Career Opportunities in Indonesian Capital Market

1

Furqan Maudhudy

President Unsyiah Investment Club &International Accounting Student Community, Internship Student at

Indonesia Stock Exchange (IDX)

Furqan (21), currently studying International Accounting Program at Universitas Syiah Kuala with a minor in Finance. He works on several projects that will bring better future to society, especially in city of Banda Aceh, Indonesia.

His passion is learning new things, investing and build a startup. He’d love to cooperate of what he’s learning now to a career in Financial Technology or Investment Banking industry.

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@[email protected]

Universitas Syiah Kuala - International Accounting Student Community

Furqan Maudhudy

President Unsyiah Investment Club &International Accounting Student Community, Internship Student at


International Accounting Student Community(IASC) was established in 2014 at Universitas Syiah Kuala (Unsyiah) and is comprised of students, alumni, faculty, and honorary members that are actively involved within the accounting profession.

IASC promotes interaction among professional accounting organizations, students, faculty, and the business community. Members will participate in professional, academic, social, and community service activities.

@[email protected]

3Universitas Syiah Kuala - International Accounting Student Community

Career Opportunities in Indonesian

Capital Markets

Table of Contents

Brief History of Money

Origin of money and birth of Indonesian Rupiah

The Role of Indonesian Capital Market

Understanding their functions as an organization

Case Studies – LinkedIn Professionals

How we should prepare to enter job competitions

Where Future Career is Headed Next?

A look at emerging technologies that shape our world

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Capital Markets

Brief History of MoneyOrigin of money and birth of

Indonesian Rupiah

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Early Forms of Money

Over history, the material form of money changed considerably.

Sometimes money was salt, cattle, feathers, stones, blankets, tobacco, hides, paper and shells too.

Around 3000 BC, resources such as livestock and grain were used as money for many socities. People trade with barter back then.



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Around 1200 BC in China, they used cowrie shells as money. They had to use their mineral resources for other purposes and picked cowrie shells as currency.

In Roman Empire period, salt was often used to pay part of the salary to Roman Soldiers. Salt was precious because that is how they preserved and flavored food.


Image of Cowrie Shells

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Source: Queensland Museum



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Around 800 AD in China, there was a severe shortage of copper which was their form of money after they stopped using cowrie shells.

So they started issuing paper money because of ease of making it and because of the resources they had.


Image of Chinese Paper

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Source: Shanghai Museum



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Around 1100 in England, King Henry issued the first Tally Sticks.

Why? – In not-so-distant past, store-keepers, who often could not read or write, used “cuts” on sticks to keep track of customer’s debts.

Example: A baker would make cuts across a stick of wood equal to the number of loaves in the shopper’s basket. This stick was then split lengthwise, with the baker and cutomer keeping half each, so that both could remember how many loaves were owed and neither of them could cheat.


Image of Tally Sticks

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Source: UK National Archives



in Indonesia

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Around 850 AD in Indonesia, during Hindu Kingdom, King Mataram Syailendra issued first square-coin (gold and silver) at Java.

Around 1300s in Sumatra, Sultan Malik Al Zahir issued Dirham at Samudra Pasai.

Around 1800s, Dutch Colonial issued paper money or gulden through De Javasche Bank in Indonesia.



in Indonesia

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Around 1940s, Japanese Colonial issued paper money with its Japanese year 2603 and 2604 (1943 and 1944).

In 1945s during Indonesian Independence period, Soekarno issued ORI or “Oeang Repoeblik Indonesia” which divided into 4 (four) issuance:

1. ORI I (1945) (1, 5, 10, 50 cents, 1, 5, 10, Rp 100)

2. ORI II (1947) (5, 10, 25, Rp 100)

3. ORI III (1947) (50 cents to Rp 250)

4. ORI IV (1948) (40, 75, 100, 400, Rp 600)



in Indonesia

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1945 Rp 10

1947 Rp 5

1951 Rp 21/2

1960 Rp 50



in Indonesia

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1968 Rp 1

1977 Rp 100

1987 Rp 1.000

1992 Rp 100



in Indonesia

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1992 Rp 20.000

1993 Rp 50.000

1995 Rp 500

1998 Rp 10.000



in Indonesia

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2004 Rp 100.000

2005 Rp 50.000

2009 Rp 2.000

2010 Rp 10.000


Brief History of Digital Money

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1998 $46.99B

2008 $6.65B

2009 $4.74B

2011 $30M

Source: Companies data

Market Cap

Raised by Global Investors



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Digital Money

In our digital age, economic transactions regularly take place electronically, without the burden to exchange physically.

Digital cash in the form of bits and bytes will most likey continue to be the currency of the future.

It makes easier than carrying a full bags of money



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What is Money?

By definition, it’s the value to exchange somethings. Over the last thousands years, the form of money has changed considerably – from cattle, cowrie shells, sticks and to today’s digital currency.

In my opinion, digital currency will take place our economic transactions in the future. So, no more cash in our pocket. It’s just e-wallet or in our smartphones.



Capital Markets

The Role of Indonesian Capital Market

Understanding their functions as an organization

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The Role of Indonesian

Capital Market


IDX is like a Mall

Comparison

Mall IDX

Store Member of IDX

Traded goods Company Stock

Buyer Investor


Capital Market


524 Stocks & Keep Growing!

Source: Indonesian Stock Exchange (IDX)


Capital Market



Capital Market

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Inflation Rate

Your Money

Rp 100.000

Rp 100.000

Rp 100.000

Time Value of Money



Capital Market

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Savings

2,50%Deposit

7,44%Gold

7,66%State Bonds

8,51%Stocks

17,76%

Inflation

6,1%

0

50

100

150

200

250

300

350

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Invest Rp 100.000,- How much can you get?

154%

108%

91%

66%

25%

Average per year

As Desember 31, 2015




Capital Market

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Buy motorcycle or Astra stocks?

1993ASII Stock

5.045 sharesRp1.546/share

Rp7,8jt

2016ASII Stock

5.045 sharesRp72.500/share

Rp365jt

*) adjusted for stock splits, excluding dividend

*4.589% growth23 years

18% avg per year



Capital Market

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295,1%

231,7%

204,8%

177,9%

98,6%

88,1%

80,5%

62,6%

47,3%

42,2%

26,4%

18,1%

13,5%

11,1%

Indonesia (Jakarta Composite)

Filipina (PSE Index)

Cina ( Shanghai SE Composite)

India (BSE Sensex)

Jerman (DAX)

Malaysia (FTSE BM KLCI)

Thailand (SET Index)

AS (Dow Jones IA)

Hongkong (Hang Seng)

Korsel (KOSPI)

Singapura (Strait Times)

Jepang (Nikkei 225)

Australia (All Ordinaries)

Inggris (FTSE 100)

Performance JCI vs World Indices in the Past 10 Years

Most profitable in The World

Who’s takeThe Benefits?




Capital Market

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Ownership

Foreign dominating shares ownershipin the Indonesian Stock Exchange >60%



Stock Listed in Indonesian

Stock Exchange

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Taxi Blue Bird - BIRD

Source: Indonesia Central Securities Depository (KSEI)

Listing Date : 5 November 2014

Number Securities : 2,502,100,000

Activity Sector : Transportation

Private : 60%

Public : 15.05%

a. Local : 3.05%

b. Foreign : 12%

Accessed on April 17, 2016


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Bank Negara Indonesia - BBNI



Number Securities : 18,648,656,458.00

Activity Sector : Banking

Government : 60%

Public : 40%

a. Local : 11.97%

b. Foreign : 28.03%



Stock Exchange


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Perusahaan Gas Negara - PGAS


Listing Date : 15 December 2003


Activity Sector : Energy

Government : 56.96%

Public : 43.04%

a. Local : 11.18%

b. Foreign : 31.86%



Stock Exchange


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Indofood Sukses Makmur - INDF


Listing Date : 14 July 1994


Activity Sector : Food & Beverages

Private : 50.76%

Public : 49.24%

a. Local : 16.33%

b. Foreign : 32.91%



Stock Exchange


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Semen Indonesia - SMGR


Listing Date : 08 July 1991


Activity Sector : Cement

Government : 51.04%

Public : 48.96%

a. Local : 11.50%

b. Foreign : 37.47%



Stock Exchange


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Telekomunikasi Indonesia - TLKM




Activity Sector : Telecomunication

Government : 51.26%

Public : 48.74%

a. Local : 8.95%

b. Foreign : 39.80%



Stock Exchange



Capital Market

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127 Securities,Both Local & Foreign




Capital Market

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What documents should be prepared?

1. Photocopy National Identity Card (KTP/Passport/KITAS)

2. Photocopy Tax Identification Number (NPWP)If you do not have, you could sign the Statement Letter of No Tax Identification Number (TIN)

3. Prepare Rp 6.000 stamps4. The minimum deposit is Rp 100.000

Deposit in other securities may vary

5. For housewife, must include her husband KTP, NPWP and KK

6. For students, must include his KTS/KTM (Kartu Tanda Siswa/Mahasiswa)If you do not have, you could bring Statement of Active Student from your School or University


Image of AKSesInvestor ID Card

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Source: https://investor.ksei.co.id/login.aspxIndonesia Central Securities Depository (KSEI)


Investment Clubs in Aceh

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What’s next?

1. Register by fill the online formUSK Invest (UNIC) – bit.ly/JoinUNICISP Aceh – bit.ly/JoinISP

2. Then, committees will invite you to social groupsFacebook, WhatsApp, Line and Instagram

3. Contact Person [email protected]


mailto:[email protected]


Capital Markets


Capital Market License Holders

1. Wakil Perantara Pedagang Reksadana – WAPERDMutual Funds Agents license

2. Wakil Perantara Pedagang Efek – WPPEBroker Dealer license

3. Wakil Manajer Investasi – WMIFund Manager license

4. Wakil Perantara Emisi Efek – WPEEUnderwritier license

5. Chartered Financial Analyst – CFAInternational Financial Experts


Image of WPPE Certificate

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Courtesy of Google Images


Image of Career Prospect in

Capital Market

43

Accessed on April 18, 2016Courtesy of Google Search



Capital Markets

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Common Jobs in Capital Market

1. SecuritiesBrokerResearch AnalystRisk Manager

2. Investment BankerUnderwriterConsultantBusiness Analyst

3. Asset ManagementSales and MarketingFund ManagerFinancial AdvisorRelationship ManagerCorporate Financial Analyst

Source: rudiyanto.blog.kontan.co.id


Image of Salaries in


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Accessed on April 18, 2016Source: blog.qerja.com



Capital Markets

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Finance Movies to Watch

1. BrokerWall Street II: Money Never Sleep (2010)

Wolf of Wall Street (2013)The Pursuit of Happyness (2006)Boiler Room (2000)Rogue Trader (1999)

2. Investment BankerDear Enemy (2011)

Midas (2011)

3. Fund ManagerBillions (2016)Madoff (2016)The Big Short (2015)Margin Call (2011)

Source: imdb.com, investopedia.com, blogs.cfainstitute.org



Capital Markets

Case Studies – LinkedIn Professionals

How we should prepare to enter job competitions

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Source: SocialMediaExaminer.com

Case Studies LinkedIn

Professionals

How To Stand Out In LinkedIn Profile

1. Connect a Face to Your Name

2. Complete Your First Impression

3. Dress Up Your Publisher Articles

4. Enhance Your Summary and Experience

5. Highlight Your Offline Expertise

6. Draw Attention to Your Professional Skills

7. Feature Work-Related Moments


How To Stand Out In LinkedIn

Profile

1. Connect a Face to Your Name (Men)

Source: linkedin.com




Profile

1. Connect a Face to Your Name (Women)




Profile

2. Complete Your First Impression




Profile

3. Dress Up Your Publisher Articles




Profile

4. Enhance Your Summary and Experience




Profile

5. Highlight Your Offline Expertise




Profile

6. Draw Attention to Your Professional Skills




Profile

7. Feature Work-Related Moments

Muhammad Iman Usman

CEO of Ruangguru.com and Awarded As Indonesian Young Leaders

Award by the President of Republic Indonesia in 2008

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@[email protected]



Putri Damayanti

Awarded Most Oustanding Studentfrom Faculty of Social and

Political Sciences, Student ofUniversitas Padjadjaran



Andhika Putra Sudarman

Awarded The Most Outstanding Studentby the Ministry of Education of Indonesia

In 2014 and Student of Universitas Indonesia

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@[email protected]



Melvin HadeAwarded Inspiring Student of The Year

In 2015 by FEB-UI andStudent of Universitas Indonesia

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@[email protected]



Putri Husna RadityaPeople Development Supervisor at

Indonesia Stock Exchange,Student of Universitas Indonesia



Alia Noor AnoviarAwarded Young Change Maker in 2012,

Founder Dreamdelion Indonesia,Student of Universitas Indonesia




Capital Markets

Where Future Career is Headed Next?

A look at emerging technologies that shape our world

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Future Career

Fintech – Financial Technology

1. Lending Tech2. Payments/Billing Tech3. Personal Finance/Asset Management4. Money Transfer/Remittance5. Blockchain/Bitcoin6. Intitutional/Capital Market Tech7. Equity Crowdfunding8. Insurance Tech

Source: CBInsights.com



*Google Ventures has done 37 Fin Tech in the last 5 years

Global Corporates Interested in Fintech

Global Investor Invest in Fintech


Global Investor Invest in Fintech

Global Corporates Interested in Fintech (cont)


*Activity is not restricted to US corporations. SoftBank led a $1B financing round to studentLoan refinancing marketplace SoFi in August at a $4B valuation.


Fintech

Top AltCoins in The World

Source: CoinDesk.com

Data source: CoinMarketCap data as at end of quarter (7th January 2016 and 1st October2015, respectively


Fintech

There Are Over 400 AltCoins in The World



Regulations

Notable Regulatory Development in 2015



Preparations

Top Master of Financial Engineering (MFE)

Accessed on 23 April 2016Source: tfetimes.com


Preparations

Quants: The Rocket Scientists of Wall Street

Source: quantnet.com

1. Programming- Phyton, C, C++, Java, R, Matlab, VBA and Machine Learning

2. Mathematics- Statistics, Probability, Calculus, Stochastic and Linear Algebra

3. Finance- Econometrics, Algorithmic Trading, Derivatives and Financial Modelling


The Future of Money is in Blockchain

Source: Indonesian Accountant Institute’s Magazine (IAI)


Google Form Attendees

Survey

Source: Registered People in this IASC Sharing Session - Apr 2016 (Google Form)


Robot Career Check In The Next 20 Years

Accessed on 30 April 2016Source: npr.org – published in May 21st, 2015


Robot Career Check For

Business and Finance Students

In The Next 20 Years



Robot Career Check For

Management Students In The Next 20 Years



Robot Career Check For Teacher or

Professor In The Next 20

Years



Quotes

Accessed on 30 April 2016Source: wikipedia.org

“Those who fails to

plan is planning to fail”

Sir Winston Churchill – Former Prime Minister of United Kingdom

(1874-1965)


Quotes


Thanks!

You can find me at:

@fvrqan

[email protected]