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| Question
1 |
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What is Danareksa Research
Institute? |
| Answer 1 |
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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.
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| Question
2 |
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What does Danareksa Research
Institute do? |
| Answer 2 |
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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.
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| Question
3 |
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What is an early warning system? |
| Answer 3 |
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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.
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| Question
4 |
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If I have information on where
the economy is going, does that mean I can alter its course and
avoid slumps together? |
| Answer 4 |
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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.
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| Question
5 |
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How accurate are these leading
economic indicators? |
| Answer 5 |
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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.
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| Question
6 |
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How many types of reports are
produced by dri? |
| Answer 6 |
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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.
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