How Soros broke the Bank of England

How Soros broke the Bank of England

by Sando Sasako Jakarta, 31 July 2017 Last update: 30 September 2017

This section is a part of book titled by “Asset Bubble, Bank Rakyat Indonesia, and Satellite Business in Indonesia”.

You may cite the content by using this style, or else: Sando Sasako. Asset Bubble, Bank Rakyat Indonesia, and Satellite Business in Indonesia.

How Soros broke the Bank of England (pp.31-45). Serabdi Sakti, Jakarta, September 2017.

You may contact the author through Email: sandosako @ yahoo.com Mobile: +62 812 8056 516

Contents Contents .................................................................................................................................................i List of Tables .........................................................................................................................................i List of Figure .........................................................................................................................................i How Soros broke the Bank of England ................................................................................................1 The Exchange Rate Mechanism .......................................................................................................3 Blaming the Bundesbank .................................................................................................................5 The German’s Hyperinflation Experience .......................................................................................7 Thanking the Bundesbank ................................................................................................................8 The Gold Standard and Bretton Woods System .............................................................................10 The Inflation Targeting: The Germany Experience .......................................................................11 The Inflation Targeting: The UK Experience ................................................................................13

List of Tables Table 6 – The currency basket of ECU and euro, 1979-1998 ..............................................................1

List of Figure Figure 20 – ERM weighted mean and German inflation rates, 1971-1993 .........................................3 Figure 21 – ERM weighted mean and German inflation rates, quarterly, 1971-1993 .........................3 Figure 22 – Overnight and long-term interest rates in Germany, 1970-1997 ......................................5 Figure 23 – Overnight and long-term interest rates in the UK, 1980-1997 .........................................5 Figure 24 – GBP/DM and UK base rates, 1992 ...................................................................................5 Figure 25 – GBP/DM, 1990-2005 ........................................................................................................5 Figure 26 – The inflation in the UK, 1270-1991..................................................................................8 Figure 27 – Inflation targeting, unemployment, and economic growth in Germany, 1970-1997 .......9 Figure 28 – Inflation targeting, unemployment, and economic growth in the UK, 1980-1997 ...........9 Figure 29 – The US debts and its gold reserves, 1917-2012..............................................................10 Figure 30 – The US debts & its limit and gold price, 2000-20170317 ..............................................10 i

Sando Sasako Figure 31 – Inflation rates in Germany: Target vs Actual, 1970-1997 ............................................. 11 Figure 32 – Inflation rates in the UK: Target vs Actual, 1980-1997 ................................................. 11 Figure 33 – Inflation rates in Germany: Target and actual, 1970-1997 ............................................ 12 Figure 34 – GBP/USD, 1980-1997 .................................................................................................... 12 Figure 35 – The UK Phillips correlation in the 20th century: Inter-war era, 1926-1935 .................. 13 Figure 36 – The UK Phillips correlation in the 20th century: Post-WW2 era, 1961-2004 ............... 13 Figure 37 – Monthly inflation rates in Germany, 199201-201707 .................................................... 14 Figure 38 – Monthly inflation rates in the UK, 198901-201708 ....................................................... 14 Keywords: asset bubble, bet against the market, short position, long position, ERM exit, black wednesday, white wednesday, golden wednesday, creeping inflation, interest rates, sterling forced devaluation, inflation targeting, currency raiders, hyperinflation, bretton woods, gold standard, monetary targeting.

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How Soros broke the Bank of England

How Soros broke the Bank of England Follow the money. The simple instruction that has been exploited to connect the dots that appear to be randomly distributed and scattered. There should be the beneficiaries of some events that appears to be random and unrelated, at least to finance the operations of the accomplices. Once the names harvested, time, place, events, and how the systems operated would present themselves.

There should be the head, the core team, facilitating teams, supporting teams, and lastly, the crowds and herds. Let’s mention the names, starting with George Soros, Quantum Fund, Quantum group of funds, and clients (in 4 Netherlands Antilles-domiciled pools). Some individuals worth mentioned were Bruce Kovner of Caxton Corp. and Paul Tudor Jones of Jones Investments. Kovner was claimed to make a profit of $300m and the assets increased to $1.6b. Jones was claimed to have a profit of $250m and the assets increased to $1.4b.

There were also US banks with big foreign exchange operations, gaining of EBT of more than $800m in 1992q3. The amount cited was more than the normal earnings in a quarter from trading currencies.

The notable crowds from those US banks were Citicorp, J.P. Morgan, Chemical Banking, Bankers Trust, Chase Manhattan, First Chicago, BankAmerica. Citicorp and Bankers Trust were claimed to profit of $200m apiece pretax.

To win his bets against sterling, Soros staged a complex play involving a lot of financial instruments available in the market. Short the weakest currencies, through excessive borrowings (say lira) to buy the strongest currencies (either DM, USD, or elses) at fixed rates. In the case of sterling, Soros made heavy borrowings of £6.5b in which were converted into DM and French francs.

Table 1 – The currency basket of ECU and euro, 19 79-1998

Table – The currency basket of ECU and euro, 1979-1998 Period 19890921-19981231 3) 19840917-19890921 2) 19790313-19840916 1) ISO Currency Value Weight (%) Value Weight (%) Value Weight (%) DEM German Marks 0.6242 31.915 0.719 32.08 0.828 32.98 FRF French Francs 1.332 20.306 1.31 19.06 1.15 19.83 GBP British Pounds 0.08784 12.452 0.0878 14.98 0.0885 13.34 NLG Dutch Guilders 0.2198 9.87 0.256 10.13 0.286 10.51 BEF Belgian Francs 3.301 8.183 3.85 8.57 3.80 9.64 ITL Italian Lira 151.8 7.840 140 9.98 109 9.49 ESP Spanish Peseta 6.885 4.138 DKK Danish Krones 0.1976 2.653 0.219 2.69 0.217 3.06 IEP Irish Punts 0.008552 1.086 0.00871 1.20 0.00759 1.15 PTE Portuguese Escudos 1.393 0.695 GRD Greek Drachmas 1.44 0.437 1.15 1.31 LUF Luxembourg Francs 0.13 0.322 (*) (*) (*) (*) Source: Werner Antweiler, European Currency Unit (ECU): A Brief History of the ECU, the Predecessor of the Euro, The Pacific Exchange Rate Service, Sauder School of Business, University of British Columbia, Vancouver, Canada, 20110119. http://fx.sauder.ubc.ca/ECU.html Notes: 1) Since the Belgian and Luxembourg francs were in a currency union, the ECU basket values are combined and shown only for Belgium. Weights are evaluated at central parities on 19790313.

2) Weights are evaluated at central parities on 19840917.

3) 9 of 11 currencies were irrevocably fixed during the period of 19980503-19981231. Weights are evaluated at the prevailing exchange rates on 19981231.

Once lira fell against the DM, you can buy more lira for a DM to repay your lira borrowings. As lesser DM was used and converted to a more lira, the remaining DM is your profit. In September 1992, to have a DM, you were required to have at least ₤765. Four weeks later, it took ₤980 to buy a DM. The price difference is your profit of 28% in a 4-weeks of time.

His rep sheet made Soros earn to borrow on a margin of 5% and get 20:1 leverage. By surrendering $50m in cash, Soros can borrow a fund of $1b. The 28% profit margin of $1b equals to $280m. Such 1

Sando Sasako profit hadnot included the play in futures, options, stocks, bonds, and others. The real money is not earnt on and through a single way, one-sided.

Some double-dips need to be taken as a precatious and a hedge if things are not working as intended and walking sideways, or even backfired. Some strangles and straddles surely attract the flocks and the herds to join the parades. To increase the pressure on some currencies, some leverages make the trades worth millions, and even billions, of dollars. Puts, calls, other options and forwards can be exploited to build up and leverage their positions.

The Black Wednesday was followed with a devalued of sterling by 10%, but some rallies in the rise of currencies (by 7%) and bonds (by 3%) of both Germany and French, and London stocks by 7%.

Since early October 1993, Soros began to liquidate his hedge substantially. To cover most of his short position in sterling, he had bought pounds and sold marks. Soros was also known to have bought British shares worth ÂŁ350m.

Although Soros earnt the title, people sometimes forget who really are the avant garde and the master mind of all. Following the Black Monday in 1987, Andy Krieger of Bankers Trust crashed the NZD after shorting it by hundreds of millions of dollars. The exceeding sell orders against the supply of NZD was aggravated and exacerbated by lack of currency in circulation made kiwi tumbling down.

The kiwi government later pushed BT to expel Krieger, just to join Soros.

The second name worth to name as Soros’ best aide was Stanley Druckenmiller. His first long game on DM had pushed the returns of Quantum Fund to the level of more than 60%. The first bet was placed soon after the fall of Berlin Wall. The initial bet of multimillion-dollar on a future rally was increased by Soros to the purchase of DM 2b. The second bet was placed when his boss was so busy to break the BoE.

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How Soros broke the Bank of England

The Exchange Rate Mechanism Andrew Weisman of Crédit du Nord spotted the weakest links of structure, foundation, and operation of how the European ERM was set, built, and established. The ERM was based on the political sense of the European leaders committed to the European Community, but not based on any economic sense. Crédit du Nord was a subsidiary of Paribas since 1972 until it was acquired by Société Générale in 1997.

The ERM was set in 1979 by the then-members of the European Economic Community (EEC) to keep the various European currencies relatively stable against one another. The allowed deviation of sterling by 6% was applied also for Italian lira and Spain currencies; whilst DM, French franc, the Belgian franc, and the Dutch guilder were allowed to fluctuate by 2.25%.

The UK entered the ERM in October 1990 with the rate of DM 2.95 a pound, and was permitted to fluctuate by 6%. As the exchange rate gets to the bottom of permitted range of 2.778 DM to a pound, the British Government should intervene. According to the Basle-Nyborg agreement, Bundesbank would defend exchange rates, provided that members of the system made the necessary interest rate adjustments to protect their currencies.

The Bundesbank’s promise to help the troubled exhange rates was the second assumption within the Basle-Nyborg agreement; whilst the first one was also a promise of Germany to have low inflation and interest rates. Such agreement was the last realignment in 1987 leading to the revisions of the EMS arrangements. Since its inception in May 1979 to January 1987, there were 12 realignments of ERM-parities, largely due to cost- and price-differentials; but none afterwards up to 1992.1 In 1992, according to Rahul Mittal,2 following German reunification, the conditions of UK’s within the ERM were not favourable as UK’s inflation was 3x of Germany, even with interest rates at 15% which was (much) lower if compared with higher interest rates offered to DM. According to Alioth LLC, the UK composite price index (CPI) in 1992 was 546.4%.3

Figure 1 – E RM weighted mean and German inflation rates, 1971-199 3

Figure 2 – E RM weighted mean and German inflation rates, quarterly , 1971-1993

Chart – ERM weighted mean and German inflation Chart – ERM weighted mean and German inflation rates, 1971-1993 rates, quarterly, 1971-1993 Source: Ann C. Chalstrom, "Inflation in the European Community: A Study Before and After German Unification" 1994. Honors Projects. Paper 46. Illinois Wesleyan University. http://digitalcommons.iwu.edu/econ_honproj/46

The ERM should and will work as long as 2 conditions are satisfied, that is similar interest rates and inflation. On a broader scale and macro-level, the 2 conditions require strict and highly coordinations and disciplines on economic policies across the 11 countries implementing the ERM. Differences in those 2 rates will cause some strains and stress on the system.

1

Moniek Wolters, The 1992-1993 ERM Crisis, Erasmus Student, http://bit.ly/2neyxf3.

Rahul Mittal, A History of Finance – Black Wednesday, 20120413, http://bit.ly/2x08OMl 3 Alioth LLC, UK inflation rate in 1992: 3.74%, http://bit.ly/2eWUxI9 2

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Sando Sasako At that time, the governments and central banks only know one thing to ease and release the pressure, that is to buy and support the weakening currency against speculators and currency hedgers, directly.

The cash showers to the rigged and intended financial pressures wrecked the ERM, and pushing the UK to leave the ERM. The Black Wednesday of 16 September 1992 had pushed the BoE to exchange its foreign reserves of $24b to defend sterling; whereas Soros’ fund sold short more than $10b in pounds that day. Within 30 minutes after the markets in London opened, BoE had spent £300m twice, and an additional £400m in the next 10 minutes. By mid-morning, the sterling buying value rose to £2b an hour.

The move to defend sterling costed the UK Treasury by £3.4b. The interest rate offered by the BoE for that day peak at 15%, but remained at 10% on the following day. Some degree of disappointments rose amongst the UK officials as none of other ERM members wanted to come and provide the cavalry, particularly the Bundesbank, to help and assist the BoE to defend sterling.

At the conference call, they spoke their own language, not English. Some nationality concern became the ultimate issue, then. Such gesture should be easy to be translated. Bundesbank appeared to favour for the BoE to devalue sterling as the UK government was deemed to have no confidence and ability to stabilise its currency.

While on the eve of that day, the news wire cited the comments of Helmut Schlesinger as the President of Bundesbank, that propping up the UK currency at a higher exchange rate is not worth of German taxpayers' money. Some had praised Soros and aides to expel the UK from the ERM and devalue the sterling.

The event had forced the UK to renew and revive its economic growth policy and succeeded to lower the inflation and unemployment rates up to 1997. The positive reversal following the ERM exit led to some renaming of Black Wednesday to White Wednesday or Golden Wednesday.

The harsh realm following the entrance of the UK into ERM had made people call the ERM as the Eternal Recession Mechanism. It was due to the economic recession endured by the Brit during the early 1990s. The weaker economies surely affect their currency valuation. With higher inflation rate, the ever high interest rates failed to help the UK making sterling attractive, but the devalued ones.

The lesser foreign currencies mean more sterling that sufficient enough to attract ‘the unemployed’.

Politicians and central banks were bet to fail to maintain the overvalued and overpriced sterling against the interests of European unity, particularly the DM. On the other front, GBP was also under pressure against the rapid depreciation of USD as most Brit’s exports were priced in USD. The UK was also under pressure against the double deficits, that is its current account balance and its government budget balance. The event also marked the shift of UK’s monetary policy to inflation targeting, including the involvement of BoE to measure, calculate, and analysis of inflationary trends and pressures.

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How Soros broke the Bank of England

Blaming the Bundesbank September 1992 marked sterling as the second currency that was forced to be devalued and lost a sixth of its value against the DM. Two months before, it was lira that took the first hit and blow. It was late summer of 1992. Other remaining currencies within the ERM were also under renewed and constant speculative attacks until 2 August 1993 when EC monetary officials and finance ministers agreed to widen the ERM bands from 2.25% to 15%, but the DM and Dutch guilder.

Some put the blame on Bundesbank’s policy to jack up the discount rate to 9.75%, its highest level since 1931, as a prompt response to the event of higher than usual inflation in the summer of 1992.

Bundesbank began raising the short-term rates since the end of the 1980's. For the period of July 1992 to July 1993, German’s inflation was 4.8%, about twice of France and the UK. In October 1993, it stood at 4.2%.4 During the last year of Schlesinger's presidency, Bundesbank had lowered its short-term rates in tiny steps. Following the Italian lira devaluation of 7% on 14 September 1992, Bundesbank reduced the short-term lending rate from 9.75% to 9.5%. It was the first small cut in German interest rates in five years.

Figure 3 – O vernight and long-term interest rates in Germany , 1970-1997

Chart – Overnight and long-term interest rates in Germany, 1970-1997 Source: BIS; in Mishkin and Posen, Inflation Targeting, 1997.

Figure 4 – O vernight and long-term interest rates in the UK, 1980-1 997

Chart – Overnight and long-term interest rates in the UK, 1980-1997 Source: BIS; in Mishkin and Posen, Inflation Targeting, 1997.

Figure 6 – G BP/DM, 1990-200 5

Figure 5 – G BP/DM and UK base rates, 1992

Chart – GBP/DM and UK base rates, 1992 Chart – GBP/DM, 1990-2005 Source: Steven Drobny, Inside the house of money: top hedge fund traders on profiting in the global markets, John Wiley & Sons, Inc., Hoboken, New Jersey, 2006.

The last cut was a half percentage point reduction to the level of 6.25% on 9 September 1993; whilst its key money market ceiling was set at 7.25%. Yet, both rates were still more than twice of the Fed’s rate. In the meantime, the long-term rates the German businesses paying for investment funds were ranging between 6.5-6.75%. Some were slightly below 6%. The DM long-term rates were equal to the Fed’s long-term rates, but were lower if compared with German’s neighboring countries.

4

Craig R. Whitney, Blaming the Bundesbank, 19931017, http://nyti.ms/2x2XqB4

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Sando Sasako

The slow progress of interest rates reduction by the Bundesbank was not without reasons. Without fanfare, the Bundesbank had spent DM 44b to defend sterling and lira. On the other front, Bonn had made a deficit spending amounting to $140b, equal to 7.5% of GNP, either from the state, local, and federal government.

With the public sector was soaking up 90% of the country's savings, it left next to nothing for jobcreating private investment. The reunification had become the justification for the Bonn to initiate its 3-year borrowing binge. As a result, the Bundesbank summoned Theo Waigel, the Finance Minister, explaining the sliding of DM against USD and French franc on 17 June 1993.

To keep inflation under control and the mark strong, Bonn was asked to restrain its appetite for royal spending. Waigel then stated his plan to cut federal budget by $12b in 1994, $15b in 1995, and $18b in 1996; including bigger cuts in state and local government spending. The slashed unemployment benefits and no salary increase for government employees revived German’s economy and the mark.

This in turn let Bundesbank to reduce its key short-term rate from 7.25% to 6.75% and the ceiling on money market rates from 8.50% to 8.25% by the end of June 1993. By mid-July 1993, French francs got a heavy selling worth billions against DM. To fend off the speculators, Banque de France raised one its key interest rates from 7.75% to 10% overnight. It was the first since 1987.

Sensing blood in the water, the currency traders sold their francs. President Francois Mitterrand and Prime Minister Edouard Balladur praised their stance to have a franc fort and standing as the heart of European Community since its inception. By the end of the month, France and Germany were in open conflict in regard to the lively and collapsing EMS. On 29 July 1993, Bundesbank found out that as its coffers were already full of francs and other ERM currencies as a standby purchase worth $37b, it could not reduce its short-term interest rates any further, but leaving the discount rate at 6.75%. On the next morning, the Spanish, Portuguese, Danish, and Belgian currencies were being dumped.

Afterwards, rally meetings of central bankers and finance ministry officials were taken place in Paris and Brussels until Monday morning on 2 AM. They’d come to a decision to keep the Dutch guilder and DM to stick on the old parity margins, a deviation of ±2.25% against each other. Whilst other ERM currencies were allowed to fluctuate by ±15%.

The Bundesbank can be called upon to support the exchange rates of other ERM currencies that sank below 15% of their assigned levels. Such move appeared to stamp an epitaph on the EMS tombstone.

In regard to such event, the UK Finance Minister, Norman Lamont, felt relieved and vindicated. Some relax to the interest rates was believed to occur.

Eventually, the French, the Belgians, and many other monetary authorities did not immediately cut the interest rates down, but keep aligning most of them to the DM. Later on, during his investiture as presiding Bundesbank on 1 October 1993, Hans Tietmeyer didn't mince words regarding his duty to abide the central bank's 1957 charter, that is to preserve and safeguard its currency, DM. The perseverance not to the DM fire sale was also conceived and convinced by Jurgen Stark, the top ranking German at the ECB. Stark resigned after the ECB keeps their intention to buy the bonds of troubled countries. Stark insisted that when the ECB buys the bonds of Germany and other troubled countries, an equivalent of money must be taken out of circulation.

6

How Soros broke the Bank of England

The German’s Hyperinflation Experience The refusal of Bundesbank to cut its interest rates by half was due to the harsh lessons experienced by the Germany of hyperinflation in 1923, the Nazis, and WW-II. The lessons were taught, taunted, and embedded on children’s education. The status as the losing-party in both world wars also made Germany had to deal with its mess as a war-torn country.

The economic catastrophe of Germany after WW-I was due to its enormous reparations to France and Britain totaling at 132 billion gold marks ($33b), in which only 50 billion gold marks ($12.5b) was required to be settled. The economic collapse in 1931 allowed the Germany to suspend its reparation for a year, and cancelled altogether in 1932 during the Lausanne Conference.

For the period of 1919-1932, total war reparations paid by the Germany was less than 20.6 billion marks. It was exclusive of the scuttling of the interned German fleet at Scapa Flow, state property lost in lands ceded to other countries, and the loss of colonial territories, totaling at 47.2 billion gold marks.

In 1995, following reunification, Germany began making the final payments towards the loans. The German’s promise in June 1953, known as the London Agreement, began to be realised. A final installment of $94m was made on 3 October 2010, settling German loan debts in regard to war reparations.

It was the final sum owed on bonds that were issued between 1924-1930 and sold to foreign (mostly American) investors but then never paid. The installment was nearly 92 years after the Germany’s defeat by the Allies. Debts cancellation was made by the new German Chancellor Adolf Hitler in 1933, following the cancellation of war reparations in the previous year.5 German’s Weimar hyperinflation began when the gold standard was suspended as a reference to add and distribute the physical money through massive borrowings to finance the large costs of the ongoing WW-I. It devalued the mark from 4.2 to 7.9 per USD. The following is some milestones on mark hyperinflation to the USD during Weimar administration.

1914 mark was at 4.2.

1919, late mark fell to 48, as a result of the Treaty of Versailles.

1921, first half mark was at 90.

1921, June mark was at 330; it was due to the first installment of reparation worth 2 billion gold marks, plus 26% of the value of Germany's exports.

1922, first half mark was stable at 320.

1922, June the cost-of-living index was 41.

1922, December mark was at 7,400; with the cost-of-living index rose to 685.

1923, 15 October Rentenmark (RM) 1 ≈ 1-trillion Papiermark. USD 1 ≈ RM 4.2.

1923, November mark was 4,210,500,000,000. US$ 1 ≈ 4.21 trillion marks.

1924, July mark in circulation was 1.2 sextillion (1,200,000,000,000,000,000,000).

1924, 30 August 1-trillion paper mark ≈ 1 new Reichsmark (ℛℳ) ≈ 1 Rentenmark (RM). USD 1 ≈ RM 4.2 ≈ ℛℳ 4.2. RM use was valid up to 1948.

5

Claire Suddath, "Why Did World War I Just End?". Time World. Time. 20101004. http://ti.me/1B5jDHe

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Sando Sasako

Thanking the Bundesbank

Figure 7 – T he inflatio n in the UK, 1270-1 991

Chart – The inflation in the UK, 1270-1991 Source: Robin Leigh-Pemberton, the Governor of Bank of England; The case for price stability, Quarterly Bulletin, Nov. 1992, pp.441-448.

How to appreciate the roles of Soros and Bundesbank on the harsh realignment of EMS was not something easy to be understood. ERM and EMS, and its monetary unit known as ECU or euro, had actually been implemented in April 1972, just before the Bretton Woods system completely collapsed in 1973.

The snake exchange rate system allowed currencies within the EC (European Community) countries to fluctuate by 2.25% around an exchange rate parity. Stable currency is required to facilitate the trade of goods amongst member countries, reduce domestic inflation, and as a path to integrate the capital markets, and eventually a monetary union.

In 1976, the snake mechanism shrank to a mini-snake as it left 5 countries to remain in the system, that is West Germany, Denmark, and Benelux (Belgium, Netherlands, Luxembourg). A new system emerged in 1979 as a fixed exchange rate with a band named by the ERM and ECU as the currency, the basis of the divergence indicator.

Fast forward to the expel of sterling out of ERM, the artificially high and over value of sterling against DM had pushed the UK to redefine its structure that spur economic growth. The forced devaluation 8

How Soros broke the Bank of England of sterling in September 1992 bottomed at DM 2.16 per £ in 1995, but to peak at DM 3.44 per £ in 2000. See Chart – GBP/DM, 1990-2005.

The rise of sterling was caused by two things that is the internal factors of the UK and external factors, mostly the Germany economy. The stronger and revived UK economy was coupled with the negative effects of euro integration suffered by the Germany and France, that is rising unemployment. The sterling withdrawal from the ERM indeed humiliated UK Chancellor Norman Lamont and Prime Minister John Major in the short-term, just to gain a long-term good.

Figure 8 – Inflation targeting, unemploy ment, and economic growth in Germany , 1970-1997

Figure 9 – Inflation targeting, unemploy ment, and economic growth in the UK, 1980-199 7

Chart – Inflation targeting, unemployment, and economic growth in Germany, 1970-1997 Source: BIS; OECD; in Mishkin and Posen, Inflation Targeting, 1997.

Chart – Inflation targeting, unemployment, and economic growth in the UK, 1980-1997 Source: OECD; in Mishkin and Posen, Inflation Targeting, 1997.

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Sando Sasako

The Gold Standard and Bretton Woods System The collapsed BWS began when the US unilaterally disable the convertibility of USD 1 to 1/35 of an ounce of gold bullion, vice versa, as of 15 August 1971. The pressures against and run on gold as the standard to expand a country’s money began to surmount as the run on USD for gold could not be coped by the Fed. The BWS set the 44 member countries to fix their exchange rates to the USD within a band of 1%, accordingly, at the same time. The BWS allowed the member countries to buy gold from the Fed by USD35/ounce. As the trade accounts amongst countries are different, it surely irritates the countries with the trade surplus.

This catapulted more countries to stockpiling US gold, but the Germany. The heavy run on the US gold depleted its reserves to the level of 22% to ⅓ by 1970. The outstanding USD in 1971 was $152b, while gold reserves held by the US was worth $52b. In the beginning of BWS, the US was believed to keep the global gold bullion by ⅔ to ¾ (about 20,000 mt) as the reserves for USD kept in foreign countries.

The continued US trade deficits made its USD currency became worthless in time, but the gold. The worthless USD began when the US threw their money amounting to $9b for free of the total $12b within the framework Marshall Plan. That did not include the $2b donation for Japan. By 1966, the US grants to Europe peaked at $54.6b.

What appears to be free on the surface is actually against what really happens below the surface. By printing and distributing the USD, the US has been throwing their inflation to the world.6 The gold price set within the BWS framework was only valid for member countries, but not for the private entities.

The devalued USD to the gold pushed member countries worldwide to keep gold as their reserves. In 1965, French president Charles de Gaulle threatened the US to convert its $1.5b reserves to gold.

Otherwise, France will withdraw from NATO, including the military bases in French territories. Other countries such as Germany, Japan, and Canada just followed suit.

Figure 10 – The US deb ts and its go ld reserves, 1917-201 2

Figure 11 – The US deb ts & its limit and gold pr ice, 2000-20170 317

Chart – The US debts and its gold reserves, 1917-2012 Source: Robert Parker, Why did the Bretton Woods system fail?, 20161126, http://bit.ly/2jyaWYT

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Chart – The US debts & its limit and gold price, 200020170317 Source: David Chapman, Gold And U.S. Debt Limit: Intertwined?, investing.com, 20170319, http://bit.ly/2jAh1Ef

Robert Parker, Why did the Bretton Woods system fail?, 20161126, http://bit.ly/2jyaWYT

How Soros broke the Bank of England

The Inflation Targeting: The Germany Experience Inflation has been the most feared troublesome avoided by the Bundesbank. In order to do so, the policy to control the money supply has been implemented on its strictest sense. At that time, the most used indicator to watch, monitor, and observe closely was the physical printed money in circulation.

Once circulated heavily, Bundesbank is to attract the money back into the banking system.

Figure 12 – Inflation rates in Germany : Target vs Actual, 1970-1997

Figure 13 – Inflation rates in the UK: Target v s Actual, 19 80-1997

Chart – Inflation rates in Germany: Target vs Actual, 1970-1997 Note: Original title: Annual and unavoidable (normative) inflation. Unavoidable inflation is the targeted inflation.

In 1986, Bundesbank renamed the term as the rate of normative price increase.

Source: Bundesbank; BIS; in Frederic S. Mishkin and Adam S. Posen, Inflation Targeting: Lessons from Four Countries, Working Paper 6126, National Bureau of Economic Research, Cambridge, MA, August 1997.

Chart – Inflation rates in the UK: Target vs Actual, 1980-1997 Note: Original title: RPIX inflation and targets. The inflation targeting within 1-4% during Oct. 1992 to June 1995; shifts to a point target of 2.5% or the midpoint of the range, indicated by the dashed line.

Sources: BoE; BIS; in Mishkin and Posen, Inflation Targeting, 1997.

The term used and had been implemented by Bundesbank for the period of 1975-1998 was monetary targeting. It was defined as a monetary policy strategy that aims to promote price stability through the intermediate goal of monetary growth.7 Following the implementation of euro since 1999, the term was changed to inflation targeting.

With the usual instruments of monetary policy, inflation targeting brings only an indirect effect on the level of prices. Later, inflation targeting is defined as a monetary policy strategy which seeks to achieve the end goal of price stability in a direct way. Intermediate goals, such as a certain annual growth rate in the money stock, are dispensed with.8 The basic ideas behind inflation targeting are twofold: first, to set the direction of monetary policy publicly by announcing a target value for the inflation rate, and, second, to take account of the uncertainties and time lags in the monetary transmission process by observing a range of data, and not just one intermediate target.

To achieve the target, the two-pillar strategy in the area of monetary analysis (within the Eurosystem) is to provide some comprehensive analysis on the indicators used by the Governing Council of the ECB as the bases of its monetary policy decisions. It is to highlight the risks to price stability and the needs for monetary policy action.9 The two pillars are the economic and monetary analyses. Economic analysis looks at short to mediumterm real economic indicators (eg potential output, wage development), while monetary analysis looks at longer-term, monetary indicators (eg growth of the money supply). The information obtained from each of the two pillars is cross-checked to ensure that no relevant information is overlooked.

Bundesbank, Monetary targeting, Deutsche Bundesbank – Glossary, 20140701, http://bit.ly/2xHfhix Bundesbank, Inflation targeting, Deutsche Bundesbank – Service – I, 20170621, http://bit.ly/2wxi4pu 9 Bundesbank, Two-pillar strategy, Deutsche Bundesbank – Glossary, 20140701, http://bit.ly/2h9dDiG 7 8

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Sando Sasako

Figure 14 – Inflation rates in Germany : Target and actual, 1970-1997

Figure 15 – GBP/U SD, 198 0-1997

Chart – Inflation rates in Germany: Target and actual, 1970-1997 Source: Bundesbank; BIS; in Mishkin and Posen, Inflation Targeting, 1997.

Note: Original title: Monetary growth and targets. The shifts to a dashed line indicates the change in the monetary aggregate targeted, from CBM (central bank money stock) to M3

Chart – GBP/USD, 1980-1997 Source: BIS; in Mishkin and Posen, Inflation Targeting, 1997.

Note: Original title: Nominal effective exhange rate in the UK, 1990=100

In the case of the UK withdrawal from the ERM, the Bundesbank kept persisting to reduce interest rates by no more than 25 basis points were not without precedence. It was due to the billions of DM that had been spent to rejuvenate the East Germany by the Bonn government and about DM 44b to defend the sterling and lira by the Bundesbank.

By throwing more DM to the open international money market, Bundesbank refused to take greater risks and the higher chance of the plummeting DM against the USD or other currencies. The tied hands of Bundesbank were also aggravated by the presenting reality that the interest rates of DM had been shooting over the unavoidable (normative) inflation (read: target) set at 2% since 1986.

Having presented over the choice between the inflation or the interest rates, Bundesbank prefers to avoid higher inflation than the interest rates. It is due to the costs of paying the price of interests are much cheaper, that having to pay the price of higher costs of inflation. The interests rates to pay is measurable, either in the short-terms and/or longer-terms.

The effects of inflation can be rampant, chaotic, spreading, uncontrollable, and indefinite. As a result, inflation has become the ultimate target for many operations, either market or monetary. Some timelags and higher level of uncertainty makes inflation is something that must be contained and settled at their inceptions.

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How Soros broke the Bank of England

The Inflation Targeting: The UK Experience Many have believed that higher inflation provides more profit that encourage the business to invest more, raising the employment level, lowering the unemployment level, raising output. On the other hand, lower inflation can mean that the business is to exploit the Five Forces theorised by Michael E. Porter.

Figure 16 – The UK Phillips correlation in the 2 0th century : Inter-war era, 1926-1935 Figure 17 – The UK Phillips correlation in the 2 0th century : Post-WW2 era, 1961-2004

Chart – The UK Phillips correlation in the 20th century: Chart – The UK Phillips correlation in the 20th century: Inter-war era, 1926-1935 Post-WW2 era, 1961-2004 Source: Luca Benati, The inflation-targeting framework from an historical perspective, Monetary Assessment and Strategy Division, Bank of England Quarterly Bulletin: Summer 2005. pp.160-168.

Competitive advantages can happen to either one or all sides, that is cost effectiveness to minimise the overall costs; highly differentiated to maximise the price and profit; and speed to market as the leading product innovator to exploit its position as the early bird. Yet, the inflation is not necessarily confined with the increase of price of goods and services, inflation can be applied as the increase of price of labour (wage).

The 3% inflation rate in the 1950s and 1960s were perceived as normal and just an ordinary monetary phenomenon, and the necessary condition for stable growth of output and employment. The collapsed BWS along with the oil supply shock in the 1970s catalysed the creeping inflation for the last 2 decades to more than trebled.

The adoption of some firm counterinflationary policies in the 1980s appeared least significant as the average inflation for the period of 1970-1990 was much higher, if compared with the inflation rates occurred the previous 200 years. See Chart – The inflation in the UK, 1270-1991. The withdrawal of the UK from the ERM was perceived as outdated economic theory was implemented with flawed policy implementation.

The relationship of higher inflation to lower unemployment was proven by the empirical evidence provided Bill Phillips, the LSE economist himself, in mostly cited terms as Phillips curve: The rate of increase in wages in the UK was inversely related to the rate of unemployment. When extended to a longer term of observation, the correlation appears to be insignificant and deteriorated.

The culminated Black Wednesday was closely mirrored with the event of 20 September 1931, that is when the UK decided to leave the gold standard. See Chart – The UK Phillips correlation in the 20th century: Inter-war era, 1926-1935. The economics of post-WW-1 and/or inter-war was considered by many to have a complete boom and bust cycle of the 1920s and 1930s.

13

Sando Sasako Irving Fisher of the US and John Maynard Keynes of the UK drew the same conclusion: the instability in the aggregate price level had been the main source of business cycle fluctuations. Yet the case for price stability had been inadequately understood. Likewise how Leigh-Pemberton framed the analysis that was not easy to comprehend as there were convoluted terms and not straightforward.10 Instead to provide the analysis linearly, Leigh-Pemberton made jumps and circles around the inflation and never made the basis and fragments of the causality of inflation. The minced words provided by Leigh-Pemberton made some irritating headaches to my thinking and raising questions. What’s wrong with (this) Governor of Bank of England? What’s wrong with the Bank of England?

You’d google it and you’ll find, not one. The coverups, the failed war bond sale to finance WW-1, the ultimate cashier for the UK government aka the UK Prime Minister and Chancellor; BoE cannot provide the necessary and required euro for the British-based banks, but from the ECB worth €37b; the involvement of BoE in the BCCI scandal in 1991; the wreck of Barings Bank as the Queen’s bank that bankrupted by Nick Leeson in 1995.

Apart from the surfacing taints, BoE has some issues with the UK government regarding its function as the King of the City of London, and mostly lack of competency of the people running and operating the BoE. In 1987, the Blair government stripped its power to regulate and supervise the UK FSA. In 2010, George Osborne as the British Chancellor abolished the FSA and restore the regulation function back to the BoE. The troubled BoE, ONS, and others within the UK jurisdiction have in common is they’ve been using their own definition regarding inflation and CPI. While international communities abbreviated CPI as consumer price index, the BoE and other UK authorities define CPI as consumer price inflation and/or composite price index.

They shy away to use, generate, and implement CPI of common international standard and practice.

Even worst, you’ll never find the availability of consumer price index, in terms of norminal inflation rates, either on a monthly basis, month-on-month basis, and/or year-on-year basis, but the indiced ones with some bases year and (heavy) adjustment(s). You’ll also be surrounded and overwhelmed with the new and foreign terms such as RPI and RPIX, HICP (Harmonised Index of Consumer Prices).

Figure 18 – Mon thly inflatio n rates in Germany , 199201-201707

Figure 19 – Mon thly inflatio n rates in the UK, 198901-2 01708

Chart – Monthly inflation rates in Germany, 199201-201707 Source: inflation.eu

Chart – Monthly inflation rates in the UK, 198901-201708 Source: inflation.eu

10 Robin Leigh-Pemberton, the Governor of Bank of England (1983–1993), The case for price stability, Bank of England, Quarterly Bulletin, Nov. 1992, pp.441-448.

14

Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia

Sando Sasako

Asset Bubble, Bank Rakyat Indonesia & Satellite Business in Indonesia

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Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia

Contents Contents ...................................................................................................................................... i List of Tables ........................................................................................................................... vii List of Figures ........................................................................................................................... xi Some Background .......................................................................................................................1 The Authentication and Authorisation ....................................................................................2 How this report proceeds and gets distinguished ....................................................................4 Asset Bubble ...............................................................................................................................5 Excessive Liquidity.................................................................................................................7 Excessive Liquidity: The Aftermath .......................................................................................9 The Liquidity Effect ..............................................................................................................11 The Limit of Excessive Debts ...............................................................................................13 Inflation Management in Indonesia ..........................................................................................15 Market Liquidity in Indonesia ..............................................................................................17 Playing with Interest Rates ...................................................................................................19 The Money Markets in Indonesia .........................................................................................21 What To Do with Assets Bubbled?...........................................................................................23 The volatile sterling against the dollar and euro ...................................................................25 The Special Drawing Rights .................................................................................................27 Yuan Internationalisation ......................................................................................................29 How Soros broke the Bank of England ....................................................................................31 The Exchange Rate Mechanism ...........................................................................................33 Blaming the Bundesbank ......................................................................................................35 The German’s Hyperinflation Experience ............................................................................38 Thanking the Bundesbank ....................................................................................................39 The Gold Standard and Bretton Woods System ...................................................................41 The Inflation Targeting: The Germany Experience ..............................................................42 The Inflation Targeting: The UK Experience .......................................................................44 The LIBOR Fixing ....................................................................................................................46 The LIBOR Scandal ..............................................................................................................49 The Magnitude of LIBOR Scandal .......................................................................................53 The Price of High Fines ........................................................................................................56 Hundreds of trillions USD derivatives was exchanged daily ...............................................58 Central Banks: The Initiator and Keeper of Widespreading Asset Bubble Phenomena ..........60 How to Detect and Spot Asset Bubble ..................................................................................63 Asset Bubble aka Accounting Frauds: The Causalities ........................................................65 Asset Bubble aka Accounting Frauds: The Red Flags .........................................................66 The Asset Bubble of Wells Fargo .........................................................................................69 Shrinking the Asset Bubble ......................................................................................................73 The Demand ..........................................................................................................................75 The Demand: To weaken, to stimulate, or to create .............................................................77 The Price ...............................................................................................................................79

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BRI’s financial profile in briefs ................................................................................................ 81 BRI’s Financial Highlights ....................................................................................................... 83 Cash Flow ............................................................................................................................. 86 Income Statement ................................................................................................................. 87 Balance Sheet ........................................................................................................................ 88 Risk Management Policy .......................................................................................................... 90 Dividend Policy ........................................................................................................................ 91 Maturity Profile ........................................................................................................................ 92 Maturity of Fund Borrowings ............................................................................................... 95 Maturity of Loans ................................................................................................................. 96 Loan Profile .............................................................................................................................. 97 Credit Risk Exposure .......................................................................................................... 103 Liability Profile ....................................................................................................................... 105 Financial Structure .............................................................................................................. 106 Third Party Funds Profile ................................................................................................... 108 Bonds Issued ....................................................................................................................... 111 Financial Performance ............................................................................................................ 112 The Total Assets ................................................................................................................. 112 Earning Assets .................................................................................................................... 112 Third Party’s Funds ............................................................................................................ 113 Loans ................................................................................................................................... 113 Equity .................................................................................................................................. 114 Profit Making .......................................................................................................................... 115 Revenues ............................................................................................................................. 115 Operating Profit, Net .......................................................................................................... 115 Earnings Before Tax ........................................................................................................... 116 Earnings After Tax ............................................................................................................. 116 Retained Earnings ............................................................................................................... 117 Profit Profile ........................................................................................................................... 119 Stock Performance .................................................................................................................. 121 Market Capitalisation.......................................................................................................... 122 Share Price .......................................................................................................................... 122 Stock Trading...................................................................................................................... 123 Investors’ Preferences ......................................................................................................... 125 Financial Ratios ...................................................................................................................... 126 Stock price ratios ................................................................................................................ 126 Liquidity ............................................................................................................................. 128 Profitability ......................................................................................................................... 130 The Shareholders .................................................................................................................... 134

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Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia

Subsidiaries .............................................................................................................................139 BRI Syariah .........................................................................................................................139 BRI Agro.............................................................................................................................140 BRI Remittance ...................................................................................................................141 BRI Life ..............................................................................................................................142 BRI Finance ........................................................................................................................143 Associated Entities ..................................................................................................................144 Transactions with Related Companies ....................................................................................145 The Analysts ...........................................................................................................................151 Corporate Profile.....................................................................................................................152 Milestones ...........................................................................................................................154 e-channels ...........................................................................................................................155 Branch and Regional Offices ..............................................................................................155 Head Office .....................................................................................................................155 Special Branch Office .....................................................................................................155 Overseas Branch Offices ................................................................................................155 Regional Offices .............................................................................................................156 Office of Subsidiaries .........................................................................................................157 Banking Divisions...............................................................................................................158 Organisation Structure ............................................................................................................160 Management Profile ................................................................................................................161 Board of Commissioners ....................................................................................................162 Andrinof Achir Chaniago ...............................................................................................167 (Mustafa Abubakar) ........................................................................................................167 Gatot Trihargo.................................................................................................................168 Ahmad Fuad Rahmany ...................................................................................................168 (Ahmad Fuad) .................................................................................................................169 Nicolaus Teguh Budi Harjanto .......................................................................................170 Adhyaksa Dault...............................................................................................................170 A. Sonny Keraf ...............................................................................................................171 Vincentius Sonny Loho ..................................................................................................171 Jeffry Jefta Wurangian ....................................................................................................172 Mahmud ..........................................................................................................................172 Secretary to the Board of Commissioners ..........................................................................174 Committees of BoC ............................................................................................................175 Nomination and Remuneration Committee (NRC) ........................................................175 Audit Committee.............................................................................................................175 Risk Management Monitoring Committee (RMOC) ......................................................177 Integrated Governance Committee (KTKT) ...................................................................178 Board of Directors ..............................................................................................................181 Suprajarto ........................................................................................................................186 (Asmawi Syam) ..............................................................................................................186 Sunarso............................................................................................................................186

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Donsuwan Simatupang ................................................................................................... 187 Haru Koesmahargyo ....................................................................................................... 187 Kuswiyoto ....................................................................................................................... 188 Mohammad Irfan ............................................................................................................ 188 Priyastomo ...................................................................................................................... 188 Randi Anto ...................................................................................................................... 189 Sis Apik Wijayanto ......................................................................................................... 189 Susy Liestiowaty............................................................................................................. 190 Indra Utoyo ..................................................................................................................... 190 (Zulhelfi Abidin)............................................................................................................. 190 Senior Executive Vice President (SEVP) Profiles .............................................................. 192 Irianto Sunardi ................................................................................................................ 192 Adi Setyanto and Bardiyono Wiyatmojo ........................................................................ 192 (Saptono Siwi) ................................................................................................................ 192 Hexana Tri Sasongko ...................................................................................................... 193 Supari .............................................................................................................................. 193 Agus Noorsanto .............................................................................................................. 193 Corporate Secretary ............................................................................................................ 194 Investor Relations ............................................................................................................... 194 Senior Executive Profiles ................................................................................................... 195 Head, IT Planning & Development Division ................................................................. 195 Head, Investment Service Division ................................................................................ 195 Head, Risk Management Division .................................................................................. 195 Head, Corporate Development & Strategy Division ...................................................... 195 Head, Outsourcing Management Division ..................................................................... 195 Head, International Business Division ........................................................................... 195 Head, Micro Business Development 2 ........................................................................... 195 Head, Micro Business Policy & Strategy Division ........................................................ 195 Head, Fixed Assets Management Property..................................................................... 195 Head, Credit Risk & Analysis Division .......................................................................... 195 Head, SOE Business 1 Division ..................................................................................... 195 Head, Treasury Division ................................................................................................. 196 Head, Procurement Division........................................................................................... 196 Head, Transaction Banking Division .............................................................................. 196 Head, SOE Business 2 Division ..................................................................................... 196 Head, Finance & Accounting Management Division ..................................................... 196 Head, Digital Banking Operation Division .................................................................... 196 Head, Institutional Banking 2 Division .......................................................................... 196 Head, Loan Program & Partnership Division ................................................................. 196 Head, General Business Division ................................................................................... 196 Head, Agribusiness Division .......................................................................................... 196 Head, Consumer Loan Division ..................................................................................... 196 Head, SME & Medium Business Division ..................................................................... 196 Head, Institutional Banking 1 Division .......................................................................... 197 Head, Wealth Management Division .............................................................................. 197 Head, Restructuring & Recovery Credit Division .......................................................... 197 Head, Human Capital Services Division ........................................................................ 197 Head, Operation Center Division ................................................................................... 197

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Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia

Head, Corporate Secretary Division ...............................................................................197 Head, Credit Card Division ............................................................................................197 Head, Service & Contact Center Division ......................................................................197 Head, Marketing Communication Division ....................................................................197 Head, Satellite & Terrestrial Division ............................................................................197 Chief Learning Officer, BRI Corporate University ........................................................197 Head, Human Capital Policy & Development Division .................................................197 Head of Regional Offices ...................................................................................................198 Head, Jakarta 3 Regional Office .....................................................................................198 Head, Jakarta 1 Regional Office .....................................................................................198 Head, Malang Regional Office .......................................................................................198 Head, Bandar Lampung Regional Office .......................................................................198 Head, Palembang Regional Office..................................................................................198 Head, Surabaya Regional Office ....................................................................................198 Head, Pekanbaru Regional Office ..................................................................................198 Head, Jakarta 2 Regional Office .....................................................................................198 Head, Jayapura Regional Office .....................................................................................198 Head, Aceh Regional Office ...........................................................................................198 Head, Semarang Regional Office ...................................................................................198 Head, Medan Regional Office ........................................................................................198 Head, Yogyakarta Regional Office .................................................................................198 Head, Denpasar Regional Office ....................................................................................199 Head, Padang Regional Office........................................................................................199 Head, Manado Regional Office ......................................................................................199 Head, Bandung Regional Office .....................................................................................199 Head, Banjarmasin Regional Office ...............................................................................199 Head, Makassar Regional Office ....................................................................................199 Head, Special Branch Office ..............................................................................................200 Head of Inspection Offices .................................................................................................200 Inspector, Malang Regional Office .................................................................................200 Inspector, Bandar Lampung Regional Office .................................................................200 Inspector, Palembang Regional Office ...........................................................................200 Inspector, Surabaya Regional Office ..............................................................................200 Inspector, Manado Regional Office ................................................................................200 Regional Audit of KP, KCK, UKLN & PA Regional Office .........................................200 Inspector, Aceh Regional Office ....................................................................................200 Inspector, Semarang Regional Office .............................................................................200 Inspector, Medan Regional Office ..................................................................................200 Inspector, Pekanbaru Regional Office ............................................................................200 Inspector, Makassar Regional Office..............................................................................200 Inspector, Yogyakarta Regional Office ..........................................................................201 Inspector, Denpasar Regional Office ..............................................................................201 Inspector, Jakarta 3 Regional Office...............................................................................201 Inspector, Jakarta 2 Regional Office...............................................................................201 Inspector, Banjarmasin Regional Office .........................................................................201 Inspector, Bandung Regional Office ..............................................................................201 Inspector, Padang Regional Office .................................................................................201

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Satellite Business in Indonesia ............................................................................................... 202 Satellite Capability.............................................................................................................. 202 Satellite Users ..................................................................................................................... 203 Revenue Generators in Satellite Services Business ........................................................ 205 Revenue Generation in Satellite Navigation Services Business ..................................... 207 Revenue Generation in Optical Data Services................................................................ 209 Satellite Business Value ..................................................................................................... 210 Satellites in Orbit ................................................................................................................ 214 The Crowded Space Junk ............................................................................................... 215 Telkom 3 Satellite ........................................................................................................... 216 The Proton-M Briz-M satellite launcher......................................................................... 218 The Crowded Satellites in the Sky ................................................................................. 220 Typical Satellite Orbits ................................................................................................... 226 Typical Satellite Networks ................................................................................................. 230 Advantages of HTS System ............................................................................................ 232 Frequency Band Allocated for Satellite Services ........................................................... 233 Indonesian Satellite Operators ............................................................................................ 236 BRIsat ............................................................................................................................. 238 Palapa Satellites .............................................................................................................. 240 Providers of Satellite Services in Broadcasting and Tekecommunications ........................ 242 Foreign Satellite Operators on Indonesian Sky with its client list...................................... 247 References............................................................................................................................... 253 Additional Readings ........................................................................................................... 256 Suggested Readings ............................................................................................................ 257 Readings on Satellites ......................................................................................................... 258 Index ....................................................................................................................................... 259

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Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia

List of Tables Table 1 – Assets of 4 SOE’s banks and BCA, April 2017 .........................................................1 Table 2 – Inflation in Indonesia: Target vs Realised, 2001-2018 .............................................15 Table 3 – The IMF’s SDR currency basket composition, 1969-2016 ......................................27 Table 4 – The weights of the 5 currencies in the new SDR basket, effective 20161001 .........28 Table 5 – CFETS currency basket and weight, 20170101 .......................................................29 Table 6 – The currency basket of ECU and euro, 1979-1998 ..................................................31 Table 7 – USD contributor panel banks in LIBOR, September 2017 ......................................47 Table 8 – Name of companies involved in EIRD and YIRD cartels ........................................53 Table 9 – The list of banks fined by the European Commission due to practising cartels in interest rate derivatives of euro and yen (EIRD & YIRD) ................................54 Table 10 – FCA Benchmark Fines on LIBOR Fixing Scandal ................................................54 Table 11 – Progress reports on WFC settlements of claims, June 2016 – August 2017 ..........71 Table 12 – Financial profile of Bank Rakyat Indonesia by geographicals, 2015-2016 (Rp mn) ..................................................................................................................81 Table 13 – Financial profile of Bank Rakyat Indonesia by client types/segments, 20152016 (Rp mn) .........................................................................................................82 Table 14 – BRI’s financial highlights, Dec. 2008 – Dec. 2013 (Million Rp except Par Value) .....................................................................................................................83 Table 15 – BRI’s financial highlights, 2012-2016 (Rp bn) ......................................................85 Table 16 – Bank Rakyat Indonesia: Cash flow, December 2012 – December 2016 (IDR mn) .........................................................................................................................86 Table 17 – Bank Rakyat Indonesia: Income statement, December 2012 – December 2016 (IDR mn) .......................................................................................................87 Table 18 – Bank Rakyat Indonesia: Balance sheet, December 2012 – December 2016 (IDR mn) ................................................................................................................88 Table 19 – Fair value of financial assets and liabilities of Bank Rakyat Indonesia, 20152016 (Rp mn) .........................................................................................................89 Table 20 – Maturity profile of financial assets and liabilities of Bank Rakyat Indonesia, 2015-2016 (Rp mn) ................................................................................................93 Table 21 – Fund borrowings profile of Bank Rakyat Indonesia based on maturity and currency, 2015-2016 ..............................................................................................95 Table 22 – Loan profile of Bank Rakyat Indonesia by maturity, currency, and parties involved, 2015-2016 (Rp mn) ................................................................................96 Table 23 – Loan profile of Bank Rakyat Indonesia by client segment, currency, and parties involved, 2015-2016 (Rp mn) ....................................................................97 Table 24 – Loan profile of Bank Rakyat Indonesia by economic sectors, currency, and parties involved, 2015-2016 (Rp mn) ....................................................................98 Table 25 – Loan profile of Bank Rakyat Indonesia by loan type, currency, and parties involved, 2015-2016 (Rp mn) ................................................................................99 Table 26 – Loan profile of Bank Rakyat Indonesia by currency, 2015-2016 (Rp mn) ..........100 Table 27 – Net Open Positions of Bank Rakyat Indonesia, 2015-2016 (Rp mn) ...................101 Table 28 – Loan provided by BRI to SOEs, 2015-2016 .........................................................102 Table 29 – Credit risk exposure of Bank Rakyat Indonesia by regions, 2015-2016 (Rp mn) .......................................................................................................................103 Table 30 – Credit risk exposure of Bank Rakyat Indonesia by economic sectors, 20152016 (Rp mn) .......................................................................................................104 Table 31 – Liability structure of Bank Rakyat Indonesia, 2012-2017q2 (Rp mn) .................105 Table 32 – Financial structure of Bank Rakyat Indonesia, December 2007 – December 2016......................................................................................................................106 Table 33 – Financial structure of Bank Rakyat Indonesia, 2012-2017q2 (%) .......................107 vii

Sando Sasako

Table 34 – Third-party funds structure in Bank Rakyat Indonesia, 2012-2017q2 (Rp mn) ... 108 Table 35 – Profile of fund borrowings in US dollar of Bank Rakyat Indonesia based on loan types and lenders, 2016 (US$ mn) ............................................................... 109 Table 36 – The profile of bonds issued by Bank Rakyat Indonesia, 2003-2016 .................... 111 Table 37 – The highest peak and lowest trough points of the assets of Bank Rakyat Indonesia, January 2002 – April 2017 (monthly figures) .................................... 112 Table 38 – The highest peak and lowest trough points of productive assets of Bank Rakyat Indonesia, January 2002 – April 2017 (monthly figures)........................ 113 Table 39 – The highest peak and lowest trough points of third parties funds of Bank Rakyat Indonesia, January 2002 – April 2017 (monthly figures)........................ 113 Table 40 – The highest peak and lowest trough points of loans of Bank Rakyat Indonesia, January 2002 – April 2017 (monthly figures) .................................... 114 Table 41 – The highest peak and lowest trough points of equity of Bank Rakyat Indonesia, January 2002 – April 2017 (monthly figures) .................................... 114 Table 42 – The highest peak and lowest trough points of revenues of Bank Rakyat Indonesia, January 2002 – April 2017 (monthly figures) .................................... 115 Table 43 – The highest peak and lowest trough points of net operating profit of Bank Rakyat Indonesia, January 2002 – April 2017 (monthly figures)........................ 116 Table 44 – The highest peak and lowest trough points of earnings before tax (EBT) of Bank Rakyat Indonesia, January 2002 – April 2017 (monthly figures) .............. 116 Table 45 – The highest peak and lowest trough points of earnings after tax (EAT) of Bank Rakyat Indonesia, January 2002 – April 2017 (monthly figures) .............. 117 Table 46 – The highest peak and lowest trough points of retained earnings of Bank Rakyat Indonesia, January 2002 – April 2017 (monthly figures)........................ 117 Table 47 – Equity structure of Bank Rakyat Indonesia, 2012-2017q2 (Rp mn) .................... 119 Table 48 – Earnings structure and building blocks of Bank Rakyat Indonesia, 20122017q2 ................................................................................................................. 120 Table 49 – BRI’s stock performance, 2006 – Jan. 2014 ......................................................... 121 Table 50 – The highest peak and lowest trough points of market capitalitasion of share of Bank Rakyat Indonesia, 10 November 2003 – 18 July 2017: Daily value and change ........................................................................................................... 122 Table 51 – The highest peak and lowest trough points of close price of share of Bank Rakyat Indonesia, adjusted afer split & dividends, 10 November 2003 – 18 July 2017: Daily value and change ...................................................................... 122 Table 52 – The highest peak and lowest trough points of close price of share of Bank Rakyat Indonesia, adjusted afer split, 10 November 2003 – 18 July 2017: Daily value and change ........................................................................................ 123 Table 53 – The highest peak and lowest trough points of trading volume of share of Bank Rakyat Indonesia, 17 November 2003 – 18 July 2017: Daily value and change .................................................................................................................. 123 Table 54 – The highest peak and lowest trough points of trading value of share of Bank Rakyat Indonesia, 10 November 2003 – 18 July 2017: Daily value and change .................................................................................................................. 124 Table 55 – The largest figures in stock trading volume, value, and their daily changes, 20031110-20170718 ............................................................................................ 124 Table 56 – Investors’ preferences on the shares of Bank Rakyat Indonesia, 20170630 ........ 125 Table 57 – Financial ratios of Bank Rakyat Indonesia, 2012-2016 ....................................... 126 Table 58 – Share valuation of Bank Rakyat Indonesia: Current and Forward, 20170731 ..... 126 Table 59 – Price ratios of shares of Bank Rakyat Indonesia, compared with S&P 500, 2007-2016 ............................................................................................................ 127 Table 60 – Liquidity ratio of Bank Rakyat Indonesia, December 2007 – December 2016 ... 128

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Table 61 – Cash flow ratios of Bank Rakyat Indonesia, December 2007 – December 2016......................................................................................................................129 Table 62 – Profitability of Bank Rakyat Indonesia, December 2007 – December 2016 .......130 Table 63 – Profit margin profile of Bank Rakyat Indonesia, December 2007 – December 2016......................................................................................................................131 Table 64 – Revenue profile of Bank Rakyat Indonesia, December 2007 – December 2016 (Rp mn) .......................................................................................................132 Table 65 – Revenue sustainability of Bank Rakyat Indonesia, December 2007 – December 2016 ....................................................................................................133 Table 66 – Typical shareholders of Bank Rakyat Indonesia, 2015-2016 ...............................134 Table 67 – Institutional shareholders of Bank Rakyat Indonesia, 20161230-20170630 ........136 Table 68 – Institutional investors’ ownership on equity in Bank Rakyat Indonesia, 20170731..............................................................................................................137 Table 69 – Funds’ ownership on equity in Bank Rakyat Indonesia, 20170731 .....................138 Table 70 – BRI’s subsidiaries, 20161231 ...............................................................................139 Table 71 – The acquisition cost of BRI’s subsidiaries, 2015-2016 ........................................139 Table 72 – The milestones of BRI Syariah .............................................................................139 Table 73 – Some financial figures of BRI Syariah, 2015-2016..............................................139 Table 74 – The milestones of BRI Agro .................................................................................140 Table 75 – Some financial figures of BRI Agro, 2015-2016..................................................141 Table 76 – The milestones of BRI Remittance .......................................................................141 Table 77 – Some financial figures of BRI Remittance, 2015-2016........................................142 Table 78 – The milestones of BRI Life ..................................................................................142 Table 79 – Some financial figures of BRI Life, 2015-2016 ...................................................142 Table 80 – The milestones of BRI Finance ............................................................................143 Table 81 – Some financial figures of BRI Finance, 2015-2016 .............................................143 Table 82 – The investments of Bank Rakyat Indonesia (associated companies) by cost method, 2014-2016 ..............................................................................................144 Table 83 – Transactions of Bank Rakyat Indonesia with related parties by transaction types, 2015-2016 ..................................................................................................145 Table 84 – BRI’s non-financial investments, 2016 ................................................................145 Table 85 – Material commitments of Bank Rakyat Indonesia on capital expenditures, 2015-2016 ............................................................................................................146 Table 86 – Typical transactions between Bank Rakyat Indonesia with affiliated parties ......146 Table 87 – Transactions of Bank Rakyat Indonesia with related parties by institutions’ name and transaction types, 2015-2016 ...............................................................148 Table 88 – The registered analysts of Bank Rakyat Indonesia, 2016 .....................................151 Table 89 – The e-channels of Bank Rakyat Indonesia, 2012-2016 ........................................155 Table 90 – The typical offices of Bank Rakyat Indonesia, 2012-2016 ..................................155 Table 91 – The typical offices of Bank Rakyat Indonesia by province, 2016 ........................156 Table 92 – Concurrent positions of Commissioners of Bank Rakyat Indonesia, 20161231..............................................................................................................162 Table 93 – The commissioners of Bank Rakyat Indonesia: Supervised region and Committees Membership, 20161231 ...................................................................163 Table 94 – The commissioners of Bank Rakyat Indonesia: Risk Management Certification, 20161231 .......................................................................................164 Table 95 – The commissioners of Bank Rakyat Indonesia: Overseas Education, Training, and Conferences, 2016 .........................................................................165 Table 96 – The commissioners of Bank Rakyat Indonesia: Domestic Education, Training, and Conferences, 2016 .........................................................................166 Table 97 – The Board of Directors of Bank Rakyat Indonesia, 2015-2017 ...........................181

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Table 98 – Area supervised by commissioners and directors of Bank Rakyat Indonesia, 20161231 ............................................................................................................. 182 Table 99 – The directors of Bank Rakyat Indonesia: Risk Management Certification, 20161231 ............................................................................................................. 183 Table 100 – The directors of Bank Rakyat Indonesia: Competency development program, 2016 ...................................................................................................... 184 Table 101 – Job distribution of Directors and SEVPs of Bank Rakyat Indonesia within Directors’ Committees, 20161231 ....................................................................... 185 Table 102 – World’s satellite services revenue by 4 market segments, 2006-2011 (US$ bn) ........................................................................................................................ 205 Table 103 – Satellite services revenue generation, 2012-2016 (US$ bn)............................... 213 Table 104 – List of sub-bands of FSS and BSS spectrum ...................................................... 233 Table 105 – Frequency band allocated for satellite services .................................................. 234 Table 106 –Indonesian Satellites Filing in ITU, 2016 ............................................................ 236 Table 107 – Profile of Indonesian Satellites ........................................................................... 237 Table 108 – The list of companies providing satellite services in broadcasting and telecommunications & satellites leased, 20161231 ............................................. 242 Table 109 –The list of foreign satellites orbitting and operating on Indonesian sky, 20161231 ............................................................................................................. 247

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List of Figures Figure 1 – Monetary operation of Bank Indonesia and monetary instruments in Indonesia ................................................................................................................11 Figure 2 – Monetary operation of Bank Indonesia and monetary instruments ........................11 Figure 3 – Inflation targetting framework by macroeconomic indicators in Indonesia ...........13 Figure 4 – Inflation targetting framework by institutions responsible and in charge in Indonesia ................................................................................................................15 Figure 5 – Monthly inflation rates in Indonesia, January 2003-August 2017 ..........................16 Figure 6 – Monthly value of monetary operation in conventional banking in Indonesia, Jan.2010-Aug.2017 (Rp bn) ...................................................................................17 Figure 7 – Monetary operation in islamic banking industry in Indonesia, Jan. 2010August 2017 (% of total)........................................................................................17 Figure 8 – BI Rate, July 2005 – July 2016 ...............................................................................19 Figure 9 – BI 7-Day rate, April 2016 – August 2017 ...............................................................19 Figure 10 – BI Rate (July 2005 – July 2016) and BI 7-Day rate (April 2016 – August 2017) ......................................................................................................................19 Figure 11 – The transaction value of Indonesian money market, January 2010 – August 2017........................................................................................................................21 Figure 12 – JISDOR (Jakarta Interbank Spot Dollar Rate), 20130520-20170908 (US$/IDR) ..............................................................................................................21 Figure 13 – US$/IDR buying price and its spread with the selling price of Bank Indonesia, 20070102-20170908 .............................................................................22 Figure 14 – FTSE All-Share index, 19990409-20170911 ........................................................23 Figure 15 – FTSE 100 index, 19840413-20170911 .................................................................23 Figure 16 – GBP/USD, 19710104-20170901 ...........................................................................25 Figure 17 – GBP/EUR, 19860508-20170911 ...........................................................................25 Figure 18 – GBP/USD, 19880304-20170911 ...........................................................................25 Figure 19 – RMB/USD, 19810101-20170912 ..........................................................................29 Figure 20 – ERM weighted mean and German inflation rates, 1971-1993 ..............................33 Figure 21 – ERM weighted mean and German inflation rates, quarterly, 1971-1993 .............33 Figure 22 – Overnight and long-term interest rates in Germany, 1970-1997...........................35 Figure 23 – Overnight and long-term interest rates in the UK, 1980-1997 ..............................35 Figure 24 – GBP/DM and UK base rates, 1992 .......................................................................35 Figure 25 – GBP/DM, 1990-2005 ............................................................................................35 Figure 26 – The inflation in the UK, 1270-1991 ......................................................................39 Figure 27 – Inflation targeting, unemployment, and economic growth in Germany, 1970-1997 ..............................................................................................................40 Figure 28 – Inflation targeting, unemployment, and economic growth in the UK, 19801997........................................................................................................................40 Figure 29 – The US debts and its gold reserves, 1917-2012 ....................................................41 Figure 30 – The US debts & its limit and gold price, 2000-20170317.....................................41 Figure 31 – Inflation rates in Germany: Target vs Actual, 1970-1997 .....................................42 Figure 32 – Inflation rates in the UK: Target vs Actual, 1980-1997 ........................................42 Figure 33 – Inflation rates in Germany: Target and actual, 1970-1997 ...................................43 Figure 34 – GBP/USD, 1980-1997 ...........................................................................................43 Figure 35 – The UK Phillips correlation in the 20th century: Inter-war era, 1926-1935 .........44 Figure 36 – The UK Phillips correlation in the 20th century: Post-WW2 era, 1961-2004 ......44 Figure 37 – Monthly inflation rates in Germany, 199201-201707 ...........................................45 Figure 38 – Monthly inflation rates in the UK, 198901-201708 ..............................................45 Figure 39 – Calculating LIBOR................................................................................................46

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Figure 40 – The spread between 3-month LIBOR with 3-month eurodollar deposit rate, 2007-April 2008 ..................................................................................................... 50 Figure 41 – The spread between 3-month LIBOR with 3-month T-bill, 2007-April 2008 ...... 50 Figure 42 – The gap between 3-month LIBOR with 3-month T-bill, April 2007 – May 2008 ....................................................................................................................... 50 Figure 43 – CITI: The gap between 3-month LIBOR with 3-month T-bill, April 2007 – May 2008 ............................................................................................................... 51 Figure 44 – HBOS: The gap between 3-month LIBOR with 3-month T-bill, April 2007 – May 2008 ............................................................................................................ 51 Figure 45 – JP Morgan: The gap between 3-month LIBOR with 3-month T-bill, April 2007 – May 2008 ................................................................................................... 51 Figure 46 – RBOC: The gap between 3-month LIBOR with 3-month T-bill, April 2007 – May 2008 ............................................................................................................ 51 Figure 47 – UBS: The gap between 3-month LIBOR with 3-month T-bill, April 2007 – May 2008 ............................................................................................................... 51 Figure 48 – West LB: The gap between 3-month LIBOR with 3-month T-bill, April 2007 – May 2008 ................................................................................................... 51 Figure 49 – Penalties paid by banks and region, 2009-2016 .................................................... 56 Figure 50 – Exchange-traded derivatives by currency, daily turnover, and regions, Sept.

2008 – June 2017 ................................................................................................... 58 Figure 51 – Global OTC derivatives markets by notional principal, market value, and credit exposure, June 2009 – Dec 2016 ................................................................. 58 Figure 52 – OTC FX derivatives by currency, maturity, and counterparty, June 2009 – Dec 2016 ................................................................................................................ 59 Figure 53 – OTC interest rate derivatives by currency, maturity, and counterparty, June 2009 – Dec 2016 .................................................................................................... 59 Figure 54 – OTC equity-linked derivatives by country, maturity, and counterparty, June 2009 – Dec 2016 .................................................................................................... 59 Figure 55 – The Fed’s assets, Jan. 2007 – Sept. 2017 .............................................................. 60 Figure 56 – The outstanding commercial & industrial loans in the US, Jan. 2007 – Sept.

2017 ....................................................................................................................... 60 Figure 57 – The balance sheets of 5 central banks and when compared with their own GDP, 2007-2017 .................................................................................................... 61 Figure 58 – S&P 500 Composite Index, Jan.2007–Sept.2017 ................................................. 61 Figure 59 – Emerging markets & corporate bonds, Jan.2007–Sept.2017 ................................ 61 Figure 60 – Wells Fargo cross-sell ratio, 1998–2016q2 ........................................................... 69 Figure 61 – Federal Funds interest rate target, 2003 – Sept. 2017 ........................................... 73 Figure 62 – The total assets of Bank Rakyat Indonesia, January 2002 – April 2017: Value and Growth (monthly figures) ................................................................... 112 Figure 63 – The earning assets of Bank Rakyat Indonesia, January 2002 – April 2017: Value and Growth (monthly figures) ................................................................... 112 Figure 64 – The third parties funds of Bank Rakyat Indonesia, January 2002 – April 2017: Value and Growth (monthly figures) ......................................................... 113 Figure 65 – Loans of Bank Rakyat Indonesia, January 2002 – April 2017: Value and Growth (monthly figures) .................................................................................... 113 Figure 66 – The equity of Bank Rakyat Indonesia, January 2002 – April 2017: Value and Growth (monthly figures) ............................................................................. 114 Figure 67 – The revenues of Bank Rakyat Indonesia, January 2002 – April 2017: Value and Growth (monthly figures) ............................................................................. 115 Figure 68 – The net operating profit of Bank Rakyat Indonesia, January 2002 – April 2017: Value and Growth (monthly figures) ......................................................... 115

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Figure 69 – The earnings before tax (EBT) of Bank Rakyat Indonesia, January 2002 – April 2017: Value and Growth (monthly figures) ...............................................116 Figure 70 – The earnings after tax (EAT) of Bank Rakyat Indonesia, January 2002 – April 2017: Value and Growth (monthly figures) ...............................................116 Figure 71 – The retained earnings of Bank Rakyat Indonesia, January 2002 – April 2017: Value and Growth (monthly figures) .........................................................117 Figure 72 – The market capitalisation of share of Bank Rakyat Indonesia, 10 November 2003 – 18 July 2017: Daily Value and Change ...................................................122 Figure 73 – The close price of share of Bank Rakyat Indonesia, 10 November 2003 – 18 July 2017: Daily Value and Change ....................................................................122 Figure 74 – The stock trading volume of Bank Rakyat Indonesia, 17 November 2003 – 18 July 2017: Daily Value and Change ...............................................................123 Figure 75 – The stock trading value of Bank Rakyat Indonesia, 10 November 2003 – 18 July 2017: Daily Value and Change ....................................................................123 Figure 76 – Investors’ preferences and trends on the share of Bank Rakyat Indonesia, 20170630..............................................................................................................125 Figure 77 – The organisation structure of Bank Rakyat Indonesia, 20161231 ......................160 Figure 78 – Satellite capabilities, May 2012 ..........................................................................202 Figure 79 – Satellites launched by functioning applications, 2006-2015 ...............................203 Figure 80 – Satellites launched by economic actors, 2006-2015 ...........................................204 Figure 81 – Satellites launched by regional operators, 2006-2015.........................................204 Figure 82 – World’s satellite services revenue by 4 market segments, 2006-2011 (US$ bn) ........................................................................................................................205 Figure 83 – Satellite operators wholesale revenue, 2005-2011 ..............................................205 Figure 84 – Fized Satellite Services (FSS) wholesale revenues by region, 2015. ..................206 Figure 85 – Mobile Satellite Services (MSS) wholesale revenues by region, 2015. ..............206 Figure 86 – Global Satellite Ground Equipment Revenues, 2012-2017 ................................207 Figure 87 – Global Navigation Satellite System (GNSS) market size, 2006-2015 ................208 Figure 88 – Global Navigation Satellite System (GNSS) Revenues by sat apps, 2015 .........208 Figure 89 – Satellite data pricing system in Global Navigation Satellite System (GNSS) ....209 Figure 90 – Satellite data sales in Global Navigation Satellite System (GNSS) ....................210 Figure 91 – Satellite value chain, from upstream to downstream, 2016 ................................210 Figure 92 – Revenue generation in global satellite industry by 4 market segments, 2016 ....211 Figure 93 – Operational satellites by functions, 2016 ............................................................211 Figure 94 – The growth of revenue generation in global satellite industry, 2007-2016.........212 Figure 95 – World satellite industry revenues by segment, 2001-2011 (US$ bn)..................212 Figure 96 – Satellite services revenue generation, 2012-2016 ...............................................213 Figure 97 – Orbits of satellites in 2D ......................................................................................214 Figure 98 – Orbits of satellites in 3D ......................................................................................214 Figure 99 – Operational satellites by orbit, May 2012 ...........................................................215 Figure 100 – Telkom 3 satellite position as of 20170826 104836 Jakarta time .....................216 Figure 101 – Telkom 3 satellite position as of 20170826 104752 Jakarta time .....................216 Figure 102 – The orbit of Telkom 3S satellite as of 20170826 104636 Jakarta time .............217 Figure 103 – The orbit of Telkom 3 satellite as of 20170826 104614 Jakarta time ...............217 Figure 104 – The orbit of Telkom 2 satellite as of 20170826 104546 Jakarta time ...............217 Figure 105 – The orbit of Telkom 1 satellite as of 20170826 104520 Jakarta time ...............217 Figure 106 – Telkom 3 satellite position as of 20170826 125419, Jakarta time ....................218 Figure 107 – The initial plan of Proton-M/Breeze-M system trajectory in delivering Telkom 3 satellite .................................................................................................218 Figure 108 – The Proton-M/Breeze-M system trajectory with another angle ........................219 Figure 109 – Location of Breeze-M rocket body at likely breakup point ..............................219

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Figure 110 – Non-GEO, non-GSO satellites orbiting Indonesian sky, 20170826 144454, Jakarta time .......................................................................................................... 220 Figure 111 – Geostationary communication (GEO) satellites that is in service, inclined, & planned ............................................................................................................. 222 Figure 112 – The geostationary orbit (GEO) satellite belt by frequency band features ......... 222 Figure 113 – The geostationary orbit (GEO) satellite belt by frequency band features (2nd version) ........................................................................................................ 223 Figure 114 – The 419 geosynchronous (GSO) satellites mapped by Denton, 20151120....... 223 Figure 115 – Commercial communications satellites in geosynchronous orbit (GSO) & the drifting Palapa C2 .......................................................................................... 224 Figure 116 – Commercial communication satellites in GSO & the 88 broadcasting services satellites (BSS) ....................................................................................... 224 Figure 117 – Commercial communications satellites in geosynchronous orbit (GSO) & the 67 Boeing satellites, 20120630 ...................................................................... 225 Figure 118 – SSL satellites in orbit ........................................................................................ 225 Figure 119 – Typical satellite orbits seen from above Earth’s North Pole: Van Allen Belts; Iridium, ISS, Hubble; MEO (Glonass, Compass, Galileo, GPS), GEO .... 226 Figure 120 – Typical satellite orbits: LEO, MEO, Ellipso & Molnya, Glonass, GPS, GSO (Clarke Belt), Van Allen Belts .................................................................... 227 Figure 121 – Typical satellite networks.................................................................................. 230 Figure 122 – Network of fixed satellite services with Inter-Satellite Links (ISL) uncharted .............................................................................................................. 230 Figure 123 – Network of mobils satellite services ................................................................. 231 Figure 124 – Network of broadcasting satellite services ........................................................ 231 Figure 125 – Larger benefits and controls for sat operator in HTS system ............................ 232 Figure 126 – Fixed Satellite Services with and without HTS compared ................................ 232 Figure 127 - Frequency band-(specturm) in satcoms ............................................................. 233 Figure 128 – Electromagnetic spectrum and the visible spectrum (light) .............................. 235 Figure 129 – The relationship between the different types of frequency and other wave properties ............................................................................................................. 235 Figure 130 – Ariane 5: Typical flight events and standard trajectory for geostationary transfer orbit ......................................................................................................... 239

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Some Background I was a little bit surprised by mid July 2017 to notify that Bank Rakyat Indonesia’s assets has exceeded Bank Mandiri as of April 2017. It led to other questions since when and how about the other SOE’s banks and Bank Central Asia. Some backtracking reveals that it was since October 2014, BRI’s assets began exceeding Bank Mandiri. Their assets were IDR 712.45 trillion and IDR 707.97 accordingly.

Table 1 – Assets of 4 SOE ’s ban ks and BCA, A pril 20 17

Table – Assets of 4 SOE’s banks and BCA, April 2017 Total Assets Bank Name (IDR million) Bank BTN 215,520,110 Bank BNI 558,428,701 Bank BRI 944,671,082 Bank Mandiri 891,773,622 Bank Central Asia 685,387,425

With IDR 1,000 trillion of assets, about IDR 996 trillion as of May 2017 to be precise, Bank BRI has transformed itself to be a behemoth, a gigantic animal. It means they are and get even hungrier, more starving than ever before. They’d call it, used to call it, pressures, burdens. Let me tell you about a fable, a tale.

Let me take you to the Discovery Channel, National Geographic Channel, or whatever you know and excited about. A whale. A shark. What do they tell you in common? Let’s change the animal type to a tiger and lions. One with an a, the other with an s. An individual versus a herd, the herd instinct.

Lions orchestrate their attacks on selected, particular individual buffalo, elephant, giraffe, or any prey. We know nothing on how they communicate, surely not in any human language, especially in English, how the herd pick and target the victim, one specific interest, potential candidate.

They slowly move, split, and distancing themselves whilst preparing and get ready to make an attack and ambush their prey. One prey. One big prey. Enough to feed them all, for some time.

It means that they must have been coordinating and planning and doing it on a regular basis.

Some regular basis. Silently. They need to eat to stay alive and preserve their lives.

Now, apply and implement the analysis on Bank Rakyat Indonesia. To begin with, we used to think simple. Do the math. Let’s see their structures. The assets, the capital, the debts, the cash.

How do BRI grab the cash? There are signs, marks, traffic, traffic lights, trafficking. What do they traffick?

Which one is worth? Which deal is worth the risk? The elephant risk? What is the most frenemy of an elephant? An ant. Talking about the ant is always associated with its herd. An army. An arm with a y letter. A bare hand. Ready to battle. At all times. There must be a queen. There must be scouts. There are logistics. Chains. Networks. How do ants operate? There are martyrs.

Okay. Let’s scrap it out. Enough for today’s lesson. and enlightenment.

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The Authentication and Authorisation Some sites are heavily scripted. Some even have pushed to extract the HTML5 canvas image data as it can be used to uniquely identify our computer, for every user coming, requesting the site’s web server to respond. On the other hand, some browsers have been equipped with ‘no script’ add-on, just like the TOR browser.

Having identified the browser has disabled their unique script to function to run and perform and provide feedback as required and needed to extract user data’s credentials, the web server will launch and initiate a CAPTCHA to validate if a human is indeed making the request or not.

Some captcha can be figured out easily. Some are not.

Most Australian websites have been intentionally and notoriously denying computers’ access from Indonesian IP addresses. Some Australian domains can be easily tricked by using the TOR browser. Some others implement the captcha filter that is definitely can’t be figured out. To skip this ridiculous captcha, none is better than to disable the ‘no script’ add-on, restart the TOR browser, and revisit the url. The browser will tell you then that such web server is so eager to know your unique computer, such as MAC address or elses.

The user data credentials can take the forms of IP address, username and password, nonce, url, http method, or others required by the web servers. The IP address can reveal your identity, at least by internet service provider (ISP) name, domain name, client server name, hostname, organisational identities such as name and location (of originating access).

User data credentials are somewhat an authentication tool. As they are validated, the web server will provide some authorisation to the user, web surfer, to get access to the resources provided by the web server(s). The mechanics of authentication and authorisation is an internet protocol operating on the application layer, securing the data communication between the web server and the browser.

As the browser or the client is talking to the web server, the client presents a list of supported cipher suites (ciphers and hash functions). The browser is asking the web server to provide the information required, provided by or in the SERP. The web server will pick their desired cipher and hash function and generates cipher and session key.

The web server will respond by sending its identification in the form of a digital certificate, the SSL certificate. The certificate contains the server name, the trusted certificate authority (CA), and the server's public encryption key. Both client’s browser and web server will validate each other the information exchanged. Denied access is given immediately and directly by any party unsatisfied during the communication process.

For example, the browser will immediately display a warning from any link clicked within a website logged in or from any SERP. Even if you want to reset the password, the website’s server donot do what they claim to, such as sending a new password and/or a reset link. Here is the warning claim: “Deceptive Site! This web page at pdfsr.com has been reported as a deceptive site and has been blocked based on your security preferences. Deceptive sites are designed to trick you into doing something dangerous, like installing software, or revealing your personal information, like passwords, phone numbers or credit cards. Entering any information on this web page may result in identity theft or other fraud.”

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On the other hand, the web server will take forever to respond to the request sent by the browser.

In late July 2017, the IDX web server refused to display the profile of BRI. Even the supposedly to display the company profile uploaded in pdf. Is my IP address also blocked to access the IDX website? The answer was a yes, as I knew then that the TOR browser with different IP address was granted access to see it thru.

In the meantime, Google Chrome team and Mozilla engineers had found that Symantec had misissued more than 30,000 SSL certificates, by doing shady SSL issuance practices. Google then announced an intention to gradually remove support for Symantec certificates in Chrome browser.1 Under Chrome's hood, Google will remove the Symantec's root SSL certificate. SSL certificates are like giant trees with countless of branches, all converging back to the root certificate. Once this certificate is removed, all certificates attached to this root will stop working too. It includes other CAs bought by Symantec such as GeoTrust, Thawte, and RapidSSL. Until Symantec revamps its SSL issuance procedures and comes up with a system that more secure and reliable, it's highly unlikely that Google will allow a new Symantec root certificate in Chrome again. In a similar decision, in November 2016, Google has untrusted the certificates of WoSign and StartCom.2

1 Catalin Cimpanu, Google Outlines SSL Apocalypse for Symantec Certificates, 20170729, http://bit.ly/2wdUXAq 2 Catalin Cimpanu, Google Ban Spells the End of Controversial Chinese HTTPS Provider, 20161103, http://bit.ly/2x8Wqbj

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How this report proceeds and gets distinguished Like any other cashing in efforts, corporate raiders are more welcomed these days. Side businesses and moonlightings are the ones they are after. They're not trying to get messy with the parent company's businesses, but a more wide and deep access to the unthinkable on papers.

Capitalising on stock rides, either in upward and/or downward turns, is just a bonus.

The deep dives in this report are carried on to what had been published publicly by Bank Rakyat Indonesia, either legal documents and/or financial documents. Some intelligence gathering techniques3 have been implemented all the way down. Although, the term used in this report is not what actually defined by the MI5.

The MI5’s principal techniques for gathering intelligence are:4 1. Covert Human Intelligence Sources or “agents”. Agents are people who are able to provide secret information about a target of an investigation. Agents are not MI5 employees; 2. Directed surveillance, such as following and/or observing targets; 3. Interception of communications, such as monitoring emails or phone calls; 4. Communications data (including use of bulk communications data), information about communications, such as “how and when” they were made, which is usually obtained from communications service providers; 5. Bulk personal data, datasets containing information about a large number of people which can be accessed in a targeted way to identify or find information about subject of interest; 6. Intrusive surveillance, such as putting eavesdropping devices in someone's home or car; and 7. Equipment interference, such as covertly accessing computers or other devices.

This report tries to be a business intelligence report, providing new insights that can empower the reader of this report to make faster, more informed business decisions.

3 Even Microsoft also uses the same term in its site. Cf. Stephen Northcutt, Network Intrusion Detection: An Analyst's Handbook, Ch.8, New Riders Publishing, 1999, 20170703, http://bit.ly/2xKJyfS 4 MI5, Gathering Intelligence, The Security Service of GCHQ, http://bit.ly/2xKguFC

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Luca Benati, The inflation-targeting framework from an historical perspective, Monetary Assessment and Strategy Division, Bank of England Quarterly Bulletin: Summer 2005. pp.160-168.

MI5, Gathering Intelligence, The Security Service of GCHQ, http://bit.ly/2xKguFC Michael Ovaska, Central bank balance sheets, 20170822, tmsnrt.rs/2inHILp Michael Tanglis, The “King of Cross-Sell” and the Race to Eight, Public Citizen, Washington DC, 20160929.

Mike Terceiro, Low balling the LIBOR – the LIBOR rate-rigging scandal, CCH Australian Competition & Consumer Law Tracker, Issue 8, August 2012, http://bit.ly/2fuEWnd Milton Friedman, “Factors Affecting the Level of Interest Rates,” in Proceedings of the 1968 Conference on Saving and Residential Financing. Chicago: United States Saving and Loan League, 1969, pp.11-27; in Thomas M. Havrilesky and John T. Boorman, eds., Current Issues in Monetary Theory and Policy. Arlington Heights, IL: AHM Publishing, 1976, pp.362-78.

Moniek Wolters, The 1992-1993 ERM Crisis, Erasmus Student, http://bit.ly/2neyxf3.

Neel Kashkari, President of Minneapolis Federal Reserve Bank of Minneapolis, Monetary Policy and Bubbles, 20170517, http://bit.ly/2f1e7mz New York Southern District Court, Case No.1:15-cv-05844, Sonterra Capital Master Fund Ltd. et al v. UBS AG et al, Document 121, 20151218 Rahul Mittal, A History of Finance – Black Wednesday, 20120413, http://bit.ly/2x08OMl Robert Parker, Why did the Bretton Woods system fail?, 20161126, http://bit.ly/2jyaWYT Robin Leigh-Pemberton, the Governor of Bank of England; The case for price stability, Quarterly Bulletin, Bank of England, Nov. 1992, pp.441-448.

Rosa M Abrantes-Metz, Michael Kraten, Albert D Metz and Gim Seow, Libor Manipulation?, Social Science Research Network, August 2008, p.2, http://bit.ly/2huL3F7 Sando Sasako, Coal Business in Indonesia, Serabdi Sakti, Jakarta, March 2017, p.80. The original title of section is “Beating the Low Price Condition”. See the table of contents in this link http://bit.ly/2rnOO2K. Sando Sasako, Krisis Finansil Cina: Perspektif Kebijakan Moneter, Corporate Finance (Analisa Laporan Keuangan), dan Investment Banking (Valuasi Nilai), Serabdi Sakti, Jakarta, March 2016. See the table of contents in this link http://bit.ly/2vMzUt0 Stephen Northcutt, Network Intrusion Detection: An Analyst's Handbook, Ch.8, New Riders Publishing, 1999, 20170703, http://bit.ly/2xKJyfS

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Steven Drobny, Inside the house of money: top hedge fund traders on profiting in the global markets, John Wiley & Sons, Inc., Hoboken, New Jersey, 2006.

The State Council of PRC, State Council issues guideline on overseas investment, 20170818, http://bit.ly/2vOVZny Thomas M. Havrilesky and John T. Boorman, eds., Current Issues in Monetary Theory and Policy.

Arlington Heights, IL: AHM Publishing, 1976, pp.362-78.

US Consumer Financial Protection Bureau (CFPB), In the matter of: Wells Fargo Bank, N.A., Consent Order, Administrative Proceeding, 2016-CFPB-0015, 20160908, at p. 5, 7, http://bit.ly/2dpnuyN. Victoria Duff, Liquidity Effect in Economics, Chron, 20100820, Last Update 20161026, http://bit.ly/2h7N0e7 Wells Fargo, 1999 Annual Report, p.7, http://bit.ly/2ddwP9O. Werner Antweiler, European Currency Unit (ECU): A Brief History of the ECU, the Predecessor of the Euro, The Pacific Exchange Rate Service, Sauder School of Business, University of British Columbia, Vancouver, Canada, 20110119. http://fx.sauder.ubc.ca/ECU.html Yue Wang, Betting On Brick-And-Mortar: Alibaba's Billion-Dollar Retail Experiment, Forbes, 20170827, http://bit.ly/2hj18Rz

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Additional Readings Andrew Beattie, The Greatest Currency Trades Ever Made, investopedia, 20080903, http://bit.ly/1dvS8A9 Ben Moshinsky, George Soros didn't bet against the pound this time, Reuters, Business Insider US, 20160627, http://bit.ly/2f1Aaty Chris Ratcliffe, RBS instant messages reveal traders skewed Libor, Bloomberg, Financial Post, 20120926, http://bit.ly/2jY6JOe Guy Faulconbridge; George Soros did not bet against sterling just before Brexit vote: spokesman, Reuters, 20160627, http://reut.rs/2jwcMcB Justin Kuepper, Black Wednesday: George Soros' Bet Against Britain: How George Soros Broke the Bank of England, thebalance.com, 20170828, http://bit.ly/2xFEuKh Marion Dakers, George Soros: I did not bet against the pound before Brexit , telegraph.co.uk, 20160627, http://bit.ly/29ekKQ3 Mehreen Khan, George Soros did not bet against the pound before Brexit, ft.com, 20160627, http://on.ft.com/2fpArai Rohin Dhar, The Trade of the Century: When George Soros Broke the British Pound, priceonomics.com, 20140515, Last update: 20160617, http://bit.ly/2cOGL7P Sebastian Mallaby, 'Go for the Jugular', theatlantic.com, 20100604, http://theatln.tc/2xpQLS0 Stephen Gandel, How George Soros Lost Money In a Bad Brexit Bet, Reuters, fortune.com, 20160627, http://for.tn/2xF2b5k Steve Schaefer, How George Soros Broke The British Pound And Why Hedge Funds Probably Can't Crack The Euro, Forbes Flashback, 20150707, http://bit.ly/2xoJeTN Suzanne Plunkett, How emails nailed Barclays, Reuters, Financial Post, 20120628, http://bit.ly/2hv3Wre Thomas Jaffe and Dyan Machan, How The Market Overwhelmed The Central Banks, Forbes, 19921109, http://bit.ly/2xoJeTN Vince Veneziani, The Real Story Of How George Soros Shorted The Pound, Etching His Name Into Financial History Forever, businessinsider.com, 20100604, http://read.bi/2y4FDY7

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Suggested Readings Alberto Martin, Origins and macroeconomic implications of asset bubbles, Jaume Ventura, 20110216, http://bit.ly/2xFVb8v Charles Hugh Smith, The War On Cash: Why Now?, mises.org, 20150729, http://bit.ly/1IKLOUO Charles Hugh Smith, Will The Crazy Global Debt Bubble Ever End?, blogspot.com, seekingalpha.com, 20170528, http://bit.ly/2jwUFTL, http://bit.ly/2xp6Nvm Forensic Accounting Club, Financial Statement Fraud Schemes, 20160228, Last update: 20161122, http://bit.ly/2x5rABZ Forensic Accounting Club, Financial Statement Fraud, 20160228, Last update: 20161122, http://bit.ly/2faKxiu Forensic Accounting Club, Fraud Detective Analysis of Financial Statements, 20160305, Last update: 20161122, http://bit.ly/2xppe33 Holly Black, Warning over 'mother of all asset bubbles', ftadviser.com, 20170605, http://bit.ly/2h9bAr5 Izabella Kaminska, Bitcoin's surge fuels fears of asset bubble, afr.com, 20170515, http://bit.ly/2x3GX0o Jacob J, Cryptocurrency Bubble Will Burst: Aberdeen Asset Management, cointelegraph.com, 20170624, http://bit.ly/2h8tfzg John Lyons and Shen Hong, Asset Bubbles From Stocks to Bonds to Iron Ore Threaten China, wsj.com, 20161101, http://on.wsj.com/2fpkiSg Kimberly Amadeo, Asset Bubble: Causes, Examples, and How to Protect Yourself, thebalance.com, 20170714, http://bit.ly/2h6Fj7N Neel Kashkari, Monetary Policy and Bubbles, minneapolisfed.org, 20170517, http://bit.ly/2f1e7mz Oliver Watts and Richard Hayler, Window Dressing in M&A Transactions, FTI Consulting, Inc, 20170522, http://bit.ly/2xFUQSX perstirling.com, Per Stirling Capital Outlook - June 2017, 20170630, http://bit.ly/2h5L3Pi Steve Goldstein, Fed's Kashkari says central bank should avoid fighting asset-price bubbles, marketwatch.com, 20170517, http://on.mktw.net/2yddnTM Wolf Richter, Brick & Mortar Retail Meltdown Fueled by Asset Stripping. Details Emerge in Bankruptcy Courts, wolfstreet.com, 20170731, http://bit.ly/2h9myAv Wolf Richter, Consumer Bankruptcies Rise for the First Time since 2010, wolfstreet.com, 20170205, http://bit.ly/2xFx7Cm Wolf Richter, Great Debt Unwind: Bankruptcies by Consumers and Businesses Jump, wolfstreet.com, 20170606, http://bit.ly/2xF4ZiS Wolf Richter, It Just Doesn't Let Up with Wells Fargo, wolfstreet.com, 20170729, http://bit.ly/2h8HUKY Wolf Richter, Next Asset Bubble Cracks: It's so Big even the Fed is Fretting, wolfstreet.com, 20170607, http://bit.ly/2qXUwbp, http://read.bi/2x8RSF3 Wolf Richter, Retail Meltdown Demolishes Mall Investors, wolfstreet.com, 20170509, http://bit.ly/2xGUM5q Wolf Richter, So When Will China's Debt Bubble Finally Blow Up?, wolfstreet.com, 20170817, http://bit.ly/2wvFgVh Wolf Richter, The Economy is Cracking under Too Much Debt, wolfstreet.com, 20161018, http://bit.ly/2x5iwNu Wolf Richter, The US Cities with the Biggest Housing Bubbles, wolfstreet.com, 20170829, http://bit.ly/2iIssJh

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Readings on Satellites Anityo Nugroho, Satellite Communication – Part 1, 20110404, http://bit.ly/2wOwGW4 Arianespace, Flight VA 230: EchoStar XVIII and BRIsat, Launch Kit, 20160613, http://bit.ly/1S2Ibr Bryce Space and Technology, 21 Years as the Voice of the U.S. Satellite Industry, SIA’s 20th annual study of satellite industry data, Washington DC, 20170714.

Collins Student World Atlas, HarperCollins Publishers, 2005, ISBN 0 00 719549 4; in TAHN, Geostationary Communication Satellites, 20071226, http://bit.ly/2wdWKbw ComSoft VSAT Solutions GmbH, Satellites Served, http://bit.ly/2xIjdLU Dan Meyers (Sydney Plavins), How to Rent and Operate a Satellite for $250 a Week!, 20160823, http://bit.ly/2iCug6J Diah Yuniarti, Studi Perkembangan dan Kondisi Satelit Indonesia (The Study of Development and Condition of Indonesian Satellites), Puslitbang Sumber Daya dan Perangkat Pos dan Informatika, Buletin Pos dan Telekomunikasi, Vol.11 No.2 Juni 2013 : 121-136.

Euroconsult, Satellite Value Chain: Snapshot 2016, Key Trends and Indicators on Supply & Demand of the World Commercial Satellite Industry – An Extract, Executive Report, Paris, 20161213.

Geo Swan, North Pole February Ice-Pack 1978-2002, 20161023 Graham Templeton, Geek Answers: What is geostationary orbit, and why is it so important?, 20131214, geek.com, http://bit.ly/2iG8AXw Hendra Santoso, ed, Data Statistik, Tahun 2016, Semester 2, Direktorat Jenderal Sumber Daya dan Perangkat Pos dan Informatika, Kementerian Komunikasi dan Informatika, 20170519.

Innovation, Science & Economic Development Canada’s (ISED), Policy Framework for the Provision of Fixed-Satellite Services (FSS) & Broadcasting-Satellite Services (BSS), Spectrum Management & Telecommunications, Radio Systems Policy, RP-008, Issue 4, Canda, June 2017 Innovation, Science & Economic Development Canada’s (ISED), Radio Spectrum Inventory: A 2010 Snapshot — Canada, Chapter 7–Satellite Services, http://bit.ly/2xMYZSo Karaşimşek, Konu: Uydu sinyalleri ile ilgili sorular (Topic: Questions about satellite signals), 20080614, http://bit.ly/2vzedZk Mahdi3d, INTELSAT 22 was thrown into orbit / lateral military cargo to Australia, IRNA, 20120326, http://bit.ly/2w9sDlL, http://bit.ly/2wzJrTO, http://bit.ly/2ggiM88 Mick Denton, Electron/Ion Flux Model for Geosynchronous Orbit (GEO), 20150419, Last update: 20161007, http://bit.ly/2wNVrla Mulyadi, Indonesian Satellite Service Regulatory Framework, Head of Satellite Management, Ministry of Communications and Information Technology, ITU International Satellite Symposium 2016, Bali, 6-8 September 2016. n2yo.com, Telkom 3 Satellite details 2012-044A NORAD 38744, http://bit.ly/2xOgOkc n2yo.com, What's Up In Your Sky?, http://bit.ly/2yjmHsM Pacome Revillon, Fundamentals and Dynamics of the Satellite Communications Business, Inmarsat Capital Markets Day 2016, Euroconsult, Paris, 20161007.

Patrick Blau, Yamal-402 Satellite healthy after Briz-M Upper Stage Failure, spaceflight101.net, 20121209, http://bit.ly/2wSmDOW, http://bit.ly/2xDtt8k Satellite Industry Association, 21 Years as the Voice of the U.S. Satellite Industry.

Satellite Industry Association, Satellite 101: Satellite Technology and Services.

SatFlare.com, Telkom 3 - NORAD 38744 - 3D Online Satellite Tracking, http://bit.ly/2fDTVHX Source: Gempar Ikka Wijaya, Nasib satelit bernilai Rp 1,8 triliun, 20120808, http://bit.ly/2vzZVad Space Systems/Loral, LLC, SSL satellites in orbit, http://bit.ly/2vnmt2G T.S. Kelso, Breeze-M Rocket Body (38746) Breakup, celestrak.com, 20121025, updated: 20121109, http://bit.ly/2wzMiMR Union of Concerned Scientists (UCS) Satellite Database; in Satellite Industry Association, Satellite 101: Satellite Technology and Services, Washington DC, 20130118.

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Index 75E-Q, 247 A. Firman Taufick, 197 A. Fuad Rahmany, 162, 163, 164, 166, 182 A. Sonny Keraf, 162, 163, 164, 165, 166, 171, 175, 182 A.Y. Soepadmo, 201 A2100A, 237 A2100AXX, 237 AB, 136, 137 Abing Rabani, 197 ABS, 242, 243, 244, 245, 246, 247 ABS-2, 242, 243, 244, 245, 246, 247 ABS-6, 247 ACeS, 237 ACeS 1, 237 ACeS 2, 237 Achmad Chairul Ganie, 143 Achmad Fachmi, 141 Adam S. Posen, 42, 254 Adhi Karya, 168 Adhyaksa Dault, 162, 163, 164, 165, 166, 170, 175, 182 Adi Setyanto, 192 Adolf Hitler, 38 ADS, 237 AED, 29 Aero System Indonesia, 147 Aero Systems Indonesia, 148 Aerospatiale, 237 Agila, 237 Agila 1, 237 Agila-2, 237 AGRO, 140, 141, 178 Agus DW Martowardojo, 15 Agus Katon Eko Sedyono, 140 Agus Noorsanto, 182, 193 Agus Suprihanto, 198 Agus Toni Soetirto, 181 Ahmad Fuad, 162, 163, 164, 165, 166, 168, 169, 175, 177, 178, 182 Ahmad Fuad Rahmany, 168, 175, 177 Ahmad Solichin Lutfiyanto, 196 AIA Finl, PT - Ul Equity, 135 Airbus Defence and Space, 237 AJ Bringin Jiwa Sejahtera, 179 Albert D Metz, 49, 254 Alcatel, 237 Alexander Margaronis, 151 Algemene Volkscredietbank, 154 Alibaba, 77, 78, 255 Alioth LLC, 33, 253 Amazon, 77, 254 AmSat, 237 AMZN, 77, 78 Anatolia 1, 237 Andalaz Cavis, 242, 247, 248, 250, 251, 252 Andik Eko Putro, 198 Andrinof Achir Chaniago, 167 Andy Ferdinand, 151 Andy Krieger, 32 Andy Wibowo Gunawan, 151 Aneka Vision, 242, 248, 250, 251, 252 Angga Aditya Assaf, 151 Anggito Abimanyu, 140 Angkasa Pura I, 167 Anik Hidayati, 195 Anityo Nugroho, 227, 258 Ann C. Chalstrom, 33, 253 Anna Maria Ciadarma, 195 Ansar Arifin, 142 ANZ, 110 APG Asset Management NV, 136 Aplikanusa Lintasarta, 144, 242, 249

APSTAR, 242, 243, 244, 245, 246, 247 APSTAR-142E, 247 APSTAR-142E-R, 247 APSTAR-4, 247 APSTAR-5, 247 APSTAR-6, 242, 243, 244, 246, 247 APSTAR-7, 242, 243, 244, 245, 246, 247 APSTAR-9, 242, 243, 245, 246, 247 APSTAR-9A, 246, 247 APSTAR-V, 242, 243, 244, 245, 246, 247 APT Satellite Holdings Ltd, 221 Arab Satellite Communications Org, 221 Arba Xtreme Media, 242, 247, 248, 249, 250, 251, 252 Argabudhy Sasrawiguna, 196 Argentina, 221 Ari Setyo Wibowo, 197 Ariane, xiv, 237, 239 Ariane 44L-3, 237 Ariane 5, xiv, 239 Ariane-42P H10-3, 237 Ariane-44L H10-3, 237 Ariane-5ECA, 237 Arianespace, 238, 239, 258 Artacomindo Jejaring Nusa, 242, 249, 251 Artha Mas Cipta, 242, 247 Arthamas Cipta, 250 Arthur C. Clarke, 220 Artisan International Investor, 138 Artisan Partners Limited Partnership, 137 Asaba Computer Center, 146 ASCO, 221 Ashlyn Still, 60, 61, 253 Asia Broadcast Satellite Ltd, 221 Asia Cellular Satellite, 237 Asia Media Mandiri, 242, 248 Asia Panca Mandiri, 242, 248 Asian Development Bank, 169 ASIASAT, 242, 243, 244, 245, 246, 247, 248, 252 ASIASAT-4, 242, 243, 244, 245, 246, 247, 248 ASIASAT-5, 242, 243, 244, 245, 246, 248 ASIASAT-7, 252 ASIASAT-AK, 247 ASIASAT-AK1, 247 ASIASAT-AKS, 247 ASIASAT-AKX, 247 ASIASAT-EKX, 248 Asmawi Syam, 181, 183, 184, 186 Astek, 140 Astro Space Center of Moscow, 221 Asuransi Bringin Jiwa Sejahtera, 139, 157 Asuransi Bringin Sejahtera Artamakmur, 146, 148, 189 Asuransi Jiwa Bringin Jiwa Sejahtera, 85, 142, 144 Asuransi SIMAS Shariah, 179 Atlas-2AS, 237 Auckland, 8 AUD, 29, 46 Australia, 109, 169, 178, 191, 192, 193, 195, 197, 219, 238, 258 Australia and New Zealand Banking Group Ltd, 109 Australian, 2, 27, 49, 100, 101, 254 Austria, 221 Austrian, 27 Azwar Abubakar, 167 B&M, 77 Ba LC, 237 Ba LC-200/39, 237 Ba LC-81/23, 237 Ba LC-81/24, 237 BABA, 77

Bagus Hananto, 151 Bahana Artha Ventura, 179 Bahana Securities, 151 Bahari Media Televisi, 242, 247, 248, 249, 250, 251, 252 Bakri, 195 Bambang Irianto, 200 Bambang Krisminarno, 196 Bambang Soepeno, 141 Bambang Supeno, 178 Banda Aceh, 156, 163, 182 Bandar Lampung, 156, 163, 182, 198, 200, 201 Bandung, 143, 156, 163, 166, 168, 172, 182, 186, 187, 189, 190, 191, 192, 198, 199, 201 Bangkok, 29, 165 Banjarmasin, 156, 163, 178, 182, 189, 199, 201 Bank Agroniaga, 85, 140 Bank BNI, 1, 147, 148 Bank BNI Syariah, 147, 148 Bank BRI, 1, 139, 144, 154, 157, 175, 190, 191 Bank BRI Agroniaga, 190 Bank BRI Syariah, 139, 154, 157, 175, 191 Bank BRISyariah, 139 Bank BTN, 1 Bank Bukopin, 147, 179, 191 Bank Bumi Daya, 152 Bank Central Asia, 1 Bank Dagang Negara, 152, 186 Bank Danahutama, 176 Bank Danamon, 172 Bank Ekspor Impor Indonesia, 152 Bank for International Settlements, 54, 55, 58, 59, 254 Bank ICBC Indonesia, 162, 170 Bank Indonesia, xi, 11, 13, 15, 16, 17, 18, 19, 20, 21, 22, 89, 90, 93, 95, 103, 104, 120, 139, 140, 141, 144, 145, 146, 147, 148, 154, 167, 169, 173, 176, 178 Bank Indonesia Urusan Koperasi Tani dan Nelayan, 154 Bank Internasional Indonesia, 169 Bank International Indonesia, 176 Bank Jasa Arta, 139 Bank Jasa Artha, 154 Bank Koperasi Tani dan Nelayan, 154 Bank Lippo, 240 Bank Mandiri, 1, 147, 148, 152, 153, 187 Bank Mega Group, 172 Bank Mitraniaga, 172 Bank Negara Indonesia, 147, 148, 154, 174 Bank Negara Indonesia Unit II – Rural Division, 154 Bank of America, 47, 52, 57, 109 Bank of England, 23, 31, 39, 44, 45, 254, 256 Bank of Montreal, 109, 110 Bank of New York Melon, 109, 110 Bank of Tokyo-Mitsubishi UFJ, 47, 109, 110, 143 Bank Pembangunan Indonesia, 152 Bank Perkreditan Rakyat, 154 Bank Rakyat Indonesia, i, vii, viii, ix, x, xii, xiii, 1, 4, 81, 82, 86, 87, 88, 89, 91, 92, 93, 95, 96, 97, 98, 99, 100, 101, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 119, 120, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131,

259

Sando Sasako 132, 133, 134, 135, 136, 137, 138, 139, 140, 142, 143, 144, 145, 146, 148, 151, 152, 154, 155, 156, 157, 160, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 175, 178, 181, 182, 183, 184, 185, 187, 190, 236 Bank Rakyat Indonesia Agroniaga, 139, 140, 157 Bank Rakyat Indonesia, PT - Treasury STO, 135 Bank Rakyat Republik Indonesia Serikat, 154 Bank Sahabat Sampoerna, 162, 170 Bank Sulut, 172 Bank Syariah BRI, 139 Bank Syariah Mandiri, 147, 148 Bank Tabungan Negara, 147, 148 Bank Tani Nelayan, 154 BankAmerica, 31 Bankers Trust, 31, 32 Banque de France, 36 Bapepam, 169, 179 Bapepam-LK, 169 Bapindo, 152 Bappenas, 16 Barclays, 47, 53, 54, 57, 256 Barclays Bank plc, 47, 53 Barclays Capital Services Ltd, 53 Barclays Directors Limited, 53 Barclays Group Holdings Ltd, 53 Barclays plc, 53 Barclays Services Jersey Ltd, 53 Bardiyono Wiyatmojo, 192 Barings Bank, 45 Barrick Gold, 24 Basle-Nyborg, 33 Batu Sangkar Multimedia, 242, 247, 248, 250, 251, 252 BBA, 46, 47, 50, 51, 54 BBA Repo, 54 BBA standard for interest rate swaps, 46 BBAIRS, 46 BBC, 23 BBD, 152 BBH Boston S/A Vangrd Emg Mkts Stk Infd, 135 BBH Luxembourg S/A Fidelity Fd, Sicav, 135 BBRI, 126, 127, 154, 237, 238 BCCI, 45 BCG, 57 BDH Khusus Bialugri, 150 BDN, 152 BEF, 31 BEII, 154 Beijing, 240 Belgian, 27, 31, 33, 36 Belgium, 31, 39, 171, 172 Bendahara Khusus, 146, 150 Bendahara Pengeluaran Pembantu, 146 Benelux, 39 Benjamin Koo, 151 BEP, 78 Berlin Wall, 32 Bernstein, 151 BI, xi, 9, 19, 20, 104, 169 BI 7-day (reverse) repo rate, 9 BI 7-day repo rate, 9 BI rate, 9, 20 Bialugri, 146 BII, 169 Bill Phillips, 44 BIS, 30, 35, 40, 42, 43 BJA, 139, 154 BJS, 141 BKTN, 154 Black Wednesday, 32, 33, 34, 44, 254, 256

260

Blackrock, 135 BlackRock Fund Advisors, 136, 137 Blair, 45 BNI, 143, 151, 152, 154, 176, 186 BNI Securities, 151 BNI Unit II – Export Import Division, 154 BNP Paribas, 47, 109, 110, 151 BNP Paribas Equity Research, 151 Board of Governors of the Federal Reserve System, 70 BoE, 23, 32, 34, 42, 45, 53 Boeing Satellite System, 237 Boeing SS, 237 BoJ, 60, 61 BOL, 237 Bonn, 36, 43 Borneo Visual Multimedia Pro, 242, 247, 248, 251 Boston Consulting Group, 56, 254 Boyke Budiono, 143 BP, 91 BPJS Ketenagakerjaan JHT, 135 BPKP, 176 BPP, 146, 150 BPR, 144 BRC, 141 Breeze-M, xiii, 218, 219, 258 Bretton Woods, 27, 39, 41, 254 Brexit, 23, 256 BRI, ii, iii, v, vii, viii, ix, 1, 3, 81, 83, 85, 90, 91, 92, 102, 110, 121, 139, 140, 141, 142, 143, 144, 145, 146, 147, 148, 149, 152, 153, 154, 155, 156, 157, 158, 159, 161, 174, 175, 176, 177, 178, 179, 180, 186, 187, 188, 189, 190, 191, 192, 193, 194, 197, 202, 238, 241 BRI Agro, ix, 139, 140, 141, 147, 157, 178, 179 BRI Finance, ix, 139, 143, 147, 157 BRI Life, ix, 139, 142, 157, 179, 180 BRI Multifinance, 85, 139, 143, 144, 157 BRI Pension Fund, 178 BRI Remittance, ix, 85, 139, 141, 142, 157 BRI Syariah, ix, 139, 140, 154, 157, 175, 178, 179 BRI Syariah Unit, 154 BRILink, 145, 152 Bringin Gigantara, 144, 146, 148, 149, 191 Bringin Indotama Sejahtera Finance, 188 BRIngin Jiwa Sejahtera, 141 BRIngin Remittance, 141 Bringin Srikandi Finance, 190 BRIS, 139 BRIsat, vi, 146, 154, 193, 202, 237, 238, 239, 258 BRISyariah, 85 Brit, 34 Britain, 38, 256 BRITE Consortium, 221 British, 27, 31, 32, 33, 45, 46, 100, 101, 256 British Bankers' Association, 46 Briz-M, vi, 216, 218, 258 BRR, 169 Bruce Kovner, 31 Brussels, 36 Bryce Space and Technology, 207, 258 BSMR, 164, 176, 183 BSS-601HP, 237 BT, 32, 237 BTMU, 143, 144, 146, 148, 149, 187 BTMU – BRI Finance, 143 BTMU BRI Finance, 144, 146 BTMU-BRI, 143, 148, 149, 187 BTMU-BRI Finance, 143, 148, 149, 187 BTM-UFJ, 110

BTN, 152, 189 Buana Capital, 151 Budi Rustanto, 151 Budi Satria, 198, 238 BULOG, 102, 147, 148, 149 Bulukumba Citra Visual, 242, 248, 249, 250 Bundesbank, 33, 34, 35, 36, 38, 39, 42, 43, 253 Bungamayang Agroloka, 144 Busrul Iman, 197 BWS, 41, 44 CA, 2 Cabinet Secretary, 16 CAD, 29, 46 Cahaya Tunas Pofah, 242, 248 Cakrawarta-1, 237 Canada, 31, 41, 47, 176, 221, 233, 255, 258 Canadian, 27, 101 Cantillon Fund, 135 Caprock Communications Indonesia, 242, 249, 250, 251 Carrick Mollenkamp, 49, 253 Carrie Tolstedt, 71 CASC, 240 CAST, 237, 240 Caxton Corp, 31 Cayman Island, 155 CBM, 43 CC, 185, 237 CC LC, 237 CC LC-17A, 237 CC LC-17B, 237 CC LC-36B, 237 CCK LC-39A, 237 CDBC, 95 CDS, 49, 50, 51 Cendrawasih Wiputra Mandiri, 242, 247, 248, 249, 250, 251 central bank money stock, 43 Centrale Kas Voor Het Volkscredietwezen, 154 CEO, 57, 71, 172, 190 certificate deposit of Bank Indonesia, 20 CFETS, vii, 29, 30 CFPB, 70, 71, 255 CFTC, 57 CGWIC, 237, 240, 241 Chairman, 57, 71, 163, 167, 168, 169, 170, 171, 172, 175, 177, 178, 186, 187, 189, 190 Chairul Tanjung Group, 172 Chairwoman, 73 Chancellor, 38, 40, 45, 53 Charles de Gaulle, 41 Chase Manhattan, 31 Chemical Banking, 31 CHF, 29, 46, 47 Chicago, 11, 254 China, 7, 8, 24, 27, 29, 30, 73, 74, 78, 95, 221, 237, 238, 240, 247, 248, 249, 252, 257 China Academy of Space Technology, 237, 240 China Aerospace Science and Technology Corp, 240 China Dev. Bank Corp., 95 China Foreign Exchange Trade System, 29 China Great Wall Industry Corp, 237, 240 China Satcom, 237 ChinaSat, 237 ChinaSat 5B, 237 CHINASAT-10, 242, 243, 244, 245, 246, 248, 249 CHINASAT-11, 242, 243, 244, 245, 246, 249 CHINASAT-6, 248, 249, 252

Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia CHINASAT-64, 249 CHINASAT-6B, 252 Chinese, 3, 7, 8, 27, 28, 29, 73, 74, 240, 253 CHIRD, 57 CIMB, 151 Cinta Manis Agroloka, 144 Ciptadana Sekuritas, 151 Citibank, 47, 54, 109, 135 Citicorp, 31 Citigroup, 50, 51, 53, 54, 57 Citra Buana Cable Vision, 243, 248, 249, 250 Citra Ilham Mandiri, 243, 247, 248, 249, 250, 251, 252 Citra Intel Pratama, 243, 248 Citra Mitra Inti Kusuma, 170 Citra Sari Makmur, 236, 237 Clarke, xiv, 227, 228, 229 CLSA, 151 Club Deal, 95, 109, 110 Club Loan, 95, 109, 110 CME, 46 CNH, 7, 29 CNY, 7, 29 Coface export-credit agency, 240 commercial real estate, 6, 73, 77 Commerzbank, 109, 110 Committee on the Peaceful Uses of Outer Space, 220 composite price index, 33, 45 Computer Technology Associates, 237 ComSoft VSAT Solutions GmbH, 224, 258 Connan Snider, 49, 253 Connecticut, 49 Consumer Financial Protection Bureau, 70, 255 consumer price index, 20, 45 COO, 57 Cooperative BRI Swakarya, 190 Cooperative Rabobank UA, 47 Coordinating Minister in Economic Affairs, 16 COSPAR, 216, 237 CPI, 20, 33, 45 Craig R. Whitney, 35, 253 CRE, 6 Crédit Agricole, 47, 53, 54 credit default swaps, 49 Credit Suisse, 47, 57, 151 Crispin Odey, 23 CSM, 236, 237 CSM-106, 236 CSM-111, 236 CSM-120, 236 CSM-137, 236 CT Group, 172 CTA, 237 CTBC Bank, 109 currency union, 31 Cyprus, 57 CZ-3B, 237 CZ-3B (Ariane 44L), 237 CZ-3B (Long March 3B), 237 CZ-3B/E, 237 D. Irwandi Wijaya, 201 D.P. Oka Maharjana, 199 Dagota Investama, 179 Dahlan Iskan, 167 Daily Express, 23 Daily Mail, 23 Daily Telegraph, 23 DAMRI, 147, 149 Dan Meyers, 225, 258 Dana Pensiun Bank Rakyat Indonesia, 142 Dana Pensiun BRI, 141, 142, 144 Dana Pensiun Karyawan Panin Bank, 144

Dana Pensiun Lembaga Keuangan, 142 Danareksa, 151, 169 Daniel L. Thornton, 11, 253 Daniel Plunkett, 54 Daniel Schäfer, 56, 253 Danish, 27, 31, 36, 46 Dany Cahya Rukmana, 195 Dapenbun, 140, 141 Datasel, 144 David Caplin, 54 David Chapman, 41, 253 David Pieri, 49 DB, 53, 54, 57 DB Group Services (UK) Ltd, 53 DBS, 109, 110, 151, 205, 213, 237 DBS Vickers, 151 De Poerwokertosche Hulp en Spaarbank der Inlandsche Hoofden, 154 De Poerwokertosche Hulp Spaar-en Landbouw Credietbank, 154 Dedi Sunardi, 199 Defense Systems Inc, 237 Delta, 237 Delta 2914, 237 Delta 6925-8, 237 Delta 7925-8, 237 Delta-3920 PAM-D, 237 DEM, 31 Denai Kabel Mandiri, 243, 247, 248, 250, 251, 252 Denmark, 39 Denpasar, 156, 163, 182, 186, 192, 196, 199, 201 deposit facility, 20 Deutsche, 27, 42, 47, 53, 54, 57, 151, 179, 253 Deutsche Bank, 47, 53, 54, 57, 151, 179 DFA, 70, 138 DFA Emerging Markets Core Equity I, 138 DFH, 237, 240, 248 DFH-3A-OB, 248 DFH-4, 237, 240 DFH-4E, 237 Diah Yuniarti, 231, 258 Dicky Rozano, 201 Didin Hafidhuddin, 140 Dimensional Fund Advisors LP, 137 Direktorat Angkatan Darat, 146 Dirgantara Indonesia, 102, 147, 148, 149, 150 DITKUAD, 146, 150 DKK, 29, 31, 46 DLR-Tubsat, 237 DM, xi, 27, 31, 32, 33, 34, 35, 36, 37, 39, 43, 46 Dodd-Frank Act, 70 Doha, 29 DOJ, 57 dollar, viii, 25, 27, 28, 29, 32, 109 Donald Trump, 57 Dongfanghong-4E, 240 Donsuwan Simatupang, 181, 182, 183, 187 Douglas J. Keenan, 53, 253 DP BRI, 144 DPLK, 142 DSI, 237 Duta Media Entertainment, 243, 247, 248, 249, 250, 251, 252 Dutch, 31, 33, 35, 36 East Germany, 43 Ebeneser Girsang, 198 EC, 35, 39, 236 ECB, 37, 42, 45, 61 EchoStar XVIII, 239, 258 ECU, vii, 31, 39, 255 Edi Masrianto, 143, 196 Edouard Balladur, 36

Edy Priyono, 198 Edy Utomo, 200 EEC, 33 EIRD, vii, 53, 54, 56, 57 Eka Savitri, 151 Eko Bambang Suharno, 140, 175, 197 Eko Wahyudi, 197 Ekspress-1000N, 237 EM, 60 EMARSAT-4S, 252 emerging markets, 49, 73 Emirates NBD Bank, 109, 110 Employees Provident Fund, 135 EMS, 33, 36, 39 Erasmus, 33, 254 Erdianto Sigit Cahyono, 140 Eria Desomsoni, 201 Erizal, 198 ERM, xi, 33, 34, 35, 36, 39, 40, 43, 44, 254 Ernawan, 196 ESA, 221 ESP, 31 Estonia, 57 Eternal Recession Mechanism, 34 EU, 23, 25 EUMETSAT, 221 EUR, xi, 25, 29, 47 EURIBOR, 54, 56, 110 euro, vii, 23, 25, 27, 31, 39, 40, 42, 45, 54 Euro Interest Rate Derivatives, 53 Euroconsult, 203, 204, 205, 206, 208, 209, 210, 212, 214, 258 Europe, 41, 47, 53, 56, 184 EUROPE*STAR, 249 EUROPE*STAR-1, 249 EUROPE*STAR-45E, 249 European Commission, vii, 53, 54, 56, 57 European Community, 33, 36, 39, 253 European Currency Unit, 31, 255 European Economic Community, 33 European Organization for the Exploitation of Meterological Satellites, 221 Eurostar-3000, 237 Eurosystem, 42 Euroyen, 49, 57 Eutelsat, 221 EUTELSAT 172A, 242 Eutelsat Americas, 221 Eutelsat S.A., 221 EVA Dimensions, 151 Evan Lie Hadiwidjaja, 151 ExactEarth, 209 F.Y. Hari Sistiyasta, 198 Fabiola Noralita Sondakh, 142 Fahmi Subandi, 195 Falcon-9 v1.2, 237 Farid Hanafi, 200 FASBI, 20 Fasindojaya Kabel Televisi, 243, 247, 248, 251, 252 FCA, vii, 54, 57 FDIC, 70 Fed, xii, 8, 11, 12, 25, 35, 41, 53, 57, 60, 61, 63, 73, 76, 77, 253, 257 Federal Deposit Insurance Corporation, 70 Federal Housing Finance Agency, 70 Federal Regulators, 70 Federal Reserve Bank, 11, 63, 253, 254 Federal Reserves, 63 FFr, 27 FHFA, 70 Fidelity, 135, 136, 137, 138 Fidelity Investment, 135 Fidelity Management & Research, 136, 137 Fidri Arnaldy, 199

261

Sando Sasako FIL Investment Management (Singapore) Ltd, 136 Finance Minister, 16, 36, 142 Financial Conduct Authority, 54 First Chicago, 31 Fitch Indonesia, 111 Five Forces, 44 Flight VA 230, 239, 258 Forestry Department, 140 franc, 27, 33, 36, 57 France, 35, 36, 38, 40, 41, 53, 221, 238, 240 Francois Mitterrand, 36 Frankfurt, 29 Franklin Advisers Inc, 137 Franklin Templeton, 135 FRB, 70 Frederic S. Mishkin, 42, 254 French, 27, 31, 32, 33, 36, 41, 238 French Guiana, 238 FRF, 31 FSA, 45, 57 FTSE 100, xi, 23 FTSE All-Share, xi, 23 Galileo, xiv, 226 GAM, 167 Garuda, 102, 147, 149, 150, 237 Garuda 1, 237 Garuda 2, 237 Garuda Indonesia, 102, 147, 149, 150 Garuda Maintenance Facility AeroAsia, 147, 149, 150 GARUDA-1, 236 GARUDA-2, 236 Gatot Mardiwasisto, 142, 181 Gatot Trihargo, 162, 163, 164, 166, 168, 175, 178, 182 Gatut Dwi Prihartoyo, 195 GBP, xi, 23, 25, 27, 29, 31, 34, 35, 40, 43, 46, 47 GE-23, 242, 249 Gemilang Media Visual, 243, 248, 249, 250 Gempar Ikka Wijaya, 218, 258 Generation IM Fund, 135 Genscape, 209 Geo Swan, 226, 258 George Osborne, 45 GEOStar, 237 GEOStar-1, 237 GEOStar-2, 237 German, xi, 31, 33, 34, 35, 36, 37, 38, 253 Germany, i, xi, 32, 33, 35, 36, 37, 38, 39, 40, 41, 42, 43, 45, 221, 249 Gerold Grasshoff, 56, 254 GIC S/A Government of Singapore, 135 Gilts, 54 Gim Seow, 49, 254 GLD exchange-traded fund, 24 Goddard Space Flight Center, 220 GoI, 238 Golden Wednesday, 34 Goldman Sachs, 57, 135, 151 Google Finance, 23 Gorontalo Sejahtera Mining, 162, 171 Government of Republic of Indonesia, 148 Government of Singapore, 135 Government of the Republic of Indonesia, 146 Graham Templeton, 222, 258 GRD, 31 Greek, 31 guilder, 27, 33, 35, 36 Gunawan Sulistyo, 196 Habibie Center, 167 Hadi Susanto, 143 Halifax and Bank of Scotland, 47 Handayani Wibowo, 200

262

Hans Tietmeyer, 36 Harding Loevner, 135, 136, 137, 138 Hari Siaga Amijarso, 194, 197 Harmonised Index of Consumer Prices, 45 HarperCollins, 222, 258 Harsh Wardhan Modi, 151 Haru Koesmahargyo, 181, 182, 183, 187 Hawaii, 238 Hayat TV Entertainment, 243, 247, 248, 249, 250, 251, 252 HBOS, xii, 47, 51 HBR, 77, 254 Helmut Schlesinger, 34 Hendra Santoso, 236, 258 Hendrickus, 143 Hepman Damanik, 197 Hermann Simon, 77, 254 Hermanto Siregar, 140 Herry Prayudi, 200 Heru Setyati, 197 Hexana Tri Sasongko, 193 HGS 3, 237 HICP, 45 HKD, 29, 142 HKMA, 7 Hong Kong, 7, 29, 81, 136, 141, 155, 157 Hong Kong Special Administrative Region, 141 HS, 237 HS-333D, 237 HS-376, 237 HS-601, 237 HSBC, 47, 53, 54, 109, 110, 135, 151, 172, 240 HSBC Bank plc, 47, 53 HSBC Bank Plc S/A Saudi Arabian Monetary Agency, 135 HSBC Bk Plc Re Agus Fund Manager S/A Abu Dhabi, 135 HSBC BK plc S/A The Prudential Assurance, 135 HSBC France, 53 HSBC Holdings plc, 53 HSBC Ltd, 109, 110 Hubble, xiv, 226 HUF, 29 Hughes, 237 Hulp-en Spaarbankder Inlandsche Bestuurs Ambtenaren, 154 I Gde Yadnya Kusuma, 176 I Komang Sudiarsa, 141 I Made Suka, 195 IBA, 46 ICAP, 54 Icap Management Services Ltd, 53 Icap New Zealand Limited, 53 Icap plc, 53 ICE, 46, 47, 110 ICE Benchmark Administration, 46 IDR, vii, xi, 1, 21, 22, 86, 87, 88, 96, 97, 99, 100, 111, 112, 113, 114, 115, 116, 117, 122, 123, 124, 132, 146 IDX, 3, 140, 154 IEP, 31 Igor Nyoman, 151 Illinois Wesleyan University, 33 IM, 135 IMF, vii, 27, 28, 54, 254 Inasat-1, 237 Indo Premier Securities, 151 Indonesia Asahan Aluminium, 147, 150 Indonesia Eximbank, 169 Indonesia Fishery Society, 167 Indonesia Power, 147, 150 Indonesian Exports Financing Agency, 169 Indonesian Stock Exchange, 140 Indonesia-OSCAR 86, 237 Indosat, 236, 238, 240

Indostar, 237 Indostar-1, 237 INDOSTAR-107.7E-K, 236 INDOSTAR-107.7XS, 236 INDOSTAR-108.2XS, 236 INDOSTAR-110E, 236 INDOSTAR-110E-K, 236 INDOSTAR-118XS, 236 Indostar-2, 237 Indra Kesuma, 140, 178 Indra Praseno, 140 Indra Utoyo, 181, 190 Indrayeti, 177, 180 Industri Kereta Api, 147, 149 Infokom Elektrindo, 243, 247, 249 INMARSAT, 242, 244, 246, 249 INMARSAT-4 143.5E, 249 INMARSAT-4 F1, 242, 244, 246, 249 Innovation, Science & Economic Development, 233, 258 INS00000, 236 INS02800, 236 INS3501, 236 INS3502, 236 INSA_100, 236 INSB_100, 236 Institute of Space and Aeronautical Science, 221 Institute of Space and Astronautical Science, 221 INTELSAT, 219, 242, 243, 244, 245, 246, 249, 250, 251, 258 INTELSAT 12, 249 INTELSAT 17, 242, 243, 244, 246, 249 INTELSAT 19, 242, 243, 244, 245, 246, 249, 250 INTELSAT 20, 242, 243, 244, 245, 246, 250 INTELSAT 22, 219, 242, 246, 250, 258 INTELSAT 7, 250 INTELSAT 706, 250 INTELSAT 8, 242, 250 INTELSAT 805, 250 INTELSAT 902, 242, 250, 251 INTELSAT 904, 242, 251 INTELSAT 906, 242, 251 Intelsat APR1, 237 INTELSAT-20, 244, 251 INTELSAT5A 157E, 250 INTELSAT6 157E, 250 INTELSAT6 60E, 251 INTELSAT6 62E, 251 INTELSAT6 64E, 251 INTELSAT7 157E, 250 INTELSAT7 62E, 251 INTELSAT7 64E, 251 INTELSAT7 66E, 249 INTELSAT8 60E, 251 INTELSAT8 62E, 251 INTELSAT8 64E, 251 INTELSAT8157E, 250 INTELSAT9 60E, 251 INTELSAT9 62E, 251 INTELSAT9 64E, 251 INTELSAT9 66E, 249 INTERBELAR-2, 247 InterContinental Exchange, 46 Interior Ministry, 16 International Monetary Fund, 54, 254 Intersputnik, 237 INTERSPUTNIK-, 247 Inti Konten Indonesia, 147, 149 Inti Pindad Mitra Sejati, 147, 148 Inti Prima Cemerlang, 243, 247 IO 86, 237 IPSTAR-1, 242, 251 Ira Wirayanti, 195 Irama Mitra Media, 243, 249, 251, 252 Iranian, 27

Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia Irianto, 182, 192 Irianto Sunardi, 192 IRIDIUM, 251 Irish Punt, 31 IRNA, 219, 258 Irving Fisher, 13, 45 Irwan Junaedy, 200 Irwandi Yusuf, 167 IS-22, 242, 246, 250 ISAS, 221 ISAT, 237 ISED, 233, 258 iShares Core MSCI Emerging Markets, 138 iShares MSCI Indonesia, 138 ISS, xiv, 226, 237 ISS Reshetnev, 237 IT, iv, 144, 159, 193, 195 Italian, 27, 31, 33, 35 Italy, 221, 240 ITL, 31 J.P. Morgan, 31, 53, 137, 151 Jacob Gyntelberg, 54, 55, 254 Jaj Singh, 151 Jakarta, xi, xiii, xiv, 7, 10, 21, 29, 79, 103, 139, 140, 142, 143, 144, 154, 155, 156, 157, 158, 163, 166, 169, 170, 171, 172, 173, 175, 176, 177, 179, 180, 182, 184, 186, 187, 188, 189, 192, 193, 194, 195, 196, 197, 198, 200, 201, 216, 217, 218, 219, 220, 240, 254 Jakarta Kyoei Medical Center, 144 Jakarta Stock Exchange, 154 Jaminan Kredit Indonesia, 179 Janet Yellen, 73 Japan, 41, 53, 143, 221, 251, 252 Japanese, 27, 28, 100, 101 Jasa Marga, 147, 148 Jayapura, 156, 163, 182, 189, 198 JCSAT, 242, 243, 244, 245, 246, 251, 252 JCSAT-13, 251 JCSAT-2A, 252 JCSAT-3A, 242, 243, 244, 245, 246, 251 JCSAT-4B, 251 JCSAT-5A, 251 JCSAT-FO-124E, 251 JCSAT-FO-128E, 251 Jeffry J. Wurangian, 162, 163, 164, 165, 166, 182 Jeffry Jefta Wurangian, 172, 175, 177 Jeremy Kraft, 54 Jerry del Missier, 57 Jezri Mohideen, 49 Jimmy Tan, 49 Jiwasraya, 168 John Major, 40 John Maynard Keynes, 45 John Stumpf, 71 John T. Boorman, 11, 254, 255 Joice Farida Rosandi, 197 Jonathan Spicer, 60, 61, 253 Jones Investments, 31 Joshua Tanja, 151 Jovent Giovanny, 151 JP Morgan, xii, 47, 51, 135 JP Morgan Chase Bank, 47 JPM, 61, 72 JPMCB, 135 JPMorgan, 52, 53, 54, 57, 135, 136 JPY, 29, 46, 47, 57 JSX, 154 Jurgen Stark, 37 Justin H. Mims, 70, 254 Kabanjahe Vision Indonesia, 243, 247, 248, 249, 251, 252 Karaşimşek, 223, 258 Kashkari, 63, 257 Keenan, 53

Kejar, 144, 148 Kelola Jasa Artha, 144, 148 Kementerian Keuangan Republik Indonesia, 149 Kementerian Pertahanan, 236 Kemhan, 146, 237 Kereta Api Indonesia, 102, 147, 149, 150 Kevin Kwek, 151 Khairi Setiawan, 142 Khairullah, 201 KNPI, 170 Ko ELA, 237 Ko ELA-2, 237 Ko ELA-3, 237 Kokok Alun Akbar, 196 Komaruddin Hidayat, 140 Kominfo, 236 Koperasi Karyawan Bank Bukopin Jakarta, 144 Koperasi Karyawan BRI Syariah, 147, 149 Koperasi Swakarya BRI, 146, 147, 149 KOREASAT-8, 242, 243, 244, 245, 246, 247 Kourou, 238 Krakatau Steel, 102, 147, 148, 149 Kraton Imaji Utama, 170 Kresna Securities, 151 krona, 27, 46 krone, 27, 46 Kuala Lumpur, 29 Kuraygeo Service Indonesia, 244, 249, 252 Kurnia Chaerudin, 143 Kustodian Sentral Efek Indonesia, 144 Kuswardono, 196 Kuswiyoto, 181, 182, 183, 184, 188 Kyle Bass, 24 Lampung Mitra Media, 244, 248, 251 Laos, 252 LAOSAT-1, 252 Lapan, 237 Lapan A1, 237 Lapan A2, 237 Lapan A3, 237 LAPAN TUBSAT, 236 LAPAN-A3-SAT, 236 Lapan-ORARI, 237 LAPANSAT, 236 Lapan-TubSat, 237 Lausanne Conference, 38 Lee Bruce Stewart, 54 Lee Knight, 49 Leigh-Pemberton, 45 Lembaga Pembiayaan Ekspor Indonesia, 147, 148 Lembaga Penerbangan dan Antariksa Nasional, 236 Lembang Selayar Kabel Vision, 244, 248, 251 LEN Industri, 147 lending facility, 20 Leniency Notice, 57 LIBOR, vii, xi, xii, 23, 46, 47, 49, 50, 51, 53, 54, 110, 253, 254 LIFFE, 53 Lina Sari, 195 LIPPOSTAR 1, 251 lira, 27, 31, 33, 35, 36, 43 Lloyds Bank of Scotland, 54 Lloyds Bank plc, 47 Lloyds Banking Group, 47 Lloyds TSB Bank plc, 47 LM, 237 Loan and Saving Bank for Noble Indigenous, 154 Loan and Saving Bank for the Employees of Indigenous Local Leader, 154 Lockheed Martin, 237

Lockheed Martin Commercial Space Systems, 237 London, 23, 27, 29, 32, 34, 38, 45, 46, 47, 49, 53, 57, 165, 179, 190, 254 London Agreement, 38 London International Financial Futures Exchange, 53 London School of Economics, 27, 254 London Stock Exchange, 23 Long March 3B, 240 Long March CZ-3B/E, 240 Loo Kar Weng, 151 Loral Global Alliance, 221 Loral Skynet Satellite Services, 221 LSE, 23, 44 LSPP, 164, 183 LUF, 31 Luxembourg, 29, 31, 39, 135, 252 LUX-G5-25, 252 LUX-G7-20, 252 Lyall Taylor, 151 M. Fankar Umran, 199 M. Gunawan Yasni, 140, 179 M. Ridwan Rizqi R. Nasution, 142 M. Sodo Harisetyanto, 142 M2A, 237 Macquarie, 151, 195 Mahdi3d, 219, 258 Mahmud, 162, 172 Mahmuddin Yasin, 142 Makassar, 156, 163, 173, 182, 186, 188, 193, 199, 200, 244, 248, 250, 251 Makassar Multimedia Digital Sistem, 244, 248, 250, 251 Makianos Network, 244, 248, 252 Malang, 156, 157, 163, 172, 182, 187, 192, 193, 194, 196, 197, 198, 199, 200 Malaysia, 251, 252 Manado, 156, 157, 163, 172, 182, 199, 200 Mandiri Sarana Informasi, 244, 247, 248, 249, 250, 251 Mandiri Sekuritas, 151 Marcus Agius, 57 Marine and Fishery Exploration Department, 167 Marine and Fishery Ministry, 167 Mark, 27, 49, 54, 253 Mark Stevenson, 54 Mark Whitehouse, 49, 253 Markit Group, 50, 51 Marshall Plan, 41 Martin Brokers, 54 Maxxnet Elde Hawe, 244, 248, 250 Maybank Kim Eng, 151 MBS, 60, 73 MCI, 237 MEASAT, 242, 243, 244, 245, 246, 251, 252 MEASAT-1, 251, 252 MEASAT-1A, 252 MEASAT-3A, 242, 243, 244, 245, 246, 251, 252 MEASAT-3B, 242, 244, 245, 246, 252 Medan, 143, 156, 157, 163, 180, 182, 187, 192, 197, 198, 200 Media Cakrawala Nusantara, 244, 248, 250 Media Citra Indostar, 236, 237 Media Citra Indovision, 237 Media Televisi Kabel Indonesia, 244, 247, 250, 251 Megah Surya Persada, 244, 249 Megasatcom, 244, 247, 249 Meiditomo Sutyarjoko, 197 Menara Proteksi Indonesia, 144 Meranti Vision, 244, 247, 248, 249, 250, 251, 252 Merapi Gelanggang Wisata, 144

263

Sando Sasako Merpati Nusantara Airlines, 172 Metra Digital Innovation, 190 MICE, 78 Michael E. Porter, 44 Michael Kraten, 49, 254 Michael Ovaska, 61, 254 Michael Ross Curtler, 54 Michael Tanglis, 69, 254 Mick Denton, 223, 258 Microsoft, 4, 91 Mike Terceiro, 49, 254 Milka Mutiara, 151 Milton Friedman, 11, 254 Minang Saluran Ceria, 244, 248, 250, 251, 252 Minister of Youth and Sports, 170 Ministry of Finance, 102, 146, 162, 169, 171, 172, 176, 180 Ministry of Laws and Human Rights, 140, 141, 142, 143 Ministry of SOEs, 162, 166, 168, 174 Minneapolis, 63, 254 Minnesota, 49, 253 Mishkin, 35, 40, 42, 43 Mitra Banten Multimedia, 244, 248, 249, 250, 251 Mitra Himalaya Perdana, 170 Mitra Papua Vision, 244, 248, 249, 250, 252 Mitra Sentosa Abadi, 179 Mitra Vision Balikpapan, 244, 247, 248, 251 Mizuho Bank Ltd, 47 Mochammad Hadi Santoso, 140 Mohamad Helmi, 197 Mohammad Irfan, 181, 182, 183, 188 Mollenkamp, 49, 54 Moniek Wolters, 33, 254 Morgan Stanley, 53, 57, 135, 151 Mori Raya, 244, 248, 249, 250, 251 Morningstar, 86, 87, 88, 106, 125, 126, 127, 128, 129, 130, 131, 132, 133, 136, 137, 138 Muhamad Chatib Basri, 15 Muhamad Sidik Heruwibowo, 200 Muhammad Syafri Rozi, 197 Mulabasa Hurabarat, 180 Multi Media Sentral, 245, 248, 249 Multimedia Nusantara, 190, 245, 249 Mulya Chandra, 151 Mulyadi, 236, 258 Mustafa Abubakar, 162, 163, 164, 165, 166, 167, 175, 177, 182 Mustari Damopoli, 141 MXN, 29 MYR, 29 Nadira Intermedia Nusantara, 245, 249 Nandi Hendrian Hamaki, 143 NASA, 220, 221 National Bank of Abu Dhabi, 109 National Credit Union Administration Board, 70 National Energy Board, 162, 171 NATO, 41 NCUA, 70 Nederlandsche Handels Maatschappij, 154 Neel Kashkari, 63, 254, 257 Neil Danziger, 49 Neil Fonseca, 151 Netherland, 27 Netherlands, 31, 39, 252 Netherlands Antilles, 31 New Sparta Asset Management, 27, 254 New York, 29, 57, 135, 155, 165, 187, 194, 254 New Zealand, 8 NewSat 1, 237 Ngatari, 199

264

NHM, 154 Nick Leeson, 45 Nicolaus Teguh Budi Harjanto, 170 Nilesat, 221 NLG, 31 NOK, 29 Nomura, 151 NORAD, 216, 258 Nordea Bank, 135 Nordea Inv Mgt AB, Copenhagen, 137 Nordea Investment Management AB (Denmark), 136 Norinchukin Bank, 47 Norman Lamont, 36, 40 Northern Trust, 135 Norwegian, 27 NPO PM, 237 NPO Prikladnoi Mekhaniki, 237 NSS, 243, 246, 252 NSS-6, 243, 246, 252 NSS-9, 252 NSTAR-A2, 251 NT TST Co S/A Generation IM Fund Public, 135 Nurullah Akhsan, 195 NUSANTARA, 236 NUSANTARA-A1-A, 236 NUSANTARA-B2-F, 236 NUSANTARA-B3-A, 236 NUSANTARA-B4-A, 236 NUSANTARA-H1-30, 236 NUSANTARA-H1-30A, 236 NUSANTARA-H1-30B, 236 NUSANTARA-H1-A, 236 NUSANTARA-H1-A_1, 236 NYDFS, 57 NYSE, 53 NYSE Euronext, 53 NZD, 29, 32, 46 O3B, 252 OCBC, 110 OCC, 70, 71 Office for Outer Space Affairs, 220 Office of the Comptroller of the Currency, 70 Office of Thrift Supervision, 70 OJK, 140, 141, 142, 143, 173 OMNISPACE F-2, 252 ONIX Capital, 151 ONS, 45 Operation Twist, 60 ORBCOM, 252 Orbcomm, 209 Orbital Sciences Corporation, 237 Osbal Saragi Rumahorbo, 198 OSC, 237 OT, 60 OTC, xii, 58, 59 OTS, 70 Ousmène Jacques Mandeng, 27, 254 Overseas-Chinese Banking Corp Ltd, 109 Oxygen Multimedia Indonesia, 245, 248, 250 Pacific 2000 Investindo, 179 Pacific Exchange Rate Service, 31, 255 PACIFISAT, 247 PACIFISAT C/KU-2, 247 PACIFISAT KA-2 159E, 247 Pacome Revillon, 214, 230, 232, 233, 258 Padang, 156, 157, 163, 167, 182, 188, 193, 199, 201 Paksat 1, 237 Palapa, vi, xiv, 224, 237, 238, 240, 241, 245, 248, 250, 252 Palapa A1, 237 Palapa A2, 237 Palapa B1, 237 Palapa B2, 237 Palapa B2P, 237

Palapa B2R, 237 Palapa B3, 237 Palapa B4, 237 Palapa C1, 237 Palapa C2, xiv, 224, 237, 240 Palapa C-2, 238 Palapa D, 237, 240, 241 Palapa E, 237 Palapa N1, 237, 240, 241 Palapa Nusantara 1, 237 PALAPA PAC-C 146E, 236 Palapa Pacific 1, 237 PALAPA PACIFIC 144E, 236 Palapa Pacific-1, 237 Palapa Pacific-2, 237 PALAPA PAC-KU 146E, 236 Palapa Satelit Nusa Sejahtera, 240 Palapa TV Entertainment, 245, 248, 250, 252 PALAPA-B1, 236 PALAPA-B1-EC, 236 PALAPA-B2, 236 PALAPA-B3, 236 PALAPA-B3 TT&C, 236 PALAPA-B3-EC, 236 PALAPA-C1, 236 PALAPA-C1-B, 236 PALAPA-C1-K, 236 PALAPA-C2, 236 PALAPA-C3, 236 PALAPA-C3-K, 236 PALAPA-C4, 236 PALAPA-C4-A, 236 PALAPA-C4-B, 236 PALAPA-C4-K, 236 Palapa-N1, 241 Palembang, 156, 157, 163, 182, 189, 196, 198, 200 Pamong Praja, 154 Pamuji Gesang Raharjo, 175 Pangkal Pinang Vision, 245, 247, 248, 249, 250, 251 Pangreh Praja, 154 Papiermark, 38 Papua, 156, 238 Para Group, 172 Paris, 29, 36, 179, 203, 214, 258 Paser Media, 245, 248, 250 Pasifik Satelit Nusantara, 236, 240, 245, 247, 249 Patrick Blau, 218, 258 Paul Robson, 54 Paul Tudor Jones, 31 Paul White, 54 PBoC, 7, 24, 29 Pefindo, 111 Pegadaian, 102, 147, 148, 149, 176 Pekanbaru, 156, 157, 163, 173, 182, 198, 200 Pelindo I, 180 Pembangunan Perumahan, 147, 149 Pemeringkatan Efek Indonesia, 144 Pemerintah Republik Indonesia, 148 Penajam Multimedia, 245, 247, 248, 249, 250, 251 PER, 121 Permodalan Nasional Madani, 170 Pertamina, 147, 148, 149, 150, 168 Pertamina Lubricants, 147, 148 Pertamina Patra Niaga, 147, 149 Perth, 238 Perum Djawatan Angkoetan Motor Republik Indonesia, 147 Perusahaan Gas Negara, 147, 150 Perusahaan Listrik Negara, 102, 147, 148, 149, 150 Perusahaan Pengelola Aset, 174 peseta, 27 Philip Wooldridge, 54, 55, 254

Asset Bubble, Bank Rakyat Indonesia, & Satellite Business in Indonesia Phillip Securities, 151 Phillips, xi, 44 Pindad, 147, 148, 149 Pindad Enjiniring Indonesia, 147, 148 Pintar Nusantara Sejahtera, 240 PKSS, 144 PLDT, 237 PLN, 29 PNG, 247, 252 Portuguese, 31, 36 Posen, 35, 40, 42, 43 Potemkin villages, 53 pound, 27, 33, 256 PP, 106, 154 PPATK, 176 PRC, 74, 255 President, 34, 36, 57, 63, 162, 167, 168, 172, 177, 178, 179, 181, 186, 187, 190, 191, 192, 254 Presley Hutabarat, 198 Prima Karya Sarana Sejahtera, 144 Primacom Interbuana, 245, 249 Prime Minister, 36, 40, 45 Priyastomo, 181, 182, 183, 184, 188 Proton, vi, xiii, 216, 218, 219, 237 Proton-K Blok-DM3, 237 Proton-M, vi, xiii, 216, 218, 219, 237 Proton-M Briz-M (Ph.2), 237 Proton-M Briz-M (Ph.3), 237 Protostar, 237 Prudential Life Assurance, 135 PSLV, 237 PSLV-G, 237 PSLV-XL, 237 PSN, 236, 237, 240, 241 PSN 5, 237 PSN 6, 237 PSN 7, 237 PSN-146E, 236 PSN-6, 241 PSN-7, 241 PSNS, 237, 240 PT PNS, 240 PTE, 31 Puti Adani, 151 QE, 5, 6, 60, 61, 253 quantitative easing, 5, 60, 61 Quantum, 31, 32 R. Denny Soelistyo Adji, 200 Rabobank, 47, 54 Rachmad Guntur Kristianto, 198 Raden Bei Aria Wirjaatmadja, 154 Radja Anambas Bersinar, 245, 248, 249, 251 Rahmi Sari Marina, 151 Rahul Mittal, 33, 254 Railink, 147, 150 Rainoc, 174 rand, 27 Randi Anto, 181, 182, 183, 184, 189 Rapat Dewan Gubernur, 9 RASCOM, 221 Raymond Kosasih, 151 RBS, 49, 54, 56, 253, 256 RCA, 69 RDG, 9 Reasuransi Indonesia Utama, 174 Regional African Satellite Communications Organization, 221 Registrar of Companies, 141 Rehabilitation and Reconstruction Agency for Aceh and Nias, 169 Reichsmark, 38 Rekayasa Industri, 147, 150 Reksa Dana Schroder Dana Prestasi, 135 renminbi, 27, 28 Rentenmark, 38 repo, 11, 20 Retno Wahyuni Wijayanti, 195

Reuters, 46, 50, 51, 60, 61, 253, 256 reverse repo, 20 RHB Securities, 151 rial, 27 Rianto Ahmadi, 142 Richard Jerry, 151 Ridwan Rizki Nasution, 179 riyal, 27 RM, 38, 187 ℛℳ, 38 RMB, xi, 27, 29, 30 Robeco Institutional Asset Mgmt BV, 137 Robert D. Matson, 219 Robert Diamond, 57 Robert McNaught, 219 Robert Parker, 41, 254 Robin Leigh-Pemberton, 39, 45, 254 root cause analysis, 69 Rosa M Abrantes-Metz, 49, 254 Roswita Nilakurnia, 141 Royal Bank of Canada, 47 Royal Bank of Scotland, 47, 49, 53 RP, 54, 233, 258 RP Martin, 54 RPI, 45 RPIX, 42, 45 RUB, 29 Rudjito, 144 Russia, 220, 221, 228, 247 Russian, 57, 221 Russian Academy of Sciences, 221 Ryndo Jaya Visual, 245, 247, 248, 249, 250, 251 S&P, viii, xii, 61, 62, 126, 127 Sahala Manalu, 141 Samuel Sekuritas Indonesia, 151 Sanjay Jain, 151 Santander UK plc, 47 Sanwa – BRI Finance, 143 Sanwa – BRI Leasing, 143 Sanwa Bank, 143 Saptono Siwi, 141, 192 SAR, 29, 209 Sarana Bersama Pembiayaan Indonesia, 144 Sarana Mukti Adijaya, 236 Sarana Multigriya Finansial, 95, 147, 148 Sarana Wana Jaya Foundation, 140 Sari Usaha Leasing, 143 Sarina Lesmina, 151 Saseka Finance, 172 Satelindo, 237 Satelit Palapa Indonesia, 237 Satellite Industry Association, 202, 205, 212, 214, 215, 224, 230, 258 SatKomHan 1, 237 Satkomindo, 144, 146 Satkomindo Mediyasa, 144, 146 Sauder School of Business, 31, 255 Saudi Arabia, 27, 135 Saudi Arabian Monetary, 135 SBI, 20 SBIS, 20 SBN, 20 SBSN, 20 Scapa Flow, 38 Schroder Indonesia, 135 Schroder Investment Management Indonesia, 136 Scott Nygaard, 49 Scott Peng, 50 SDBI, 20 SDR, vii, 27, 28, 30, 254 SEC, 70 Securities and Exchange Commission, 70 SEK, 29 Semarang, 156, 157, 163, 166, 171, 172, 182, 188, 189, 197, 198, 200

Sentral Multi Telemedia, 245, 247, 248, 249, 251, 252 Seoul, 29 SES, 237, 245, 246, 252 SES-7, 237, 252 SES-9, 245, 246, 252 SG, 131 SGD, 29 SGX, 46 Shearman and Sterling, 71 Shenzhen, 8 shilling, 27 Shinta Buana Vision, 245, 248, 249, 251, 252 SIA, 207, 208, 211, 212, 213, 258 Sichuan, 240 Sidimpuan Multimedia, 245, 248, 250, 252 Sigit Murtiyoso, 196 Sigma Cakrawala Multimedia, 245, 249, 250 Sinarmas Sekuritas, 151 Singapore, 29, 49, 81, 100, 101, 110, 135, 136, 155, 168, 252 Singkawang Vision, 245, 247, 248, 249, 251, 252 Sino Satellite Communications, 237 Sinosat 1, 237 Sis Apik Wijayanto, 181, 182, 183, 189 Sisfo Indonesia, 246, 249 Siswarin Dwi Hendarsapti, 142 SKK, 46 Skyreach, 246, 247, 249, 250 Slamet Sugiarto, 201 SNB, 61 Social Science Research Network, 49, 254 Société Générale, 33, 47, 53, 54 Sofyan Jalil, 167 SOG Indonesia, 246, 249 Sol Media Indonesia, 246, 247, 248, 249, 251, 252 Sony Harsono WS, 195 Soros, 23, 24, 31, 32, 34, 39, 256 South African, 27 Soviet Union, 220 Space Systems Loral, 241 Space Systems/Loral, 237, 238, 258 Space Transportation System, 237 Spacebus, 237 Spacebus-3000A, 237 Spacebus-4000B2, 237 Spacebus-4000B3, 237 SpaceX Falcon 9, 241 Spanish, 27, 31, 36 Spicer, 61 SPM, 9, 23, 53, 60 Sputnik 1, 220 Sr SLP, 237 Sri Mulyani Indrawati, 15 SSB, 135 SSL, xiv, 2, 3, 225, 237, 238, 253, 258 SSL-1300, 237 SSN, 220, 221 St. Louis Fed, 11 ST-1A, 252 ST-2, 242, 243, 244, 245, 246, 252 Stamford, 49 Standard Chartered Bank, 109, 110 standing facility, 17, 20 Stanley Druckenmiller, 32 Star-2 Bus, 237 State Council, 73, 74, 255 Stephan Hasjim, 151 sterling, 23, 25, 27, 28, 31, 32, 33, 34, 35, 36, 39, 40, 43, 256 Steven Drobny, 35, 255 Still, 61 STS, 237 STS-11 (PAM D), 237

265

Sando Sasako STS-7 (PAM D), 237 stuffin.space, 216, 217 Stumpf, 71 Sucorinvest Central Gani, 151 Sue Lin Lim, 151 Sugeng Sudibjo, 142 Suindiyo, 177 Sukapraja Estetika Padang Golf, 144 Sukapraja Golf, 144 Sumihar Manullang, 200 Sumitomo Mitsui Banking Corp, 47, 109 Sun, 23 Sunarso, 181, 183, 184, 186 Sunuaji Noor Widiyanto, 176 Supardi Santoso, 196 Supari, 182, 193 Suprajarto, 181, 186 Surabaya, 140, 143, 156, 157, 163, 173, 182, 187, 188, 192, 193, 195, 196, 197, 198, 200 Surabaya Stock Exhange, 140 Suria Dharma, 151 Surya University, 241 Susy Liestiowaty, 181, 182, 183, 184, 190 Sutadi, 196, 199 Sutanto, 200 Sutardjo, 196 Sutarto Alimoeso, 167 Swedish, 27, 46 Swiss, 57, 100 Syahrir Nasution, 176 Syaiful Adrian, 151 Sydney, 29, 225, 258 Sydney Plavins, 225, 258 Syomin Ginko, 154 T.S. Kelso, 219, 258 Taiwan, 29, 141, 167 Tan Chi Min, 49 Tangara Mitrakom, 246, 247 TAS, 237 Taspen, 135 T-bill, xii, 11, 50, 51 Teguh P. Hartanto, 151 Telekomunikasi Indonesia, 147, 148, 168, 236, 246, 247, 252 Telekomunikasi Selular, 147, 150 Televisi Kabel Saluran Bintan Ceria, 246, 248, 249, 252 Telkom 1, xiii, 217 Telkom 2, xiii, 217 Telkom 3, vi, xiii, 216, 217, 218, 220, 258 Telkom MDI, 190 Telkom Metra, 190 Telkom-1, 237 TELKOM-108E, 236 Telkom-2, 237 Telkom-3, 216, 237 TELKOM-3EK, 236 Telkom-3S, 237 Telkom-4, 237 TELSTAR 18, 246, 247 Templeton Asset Management Ltd, 136 Tepian Multimedia, 246, 249, 250, 252 term deposit, 20, 47 Thaicom, 240 THAICOM-4C, 242, 251 THAICOM-IP1, 251 Thailand, 165, 251 Thales Alenia Space, 237, 240 THB, 29 Theo Waigel, 36 Thomas M. Havrilesky, 11, 254, 255 Thomas Youle, 49, 253 Thomson Reuters, 46, 47, 60, 61, 253 THURAYA-3, 244, 252 Tinodungan, 200 Titan Sarana Niaga, 146

266

Tjandra Lienandjaja, 151 Tjoekir Dasa Nusantara, 144 TLKM, 237 T-note, 20 Todd Morakis, 49 Toelangan Dasa Nusantara, 144 Toeloengredjo Dasa Nusantara, 144 Toelongredjo Dasa Nusantara, 144 Tokyo, 47, 49, 109, 110, 143, 220 Tolstedt, 71 Tonga, 247 TONGASAT, 247 TONGASAT AP-2, 247 TONGASAT AP-3, 247 TONGASAT C/KU-2, 247 TONGASAT C/KU-3, 247 TONGASAT-2/138E, 247 Toronto, 29 Totok Hermiyanto, 178 TPE, 237 TransPonder Equivalent, 237 Treasury bonds, 27 Treasury Secretary, 53 Treaty of Versailles, 38 Tri Wintarto, 201 Trimegah Securities, 151 TRY, 29 TU Berlin, 237 Tubagus Nur Ahmad Maulana, 177, 180 TU-Berlin, 237 Tubsat 7, 237 UAE, 252 UBS, xii, 47, 49, 51, 53, 54, 151, 254 UCS, 202, 204, 221, 258 UDAAP, 70 UFJ – BRI Finance, 143 UFJ Bank Ltd, 143 UK, i, xi, 23, 25, 33, 34, 35, 36, 39, 40, 42, 43, 44, 45, 46, 47, 53, 57, 136, 190, 221, 249, 252, 253 UN Committee on Space Research, 237 UN GA, 220 unfair, deceptive, abusive acts and practices, 70 Union of Concerned Scientists, 202, 204, 221, 258 UniSat, 237 UniSat ++, 237 United Overseas Bank Ltd, 109 Universal Satelit Indonesia, 237 University of British Columbia, 31, 255 UNOOSA, 220 UOB, 110, 151 UOB Kay Hian, 151 US, viii, x, xi, xii, xiii, 8, 11, 21, 22, 25, 27, 31, 38, 41, 45, 53, 56, 57, 60, 62, 63, 70, 71, 73, 74, 109, 110, 146, 171, 172, 194, 205, 212, 213, 220, 221, 228, 238, 255, 256, 257 US Space Surveillance Network, 220 US Strategic Command, 220, 221 US Treasury securities, 11 USA, 81, 165, 168, 169, 170, 178, 180, 187, 189, 195, 198, 200, 201, 249, 250, 251, 252 USASAT, 249, 250 USASAT-14G, 250 USASAT-14H, 249 USASAT-14I, 250 USASAT-14I-2, 250 USASAT-14I-3, 250 USASAT-14J, 250 USASAT-14J2, 250 USASAT-14K, 249 USASAT-55L, 250 USASAT-60B, 249 USASAT-60C, 250

USASAT-60H, 249 USASAT-60J, 250 USD, vii, xi, 25, 27, 29, 31, 34, 36, 38, 41, 43, 46, 47, 49, 51, 53, 54, 56, 58, 111, 146 UUS BRI, 139 Valbury Asia Securities, 151 Van Allen, xiv, 226, 227, 228 Vancouver, 31, 255 Vanguard, 135, 136, 137, 138 Victoria Duff, 11, 255 Vincentius S. Loho, 162, 163, 165, 182 Vincentius Sonny Loho, 164, 171, 175, 178 Visual Intermedia Prima, 246, 247, 248, 249, 250, 251, 252 Vladimir Putin, 57 Volksbank, 154 Wahyu Widodo, 200 Washington DC, 69, 202, 207, 254, 258 Waskita Beton Precast, 102, 147, 149 Waskita Karya, 102, 147, 148, 149, 150 Weimar, 38 Wells Fargo, xii, 57, 69, 70, 109, 254, 255, 257 Werner Antweiler, 31, 255 West LB, xii, 47, 51 Western Australia, 238 Westpac Banking Corp, 109 WFC, vii, 69, 70, 71, 72 White Wednesday, 34 Whitehouse, 49, 54 Whole Foods, 77, 254 Widjanarko Puspoyo, 167 Widodo Januarso, 198 Wijaya Karya, 147, 149, 150 Wijaya Karya Industri Energi, 147, 149 Wildan, 140 William Mamudi, 151 World Bank, 167 WSJ, 49, 50, 51, 73, 253 WW, 38, 44, 45 Xi LC-2, 237 Xichang Satellite Launch Center, 240 Xinnuo 1, 237 Yamal-402, 218, 258 Yana Soeprianan, 198 Yap Swie Cu, 151 Yayasan Danar Dana Swadarma Bank BNI, 144 Yayasan Kesejahteraan Karyawan Bank Bukopin, 144 Yayasan Kesejahteraan Karyawan Bank Indonesia, 144 Yayasan Kesejahteraan Pekerja BRI, 144 Yayasan Leuser Internasional, 167 yen, vii, 27, 28, 49, 54 Yen Interest Rate Derivatives, 53 YIRD, vii, 53, 54, 57 YKP BRI, 139, 142, 143, 144 YLI, 167 Yogyakarta, 103, 156, 157, 163, 166, 170, 176, 177, 182, 184, 186, 188, 189, 192, 193, 195, 196, 197, 198, 199, 200, 201 Yoshua Palti, 198 Yosriadi, 195 yuan, 24, 29, 30 Yuanta Securities Investment Consulting Co. Ltd, 151 Yue Wang, 78, 255 Zainuddin Mappa, 141 ZAR, 29 Zuhri Anwar, 141 Zulhelfi Abidin, 181, 182, 184, 190 ZX 5B, 237