Cikaldana newsletter second edition, featuring: the rise of Luxury Service Provider in Indonesia, example of retirement planning with numbers, retail bonds as investment alternative, and Indonesia economic review Q1-2014.

1. NOW i KNOW !
CIKALDANA NEWSLETTER NO. 2 - 2014
GREETINGS FROM CIKALDANA
Here comes our second edition of our quarterly newsletter.
In this rapidly growing world, having a life pampered with luxury is no
non-sense for some people. With the growth of the ultra high-net-
worth (UHNWI) individuals, the presence of luxury service provider
continues to becoming noticeable, not only in major countries, but
also Indonesia. This type of company provides assistance and
exclusive access to any luxury services and goods, from simple to the
most almost-impossible requests.
This NOW i KNOW ! edition features the rise of luxury services
company providing personal concierges for their clients. Find the
article in ’Luxury Service at Your Door Step’ section.
We hope this newsletter could be of use to you and enhance your
financial wisdom. Enjoy reading!
Regards,
Fitrah Avianti
Marketing Director
On this issue:
Economic Update Q1 2014
Retiring on Track
Fixed Income: Retail Bonds,
what and why
Luxury Service at Your
Door Step
www.cikaldana.com 1
2
3
4
5
The term ‘blue chip’ comes
from the poker game where
the highest chip denomi-
nation is colored blue.
Do you know?

2. ECONOMIC UPDATE
Q1 2014
2014 – A good start despite the big question mark on the
general election effects
Economy Corner
www.cikaldana.com 2
After a bumpy year for the country’s economy in
2013, Indonesia is expected to perform well in 2014.
Between January-March, the country was recorded
to set up a more confident economic and business
environment platform. Several macro-economic
indicators were noticed showing an optimistic
performance during the first quarter of the year.
By end-March, Rupiah was closed at IDR 11,404
per US dollar, strengthening by around 7% from
IDR 12,270 in the previous quarter. Inflation
continued to show positive trend, moving downward
to 7.32% in 1Q14 compared to 8.38% in 4Q13. This
is aligned with the government target to set the
inflation rate at 4.50%±1 for this year.
Meanwhile, Bank Indonesia kept the BI rate flat at
7.50% after reviewing the overall economic
condition and forecast for the future in which the
rate is still consistent with the inflation projection in
2014 at around 4.5% ± 1%.
Source: Bank Indonesia, IDX
In the recent weeks, the Jakarta stock market
boosted with prices rally after the main opposition
party nominated Jakarta Governor Joko Widodo as
its presidential candidate. At end-March, the
composite index was closed at 4,768 rose by
around 12% from 4,274 in the previous quarter. The
growing optimism over the general election has also
help the index to accelerate in this quarter, as well
as boosting the domestic spending.
Looking ahead, Indonesia’s economy is expected to
continue growing on the back of healthy consumer
spending and strong investment. The economy is
also well-positioned to benefit from the more stable
political landscape in the country. As such, for 2014,
the central bank forecasted GDP growth to be at the
range of 5.50% to 5.90%.

3. www.cikaldana.com 3
Financial Planning Corner
RETIRING ON TRACK
Embracing retirement without worry and making it one of the
best time in your life
Planning for a retirement fund has always been a
challenging task for almost everyone. Typical ques-
tions arisen are: Do I need a retirement fund? Do I
need to plan for my retirement? Well, one good
news: there’s no right or wrong answer to the
questions.
Ones whose answer is YES however, usually feel
the need to have a sum of fund to cover the living-
cost for themselves (and with their spouses) during
the ages they are no longer working for a living (or
in other words, no longer have income), that is the
retirement age. The feeling of that need mainly
arise from a presumptions that the current pension
scheme provided by the company or government’s
social system would not suffice the objective.
Those feeling and presumptions need to be taken
further to some quantitative measures, in particular
for ones to be more objective in looking whether or
not creating a retirement plan is a necessary option.
What are the quantitative measures? How do you
know how much fund we need for retirement?
You need to know what age you plan to start retiring
and what age you are to end your retirement age.
The period between the starting and ending of
retirement age is the duration which you will need
the fund.
Next, you need to know how much fund or money
will be needed in that duration. You can calculate
and estimate the ‘how much’ by taking your current
living cost as one of the cost reference.
Multiply your current living cost – monthly or
annually – by the duration of retirement period. Take
into calculation the inflation of the living cost, and
you will get the Number. This Number is the
amount of fund you need to pay for your living cost
during your retirement period.
By planning, a sum of money in an amount of that
Number has to be available to you, as you enter
retirement age. The next thing you need to know is
whether you will have that fund available with you at
your retirement age; and whether you will need to
save/invest to accumulate your asset(s) for
retirement fund.
Examples to give some ideas to the Numbers:
suppose you are currently at age-35, plans to start
retirement at age-55, and plans to end retirement at
age-70. Assume your cost of living of Rp15-million
per month with an inflation rate of 10% annually.
If you assume to put your future retirement fund into
time deposits or government bonds with a 6% net
annual yield, the retirement fund needed to be
available at your retirement age (55 years) will be
around Rp22.5-billion.
Planning to have that Rp22.5-billion at age 55, you
have 20 years time to accumulate the fund by
saving or investing. Investing from scratch into an
aggressive financial investment instrument, a
monthly investing of Rp3.4-million continuously for
20 years, can potentially help you achieve that
Number at your age 55.

4. www.cikaldana.com 4
Research Corner
FIXED INCOME: RETAIL BONDS,
WHAT AND WHY
A growing era of retail bonds in Indonesia
Talking about investing in a stock market, the first
thing comes to many people’s mind is usually the
stock. The dynamic of stock investments, higher
media exposures and success stories of some
people who invest in stocks, make the stocks more
appealing. Many have few knowledge that bonds
are also traded in a stock market.
Bonds or ‘obligasi’ or also known as ‘surat utang’, is
a kind of investment instrument in stock market
available for retail investors (individuals) and
corporates. Bond is a debt investment in which an
investor loans money to an entity (corporate or
government) for a defined period of time at a fixed
interest rate. The loans are usually used by the
company or government to finance their projects or
activities.
Bond is classified as fixed income investment. The
interest rate or called ‘coupon’ is paid to the
investors periodically during the period of time
(usually 3-or-6 months), while the principal is paid at
the maturity date.
Bond is considered as a long-term investment. The
attractiveness of bonds for the investors lie down in
the interest rate that is usually higher than a deposit
account; and for the lower risk compared to stocks.
As for the bond issuers, they benefit from obtaining
loans with lower interest rates than bank loans.
Along with the growth of Islamic banking and
investment, notice also the growth of Islamic
bonds or called ‘sukuk’. The major difference
between conventional bonds and sukuk is that
sukuk have to comply with Sharia principles or
Islamic law. In sukuk, the issuers have to define the
underlying assets, which is not the case in bond.
Talking about risks, there is always risk in any
investments. Bonds are considered to have lower
risks compared to stocks, especially bonds that are
issued by government. Among others, there is risk
of inflation, when the inflation rate runs higher
during the tenor of the bonds. The longer the term of
a bond, the greater the chance that the yield payout
won't keep pace with inflation.
Indonesian government has released several retail
bonds name ORI (Obligasi Retail Indonesia) since
2006 (ORI 001). In 2009, the government started to
offer Sukuk (SR-001) to retail investors. Taking a
look at the interest rates, ORI and Sukuk generally
offer higher return than deposit account. This is why
some people goes to bonds for their investment.
Below is the list of current ORI and Sukuk issued
yet to mature:

5. www.cikaldana.com 5
LUXURY SERVICE AT YOUR
DOOR STEP
Lifestyle Corner
The rise of luxury services providing personal concierge
Are you looking for a private jet for an exclusive trip?
A yacht for a romantic cruise?
Luxury suite in an exquisite hotel in Dubai?
May be an exclusive ticket for a red carpet event?
Or the newly-launched luxury watch available only in
limited edition?
You once may be wondering how to get those
luxury services. But now you can easily dial your
personal concierge and they will provide you with
exclusive access to any luxury services and goods.
As simple as that.
Despite the economic turbulence, the ultra high-net-
worth individuals (UHNWI) number has been
growing very fast in the world currently; 3% increase
from a year before and ballooned by 59% since
2003, according to the 2014 Wealth Report released
by Knight Frank. These count the number of
individuals with US$30million or more in net assets
to over 167,000 worldwide.
For people live in a high class society, having a
personal concierge that could provide any of their
needs is beyond measure. This helped the growth
of luxury service providers not only in major cities
like London, Paris or New York, but also in New
Delhi, Seoul, and of course Jakarta.
Quintessentially, Prive International, John Paul,
Preferred Group, Pure Entertainment Group, Inc.
and One Concierge are among the well-known
companies providing this type of service.
A personal concierge responds to any request of
their clients, from simple to the most unusual. Their
services varies from 24/7/365 daily concierge, table-
booking in a fine restaurant, babysitter-hiring,
complete assistance for business or vacation trip
around the world, access to private events and
business networks, private jet, helicopter or yacht
charters, exclusive residential, luxury goods, access
to VIP events, to personal shopping assistant/image
consultant or personal security services. Basically
anything. You mention.
Some of them may need your membership, but
there are also others that don’t. Their clients are
typically high net worth individuals whom are in
business, entertainment, sports and politics. They
could be bankers, CEOs, celebrities, top 100 Forbes
list, or anyone who enjoy living in a lap of luxury.
How much do they charge? Membership fee may
vary between providers. It also depends on the
complexity of the package. Taking the range of the
cost, it may go from around US$1,500 per person
per year to around US$45,000 per person per year,
for the most elite membership.
Well, now if you need to make a reservation in a
hard-to-get-table Michelin restaurant, you know
where to seek for help. Your personal concierge is
just a dial away.
PT Cikaldana Korpora
Sovereign Plaza 21st Floor, Jl. TB Simatupang Kav.36, Jakarta 12430
P: +62 21 2939 8727, F: +62 21 2939 8898
E-mail: contact@cikaldana.com