Roboth, Stevano Rafael Bus.

Finance 1 / Parallel C Watching Report and Testimonies of Inside Job The movie is talked about financial crisis occurred in U.S that affected the global economy. The introduction give an example of Iceland city that before the deregulation, the city was a good place for family to live but according to the movie, it became a troublesome situation that cause all people affected by the financial crisis. U.S for 40 years never arise a financial crisis because of the tight regulation. But after the deregulation that allowed the financial institution more free and less regulated became more risky. The investment banks became a public companies. After that the average salary in investment banking rose up. But it made many of financial institution caught of the fraud. In early of 2000, the new method of mortgage lending developed. The old way, home buyer paid the mortgage to lenders and kept it. But in a modern way, the lender sold the mortgages to investment banks, the investment bank combined the mortgages, loan and etc as a derivates called collateral debt obligations (CDOs) and sold it to investor because investor prefer CDO than to a 1% of interest rate of investment. The home buyer paid their mortgage, the money went to the investors. It made a high profit but also a time bomb because allowed the subprime loans that riskiest. People more preferred the loan and mortgage lending without realized the destruction The bomb exploded, the crisis began when the mortgage couldnt be paid and every aspect affected. It lead to the bankruptcy of several banks and corrupted. A ticking time bomb at last exploded and made the people abandon their home and asked a repaid. After the crisis, many of the leaders were brought to testified their action but most of them did not have responsibility or did not concern their actions.

The Financial Market Environment in Indonesia I. Financial Institutions and Markets Financial Institution divided into: (a) Commercial Banks, (b) Thrifts, (c) Insurance Company, (d) Security Company and Investment Bank, (e) Finance Company, and (d) Mutual funds. Financial Market divided into : (a) Capital Market, (b) Commodity Market, (c) Derivatives Market, (d) Insurance Market. II. The Financial Crisis Indonesia experienced the crisis in 90s caused of sharp declining of Indonesia Rupiahs to U.S dollar, using a free devisa system, short foreign debts, inconsistent of fiscal and monetary policies and IMF did not fully helping Indonesia in giving fund. The effect are unemployment and bankruptcy of companies and at that time occurred many of people demonstration and racist to Chinese generation. The financial crisis known as Monetary Crisis. III. Regulation of Financial Institution and Markets For financial institutions and market in Indonesia, it been control by BAPEPAM-LK (Badan Pengawas Pasar Modal dan Lembaga Keuangan. IV. Business Taxes The Direktorat Jendral Pajak (DJP) controls the tax rate in Indonesia. According to UUD 1945 pasal 23A, taxes characteristics are forced for Government needs according to regulation. Tax rates in Indonesia is progressive and using a single rate for companies.