Monday, February 06, 2012

Why Indonesia is identified as N-11 and G-20?

I read this from personal finance magazine and I think it is worth to share it here about Indonesia facts and figures. This probably explains why Indonesia is being selected as part of the N-11 and G-20?

In case you do not know, N-11 stands for Next Eleven are eleven countries (i.e. Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam) that are being selected by Goldman Sachs investment bank as having a high potential of becoming the world’s largest economies in 21st century. See N-11 in Wikipedia.

Similar to N-11, G-20 stands for group of 20 countries which represent the 80% of the world economy and is believed will be replacing the G8 – Group of Eight major economy countries (i.e. Canada, France, Germany, Italy, Japan, United Kingdom, United States). See G-20 and G8 in Wikipedia.

Please don’t feel sad if your country is not being selected (e.g Malaysia). :D

Indonesia Facts and Figures

Indicators 2005 (%) 2006 (%) 2007 (%) 2008 (%) 2009 (%) 2010 (%)
Economic growth 5.70 5.50 6.30 6.20 4.50 6.10
Inflation 17.10 6.60 6.70 11.10 2.78 6.96
Exchange rate (IDR/USD) 9,713 9,050 9,130 9,691 9,400 8,991
Unemployment Rate 11.2 10.3 9.1 8.3 8.4 7.14
Poverty rate 16.0 17.80 16.60 15.40 14.15 12.13
Source: Coordinating Ministry for Economic Affairs, Indonesia, and Central Bureau of Statistics
The only one key highlight here in my opinion (although the magazine highlight a lot of them) is the Indonesia Economy growth is not affected by the global recession of 2008/2009. If you look at the GDP growth rate in Malaysia, we were having recession during that time. From this perspective, Indonesia is pretty strong.

However, if you look the Indonesian unit trusts in Malaysia, not all of them are making money except for PB Indonesia Balanced and Public Indonesia Select funds from public mutual.

Pure Indonesian Funds 6 months return (%) 1 Year Return ended in Dec 9, 2011 (%)
MAAKL Indonesia Equity -5.93 -7.70
OSK-UOB Indonesia Equity Growth -3.04 N/A
PB Indonesia Balanced 3.17 8.91
Public Indonesia Select 2.75 7.96
PRIndonesia Equity -5.72 N/A
Source: Personal Money (February Edition)

This probably tells you that you should buy from the largest unit trust company in Malaysia or it is too early to tell anything now since unit trust is merely for long term investment. I used to have the Public Indonesia Select fund but I have already sold most of them as the return is not as good as the rest. Perhaps I should invest again in this fund?

My take whether we should invest in Indonesia? Yes, let's go for it. Investing in unit trust is a good start. What is your take?


TCKhew said...

For someone who is not really well-versed in investment may tend to choose those award winning funds, such as Public Ittikal Fund, etc. Do you think it's safe to only choose those award winning funds? I mean does this method work for people who are lazy to analyze the profile of every fund, like me?

ChampDog said...

No right and wrong answer. :)But I think as long as you understand the investment purpose (i.e. mutual fund/unit trust is for long term) and fund that has good track record, then I think it should be fine.

I think you can still choose the award winning funds no matter what (if really lazy) but watch out the yearly return and make sure it is at least higher than the FD interest.

kampunginvestor said...

Whether it is award winning or not, most importantly is profit. The best way to invest in Mutual Funds is to do Direct Debit Investment meaning you just treat you mutual fund as savings where you save a certain amount consistently every month. Sure make money one! ;)

Indonesia can be in N-11 and i am not surprised why the place i am from is not in. Actually Malaysia is less corruption and being run by the right people we are somewhere top in Asia cause we have almost everything! Sadly, our country is run by wrong people that is why we are lagging behind. Haiz..

ChampDog said...

Yes, that is called dollar/MYR cost averaging. I"m doing that for all my funds. Sure make money only if the economy is growing which is the case now. So far, if you wait long enough, the return is still promising.

Indeed it is sad to know that our neighbors are doing better than us. Even is more sad because is we started ahead of most of them.

Some said Malaysia is the best place to make money only if you do NOT become an employee because there are plenty of "creative" waves to make money. I think you know what I meant. :)

That's why you no longer an employee right??? lol

kampunginvestor said...

"creative" waves and i do understand what wave is that. You scratch my back, i scratch your back.

I am still an employee bro but hope will be a boss in a few years time. I am working in a developer firm! Learning all the tricks of being a developer now and hopefully can be one! haha..

Wish me luck ya! xD

ChampDog said...

Hahaha... I thought you're self employed! :) All the best man! Just don't be irresponsible developer! :)lol

Kris said...

Yes. Indonesia is very fast in catching up Malaysia.

We always joke that instead of sending Indonesian maids to Malaysia , Malaysian may one day go to work in Indonesia as maids..

The reality and possibility is there.

We already lost to our very small neighbour, Singapore. We cannot afford to lose again.

Another country to watchout for is Vietnam!!!

ChampDog said...

Hahaha, I don't surprise the joke may come true one day but probably not so soon. It probably takes > 10 years? I've no idea.

I've never visited Indonesia and Vietnam. Maybe after I visit them, I can probably tell! :)

kampunginvestor said...

Indonesia is sure to surpass us soon while Vietnam is also on the verge already. Sadly a country with so much natural resources still can loose to a tiny island like Singapore who have nothing! =.=!!

ChampDog said...

Yes, that is indeed sad.

Tuckster said...

I'm actually a consultant with PMB, but I find your blog very refreshing. I'm always interested in the perspectives/investment viewpoints of investors. Usually, in this line of work, we tend to indulge in opinions, talks, views of professional finance folks but I always feel that we would be lacking if we do not take that aspect of investors into account. Sometimes, through listening to investors like yourself we learn a lot more. Keep it up, man!

Doable Finance said...

Good to know. The more the merrier.

ChampDog said...

Ah... sorry, what more? :)

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