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Question 1 : What is Danareksa Research Institute?
Answer 1 :

Danareksa Research Institute (dri) is a non-profit, independent economic research center established in September 1999, born out of the economic research division of Danareksa, Indonesia's leading investment bank.

Question 2 : What does Danareksa Research Institute do?
Answer 2 :

DRI provides clients with accurate and reliable information, market intelligence, and strategic concepts. It does so by identifying divergences in the fluctuations of business and financial cycles by using an early warning system. The information is then disseminated through various research reports produced on regular basis.

Question 3 : What is an early warning system?
Answer 3 :

An early warning system is a set of indicators, known as leading economic indicators, such as those contained in the Consumer Confidence index, the Business Sentiment index, the Building Permit index, the Vehicle Sales index, the Retail index and the Cement Consumption index, tells us where the economy is going: whether it is heading for slump, or whether it is heading for a boom. In fact, leading economic indicators have taken on greater significance now that Indonesian economy is more open and, consequently, more prone to fluctuations.

Question 4 : If I have information on where the economy is going, does that mean I can alter its course and avoid slumps together?
Answer 4 :

As with any early warning system, these indicators will only provide information on what is likely to happen-they do not provide any remedies. Thus, for example, DRI reports can foretell when an economic slump is on the way so that preparations can be made beforehand, allowing the prevention or minimizing of losses. Likewise, dri reports can also forecast economic booms so that we can extend our leverage in order to maximize profits. In short, the early warning system allows decision makers such as yourself to develop appropriate strategies based not on hunches or rumours, but on cold-hard facts.

Question 5 : How accurate are these leading economic indicators?
Answer 5 :

Due to the embryonic stage of the Indonesian economy, it is difficult to conclusively determine the accuracy of these leading economic indicators. However, in a more mature economy, such as the US economy, leading economic indicators have proven to be 70% accurate.In producing its reports, dri is affiliated with US institutions FIBER and AC Nielsen.

Question 6 : How many types of reports are produced by dri?
Answer 6 :

Currently, dri produces nine types of research reports:
1. Weekly Market Commentary
Weekly report covering activities in the capital and money markets, SBI rates, forecasts and analyses of exchange rates and composite stock indices of domestic and regional exchanges. Also covers hot issues of the week.
2. Consumer Confidence Index
Monthly update on consumer confidence regarding local and national economy and the government, including consumer expectation for the six month period ahead. Each study is based on a survey of over 1,700 randomly-selected households in six major cities in the country.
3. Business Sentiment Index
Bi-monthly update on the current views of over 640 business leaders on the economy and in their own particular industry, including their expectations for the six-month period ahead.