Twitter Updates

    follow me on Twitter

    Wednesday, November 18, 2009

    Vote Earth!

    A global election is taking place, between Earth and Global Warming. Your vote will contribute to a global mandate for action on climate change, to be presented to world leaders at the UN Climate Change Conference in Copenhagen, set on 16 December 2009. What's your vote?

    "Because global warming is not about what country you're from, it's about what planet you're from."

    Sunday, June 07, 2009

    Walk the World

    Today, on 7 June 2009, hundreds of thousands of people across the globe in 24 times zone walks together to raise funds and awareness for United Nations World Food Programme's work to end child hunger. The event is named 'Walk the World', one of the biggest global events against hunger. The WFP walk in Indonesia is also sponsored by the national philanthropy organization Dompet Dhuafa.

    WFP's school feeding programmes provide meals to over 20 million children each year, giving them the food and the motivation they need to go to school and build a better future for themselves.

    Alternative to 'Walk the World' is 'Walk the Web', where each dollar donated on 'Walk the Web' counts as a mile walked, with WFP's target to achieve 25,000 miles walking distance around the world. I am unable to join the walk itself today, so I've made a small donation, with a glimmer of hope, that it'll make a difference in the life of a hungry child.

    Looking forward to join again next year. See if you can find my photo in the Wall Against Hunger, if not, look closely.

    Sunday, March 29, 2009

    Earth Hour 2009

    Yesterday night, my friend and I observed the 2009 Earth Hour, from 20:30 till 21:30, Jakarta's time. Along with us, 83 countries the world over were participating, turning off lights for an hour to raise awareness of global warming.

    In Jakarta, the local government committed to turn off the lights in 5 of the city's icons: the City Hall, the the National Monument, the fountain of Arjuna Wiwaha, the Youth Statue at Senayan, and the Welcoming Monument at Hotel Indonesia roundabout. I suppose you can guess where I was from the video?

    video


    And this is the scenery when all the lights were turned on again:

    video


    I know there are some of you out there questioning the purpose of such event, and if it could really curb climate change. Well, directly? It's not nearly enough.

    The event was held to raise awareness for the public at large of efforts that can be done to stop global warming, and to raise their curiosity of climate change, its dangers, and measures to be taken to save the planet.

    For the act was so simple, yet done en masse it would put a dent in the amount of carbon emitted in one day. Imagine the possibility of more complex, concerted, and conscious efforts could have done?

    Friday, March 06, 2009

    The Big Freeze

    I came across a video on Financial Times website. The video is a report by investment editor, John Authers, on the financial crisis that has hurt the world's economies, developed and developing alike. A financial crisis that was rooted from the US subprime mortgage sector.

    As Mr. Authers said, it may started from US subprime mortgage, but the implication is far and wide. Financial companies are collapsing, bringing with them others in different industries. As purchasing power hit by streams of layoffs, profits across the board are tumbling down. In an interconnected economy, the effects are felt globally and rapidly.

    As Americans spend more than they earned, fueled by ever-increasing debt, the momentum has carried them deep in debt. So deep, that it would take years to unlever it. Historically, housing price has always been increasing, but in drying demand caused by mortgage defaults, price no longer holds. Since the price is declining, would that increase further defaults as people holding mortgage higher than the actual price of their homes?

    James Melcher of Balestra Capital, called the subprime mortgage meltdown a year ahead, profiting tremendously from crisis. Mr. Melcher believes that the worst may have yet to come. People are desperate to believe the market has bottomed, that it can only go up from now on. Opportunities to profit?

    Saturday, February 28, 2009

    Twitter Badge

    I found out this neat Twitter widget which allow me to link my tweets (yes, that's a new word thanks to Twitter, meaning my posts on Twitter) to my blog here in Blogspot. First, I tried to put it on the sidebar, just as it recommended. But, it is likely to be missed if it was on the side, and it can lengthen the page for individual blog post, making wasted layout.

    So, I decided to put it on the top. Yes, it will show on individual blog post as well. However, it won't mess out with the layout, plus individual blog post reader will be aware of the tweets as well. It didn't take long for the whole process. And the colors can be adjusted to Blogger's easily.

    I also linked my tweets to my Facebook. Since I don't want to flood my Facebook status with my tweets, I put the badge on Facebook's Boxes tab. Because I think those that want to be flooded by my tweets will follow me, instead of being "pushed" by Facebook's status. I put it on the Boxes tab so just people will know of its existence.

    Saturday, February 21, 2009

    Microblogger of Choice, Twitter

    So, after several of my friends jumping into the microblogging bandwagon, I followed suit. Since most of them are on Twitter, therefore it is the logical choice for me to choose the same. Remember? network effect?

    It was four months ago since I contemplating about the move. I haven't got any idea yet what to write so it'll probably gonna be some daily activities for the first few posts or so, until I figured out what and how can I best use it for my needs.

    In case you want to follow me, my Twitter address is http://twitter.com/indrayudha. See you there.

    Saturday, February 14, 2009

    25 Random Things (About Me)

    So I got tagged in my Facebook with this 25 random things list. The rule goes: once you've been tagged, you are supposed to write a note with 25 random things, facts, habits, or goals about you; at the end, choose 25 people to be tagged; you have to tag the person who tagged you; if you have been tagged, it's because I want to know more about you.

    Here's the instruction to do the tagging in Facebook: go to "notes" under tabs on your profile page, paste these instructions in the body of the note, type your 25 random things, tag 25 people (in the right hand corner of the app, though I don't think I can make it to 25) then click publish. So, here they are, the 25 random things in no particular order, except one (hint: posting date).
    1. Moderation is a virtue.
    2. "Trekker" should be my middle name.
    3. Live, and let live.
    4. I thought I would never work 60+ hours week, boy was I wrong.
    5. I used to be my class' photojournalist in high school.
    6. Finding life's meaning has been a lifelong goal.
    7. I was a church choir boy in my elementary school.
    8. Look it up, culinary connoisseur.
    9. My mom is an impersonation of unconditional love, though if only she knew...
    10. I like unconventional storytelling like those in Memento, Lillies, 12 Monkeys, and La Mala Educacion.
    11. I am well-versed in Earth 616 up to Operation Zero Tolerance.
    12. Fitness First sums it best, "Motivation is what gets you started, habit is what keeps you going".
    13. I am an INTP.
    14. I thought I would not be in love again for a long time, boy was I wrong.
    15. I have been a gadget freak since pre-school.
    16. Staying bald is a way to keep hair degeneration from being visible.
    17. I actually did my final management trainee presentation based on City of Heroes.
    18. Religion does not play a big part in my life, only a central one.
    19. I used to be a shopaholic, until I read Peter Lynch's Learn to Earn.
    20. Wearing mask comes naturally after awhile.
    21. I don't think I'm worthy for the responsibilities of being a father.
    22. My laughter is infectious, ask my friends.
    23. I'm a Merlin to my King Richard and his knights of the round table.
    24. Finance is not my immediate talent, but I love managing money.
    25. I had the most fun in high school, but college was a life-changing experience.
    Hmm... I guess I can continue for the next 25 random things, but... I'd rather let you have yours. Happy listing! and do let me know.

    Saturday, February 07, 2009

    A Butterfly Award

    Hmm.. I just received an award a week ago from none other than Ibnu Akmal a.k.a. Captain Steve. Well, thanks for the award, though I wonder, is my blog really the coolest blog you ever know? Hee.. hee..

    Well, let's see, this Butterfly Award is a meme. Therefore, I need to pass it on to several other bloggers (the rule says I can send it up to ten others, but I think I'll choose less). Oh yeah, about the rule:
    1. Put the award logo on your blog.
    2. Add a link to the person who gave you the award.
    3. List your award recipients (up to ten).
    4. Add links to the recipients.
    5. Leave a message on their blogs.
    So, without further ado, I present this award to:
    1. Ibnu's Blog (yes, the giver, see the rule above).
    2. Space for Brabus (hi Fel, hope you enjoy the award...).
    3. Sanetya (Man, counting days now?).
    4. Tempat Kreativitas Koe (Rie, where have you been?).
    5. Same Shit Different Day (Judd, what's up bro, how things goin?).
    6. Heart Speaks (hi Frit, I finally found you).
    7. Si Dungu Bertutur (Ndah, I know you won't like this but what the heck, have a joyous birthday bash!).
    Congratulations, guys and gals! Keep on the good writings!

    Monday, January 26, 2009

    5 Themes of Asset Allocation

    In continuation with my retirement portfolio building, I've been thinking of dividing the portfolio into five themes of asset allocation. I could have gotten away with only two of them (core equity and core debt), but where's the fun? The five themes are as follow:
    1. Core Equity Holding - Geographic
      • This theme will act as the core holding for equity in my portfolio. As mentioned in my previous post the other day, the maximum allocation for equity is 62%. As I get older, that allocation will decrease to reflect declining tolerance toward risky assets.
      • It's based on geographical diversity to achieve the widest market coverage in fewer instruments.
      • Due to its sizable holding, this theme will pretty much steer the direction and movement of the whole portfolio. Its allocation will be the first to be reduced for any addition beyond core equity and core debt.
    2. Yield Producers and Cash Equivalent (a.k.a. Core Fixed Income/Debt Holding)
      • This is the core holding for cash and debt instruments in my portfolio. In conjunction with the core equity holding, the allocation for these instruments should be 28% (remember, rule 90). Consequently, that allocation will increase as I get older to reflect increasing preference toward safer assets.
      • This theme will act as the ballast for the whole portfolio. As such, it should give stability to the volatile movements found in other themes.
      • As the "safest" holding, I'd rather leave its allocation alone after what had happened to my portfolio in 2008. I would consider its reduction only after taken into account the reduction I've made in the core equity allocation first.
    3. Satellite Equity Holding - Sectoral
      • The satellite equity holding is intended to enhance the expected return of the core equity holding. Its risk profile is higher due to its more concentrated holding and higher return expectancy.
      • It is based on sectoral diversity to give the theme more flexibility for fine-tuning and re-balancing, while still maintaining its "spicy" sector bets.
      • Obviously, allocation enlargement in this theme will reduce the 62% I've allocated in the core equity theme.
    4. Alternative Assets
      • Alternative asset will act as the main diversifier for the portfolio as a whole. This is because alternative asset is expected to have low correlation with the other themes in this portfolio.
      • As the wild card, alternative assets are expected to work in conjunction with the other themes both as a return enhancer and a volatility stabilizer. By itself, alternative assets can be highly unpredictable.
      • By far, this is the most difficult theme to assemble due to the limited instruments available for retail investors and my limited experience in this type of investment. It should be most interesting area to explore, albeit gradually.
    5. Green Investments
      • Green investments, in this case, are meant for socially responsible investment (SRI) instruments not falling into one of the other themes. As a rule, instruments chosen to represent the other themes, especially core equity and core debt, should be of SRI alternatives including shariah-compliant instruments. Once they're exhausted, further SRI consideration should be placed here.
      • Depending on the weight of its instruments, this theme can be very volatile, even more than the satellite equity holding due to its extremely concentrated sectors.
      • Allocation for the green investment include the 10% in philanthropy account. Thus, a 100% allocation for all the five themes can be made.
    There you go, five themes for the retirement porfolio. Although it may be spread over different accounts, the retirement porfolio should adhere to these five themes, which can be a laborious effort. I didn't know of any easier way at this point, but I guess I have to make do with Excel for the time being.

    Friday, January 16, 2009

    Sistem Jaminan Sosial, Peluang dan Tantangan

    [After visiting Farid and Erisa's blog on their published writings of Shariah bond, I got inspired to post my own published writings here. After all, it is also an opportunity to post my original writing as I had intended, without the editor's cut. There is also the added benefit of hyperlinks through this medium. The article was published on Kompas, 22 December 2008. It's about the opportunities and challenges presented by a new regulation over social security in Indonesia, especially one affecting the pharmaceutical industry. Sorry, it's in Bahasa since it was published on Kompas.]

    Setelah menyaksikan terpilihnya Barack Obama sebagai Presiden Amerika Serikat yang ke-44 pada 4 November 2008, kita disadarkan akan peristiwa serupa yang akan kita lalui pada 9 April 2009 mendatang, yaitu Pemilu. Pada Pemilu 2009, untuk kedua kalinya kita akan memilih kepala negara secara langsung. Namun, sudah kita ketahui bersama bahwa pertarungan kebijakan pada saat kampanye tidaklah mendominasi proses pemilihan umum di Indonesia. Sekalipun ada banyak pokok persoalan (issues) yang layak untuk diperdebatkan dan ditawarkan solusinya oleh capres dan caleg yang bersaing memperebutkan suara rakyat. Pelayanan kesehatan, khususnya pengadaan asuransi kesehatan nasional, dapat diangkat menjadi issue penting dalam kampanye mengingat masih terbatasnya akses bagi sebagian besar masyarakat umum di Indonesia.

    Tidak kurang dari Kementrian Koordinator Bidang Kesejahteraan Rakyat menyebutkan setidaknya 100 juta penduduk belum mendapatkan jaminan kesehatan melalui suatu skema jaringan pengaman kesehatan. Apabila mengasumsikan 45 juta pegawai negeri sipil dan TNI/Polri yang dilindungi Askes, Taspen, dan Asabri ditambah 8 juta pekerja yang dilindungi Jamsostek serta 36 juta masyarakat miskin yang dijamin pemerintah melalui Askes, maka tingkat penetrasi jaminan kesehatan hanya sekitar 40% dari total populasi yang diperkirakan mencapai 227 juta di tahun 2008. Sisanya sebesar 60% harus menanggung sendiri biaya kesehatan secara langsung (out-of-pocket).

    Model Dasar Kebijakan Pelayanan Kesehatan (Health Care)
    Menurut T.R. Reid, koresponden senior The Washington Post dan kritikus kebijakan health care, ada empat model dasar dalam kebijakan pelayanan kesehatan. Pertama, model Beveridge, dinamai dari ekonom Inggris William Beveridge, penemu Sistem Kesehatan Nasional (National Health Service – NHS). Dalam sistem ini, setiap warga negara berhak menggunakan layanan kesehatan dan tidak akan pernah menerima tagihan karena pembiayaannya didanai oleh pajak. Negara, sebagai pembayar tunggal (sole payer), menentukan pelayanan kesehatan yang dapat diberikan dokter dan harga yang dapat mereka tagihkan. Fasilitas kesehatan dan tenaga medis dimiliki oleh negara. Pihak swasta dapat menagih pelayanan yang mereka berikan langsung kepada pemerintah. Inggris, Spanyol, dan Selandia Baru adalah contoh negara yang menggunakan sistem ini.

    Kedua, model Bismarck, dinamai dari Kanselir Jerman pertama, Otto von Bismarck. Sistem ini menggunakan asuransi kesehatan yang didanai oleh penyedia kerja dan karyawan melalui pemotongan gaji. Asuransi ini wajib melindungi seluruh warga negara dan tidak diperbolehkan mengambil keuntungan. Fasilitas kesehatan dan tenaga medis boleh dimiliki oleh swasta dan jumlah penyedia (provider) asuransi pun tidak dibatasi. Sekalipun model ini tidak menggunakan sistem pembayar tunggal, regulasi yang ketat dapat memberikan kewenangan yang besar bagi Negara layaknya dalam model Beveridge. Kompetisi terjadi baik di antara lembaga asuransi nirlaba maupun penyedia layanan kesehatan karena didorong oleh motivasi manajemen untuk mendapatkan kompensasi yang meningkat seiring dengan meluasnya cakupan asuransi dan layanan kesehatan yang diberikan. Model Bismarck di antaranya digunakan di Jerman, Perancis, Belanda, dan Jepang.

    Ketiga, model Asuransi Kesehatan Nasional (National Health Insurance) yang merupakan gabungan dari model Beveridge dan Bismarck. Sistem ini menggunakan pihak swasta sebagai penyedia layanan kesehatan, dengan pembayaran klaim yang didanai dari program asuransi nasional. Program asuransi ini dikelola oleh pemerintah dan setiap warga negara wajib membayar premi. Dengan tidak adanya kebutuhan pemasaran dan perolehan keuntungan, program asuransi universal seperti ini cenderung lebih murah dalam biaya dan lebih mudah dalam administrasinya. Asuransi nasional sebagai pembayar tunggal mempunyai kekuatan pasar yang besar untuk menegosiasikan harga yang lebih rendah kepada pihak swasta selaku penyedia layanan kesehatan. Sistem ini dapat ditemui di Kanada, Taiwan, dan Korea Selatan.

    Keempat, model biaya sendiri (out-of-pocket). Sebagian besar penduduk dunia tidak mendapatkan akses layanan kesehatan. Hal ini dikarenakan sebagian besar Negara di dunia terlalu miskin dan tidak terkoordinasi untuk menyediakan layanan medis secara masal. Sebagai contoh, ratusan juta penduduk di pedalaman Afrika, India, Cina, dan Amerika Latin tidak pernah berobat ke dokter, melainkan merujuk kepada pengobatan alternatif. Dalam model terakhir ini, pasien baru akan mendapatkan layanan kesehatan apabila dapat membayar langsung sendiri, dan bagi mereka yang tidak mampu maka terpaksa harus menahan sakit dan bahkan meregang nyawa.

    Sistem Jaminan Sosial Nasional
    Berdasarkan Undang-Undang Nomor 40 tahun 2004 tentang SJSN, sistem jaminan kesehatan di Indonesia mengarah antara model Bismarck atau model Asuransi Kesehatan Nasional. Dewan Jaminan Sosial Nasional (DJSN), yang terbentuk pada bulan Oktober 2008 lalu akan menjadi pengemban amanat SJSN dan akan menunjuk atau membentuk Badan Penyelenggara Jaminan Sosial (BPJS). Sekalipun RUU BPJS masih dalam pembahasan, PT Askes telah disebut sebagai salah satu BPJS dalam UU No. 40/2004.

    DJSN menargetkan bahwa pada tahun 2012 nanti seluruh penduduk Indonesia akan mendapat perlindungan asuransi kesehatan. Menurut Data Statistik Indonesia yang dikeluarkan oleh Badan Pusat Statistik (BPS), jumlah penduduk Indonesia sampai tahun 2005 adalah 219 juta jiwa. Apabila diproyeksikan dengan asumsi laju pertambahan penduduk per tahun sebesar 1.3% sesuai data BPS periode 2000-2005, maka sampai tahun 2012 akan terjadi pertambahan penduduk sebesar hampir 21 juta jiwa sehingga jumlah penduduk yang harus dilindungi menjadi 240 juta juta jiwa.

    DJSN akan memulai perluasan cakupan (coverage) Jamkesnas pada tahun 2009 dengan mengalokasikan anggaran sebesar Rp 5,9 triliun yang akan mencakup 76,4 juta penduduk. Dana ini adalah sebesar 0,11% dari perkiraan Pendapatan Domestik Bruto (PDB) tahun 2009 sebesar Rp 5.306 triliun. Sebagai perbandingan, data World Health Statistics yang diterbitkan WHO menunjukkan pengeluaran pemerintah Indonesia untuk kesehatan pada tahun 2005 sebesar 0,98% dari PDB. Malaysia mengalokasikan 1,88% dari PDB, Filipina 1,17%, dan Thailand 2,24%. Ini menunjukkan bahwa kita masih sangat jauh bahkan dari standar Negara-negara tetangga.

    DJSN menargetkan cakupan Jamkesnas yang menyeluruh bagi 240 juta penduduk Indonesia pada tahun 2012 dan akan mempersiapkan anggaran sebesar Rp 20 triliun. Apabila disetarakan, maka dana tersebut setara dengan iuran premi per tahun sebesar Rp 83.500 per orang, yang menunjukkan kenaikan rata-rata 2,6% per tahun sejak 2009. Kenaikan premi ini tidak sebanding dengan inflasi rata-rata 5,8% pada periode yang sama, berdasarkan perkiraan Danareksa Research Institute. Terlebih lagi secara historis biaya kesehatan mengalami laju kenaikan harga yang lebih tinggi dibandingkan dengan inflasi, seperti yang dialami oleh Amerika Serikat di mana biaya kesehatan mengalami pertumbuhan dua hingga tiga kali inflasi tahunan. Sehingga perlu dicermati terjadinya kemungkinan layanan kesehatan yang diberikan akan mengalami penurunan dari segi kuantitas dan/atau kualitas.

    Dampak Terhadap Sektor Farmasi
    Data World Health Statistics menunjukkan total pengeluaran di Indonesia pada tahun 2005 untuk kesehatan adalah 2,1% PDB atau setara dengan Rp 58,3 triliun. Pengeluaran sebesar ini dialokasikan antara lain kepada jasa kesehatan (dokter dan perawat) serta pembelian alat kesehatan dan obat-obatan (farmasi). Apabila pasar farmasi di tahun yang sama bernilai Rp 22,9 triliun sesuai data IMS Health, maka dapat diasumsikan bahwa rata-rata pengeluaran obat adalah sekitar 40% dari total biaya kesehatan. Dengan asumsi bahwa 40% dari kucuran dana asuransi kesehatan nasional (Rp 5,9 triliun) mengalir ke sektor farmasi, maka diperkirakan pada tahun 2009 akan terjadi penambahan nilai Rp 2.4 triliun pada sektor ini. Namun jumlah ini hanyalah 8% dari nilai industri farmasi nasional di tahun 2007 sebesar Rp 29,6 triliun. Ini menunjukkan bahwa kontribusi tambahan dengan adanya SJSN masih sangat terbatas terhadap pertumbuhan pendapatan pada sektor farmasi. Terlebih lagi dengan pertumbuhan dana premi yang hanya 2,6% per tahun yang mana masih di bawah inflasi tahunan sebesar 5,8%, maka akan semakin sulit untuk mengharapkan kontribusi yang signifikan dari SJSN.

    Namun, meski industri farmasi secara umum akan mengalami perluasan pasar akibat naiknya permintaan, tidak semua perusahaan farmasi akan dapat merasakan keuntungan tersebut. Menilik dari potensi ketidakcukupan biaya premi untuk menutup pengeluaran kesehatan, maka Pemerintah selaku regulator dapat mensyaratkan penggunaan obat-obatan generik secara eksklusif. Sehingga yang paling banyak diuntungkan adalah BUMN farmasi di mana obat generik dapat mencapai 70% dari porsi pendapatan mereka.

    Meski dampak langsung dari program SJSN tidak signifikan terhadap sektor farmasi, akan tetapi ini merupakan langkah awal yang baik menuju pembentukan sistem jaring pengaman sosial masyarakat. Dengan menyetarakan anggaran Negara supaya sejajar dengan Negara-negara tetangga, maka dampak pada sektor pelayanan kesehatan secara keseluruhan akan lebih dirasakan positif. Sudah waktunya masyarakat Indonesia mendapatkan akses ke pelayanan kesehatan yang layak dan terjangkau. Kiranya hal ini perlu menjadi perhatian para pemangku kepentingan dan pembuat kebijakan untuk menentukan arah kebijakan dalam pelayanan kesehatan menjelang Pemilu 2009.

    [So very briefly, the early steps toward providing social security for the people of Indonesia, especially in the health care provision, will open up new opportunities for pharmaceutical industry as enlarged business volume can be expected as a result of increased government expenditure. However, such volume expansion will be limited due to relatively smaller fund allocated for the initiative compared to the neighboring countries in ASEAN. Furthermore, potentially only state-owned pharmas who would benefit from the initative as the government would be able to exert its "single payer" power over generic drugs. Further risk concerning the limited fund may result in declining service quality and/or quantity. Such an important issue should be under public scrutiny coming this election year. Voters may influence the future of their health care benefits, that is if they can start being critical with their candidates' policies.]

    Saturday, January 10, 2009

    The Aspen Institute Guide to Socially Responsible MBA Programs 2008-2009

    The Aspen Institute Guide to Socially Responsible MBA Programs The Aspen Institute Guide to Socially Responsible MBA Programs by The Aspen Institute


    My review


    rating: 3 of 5 stars
    This Guide is different from the ones we have accustomed seeing on the store's bookshelves at the education reference section. The Guide does not attempt to rank any particular programs, instead it provides information on each of the 130 graduate business schools around the globe.

    The information is particularly relevant to prospective students looking for Green MBA programs. On average, each school is profiled in 2-page spread with stats including relevant topic courses offered, numbers of relevant activities, and demographics. The Guide also profile the relevant programs each school offered, including popular courses, relevant majors, students clubs, annual activities, and available centers of research.

    While prospective students, especially those with green value inclination, will find this Guide very useful, other guides should be consulted as well. This Guide should be used as a supplementary and not a core MBA guide.

    View all my reviews.

    Friday, January 02, 2009

    The 90 Rule

    Let's start the new year by talking money. I have been thinking of an appropriate portfolio allocation model following the wrath of the crisis that have wiped half of my portfolio value. As I have tinkered in different accounts mixing different asset classes, I have found something that further confirmed the mainstream adage of "don't put your eggs in one basket". It turns out that my 529 account which hold the most bond allocation (some 30%) have declined the least, while other equity-dominant accounts have fared worse, some actually fell by 60%.

    Fortunately, I still have the bulk of my accounts, set aside for further schooling purposes, in safe cash-equivalent instruments. Therefore, no adverse impact caused by market gyration. However, the Rupiah depreciation of some 20-30% last month have caused heavy burden on my side to continue saving for school. Thus I've decided to postpone further schooling for at least another year, bearing economic stability.

    By taking lesson from the crash, I've come to believe more in the virtue of diversification, extending to debt-instruments. According to the popular advice of the Vanguard founder, John Bogle, one should have bond allocation proportionally to one's age. This simple allocation model advocate for picking a number (as a proxy to one's life expectancy) and substract it with one's current age (as a proxy for bond allocation). The result will be the appropriate allocation for equities in one's porfolio. While aggresive investor will use 110 or higher as the basis, the rule of thumb is to use 100. For example, a 40 years old should have 60% of his portfolio in equity and 40% in bond (100 - 40 = 60).

    With slight modification, I've decided to use 90 as my basis. The idea is to put 10% of my portfolio in a managed account to generate continuing benefit for philanthropical purposes. The 10% allocation is arbitrary and exclude charitable expenses. Examples of financial instrument for this account might be a special-purpose mutual fund (like what I had wrote sometime ago), or a self-managed microfinance account. With that in mind, my portfolio allocation should be 62% equity and 28% bond. It seems that I've had larger equity proportion than I should, to my detriment. I'll try to reach this allocation for my retirement portfolio by mid-year. Wish me luck!