesia. But, unfortunately, in terms of roles in development, banking is still far from expectations.

Evidence, co-financing from banks to boost economic growth lately of not more than 10 percent.

In the year 2009, for example, from Rp 1700 trillion fund that is used encouraging economic growth of 4.3 percent, banking contribute only Rp 130 trillion, or 7.6 percent.

The low bank role in stimulating the economy, one of them, influenced by the paradigm adopted by most bankers. Many bankers think that the role of banks is to follow the growth or follow the trade. That is, the new bank will move to the industry or a region that has grown. This paradigm may be appropriate in a country that has advanced to the position of banks that do not dominate the financial system.

However, in Indonesia, the bank should have the opposite paradigm. The reason is very much an untapped economic potential in Indonesia. Many areas in the eastern Indonesian region rich in undeveloped natural resources optimally. In fact, agriculture and fisheries sector, the potential is huge, untapped well it should.

Ideally indeed the central government and the regions that have a lot to play a pioneering development. However, when the government does not have sufficient funds such as this, the private sector should be able to take a greater role.

Now, with huge resources, vast network, and the dominance of financial markets, the most demanded perbankanlah sector to become a pioneer in encouraging growth in Indonesia.

During this national banks have not become a locomotive which drew the character of productive economic growth. In other words, the bank has not applied leading the development paradigm.

Due to the low power and area analysis of new markets, national banking tend to just go with the flow or follow the growth of trade. Evidently, most of the credit disbursed only on the consumption sector or other sectors that have grown or have high credit demand. This means that banks are just waiting and reluctant to take risks, which could have mitigated through appropriate analytical skills.

Significant

BI Deputy Governor Muliaman Hadad once said, the old paradigm that follow the trade of banking must be changed. Banks must take a significant role in stimulating growth. Banks need to be creative to create a new financing models for sectors that have not been touched. Although it would be difficult at first, this strategy will be profitable in the long term the bank concerned.

Try this paradigm shift by Bank Mandiri in this year with the initiative to encourage development of areas in eastern Indonesia.

After last year held a Papua Investment Day, this time Maluku Investment Bank menghelat Day. This step is a stimulus to move the real sector and investment in the Maluku region, where Self will act as a reseller of credit for investors or entrepreneurs who want to invest in the region.

“Now is no time more bank waits for a business, then go into one area. Banks now have to be a locomotive that creates opportunities, “said Bank Mandiri President Director Agus Martowardojo.

In Maluku Investment Day (MID), Bank Mandiri bring together large corporations with stakeholders in Maluku and North Maluku to explore an investment there. The objective is to optimize the economic potential in Maluku and North Maluku, to enhance sustainable economic growth in the region.

Chief Economist, Bank Mandiri said Mirza Adityaswara, a total of 143 large corporations in Indonesia, both private and state, such as the Harita Group, Wijaya Karya and Adhi Karya, attended the Investment Maluku Day to exchange ideas with all stakeholders so that they can unravel the problem of development of investment in Maluku and North Maluku.

The event will also be filled with business meetings between prospective investors and local governments, facilitated by Bank Mandiri.

Maluku Governor Karel Albert Ralahalu, North Maluku Governor Thaib Armaiyn, and the regents in the two provinces involved in this event.

Agus Martowardojo said the realization of low investment in the midst of high economic potential in Maluku and North Maluku is due to the lack of infrastructure, where the condition of roads, settlements, irrigation, electricity, and transportation is not adequate to support business activities.

“There needs to government and private partnerships to facilitate economic activity is potency of Maluku and North Maluku can be used optimally to national interests. Bank Mandiri is committed to helping facilitate the financing of sustainable development in the area, “said Agus Martowardojo.

The economic potential of North Maluku, Maluku, or very large. In the fisheries sector, in the waters of North Maluku, for example, from 1.03 million tonnes of fish potential, a new 134,354 tonnes which could be arrested or less than 13 percent. Likewise with the Moluccas, where 40 percent of new capacity that can be exploited fisheries sector.

Agus hope, through the Moluccas Investment Day, will create the foundation for economic development in eastern Indonesia, which until now had not been excavated optimal.

According to Maluku Governor Karel Albert Ralahalu, Maluku does have abundant natural resources, but largely untapped and not fully utilized. To optimize this potential, the Government of Maluku province will support the acceleration of economic growth in the agricultural sector development, infrastructure, and energy.

In 2009, Maluku economic growth with inflation recorded 5.34 percent 6.48 percent. Funds raised by banks in 2009 recorded Rp 5.2 trillion and loans of Rp 3.15 trillion. “Realized domestic investment in Maluku 3.02 trillion to Rp 23 projects in 2009, while carrying 19 foreign investment projects worth 353.76 million U.S. dollars,” said Karel Albert Ralahalu.

North Maluku Governor Thaib Armaiyn argued, the optimal synergy between local government, central government, relevant ministries, communities, investors, and banks are expected to provide major changes to the development and economic growth in Maluku and North Maluku. “Activities of Maluku and North Maluku Investment is a very positive day for us because investors may be more familiar with the potentials that we have to be developed,” said Thaib Armaiyn.(source kompas)