Globalization in the Economy along with its Impacts
Globalization in the Economy: Understanding, Positive & Negative Impacts is a process of economic and trade activities, where countries throughout the world become a market force that is increasingly integrated with no obstacles to the country's territorial boundaries.
Understanding Globalization
Globalization is a term that has a relationship with increasing interconnectedness and dependence between nations and people throughout the world through trade, investment, travel, popular culture, and other forms of interaction so that the boundaries of a country can be.
The word "globalization" is taken from the word global, which means universal. Globalization does not yet have an established definition, except for just a definition of work (working definition), so it depends on which side one sees it. Globalization is defined as all processes that refer to the unification of all citizens of the world into a global community group. Some view that globalization is a social process, or historical process, or a natural process that will bring all nations and nations of the world increasingly attached to one another, realizing a new order of life or co-existence unity by removing geographical boundaries, economy and culture of the community.
Economic globalization is a process of economic activity and trade, in which countries around the world become a market force that is increasingly integrated with no obstacles to the country's territorial borders. Economic globalization requires the removal of all restrictions and barriers to the flow of capital, goods and services. When economic globalization occurs, the boundaries of a country will become blurred and the link between the national economy and the international economy will be even tighter. Globalization of the economy on the one hand will open up market opportunities for products from domestic to international markets competitively, on the contrary it also opens opportunities for the entry of global products into the domestic market.
The Characteristics of Globalization
The following are some of the characteristics that indicate the growing phenomenon of globalization in the world.
Changes in the concept of space and time. The development of items such as mobile phones, satellite television and the internet shows that global communication is happening so fast, while through mass movements such as tourism allows us to feel many things from different cultures.
Economic markets and production in different countries become interdependent as a result of growing international trade, increasing influence of multinational companies, and the dominance of organizations such as the World Trade Organization (WTO).
Increasing cultural interaction through the development of mass media (especially television, film, music, and international news and sports transmission). at this time, we can consume and experience new ideas and experiences about things that cross a wide range of cultures, for example in the fields of fashion, literature and food.
Increased joint problems, for example in the environmental sector, multinational crises, regional inflation and others.
Kennedy and Cohen concluded that this transformation has brought us to globalism, a new awareness and understanding that the world is one. Giddens asserted that most of us are aware that we actually take part in a world that has to change uncontrollably, which is characterized by tastes and interests about the same thing, changes and uncertainties, and possible realities. Correspondingly, Peter Drucker mentions globalization as an age of social transformation.
Global Capitalism
Global capitalism is an effort to gain profits and accumulate capital without borders or barriers in the form of the state. In its development, global capitalism has become part of the daily life of some people in various parts of the world. For example in the use of information and communication technology, a person will feel something is missing if one day does not see TV, read the newspaper, or read e-mail. With this information and communication technology, one can easily move thousands and millions of dollars across national borders in seconds by simply pressing the Personal Computer button.
This global capitalism also changes the way people see things. For example, money is not only a medium of exchange but also a commodity like other commodities. The existence of a profession of foreign exchange traders proves this. Furthermore, the money that is usually seen as paper sheets, in the hands of financial institutions is now developing into more sophisticated forms such as bonds, stocks, commercial notes, etc. and the transactions that they do are not based on the present (now), but can also be transactions for the future. So you can imagine how complicated the velocity of money in this world.
The development of increasingly globalized capitalism can encourage various new conditions such as:
The creation of various innovations that gave rise to existing products. This condition causes an abundance of products at relatively cheaper prices, thereby increasing competition.
The relocation of multinational companies to take advantage of a country's comparative advantage, in order to win the competition. For example relocation of labor-intensive industries to get jobs with lower wages. In this process a variety of multinational companies emerged, namely companies with branches in various countries.
The flow of internationalization and capital turnover which is very fast which penetrates the boundaries of time and space. This revolving capital moves not only in productive sectors but also in speculative ones.
The formation of a new world order driven by international institutions and international forums such as the IMF, World Bank, WTO, and so forth. Simultaneously these international institutions and forums are campaigning and directing the world towards a new policy framework that supports the liberal regime and global free trade. The rules of liberalization, deregulation, and privatization are rife throughout the world.
From those who hold a negative view, consider that globalization is not of much benefit or even detrimental. Investments in the form of foreign investment will drain the resources owned by a nation with the greatest benefits that are not enjoyed by the nation.
In addition to the negative views of global capitalism, there is also a positive outlook. This view basically states that foreign investment is considered to be able to allow access to technology, management, and marketing. In addition, capital flows also make it possible to close the gap between savings and investment, thereby enabling higher economic growth.
Capitalism in the World
The understanding of capitalism that we expect should be accompanied by a requirement that everything must function socially. In other countries that are very and very capitious, capital is always made to function socially through taxation, instruments of distribution of wealth and income, social security systems, labor systems and many other devices, regulations, institutions and so on, which make capital social functioning. The social function does not reduce the fact that our economy is based on capitalism.
Individual property rights are recognized and their use must not conflict with the interests of the community. So that in the end the potential, initiative and creation of every citizen can develop fully within limits that do not harm the public interest. So far it can be said that the world has entered into global capitalism. In the pre-crisis period the role of foreign investment (PMA) tended to increase. The bigger problem with the presence of foreign capital in the world is whether the overall benefits obtained by foreign investors in the world are shared equally between foreign investors and the nation of the world.
It is always said that foreign capital brings in capital, technology transfer, management capability transfer and job creation. The above facts give lessons that global capitalism opens opportunities to develop the economy. However, global capitalism can also damage the world economy.
Impact of Globalization
Impact of Globalization
Globalization for the world nation where the people have multi ethnicity and multi culture creates difficult challenges that can threaten the integrity of the nation and the nation. The first challenge is the pressures that come from outside both in the form of economic, political and cultural. Dependence on international economic forces causes the world nation to not be able to let go of these forces, despite the fact that what the world nation gets from these dependencies is not always sweet.
Economic dependence will spread to political dependence. The second challenge is the emergence of a tendency to strengthen groups based on ethnicity or ethnicity in society. The strengthening of groups based on ethnicity is not impossible to make the oath of youth "one homeland one nation and one language" remain a mere historical document. Dissatisfaction with community groups over the policy of the central government will easily and immediately lead to the threat of demands for "independence" from the unitary state of the World Republic.
According to Tanri Abeng, concrete manifestations of economic globalization take place in the following forms:
Globalization of production, in which companies produce in various countries, with the aim that production costs become lower. This is done either because of low labor costs, cheap import duties, adequate infrastructure or because of a conducive business and political climate. The world in this case is the location of global manufacturing.
Globalization of financing. Global companies have access to obtain loans or make investments (either in portfolio or direct) in all countries in the world. For example, PT Telkom in expanding its telephone lines, or PT Jasa Marga in expanding the toll road network, has utilized a BOT (build-operatetransfer) financing system with international business partners.
Globalization of the workforce. Global companies will be able to utilize workers from all over the world according to their class, such as the use of professional staff drawn from workers who already have international experience or unskilled labor that is usually obtained from developing countries. With globalization, the movement will become easier and free.
Globalization of information networks. The people of a country easily and quickly get information from countries in the world because of technological advances, including through: TV, radio, print media, etc. With an increasingly advanced communication network has helped expand markets to various parts of the world for the same goods. For example: KFC, levi’s jeans, or hamburgers hit the market everywhere. As a result, the tastes of the world community - both those who live in cities or in villages - lead to global tastes.
Trade Globalization. This is manifested in the form of reduction and uniformity of tariffs and the elimination of various non-tariff barriers. Thus trading and competition activities become faster, tighter, and fair.
Globalization in the Economy
The Impact of Globalization in the Economy, Globalization provides many choices of the products we want, which of course are adapted to the needs and prices we can afford. For example, we can compare the price of a shoe with a particular brand, both in terms of quality and price we want. Globalization has brought urban and rural communities into a consumer society. Things that need to be considered from the adverse effects of globalization, namely if the image (image) of foreign products is always better than domestic products will be fatal. This failure will be a boomerang for domestic products which of course will be unable to compete, both in terms of quality and quantity of products produced. How not, we are always behind the technology used compared to foreign industrial countries that are more advanced. Not to mention that human resources are on average lower quality than industrial countries (developed countries).
Positive Impacts of Economic Globalization
In this impact the opening of the international market, opportunities for employment are more open and the country's foreign exchange also increases. That way it can improve the nation's economy so that it will advance and enhance a sense of nationalism towards the nation and state, the following positive effects of globalization in the economic field are:
The market is very open for export products (with a note that world export products can compete in the international market), thus the opportunity for the world authorities is very open in creating quality products that are needed by world markets.
Easy to access investment capital from abroad.
It is easy to get goods that are needed by the community and not yet produced in the world.
Event events will increase so as to be able to open up employment opportunities and also become a venue for the promotion of World products.
With the existence of tangible forms of economic globalization, globalization certainly has an impact on people's lives in the form of both positive and negative impacts. Positive impacts of economic globalization include:
Global production can be increased This view is consistent with David Ricardo's 'Comparative Advantage' theory. Through specialization and trade the factors of world production can be used more efficiently, world output increases and society will benefit from specialization and trade in the form of increased income, which can further increase spending and savings.
Globalization for the world nation where the people have multi ethnicity and multi culture creates difficult challenges that can threaten the integrity of the nation and the nation. The first challenge is the pressures that come from outside both in the form of economic, political and cultural. Dependence on international economic forces causes the world nation to not be able to let go of these forces, despite the fact that what the world nation gets from these dependencies is not always sweet.
Economic dependence will spread to political dependence. The second challenge is the emergence of a tendency to strengthen groups based on ethnicity or ethnicity in society. The strengthening of groups based on ethnicity is not impossible to make the oath of youth "one homeland one nation and one language" remain a mere historical document. Dissatisfaction with community groups over the policy of the central government will easily and immediately lead to the threat of demands for "independence" from the unitary state of the World Republic.
According to Tanri Abeng, concrete manifestations of economic globalization take place in the following forms:
Globalization of production, in which companies produce in various countries, with the aim that production costs become lower. This is done either because of low labor costs, cheap import duties, adequate infrastructure or because of a conducive business and political climate. The world in this case is the location of global manufacturing.
Globalization of financing. Global companies have access to obtain loans or make investments (either in portfolio or direct) in all countries in the world. For example, PT Telkom in expanding its telephone lines, or PT Jasa Marga in expanding the toll road network, has utilized a BOT (build-operatetransfer) financing system with international business partners.
Globalization of the workforce. Global companies will be able to utilize workers from all over the world according to their class, such as the use of professional staff drawn from workers who already have international experience or unskilled labor that is usually obtained from developing countries. With globalization, the movement will become easier and free.
Globalization of information networks. The people of a country easily and quickly get information from countries in the world because of technological advances, including through: TV, radio, print media, etc. With an increasingly advanced communication network has helped expand markets to various parts of the world for the same goods. For example: KFC, levi’s jeans, or hamburgers hit the market everywhere. As a result, the tastes of the world community - both those who live in cities or in villages - lead to global tastes.
Trade Globalization. This is manifested in the form of reduction and uniformity of tariffs and the elimination of various non-tariff barriers. Thus trading and competition activities become faster, tighter, and fair.
Globalization in the Economy
The Impact of Globalization in the Economy, Globalization provides many choices of the products we want, which of course are adapted to the needs and prices we can afford. For example, we can compare the price of a shoe with a particular brand, both in terms of quality and price we want. Globalization has brought urban and rural communities into a consumer society. Things that need to be considered from the adverse effects of globalization, namely if the image (image) of foreign products is always better than domestic products will be fatal. This failure will be a boomerang for domestic products which of course will be unable to compete, both in terms of quality and quantity of products produced. How not, we are always behind the technology used compared to foreign industrial countries that are more advanced. Not to mention that human resources are on average lower quality than industrial countries (developed countries).
Positive Impacts of Economic Globalization
In this impact the opening of the international market, opportunities for employment are more open and the country's foreign exchange also increases. That way it can improve the nation's economy so that it will advance and enhance a sense of nationalism towards the nation and state, the following positive effects of globalization in the economic field are:
The market is very open for export products (with a note that world export products can compete in the international market), thus the opportunity for the world authorities is very open in creating quality products that are needed by world markets.
Easy to access investment capital from abroad.
It is easy to get goods that are needed by the community and not yet produced in the world.
Event events will increase so as to be able to open up employment opportunities and also become a venue for the promotion of World products.
With the existence of tangible forms of economic globalization, globalization certainly has an impact on people's lives in the form of both positive and negative impacts. Positive impacts of economic globalization include:
Global production can be increased This view is consistent with David Ricardo's 'Comparative Advantage' theory. Through specialization and trade the factors of world production can be used more efficiently, world output increases and society will benefit from specialization and trade in the form of increased income, which can further increase spending and savings.
The Negative Impact of Economic Globalization
The Negative Impact of Economic Globalization
In this case the elimination of love for domestic products because many foreign products circulating in the World. The negative impact on the nation's generation is a lifestyle that tends to imitate western culture. The negative impact of globalization also causes social inequality between the rich and the poor due to free competition.
This can lead to disputes between the rich and the poor. In addition, another negative impact is the formation of individualism that causes a sense of ignorance to others even to the nation, following the impact of globalization in the economic field, namely:
Increasing the prosperity of people in a country Freer trade allows people from various countries to import more goods from abroad. This causes consumers to have more choices of goods. In addition, consumers can also enjoy better goods at lower prices.
Expanding markets for domestic products Freer foreign trade allows each country to obtain a much wider market than the domestic market.
Can get more capital and better technology capital can be obtained from foreign investment and especially enjoyed by developing countries because of the problem of lack of capital and experienced experts and educated staff mostly faced by developing countries.
Providing additional funds for economic development Industrial sector development and various other sectors are not only developed by foreign companies, but mainly through investments made by domestic private companies. These domestic companies often need capital from banks or the stock market. funds from abroad, especially from developed countries that enter the money market and the domestic capital market can help provide the needed capital.
The entry of foreign workers
The loss of the world product market due to losing competition with foreign products
Businesses in the world will die because many imported products in the world market
In addition, economic globalization also has a negative impact on the lives of the world's people including:
Inhibiting the growth of the industrial sector, One of the effects of globalization is the development of a freer foreign trade system. This development has caused developing countries to no longer be able to use high tariffs to provide protection to emerging industries (infant industry). Thus, freer foreign trade creates obstacles for developing countries to advance the domestic industrial sector more quickly. In addition, the dependence on industries owned by multinational companies is increasing.
Worsening the balance of payments of globalization tends to increase imported goods. Conversely, if a country is unable to compete, then exports do not develop. This situation can worsen the balance of payment conditions. Another adverse effect of globaliassi on the balance of payments is that net payments for factor income from abroad tend to experience a deficit. Increased foreign investment causes the flow of investment payments (income) abroad to increase. An underdeveloped export can have a negative impact on the balance of payments.
The financial sector is increasingly unstable One of the important effects of globalization is drainage
investment (capital) portfolio that is increasingly large. This investment mainly includes the participation of foreign funds into the stock market. When the stock market is rising, these funds will flow in, the balance of payments will increase and the value of money will improve. Conversely, when stock prices on the stock market decline, domestic funds will flow abroad, the balance of payments tends to get worse and the value of the domestic currency slumps. This instability in the financial sector can have a devastating effect on the stability of overall economic activity.
Worsen the prospect of long-term economic growth If the things stated above apply in a country, then in the short term economic growth becomes unstable. In the long run this kind of growth will reduce the speed of economic growth. National income and employment opportunities will grow slower and unemployment problems cannot be overcome or worse. Finally, if globalization has a negative effect on a country's long-term economic growth prospects, the distribution of income will become more unfair and the socio-economic problems of the community will get worse.
The Role of Government in Economic Globalization
To deal with global capitalism, the government needs to do the following things including:
The need to immediately eradicate KKN seriously. The reduction of KKN to very minimal conditions is a big capital to face the era of global capitalism. Next, we need a planned step to get the maximum benefit.
The government needs to put in place a policy framework to enable the movement of resources towards sectors that have bright prospects. This is done through policies that are not distorting investors' decisions, including allowing them to measure the level of risk accurately.
Strive for changes that occur gradually, so as to give time for economic actors engaged in non-competitive industries to switch to more competitive industries.
Prepare human resources so they can take advantage of open opportunities. This includes, for example, by seeking certification of internationally recognized expertise and training to obtain the certificate. From the impact of globalization, tips can be taken in dealing with globalization, namely: in the field of the economy of the world the nation needs to implement article 33 of the 1945 Constitution by building cooperation with economic actors consisting of cooperative business entities, state-owned enterprises and private-owned enterprises. Regions must be empowered to be able to produce regional superior products that can be appointed as national superior products. Thus, the nation's competitiveness that is needed in the free market era can be created
In this case the elimination of love for domestic products because many foreign products circulating in the World. The negative impact on the nation's generation is a lifestyle that tends to imitate western culture. The negative impact of globalization also causes social inequality between the rich and the poor due to free competition.
This can lead to disputes between the rich and the poor. In addition, another negative impact is the formation of individualism that causes a sense of ignorance to others even to the nation, following the impact of globalization in the economic field, namely:
Increasing the prosperity of people in a country Freer trade allows people from various countries to import more goods from abroad. This causes consumers to have more choices of goods. In addition, consumers can also enjoy better goods at lower prices.
Expanding markets for domestic products Freer foreign trade allows each country to obtain a much wider market than the domestic market.
Can get more capital and better technology capital can be obtained from foreign investment and especially enjoyed by developing countries because of the problem of lack of capital and experienced experts and educated staff mostly faced by developing countries.
Providing additional funds for economic development Industrial sector development and various other sectors are not only developed by foreign companies, but mainly through investments made by domestic private companies. These domestic companies often need capital from banks or the stock market. funds from abroad, especially from developed countries that enter the money market and the domestic capital market can help provide the needed capital.
The entry of foreign workers
The loss of the world product market due to losing competition with foreign products
Businesses in the world will die because many imported products in the world market
In addition, economic globalization also has a negative impact on the lives of the world's people including:
Inhibiting the growth of the industrial sector, One of the effects of globalization is the development of a freer foreign trade system. This development has caused developing countries to no longer be able to use high tariffs to provide protection to emerging industries (infant industry). Thus, freer foreign trade creates obstacles for developing countries to advance the domestic industrial sector more quickly. In addition, the dependence on industries owned by multinational companies is increasing.
Worsening the balance of payments of globalization tends to increase imported goods. Conversely, if a country is unable to compete, then exports do not develop. This situation can worsen the balance of payment conditions. Another adverse effect of globaliassi on the balance of payments is that net payments for factor income from abroad tend to experience a deficit. Increased foreign investment causes the flow of investment payments (income) abroad to increase. An underdeveloped export can have a negative impact on the balance of payments.
The financial sector is increasingly unstable One of the important effects of globalization is drainage
investment (capital) portfolio that is increasingly large. This investment mainly includes the participation of foreign funds into the stock market. When the stock market is rising, these funds will flow in, the balance of payments will increase and the value of money will improve. Conversely, when stock prices on the stock market decline, domestic funds will flow abroad, the balance of payments tends to get worse and the value of the domestic currency slumps. This instability in the financial sector can have a devastating effect on the stability of overall economic activity.
Worsen the prospect of long-term economic growth If the things stated above apply in a country, then in the short term economic growth becomes unstable. In the long run this kind of growth will reduce the speed of economic growth. National income and employment opportunities will grow slower and unemployment problems cannot be overcome or worse. Finally, if globalization has a negative effect on a country's long-term economic growth prospects, the distribution of income will become more unfair and the socio-economic problems of the community will get worse.
The Role of Government in Economic Globalization
To deal with global capitalism, the government needs to do the following things including:
The need to immediately eradicate KKN seriously. The reduction of KKN to very minimal conditions is a big capital to face the era of global capitalism. Next, we need a planned step to get the maximum benefit.
The government needs to put in place a policy framework to enable the movement of resources towards sectors that have bright prospects. This is done through policies that are not distorting investors' decisions, including allowing them to measure the level of risk accurately.
Strive for changes that occur gradually, so as to give time for economic actors engaged in non-competitive industries to switch to more competitive industries.
Prepare human resources so they can take advantage of open opportunities. This includes, for example, by seeking certification of internationally recognized expertise and training to obtain the certificate. From the impact of globalization, tips can be taken in dealing with globalization, namely: in the field of the economy of the world the nation needs to implement article 33 of the 1945 Constitution by building cooperation with economic actors consisting of cooperative business entities, state-owned enterprises and private-owned enterprises. Regions must be empowered to be able to produce regional superior products that can be appointed as national superior products. Thus, the nation's competitiveness that is needed in the free market era can be created
Understanding Central Bank Monetary Policy for Inflation
Understanding Central Bank Monetary Policy for Inflation
Understanding Monetary Policy
Monetary policy is a process that regulates a country's money supply to achieve certain goals; as well as curbing inflation, and reaching full or more prosperous workers. Monetary policy may involve setting a margin reguirement loan standard, capitalizing with banks or even acting as a last resort borrower through negotiations with other governments.
Monetary policy is basically a policy that has the goal of achieving internal balance (high growth, equitable development, price stability) and external balance (balance of payment balance and achievement of macroeconomic objectives, namely maintaining economic stability that can be measured by employment opportunities, stability of the family and a balanced international balance of payments.
If the stability in an economic activity is disrupted, then monetary policy can be used to restore (stabilization measures). The influence of monetary policy will first be felt in the banking sector, then transferred to the real sector.
Monetary policy is an attempt to achieve a high level of economic growth on an ongoing basis while maintaining price stability. To achieve this goal the Central Bank or Monetary Authority seeks to balance the supply of money with supplies of goods so that inflation can be controlled, full and smooth employment opportunities are achieved in the supply / distribution of goods.
Conducting monetary policy is one of them but not limited to the following instruments:
interest rate
Statutory Reserve Requirement
intervention in the currency market
as the last place for banks to borrow money if experiencing liquidity problems.
Types of Monetary Policy
The regulation of the amount of money circulating in the community is regulated by reducing or increasing the amount of money in circulation. Monetary policy can be classified into two, namely:
Expansive monetary policy (Monetary expansive policy)
It is a policy to increase the amount of money in circulation. The policy was carried out to overcome unemployment and increase people's purchasing power (public demand) when the economy is experiencing a recession or depertion. This policy is called easy monetary policy (easy money policy).
World Bank Monetary Policy
World Bank Monetary Policy
Monetary contractive policy
It is a policy to reduce the amount of money in circulation. This was done when the economy experienced inflation. Also called a tight money policy.
Monetary policy can be carried out by implementing monetary policy instruments, namely:
Open Market Operations
Open market operations are a way of controlling money in circulation by selling or buying government securities. If you want to increase the amount of money in circulation, the government will impose purchases of government securities. However, if you want to reduce the money supply, the government will sell the government's valuable terms to the public. Government securities namely World Bank Certificates (SBI) and Money Market Securities (SBPU).
Discount Rate
The discounted facility is a regulation of the number of outstanding units by playing the interest rate of the central bank at commercial banks. Commercial banks sometimes have a shortage of money so they have to borrow from the central bank. To make the amount of money increase, the government lowered the central bank's interest rate, and vice versa raised the interest rate to make money circulating less.
Reserve Requirement Ratio
The mandatory reserve ratio is what regulates the amount of money in circulation by playing with the amount of bank reserve funds that must be deposited with the government. To increase the amount of money, the government reduced the mandatory reserve ratio. To reduce the money in circulation, the government raised the ratio.
Moral Appeal (Moral Persuasion)
Moral appeal is a monetary policy separately regulating the money supply by appealing to economic actors. For example, urging banks to give credit to be careful in issuing credit to reduce the money supply and to urge banks to borrow more money from the central bank to increase the money supply to the economy.
Monetary Policy Objectives
The World Bank has a goal of achieving and maintaining the stability of the value of the rupiah. This goal as stated in Law No. 3 of 2004 article 7 concerning the World Bank.
The purpose of the stability of the value of the rupiah, among others, is the stability of the prices of services and goods that are reflected in inflation. To achieve this goal, since 2005 the World Bank has implemented a monetary policy framework with inflation as the main target of a monetary policy (Inflation Targeting Framework) using a free floating exchange rate system.
Understanding Monetary Policy
Monetary policy is a process that regulates a country's money supply to achieve certain goals; as well as curbing inflation, and reaching full or more prosperous workers. Monetary policy may involve setting a margin reguirement loan standard, capitalizing with banks or even acting as a last resort borrower through negotiations with other governments.
Monetary policy is basically a policy that has the goal of achieving internal balance (high growth, equitable development, price stability) and external balance (balance of payment balance and achievement of macroeconomic objectives, namely maintaining economic stability that can be measured by employment opportunities, stability of the family and a balanced international balance of payments.
If the stability in an economic activity is disrupted, then monetary policy can be used to restore (stabilization measures). The influence of monetary policy will first be felt in the banking sector, then transferred to the real sector.
Monetary policy is an attempt to achieve a high level of economic growth on an ongoing basis while maintaining price stability. To achieve this goal the Central Bank or Monetary Authority seeks to balance the supply of money with supplies of goods so that inflation can be controlled, full and smooth employment opportunities are achieved in the supply / distribution of goods.
Conducting monetary policy is one of them but not limited to the following instruments:
interest rate
Statutory Reserve Requirement
intervention in the currency market
as the last place for banks to borrow money if experiencing liquidity problems.
Types of Monetary Policy
The regulation of the amount of money circulating in the community is regulated by reducing or increasing the amount of money in circulation. Monetary policy can be classified into two, namely:
Expansive monetary policy (Monetary expansive policy)
It is a policy to increase the amount of money in circulation. The policy was carried out to overcome unemployment and increase people's purchasing power (public demand) when the economy is experiencing a recession or depertion. This policy is called easy monetary policy (easy money policy).
World Bank Monetary Policy
World Bank Monetary Policy
Monetary contractive policy
It is a policy to reduce the amount of money in circulation. This was done when the economy experienced inflation. Also called a tight money policy.
Monetary policy can be carried out by implementing monetary policy instruments, namely:
Open Market Operations
Open market operations are a way of controlling money in circulation by selling or buying government securities. If you want to increase the amount of money in circulation, the government will impose purchases of government securities. However, if you want to reduce the money supply, the government will sell the government's valuable terms to the public. Government securities namely World Bank Certificates (SBI) and Money Market Securities (SBPU).
Discount Rate
The discounted facility is a regulation of the number of outstanding units by playing the interest rate of the central bank at commercial banks. Commercial banks sometimes have a shortage of money so they have to borrow from the central bank. To make the amount of money increase, the government lowered the central bank's interest rate, and vice versa raised the interest rate to make money circulating less.
Reserve Requirement Ratio
The mandatory reserve ratio is what regulates the amount of money in circulation by playing with the amount of bank reserve funds that must be deposited with the government. To increase the amount of money, the government reduced the mandatory reserve ratio. To reduce the money in circulation, the government raised the ratio.
Moral Appeal (Moral Persuasion)
Moral appeal is a monetary policy separately regulating the money supply by appealing to economic actors. For example, urging banks to give credit to be careful in issuing credit to reduce the money supply and to urge banks to borrow more money from the central bank to increase the money supply to the economy.
Monetary Policy Objectives
The World Bank has a goal of achieving and maintaining the stability of the value of the rupiah. This goal as stated in Law No. 3 of 2004 article 7 concerning the World Bank.
The purpose of the stability of the value of the rupiah, among others, is the stability of the prices of services and goods that are reflected in inflation. To achieve this goal, since 2005 the World Bank has implemented a monetary policy framework with inflation as the main target of a monetary policy (Inflation Targeting Framework) using a free floating exchange rate system.
Inflation and Unemployment
Inflation and Unemployment
Indea regarding the relationship between inflation and unemployment was relatively new, approximately in the late 1950s. Systematically this relationship was just introduced by AW Phillips in 1958 from the results of a field study of the relationship between rising wage rates and unemployment in Britain in 1861 - 1957.
Curves that show this negative relationship are often called the Phillips curve (according to the name of the inventor). The curve is in line with the situation in England in the period 1861 - 1957. The year in which the unemployment rate is low is also the year in which the rate of increase in wages is high, and vice versa the year in which unemployment is high, the rate of increase in wages is low.
Policy Relating to Output
An increase in output can reduce the rate of inflation. The increase in the amount of output can be achieved for example with a policy of reducing import duties so that imports of goods tend to increase. Increasing the number of goods in the country tends to reduce prices.
Price Determination and Indexing Policy
This is done by determining the price ceiling, and based on a certain price index for salaries or wages (thus the salary / wages in real terms are fixed). If the price index rises, salary / wages are also increased.
Implications of Wisdom
Until the late 1950s the main problem of macroeconomic policy was to achieve simultaneously price stability and high employment opportunities.
But some thoughts at that time doubted the achievement of the two goals together - together. The Phillips curve can explain this pessimistic state. Price stability and high employment are two things that cannot happen together.
Basic theory
The Phillips curve is obtained solely on the basis of empirical studies, there is no theoretical basis. Lipsey in 1960 tried to fill the basis of his theory. For this purpose he uses as a basis for his explanation the theory of the labor market.
Thus, the natural rate of unemployment (UN) is a rate of unemployment in which there is wage stability (W = 0). There are several Lipsey statements about the Phillips curve using the labor market theory into two, namely, first, supply and demand for labor determine the wage level, second the rate of change in the wage rate is determined by the amount of excess demand for labor.
Estimation (Expectation)
This forecast or expectation problem arose in the mid-1970s and was a breath of fresh air in macroeconomic development. The trade-off between inflation and unemployment is questionable. The oil crisis that occurred in the mid-1970s led to what is called stagflation (inflation and inflation), inflation and unemployment rising together.
Adaptive Estimation (adaptive expectation)
Before the mid-1970s the dominant theory in the reduction of these expectations was adaptive. According to this theory the expected price will be based on past prices. If the current estimated price is not the same as the actual actual price, the individual will use the error in this estimate to improve his estimate in the future.
Indea regarding the relationship between inflation and unemployment was relatively new, approximately in the late 1950s. Systematically this relationship was just introduced by AW Phillips in 1958 from the results of a field study of the relationship between rising wage rates and unemployment in Britain in 1861 - 1957.
Curves that show this negative relationship are often called the Phillips curve (according to the name of the inventor). The curve is in line with the situation in England in the period 1861 - 1957. The year in which the unemployment rate is low is also the year in which the rate of increase in wages is high, and vice versa the year in which unemployment is high, the rate of increase in wages is low.
Policy Relating to Output
An increase in output can reduce the rate of inflation. The increase in the amount of output can be achieved for example with a policy of reducing import duties so that imports of goods tend to increase. Increasing the number of goods in the country tends to reduce prices.
Price Determination and Indexing Policy
This is done by determining the price ceiling, and based on a certain price index for salaries or wages (thus the salary / wages in real terms are fixed). If the price index rises, salary / wages are also increased.
Implications of Wisdom
Until the late 1950s the main problem of macroeconomic policy was to achieve simultaneously price stability and high employment opportunities.
But some thoughts at that time doubted the achievement of the two goals together - together. The Phillips curve can explain this pessimistic state. Price stability and high employment are two things that cannot happen together.
Basic theory
The Phillips curve is obtained solely on the basis of empirical studies, there is no theoretical basis. Lipsey in 1960 tried to fill the basis of his theory. For this purpose he uses as a basis for his explanation the theory of the labor market.
Thus, the natural rate of unemployment (UN) is a rate of unemployment in which there is wage stability (W = 0). There are several Lipsey statements about the Phillips curve using the labor market theory into two, namely, first, supply and demand for labor determine the wage level, second the rate of change in the wage rate is determined by the amount of excess demand for labor.
Estimation (Expectation)
This forecast or expectation problem arose in the mid-1970s and was a breath of fresh air in macroeconomic development. The trade-off between inflation and unemployment is questionable. The oil crisis that occurred in the mid-1970s led to what is called stagflation (inflation and inflation), inflation and unemployment rising together.
Adaptive Estimation (adaptive expectation)
Before the mid-1970s the dominant theory in the reduction of these expectations was adaptive. According to this theory the expected price will be based on past prices. If the current estimated price is not the same as the actual actual price, the individual will use the error in this estimate to improve his estimate in the future.
Inflation and Economic Development
Inflation and Economic Development
High levels of inflation will not promote economic development. Costs that continue to rise cause productive activities to be very unprofitable. So the capital owner usually prefers to use his money for speculative purposes.
Among other things this goal is achieved by the buyer of fixed assets such as land, houses and buildings. Because entrepreneurs prefer to carry out investment activities of this nature, productive investment will decrease and the level of economic activity decreases. As a result more unemployment will come into being.
Effects on Income (Equity Effect)
The effects on income are uneven, some are disadvantaged but some are benefited by inflation. Someone who gets fixed income will be disadvantaged by inflation. For example a person who earns a fixed income of 500,000.00 per year while the inflation rate of 10%, will suffer a loss in decline in real income for the inflation rate, which is 50,000.00.
Efficiency Effects
Inflation can also change the pattern of allocation of factors of production. This change can occur through an increase in demand for various types of goods which can then lead to changes in the production of certain goods, resulting in inefficient allocation of production factors.
Effects on Output (Output Effects)
In analyzing the two effects above (Equity and Efficiency Effects) an assumption is used that the output is fixed. This is done so that the effects of inflation on the distribution of income and the efficiency of certain outputs can be known.
Community Inflation and Prosperity
Aside from having adverse effects on the country's economic activities, inflation will also have the following effects on individuals for the community:
Inflation will reduce the real income of people with a steady income.
Inflation will reduce the value of wealth in the form of money.
Worsen the distribution of wealth.
Inflation
How to Prevent Inflation
By using Irving Fisher MV = PT, it can be explained that inflation arises because MV rises faster than T. Therefore, to prevent inflation, one of the variables (M or V) must be controlled. How to regulate the variables M, V and T can be done using monetary, fiscal or policy policies related to increased production.
Monetary Policy
The target of monetary policy is achieved through the regulation of the money supply (M). One component of the amount of money is demand deposits (demand deposits). Demand deposits can occur in two ways first if someone puts cash into the bank in the form of demand deposits and then the second if someone gets a loan from the bank not received cash but in the form of demand deposits.
Another instrument that can be used to prevent inflation is open market politics (selling / buying securities). By selling securities the central bank can suppress the development of the money supply so that the inflation rate can be lower.
Fiscal Wisdom
Fiscal policy concerns the regulation of government spending and taxation which can directly affect total demand and thus affect prices. Inflation can be prevented through a decrease in total demand.
Fiscal policy in the form of reducing government spending and increasing taxes will reduce total demand, so that inflation can be suppressed.
High levels of inflation will not promote economic development. Costs that continue to rise cause productive activities to be very unprofitable. So the capital owner usually prefers to use his money for speculative purposes.
Among other things this goal is achieved by the buyer of fixed assets such as land, houses and buildings. Because entrepreneurs prefer to carry out investment activities of this nature, productive investment will decrease and the level of economic activity decreases. As a result more unemployment will come into being.
Effects on Income (Equity Effect)
The effects on income are uneven, some are disadvantaged but some are benefited by inflation. Someone who gets fixed income will be disadvantaged by inflation. For example a person who earns a fixed income of 500,000.00 per year while the inflation rate of 10%, will suffer a loss in decline in real income for the inflation rate, which is 50,000.00.
Efficiency Effects
Inflation can also change the pattern of allocation of factors of production. This change can occur through an increase in demand for various types of goods which can then lead to changes in the production of certain goods, resulting in inefficient allocation of production factors.
Effects on Output (Output Effects)
In analyzing the two effects above (Equity and Efficiency Effects) an assumption is used that the output is fixed. This is done so that the effects of inflation on the distribution of income and the efficiency of certain outputs can be known.
Community Inflation and Prosperity
Aside from having adverse effects on the country's economic activities, inflation will also have the following effects on individuals for the community:
Inflation will reduce the real income of people with a steady income.
Inflation will reduce the value of wealth in the form of money.
Worsen the distribution of wealth.
Inflation
How to Prevent Inflation
By using Irving Fisher MV = PT, it can be explained that inflation arises because MV rises faster than T. Therefore, to prevent inflation, one of the variables (M or V) must be controlled. How to regulate the variables M, V and T can be done using monetary, fiscal or policy policies related to increased production.
Monetary Policy
The target of monetary policy is achieved through the regulation of the money supply (M). One component of the amount of money is demand deposits (demand deposits). Demand deposits can occur in two ways first if someone puts cash into the bank in the form of demand deposits and then the second if someone gets a loan from the bank not received cash but in the form of demand deposits.
Another instrument that can be used to prevent inflation is open market politics (selling / buying securities). By selling securities the central bank can suppress the development of the money supply so that the inflation rate can be lower.
Fiscal Wisdom
Fiscal policy concerns the regulation of government spending and taxation which can directly affect total demand and thus affect prices. Inflation can be prevented through a decrease in total demand.
Fiscal policy in the form of reducing government spending and increasing taxes will reduce total demand, so that inflation can be suppressed.
Types of Inflation According to Their Nature
Types of Inflation According to Their Nature
The inflation rate can differ from one country to another or within one country at different times. On the basis of the large inflation rate, it can be divided into three categories, i.e.
Creeping (creeping inflation)
Characterized by a low inflation rate (less than 10% per year). Price increases are slow, with a small percentage and in a relatively long period.
medium inflation (galloping inflation)
The rate is relatively large in a relatively short period of time and has a very accelerating effect (prices on a weekly or monthly basis) the effect on the economy is greater than creeping inflation.
high inflation (hyper inflation)
is the most severe inflation as a result - prices go up 5 or 6 times. People no longer want to save money because the value of money has fallen so sharply that it wants to be exchanged for money so that the velocity of money is getting faster and prices are accelerating. Usually this situation arises when the government experiences a budget deficit that is spent and covered by printing money.
9. Rimsky K. Judisseno
According to Rimsky K. Judisseno revealed that inflation is one of the events in which monetary is shown from a tendency of rising prices for goods in general. In this event, a decrease in the value of the currency is occurring.
10. S. Sukirno
According to S. Sukirno revealed that inflation is a process when a price increase that applies to the economy.
11. Weston and Sopeland
According to Weston and Sopeland revealed that inflation is a state of the economy that is being hit by an increase in the highest price level and cannot be prevented or controlled again.
12. Winardi
According to Winardi revealed that inflation is a period of a certain period, which occurs when a buying power against monetary unity decreases. In terms of inflation, it can arise if the value of money deposited will circulate more than the amount of goods or services offered.
13. Gerald J. Thuesen and W. J. Fabrycky
According to the two revealed that inflation is a condition that illustrates a change in the price level in an economy. There is no country that has never experienced inflation, even developed countries have experienced inflation at any time.
Types of Inflation According to the Cause
The inflation rate can differ from one country to another or within one country at different times.
Demand-pull inflation
This inflation stems from an increase in total demand (aggregate demand), while production is in a state of full employment or nearing full employment. In a state of almost full employment, an increase in total demand in addition to an increase in price can also increase output.
Cost-push inflation
In contrast to demand-pull inflation, cost-push inflation is usually characterized by rising prices and falling production. So, inflation is accompanied by a recession. This situation arises usually starts with a decrease in the total supply (aggregate supply) as a result of increased production costs. This increase in production costs can arise due to several factors including:
successful trade union struggles to counter wage increases
A monopolistic industry, managers can use their power in the market to determine (higher) prices.
Increase in prices of industrial raw materials.
Effects arising from inflation
The Following Are The Effects Of Inflation.
The inflation rate can differ from one country to another or within one country at different times. On the basis of the large inflation rate, it can be divided into three categories, i.e.
Creeping (creeping inflation)
Characterized by a low inflation rate (less than 10% per year). Price increases are slow, with a small percentage and in a relatively long period.
medium inflation (galloping inflation)
The rate is relatively large in a relatively short period of time and has a very accelerating effect (prices on a weekly or monthly basis) the effect on the economy is greater than creeping inflation.
high inflation (hyper inflation)
is the most severe inflation as a result - prices go up 5 or 6 times. People no longer want to save money because the value of money has fallen so sharply that it wants to be exchanged for money so that the velocity of money is getting faster and prices are accelerating. Usually this situation arises when the government experiences a budget deficit that is spent and covered by printing money.
9. Rimsky K. Judisseno
According to Rimsky K. Judisseno revealed that inflation is one of the events in which monetary is shown from a tendency of rising prices for goods in general. In this event, a decrease in the value of the currency is occurring.
10. S. Sukirno
According to S. Sukirno revealed that inflation is a process when a price increase that applies to the economy.
11. Weston and Sopeland
According to Weston and Sopeland revealed that inflation is a state of the economy that is being hit by an increase in the highest price level and cannot be prevented or controlled again.
12. Winardi
According to Winardi revealed that inflation is a period of a certain period, which occurs when a buying power against monetary unity decreases. In terms of inflation, it can arise if the value of money deposited will circulate more than the amount of goods or services offered.
13. Gerald J. Thuesen and W. J. Fabrycky
According to the two revealed that inflation is a condition that illustrates a change in the price level in an economy. There is no country that has never experienced inflation, even developed countries have experienced inflation at any time.
Types of Inflation According to the Cause
The inflation rate can differ from one country to another or within one country at different times.
Demand-pull inflation
This inflation stems from an increase in total demand (aggregate demand), while production is in a state of full employment or nearing full employment. In a state of almost full employment, an increase in total demand in addition to an increase in price can also increase output.
Cost-push inflation
In contrast to demand-pull inflation, cost-push inflation is usually characterized by rising prices and falling production. So, inflation is accompanied by a recession. This situation arises usually starts with a decrease in the total supply (aggregate supply) as a result of increased production costs. This increase in production costs can arise due to several factors including:
successful trade union struggles to counter wage increases
A monopolistic industry, managers can use their power in the market to determine (higher) prices.
Increase in prices of industrial raw materials.
Effects arising from inflation
The Following Are The Effects Of Inflation.
Understanding Inflation According to Experts
Understanding Inflation According to Experts
Understanding Inflation - Types, Effects, Preventing, Unemployment, Wisdom, Experts: Is the process of increasing the general prices of stems of goods continuously.
Understanding Inflation
It is a process of continually increasing the general prices of stems. This does not mean that the prices of various kinds of goods are nik with the same percentage.
Maybe the increase can not occur together. What is important is that there is an increase in the general price of the bar continuously over a certain period. An increase that occurs only once (even with a sizable percentage) is not inflation.
This price increase is measured using a price index. Some price indexes that are often used to measure inflation include:
Cost of living index (consumer price index)
The cost of living index measures the cost or expenditure to buy a number of goods and services purchased by households for living needs.
wholesale trade price index (wholesale pirce index)
a large trading index focuses on a number of items at the level of a large sword.
GNP deflator
GNP deflator is another type of index. Unlike the two indices above, in the scope of goods. GNP deflator includes the number of goods and services included in the GNP calculation, so more is the amount when compared to the two indices above the GNP deflator is obtained by dividing the nominal GNP (above the Applicable price) with the real GNP (at the constant price)
GNP deflator = Nominal GNP x 100
Understanding Inflation According to Experts
Here Is An Understanding Of Inflation According To Experts.
1. A. P. Lahnerinflation
According to Lahnerinflation revealed that inflation is a condition in which there has been an excess of a demand for goods in an economy in a comprehensive way.
2. Dwi Eko Waluyo
According to Dwi Eko Waluyo revealed that inflation is one form of economic diseases that often occur and are experienced in almost all countries. The tendency of an increase in prices in general and occurs continuously.
3. Marcus
According to Marcus revealed that inflation is a value when the level of the price of goods or services generally are experiencing an increase.
4. Mc. Eachern
Inflation is a condition in which a continuous increase in the average level of a price. if the price level fluctuates, that is to say, the situation this month will rise if the next month falls again, if at any time the increase in work is not included in inflation.
5. Nanga
According to Nanga revealed that inflation is a symptom when the level of 1 price in general is experiencing a continuous increase. However, if the increase in the price of this happens in a single period it can not be said with an inflation.
6. Nopirin
According to Nopirin revealed that inflation is a process of an increase in prices in general and will move continuously, for example on primary goods daily needs.
7. Nordhaus and Samuelson
According to both states that inflation is a condition of rising prices in general.
8. Rahardja
According to Rahardja revealed that inflation is a tendency for prices that are useful to increase continuously in general. When the price of goods is experiencing an increase in almost most of the price of goods in general that is what is referred to as Understanding Inflation.
Understanding Inflation - Types, Effects, Preventing, Unemployment, Wisdom, Experts: Is the process of increasing the general prices of stems of goods continuously.
Understanding Inflation
It is a process of continually increasing the general prices of stems. This does not mean that the prices of various kinds of goods are nik with the same percentage.
Maybe the increase can not occur together. What is important is that there is an increase in the general price of the bar continuously over a certain period. An increase that occurs only once (even with a sizable percentage) is not inflation.
This price increase is measured using a price index. Some price indexes that are often used to measure inflation include:
Cost of living index (consumer price index)
The cost of living index measures the cost or expenditure to buy a number of goods and services purchased by households for living needs.
wholesale trade price index (wholesale pirce index)
a large trading index focuses on a number of items at the level of a large sword.
GNP deflator
GNP deflator is another type of index. Unlike the two indices above, in the scope of goods. GNP deflator includes the number of goods and services included in the GNP calculation, so more is the amount when compared to the two indices above the GNP deflator is obtained by dividing the nominal GNP (above the Applicable price) with the real GNP (at the constant price)
GNP deflator = Nominal GNP x 100
Understanding Inflation According to Experts
Here Is An Understanding Of Inflation According To Experts.
1. A. P. Lahnerinflation
According to Lahnerinflation revealed that inflation is a condition in which there has been an excess of a demand for goods in an economy in a comprehensive way.
2. Dwi Eko Waluyo
According to Dwi Eko Waluyo revealed that inflation is one form of economic diseases that often occur and are experienced in almost all countries. The tendency of an increase in prices in general and occurs continuously.
3. Marcus
According to Marcus revealed that inflation is a value when the level of the price of goods or services generally are experiencing an increase.
4. Mc. Eachern
Inflation is a condition in which a continuous increase in the average level of a price. if the price level fluctuates, that is to say, the situation this month will rise if the next month falls again, if at any time the increase in work is not included in inflation.
5. Nanga
According to Nanga revealed that inflation is a symptom when the level of 1 price in general is experiencing a continuous increase. However, if the increase in the price of this happens in a single period it can not be said with an inflation.
6. Nopirin
According to Nopirin revealed that inflation is a process of an increase in prices in general and will move continuously, for example on primary goods daily needs.
7. Nordhaus and Samuelson
According to both states that inflation is a condition of rising prices in general.
8. Rahardja
According to Rahardja revealed that inflation is a tendency for prices that are useful to increase continuously in general. When the price of goods is experiencing an increase in almost most of the price of goods in general that is what is referred to as Understanding Inflation.
Basic Investment Decisions
Basic Investment Decisions
The basis for investment decisions according to Tandelilin (2005) consists of:
Return
The main reason people invest is to make a profit. In investment management the level of return on investment is referred to as return. One thing that is very reasonable if investors demand a certain level of return on the funds that have been invested. Investors' expected returns from their investments are compensation for opportunity costs and the risk of decreasing purchasing power due to the influence of inflation.
In investing, it is necessary to distinguish between expected returns and realized returns. Expected return is the level of return that investors anticipate in the future. While the return that occurs or the actual return is a return that has been obtained by investors in the past. Between the expected level of return and the actual level of return obtained by investors from the investment made may be different.
Risk
In addition to the above, an investor must always consider risk in the investment process. So in investing, in addition to paying attention to the rate of return, investment must always consider the risk level of an investment. The level of return is directly correlated with risk, namely: the higher the return, the higher the risk. Therefore, investors must maintain the level of risk with a balanced return.
The time factor
The time period is important from the definition of investment. Investors can invest in the short term, medium term, or long term. The choice of investment period is actually an important thing that shows the expectations or expectations of investors. Investors always select time periods and returns that can meet expectations from consideration of returns and risks.
Investment process
The investment process is a series of activities that result in the purchase of real assets / securities. The investment process revolves around investment decisions related to maximizing investor wealth.
Steps in the investment process:
Knowledge of investment returns and risks.
Knowing the attitude of investors towards risk. Each investor must be willing to accept investment risks that are sometimes in real assets and securities, and can identify a combination of returns and risks that can be accepted. In other words, before accepting investment risk, investors must be in a logical financial position, and must be prepared to use reasonable reasons for the decision making process.
Knowledge of each type of securities / assets available for investment, including expected returns and risks associated with these types of assets / securities.
Select several securities / assets that can provide an acceptable return and risk based on the needs of certain investors.
Mutual Fund Investment
Mutual funds are a forum and pattern of funds / capital management for a group of investors to invest in investment instruments available in the market by buying mutual fund participation units. These funds are then managed by Investment Managers into investment portfolios, whether in the form of shares, bonds, money markets or other securities / securities through Investment Management Companies (Mutual Funds).
Advantages:
Small investors can diversify their capital so they can minimize the risk of loss.
Facilitate investors who do not have the expertise or profits to invest in the capital market.
Investors are assisted by professional investment managers.
Information transparency and high level of liquidity.
Weakness:
Risk of reduced participation units (proof of participation in mutual funds in the form of collective investment contracts) if the price of securities (stocks, bonds and other securities) falls.
Investment managers may have difficulty providing money if many investors simultaneously sell back.
Risk of default if the mutual fund insurance company does not immediately pay compensation or pay less than the mutual fund coverage.
Examples of Investment Products Available in the Market
Savings
Deposit
Stock
Property
Collectible items
Foreign Currency (Foreign Exchange)
Bond
Bank Certificate (SBI)
Money market securities
Bonds payable certificate
Mutual fund
The basis for investment decisions according to Tandelilin (2005) consists of:
Return
The main reason people invest is to make a profit. In investment management the level of return on investment is referred to as return. One thing that is very reasonable if investors demand a certain level of return on the funds that have been invested. Investors' expected returns from their investments are compensation for opportunity costs and the risk of decreasing purchasing power due to the influence of inflation.
In investing, it is necessary to distinguish between expected returns and realized returns. Expected return is the level of return that investors anticipate in the future. While the return that occurs or the actual return is a return that has been obtained by investors in the past. Between the expected level of return and the actual level of return obtained by investors from the investment made may be different.
Risk
In addition to the above, an investor must always consider risk in the investment process. So in investing, in addition to paying attention to the rate of return, investment must always consider the risk level of an investment. The level of return is directly correlated with risk, namely: the higher the return, the higher the risk. Therefore, investors must maintain the level of risk with a balanced return.
The time factor
The time period is important from the definition of investment. Investors can invest in the short term, medium term, or long term. The choice of investment period is actually an important thing that shows the expectations or expectations of investors. Investors always select time periods and returns that can meet expectations from consideration of returns and risks.
Investment process
The investment process is a series of activities that result in the purchase of real assets / securities. The investment process revolves around investment decisions related to maximizing investor wealth.
Steps in the investment process:
Knowledge of investment returns and risks.
Knowing the attitude of investors towards risk. Each investor must be willing to accept investment risks that are sometimes in real assets and securities, and can identify a combination of returns and risks that can be accepted. In other words, before accepting investment risk, investors must be in a logical financial position, and must be prepared to use reasonable reasons for the decision making process.
Knowledge of each type of securities / assets available for investment, including expected returns and risks associated with these types of assets / securities.
Select several securities / assets that can provide an acceptable return and risk based on the needs of certain investors.
Mutual Fund Investment
Mutual funds are a forum and pattern of funds / capital management for a group of investors to invest in investment instruments available in the market by buying mutual fund participation units. These funds are then managed by Investment Managers into investment portfolios, whether in the form of shares, bonds, money markets or other securities / securities through Investment Management Companies (Mutual Funds).
Advantages:
Small investors can diversify their capital so they can minimize the risk of loss.
Facilitate investors who do not have the expertise or profits to invest in the capital market.
Investors are assisted by professional investment managers.
Information transparency and high level of liquidity.
Weakness:
Risk of reduced participation units (proof of participation in mutual funds in the form of collective investment contracts) if the price of securities (stocks, bonds and other securities) falls.
Investment managers may have difficulty providing money if many investors simultaneously sell back.
Risk of default if the mutual fund insurance company does not immediately pay compensation or pay less than the mutual fund coverage.
Examples of Investment Products Available in the Market
Savings
Deposit
Stock
Property
Collectible items
Foreign Currency (Foreign Exchange)
Bond
Bank Certificate (SBI)
Money market securities
Bonds payable certificate
Mutual fund
Investment Type and Decisions
Investment Type and Decisions
Investment decisions can be made by individuals or entities that have excess funds. According to Sunariyah (2004: 4) investment in a broad sense consists of two main parts namely:
Investment in real assets (real assets)
In the form of tangible assets such as gold, silver, diamonds, art goods and real estate.
Investment in securities (Financial Asset)
The form of securities which are basically claims for real assets controlled by the entity. The choice of financial assets in the context of investment in an entity can be done in two ways:
Direct investment
Direct investment can be interpreted as the ownership of securities directly in an entity that has officially gone public in the hope of getting benefits in the form of dividend income and capital gains.
Indirect investment
Indirect investment occurs when securities that are owned are traded again by an investment company that functions as an intermediary.
Investment Risk
Risk is the possibility of investments made by investors failing to meet the rate of return that investors expect. The types of risks that may be faced by investors in carrying out investment activities stated by Reilly (2003: 15), including:
Business Risk
The possibility of losses suffered by the company due to the profits obtained are smaller than the expected profits.
Financial Risk
Risks arising from the way companies finance their activities, for example, the use of debt in financing company assets.
Liquidity Risk
There are uncertainties that arise when securities are on the secondary market.
Exchange Risk
This risk is related to fluctuations in the exchange rate of the domestic currency with the value of the country's currency.
Country Risk
This risk is related to political stability and the economic environment in a country.
The risks that must be faced in every investment decision requires investors to be careful and conduct analysis and careful consideration. Sufficient knowledge and understanding will help investors in considering an alternative investment. Therefore an investor or investment actor who will invest in stock securities should have an understanding of the capital market how to invest in securities as well as the characteristics of the stock itself.
Investment Objectives
Basically the purpose of people investing is to make some money. More specifically according (Tandelilin, 2001: 5) there are several reasons why someone makes an investment, including:
To get a more decent life in the future.
A wise person will think about how to improve their standard of living from time to time or at least try to maintain their current income level so that it does not decrease in the future.
Reducing the risk of inflation
By investing in the ownership of a company or other object, a person can avoid the risk of decreasing the value of his wealth or property due to the influence of inflation.
Encouragement to save taxes
Some countries in the world carry out many policies that encourage the growth of investment in society through the provision of taxation facilities to the public who invest in certain business fields.
Investment decisions can be made by individuals or entities that have excess funds. According to Sunariyah (2004: 4) investment in a broad sense consists of two main parts namely:
Investment in real assets (real assets)
In the form of tangible assets such as gold, silver, diamonds, art goods and real estate.
Investment in securities (Financial Asset)
The form of securities which are basically claims for real assets controlled by the entity. The choice of financial assets in the context of investment in an entity can be done in two ways:
Direct investment
Direct investment can be interpreted as the ownership of securities directly in an entity that has officially gone public in the hope of getting benefits in the form of dividend income and capital gains.
Indirect investment
Indirect investment occurs when securities that are owned are traded again by an investment company that functions as an intermediary.
Investment Risk
Risk is the possibility of investments made by investors failing to meet the rate of return that investors expect. The types of risks that may be faced by investors in carrying out investment activities stated by Reilly (2003: 15), including:
Business Risk
The possibility of losses suffered by the company due to the profits obtained are smaller than the expected profits.
Financial Risk
Risks arising from the way companies finance their activities, for example, the use of debt in financing company assets.
Liquidity Risk
There are uncertainties that arise when securities are on the secondary market.
Exchange Risk
This risk is related to fluctuations in the exchange rate of the domestic currency with the value of the country's currency.
Country Risk
This risk is related to political stability and the economic environment in a country.
The risks that must be faced in every investment decision requires investors to be careful and conduct analysis and careful consideration. Sufficient knowledge and understanding will help investors in considering an alternative investment. Therefore an investor or investment actor who will invest in stock securities should have an understanding of the capital market how to invest in securities as well as the characteristics of the stock itself.
Investment Objectives
Basically the purpose of people investing is to make some money. More specifically according (Tandelilin, 2001: 5) there are several reasons why someone makes an investment, including:
To get a more decent life in the future.
A wise person will think about how to improve their standard of living from time to time or at least try to maintain their current income level so that it does not decrease in the future.
Reducing the risk of inflation
By investing in the ownership of a company or other object, a person can avoid the risk of decreasing the value of his wealth or property due to the influence of inflation.
Encouragement to save taxes
Some countries in the world carry out many policies that encourage the growth of investment in society through the provision of taxation facilities to the public who invest in certain business fields.
Definition and Type of Investment
Definition and Type of Investment
Definition of Investment According to Economists - Investment can be interpreted as investment. Investment has a very important role in the economy both domestically and abroad every year.
Definition of Investment
Definition of Investment
Definition of Investment According to Economists - Investment can be interpreted as investment. Investment has a very important role in the economy both domestically and abroad every year. Investors are known as investors, this investor will invest in the form of providing good security guarantees, labor costs and others.
The above understanding turns out to differ in terms of investment in daily life, for example there are people who have money who then buy shares in the capital market, in terms of investment according to economics it turns out that it is not called investment according to him. Therefore, it is clear when we buy shares when the stock price is cheap and also sell it when the stock price rises, then that is not said to be an investment.
Definition of Investment According to Economists
Understanding investment according to Haming and Basalamah
investment is expenditure at the present time to buy real assets (land, houses, cars, etc.) or also financial assets have the aim of earning greater income in the future, hereinafter also said investment is an activity related to the withdrawal business sources (funds) used to procure capital goods at the present time, and with these capital goods new product flows will be generated in the future.
Understanding investment according to Mulyadi
Investment is the linking of sources in the long run to get a profit in the future.
The definition of investment according to Sadono Sukirno
Investment is defined as the expenditure or expenditure of investors of a capital or company to buy capital goods and also equipment for production to increase the ability to produce goods and services available in the economy.
Definition of Investment according to James C Van Horn
the activity carried out is to utilize cash at this time, with the aim to get the results of the goods in the future.
Definition of Investment according to Henry Simamora
Investment is an asset that is used by a company to add or growth of its wealth through the distribution of investment returns (eg income, royalties, dividends, rental income, etc.), to appreciate the value of an investment, or also for other benefits for an investment company, which is like the benefits gained through trade relations.
Definition of Investment according to Fitz Gerald
activity is related to efforts to withdraw resources used to procure capital goods at the present time. These capital goods will then produce new product flows in the future. Fitz Gerald also later revealed that investment is an activity that is related to the effort to withdraw resources for the use of goods. From this capital, a new product flow will be produced in the future.
Definition of investment according to Sunariyah
Investment is an investment for one or more assets owned and also usually for a long time in the hope of profit in the future.
In economics, investment can be categorized as follows:
The purchase of types of capital goods such as production equipment and machinery to build various types of companies and industries.
Expenditures to be able to build a residence, factory and also office buildings and other supporting buildings. The investment is to build the factory, so that the factory can then operate and generate more capital.
An increase in value in the inventory of goods that have not yet been sold, which then at the end of the year a calculation of national income on raw materials and also goods that are still in the production process.
If the three categories above are added up, gross investment will be obtained, which means that gross investment includes investments that have the objective to increase production output in the economy and also play a role in replacing depressed capital goods.
Definition of Investment According to Economists - Investment can be interpreted as investment. Investment has a very important role in the economy both domestically and abroad every year.
Definition of Investment
Definition of Investment
Definition of Investment According to Economists - Investment can be interpreted as investment. Investment has a very important role in the economy both domestically and abroad every year. Investors are known as investors, this investor will invest in the form of providing good security guarantees, labor costs and others.
The above understanding turns out to differ in terms of investment in daily life, for example there are people who have money who then buy shares in the capital market, in terms of investment according to economics it turns out that it is not called investment according to him. Therefore, it is clear when we buy shares when the stock price is cheap and also sell it when the stock price rises, then that is not said to be an investment.
Definition of Investment According to Economists
Understanding investment according to Haming and Basalamah
investment is expenditure at the present time to buy real assets (land, houses, cars, etc.) or also financial assets have the aim of earning greater income in the future, hereinafter also said investment is an activity related to the withdrawal business sources (funds) used to procure capital goods at the present time, and with these capital goods new product flows will be generated in the future.
Understanding investment according to Mulyadi
Investment is the linking of sources in the long run to get a profit in the future.
The definition of investment according to Sadono Sukirno
Investment is defined as the expenditure or expenditure of investors of a capital or company to buy capital goods and also equipment for production to increase the ability to produce goods and services available in the economy.
Definition of Investment according to James C Van Horn
the activity carried out is to utilize cash at this time, with the aim to get the results of the goods in the future.
Definition of Investment according to Henry Simamora
Investment is an asset that is used by a company to add or growth of its wealth through the distribution of investment returns (eg income, royalties, dividends, rental income, etc.), to appreciate the value of an investment, or also for other benefits for an investment company, which is like the benefits gained through trade relations.
Definition of Investment according to Fitz Gerald
activity is related to efforts to withdraw resources used to procure capital goods at the present time. These capital goods will then produce new product flows in the future. Fitz Gerald also later revealed that investment is an activity that is related to the effort to withdraw resources for the use of goods. From this capital, a new product flow will be produced in the future.
Definition of investment according to Sunariyah
Investment is an investment for one or more assets owned and also usually for a long time in the hope of profit in the future.
In economics, investment can be categorized as follows:
The purchase of types of capital goods such as production equipment and machinery to build various types of companies and industries.
Expenditures to be able to build a residence, factory and also office buildings and other supporting buildings. The investment is to build the factory, so that the factory can then operate and generate more capital.
An increase in value in the inventory of goods that have not yet been sold, which then at the end of the year a calculation of national income on raw materials and also goods that are still in the production process.
If the three categories above are added up, gross investment will be obtained, which means that gross investment includes investments that have the objective to increase production output in the economy and also play a role in replacing depressed capital goods.
Have a Dynamic Proposed Plan for Business and Entrepreneurship
Have a Dynamic Proposed Plan for Business and Entrepreneurship
You have to focus on a really great proposed plan, each plan is easy to implement, resources are well available, responsive and open to all. Give appreciation and reasonable responses to employees and seniors must have a commitment so that employees can still maintain freshness in carrying out every job.
Fighting the fear of change
Innovative leaders always fuel the spirit of the importance of change. They try to replace satisfaction with existing stability with a thirst for ambition. They will say, "Right now we are doing good things, but we must not stop and be complacent with the existing victory, we must do things better."
They also said that currently we are doing a new speculation that is full of risk, and if we do not move it will be far more dangerous. They provide an interesting picture of everything to be achieved in the future. Therefore, the only way to get there is to try to embrace change.
Think Like Investors Who Dare To Take Risks
A financier who dares to take risks will use a portfolio approach, trying to find a balance between failure and success. They like to consider various proposals or ideas but still feel comfortable with various thoughts that describe the failures that might be accepted.
Break the Rules
To achieve radical innovation, you must have the courage to challenge the assumptions of the rules that exist around the environment. Business is not like a sports game that is always bound by referees' rules and decisions, but business is like an art, in which it has many opportunities to think laterally, so as to create new ways about various objects and services that customers want.
Give Everyone Two Jobs
Give each person two main jobs. Ask them to carry out their daily work effectively and at the same time ask them to find new ways of carrying out their work.
Encourage them to ask themselves what is the essential purpose of my role? What real results and values can I give my clients, both internal and external? Is there a better way to deliver and achieve that value or goal? And the answer always says "YES". However, most people never or rarely ask such things.
Collaboration
Some company executives view collaboration as the key to success in innovation. They realize that not everything can be done only by relying on internal sources. Therefore, they see the outside world and invite other organizations as partners, so they can exchange experiences and skills in teams.
Accept failure
Innovative leaders encourage the formation of a culture of experimentation. Everyone must be taught that every failure is the first step of a long journey to success. To be truly intelligent and agile, everyone must be given the freedom to innovate, experiment and succeed in doing their work, including they must also be given freedom of the possibility of failure.
Build a prototype
You must dare to try a new idea that costs and risks are relatively low into the market (the real world), then see what the reaction of customers and people. There actually you will learn more about the real world, compared to if you only conduct trials in the laboratory or focus on a group of people.
Excited
You have to focus on everything you want to change. Ready and always excited and excited in facing and overcoming various challenges. The energy and enthusiasm that you have will spread and inspire everyone. It's no use if you fill the bus with passengers who are always preoccupied with themselves. You need and want your people and supporters with a passion. You expect everyone to believe that the pursuit of goals is very important and beneficial.
If you want everyone to be inspired to be innovative, change their usual ways, and to achieve extraordinary results, then you absolutely must have a burning passion about what you believe in and you must be able to communicate it at any time when you talk to people.
You have to focus on a really great proposed plan, each plan is easy to implement, resources are well available, responsive and open to all. Give appreciation and reasonable responses to employees and seniors must have a commitment so that employees can still maintain freshness in carrying out every job.
Fighting the fear of change
Innovative leaders always fuel the spirit of the importance of change. They try to replace satisfaction with existing stability with a thirst for ambition. They will say, "Right now we are doing good things, but we must not stop and be complacent with the existing victory, we must do things better."
They also said that currently we are doing a new speculation that is full of risk, and if we do not move it will be far more dangerous. They provide an interesting picture of everything to be achieved in the future. Therefore, the only way to get there is to try to embrace change.
Think Like Investors Who Dare To Take Risks
A financier who dares to take risks will use a portfolio approach, trying to find a balance between failure and success. They like to consider various proposals or ideas but still feel comfortable with various thoughts that describe the failures that might be accepted.
Break the Rules
To achieve radical innovation, you must have the courage to challenge the assumptions of the rules that exist around the environment. Business is not like a sports game that is always bound by referees' rules and decisions, but business is like an art, in which it has many opportunities to think laterally, so as to create new ways about various objects and services that customers want.
Give Everyone Two Jobs
Give each person two main jobs. Ask them to carry out their daily work effectively and at the same time ask them to find new ways of carrying out their work.
Encourage them to ask themselves what is the essential purpose of my role? What real results and values can I give my clients, both internal and external? Is there a better way to deliver and achieve that value or goal? And the answer always says "YES". However, most people never or rarely ask such things.
Collaboration
Some company executives view collaboration as the key to success in innovation. They realize that not everything can be done only by relying on internal sources. Therefore, they see the outside world and invite other organizations as partners, so they can exchange experiences and skills in teams.
Accept failure
Innovative leaders encourage the formation of a culture of experimentation. Everyone must be taught that every failure is the first step of a long journey to success. To be truly intelligent and agile, everyone must be given the freedom to innovate, experiment and succeed in doing their work, including they must also be given freedom of the possibility of failure.
Build a prototype
You must dare to try a new idea that costs and risks are relatively low into the market (the real world), then see what the reaction of customers and people. There actually you will learn more about the real world, compared to if you only conduct trials in the laboratory or focus on a group of people.
Excited
You have to focus on everything you want to change. Ready and always excited and excited in facing and overcoming various challenges. The energy and enthusiasm that you have will spread and inspire everyone. It's no use if you fill the bus with passengers who are always preoccupied with themselves. You need and want your people and supporters with a passion. You expect everyone to believe that the pursuit of goals is very important and beneficial.
If you want everyone to be inspired to be innovative, change their usual ways, and to achieve extraordinary results, then you absolutely must have a burning passion about what you believe in and you must be able to communicate it at any time when you talk to people.
Implementation Entrepreneurship in Organizations
Implementation Entrepreneurship in Organizations
The focus of this step is to turn ideas into reality.
Increase Creativity in Organizations
Creativity does not just happen in an entrepreneurial organization must create an environment that can foster creativity for itself and for its employees. New ideas are creations that are easily destroyed, but the right organizational environment can encourage people to develop and process them.
Enter creativity as a core value of the company
Entrepreneurs have a responsibility to form innovative cultures in their companies and create creative nuances in companies that begin with the company's mission.
Embrace diversity
One of the best ways to explore a culture of creativity is to employ a variety of workforces.
Expect creativity
Employees tend to rise or fall in accordance with the high and low expectations of the entrepreneur towards the employee.
Expect and make room for failure
Creative ideas will produce failure and success.
Encourage curiosity.
Entrepreneurs and employees must always ask questions.
Make periodic changes to the layout.
The physical environment in which people work affects their level of creativity.
Look at the problem as a challenge
Every problem offers opportunities for innovation.
Provide creativity training
Almost everyone has the capacity to be creative, but developing that capacity requires training.
Give support
Entrepreneurs must provide the tools and resources needed by their employees to be creative.
Develop procedures for capturing ideas
Workers in every organization can come up with creative ideas.
Talk to customers
Innovative companies will take the time to get feedback on how these customers use the company's products or services, or get new ideas.
Finding out the usefulness of the company's products or services
Focusing on the use of "traditional" company products or services, will limit the creativity and sales of the company.
Give appreciation for creativity
Entrepreneurs can encourage creativity by rewarding when creativity arises.
Also Read Articles That May Be Associated: Understanding of Marketing Management According to Experts
Types of innovation
Breakthrough type of innovation
As a basis for further innovation in a field, the innovation must be protected as much as possible by strong patents, trade secrets and copyrights. Breakthrough innovations include various such as penicillin, steam engines, computers, airplanes, cars, internet, and nanotectology.
Types of tenological innovations
It arises more frequently when compared to breakthrough innovations and is generally not at the same level as scientific discovery and progress. However, innovations are very meaningful, because they really offer progress in the area of the product or market.
The usual type of innovation
Is the most frequently emerging innovation. These more numerous innovations usually develop technological innovations into better products or services or innovations that have different market appeal are usually better. This innovation comes from analysis and market appeal, not technology. In other words, the market has a greater influence on innovation (market appeal) when compared to technology (technology boost)
How to improve innovation
To face the dynamics of change and competition that is very sharp and tight and for the survival of the organization itself, everyone in the organization is required to be able to think and act in an innovative way. Paul Sloane in his paper presents 10 ways to improve innovation in an organization, namely:
Have a vision to change
Don't expect a team to be innovative if they don't know the goals to be achieved in the future. Innovation must have goals and a leader must be able to clearly state and define goals so that everyone can understand and remember them.
Great leaders take the time to describe and explain the vision, goals and future challenges to everyone. They try to convince everyone of their important role in achieving their vision and goals, and in facing challenges. They inspire everyone to become a passionate entrepreneur and find innovative ways to achieve success.
The focus of this step is to turn ideas into reality.
Increase Creativity in Organizations
Creativity does not just happen in an entrepreneurial organization must create an environment that can foster creativity for itself and for its employees. New ideas are creations that are easily destroyed, but the right organizational environment can encourage people to develop and process them.
Enter creativity as a core value of the company
Entrepreneurs have a responsibility to form innovative cultures in their companies and create creative nuances in companies that begin with the company's mission.
Embrace diversity
One of the best ways to explore a culture of creativity is to employ a variety of workforces.
Expect creativity
Employees tend to rise or fall in accordance with the high and low expectations of the entrepreneur towards the employee.
Expect and make room for failure
Creative ideas will produce failure and success.
Encourage curiosity.
Entrepreneurs and employees must always ask questions.
Make periodic changes to the layout.
The physical environment in which people work affects their level of creativity.
Look at the problem as a challenge
Every problem offers opportunities for innovation.
Provide creativity training
Almost everyone has the capacity to be creative, but developing that capacity requires training.
Give support
Entrepreneurs must provide the tools and resources needed by their employees to be creative.
Develop procedures for capturing ideas
Workers in every organization can come up with creative ideas.
Talk to customers
Innovative companies will take the time to get feedback on how these customers use the company's products or services, or get new ideas.
Finding out the usefulness of the company's products or services
Focusing on the use of "traditional" company products or services, will limit the creativity and sales of the company.
Give appreciation for creativity
Entrepreneurs can encourage creativity by rewarding when creativity arises.
Also Read Articles That May Be Associated: Understanding of Marketing Management According to Experts
Types of innovation
Breakthrough type of innovation
As a basis for further innovation in a field, the innovation must be protected as much as possible by strong patents, trade secrets and copyrights. Breakthrough innovations include various such as penicillin, steam engines, computers, airplanes, cars, internet, and nanotectology.
Types of tenological innovations
It arises more frequently when compared to breakthrough innovations and is generally not at the same level as scientific discovery and progress. However, innovations are very meaningful, because they really offer progress in the area of the product or market.
The usual type of innovation
Is the most frequently emerging innovation. These more numerous innovations usually develop technological innovations into better products or services or innovations that have different market appeal are usually better. This innovation comes from analysis and market appeal, not technology. In other words, the market has a greater influence on innovation (market appeal) when compared to technology (technology boost)
How to improve innovation
To face the dynamics of change and competition that is very sharp and tight and for the survival of the organization itself, everyone in the organization is required to be able to think and act in an innovative way. Paul Sloane in his paper presents 10 ways to improve innovation in an organization, namely:
Have a vision to change
Don't expect a team to be innovative if they don't know the goals to be achieved in the future. Innovation must have goals and a leader must be able to clearly state and define goals so that everyone can understand and remember them.
Great leaders take the time to describe and explain the vision, goals and future challenges to everyone. They try to convince everyone of their important role in achieving their vision and goals, and in facing challenges. They inspire everyone to become a passionate entrepreneur and find innovative ways to achieve success.
Understanding of Creativity and Innovation in Entrepreneurship
Understanding of Creativity and Innovation in Entrepreneurship
Creativity and Innovation - Definition, Entrepreneurship, Process, Type, Increase, Implementation: Creativity is thinking about something, one's ability to give birth to something new in the form of ideas and real work that is relatively different from what was before.
Understanding of Creativity and Innovation along with Examples
Understanding Creativity
Creativity is thinking about something, one's ability to give birth to something new in the form of ideas and real work that is relatively different from what was there before. According to Zimmerer (1996) to develop skills, a person uses the left hemisphere. Whereas to learn to develop creative skills the right brain is used,
Characteristics of Creativity
Always asking, "Is there a good way? "
Always challenge habits, traditions and routine habits.
Reflect / reflect, think deeply.
Dare to play mentally, try to see the problem from a different perspective.
Be aware of the possibility of more than one correct answer.
See failure and mistakes only as a way to achieve success.
Correlating ideas that are still equal to the problem to produce solutions to innovation.
Having the ability to rise above routine habits and see problems from a broader perspective then focus on the need to change.
Definition of Innovation
Innovation is the process of finding or implementing something new into a new situation. The concept of novelty is different for most people because of its relative nature (what is considered new by someone or in a context can be something long for others in another context).
Innovation is thinking and doing something new that adds or creates benefits (social / economic) (Gde Raka, 2001). To produce innovative behavior one must see innovation fundamentally as a process that can be managed (John Adair, 1996)
Understanding Creativity and innovation
Innovation and creativity differ in the same domain, but have strict limits. Creativity is the first step towards innovation which consists of various stages. Creativity is related to the production of novelty and useful ideas while innovation is related to the production or adoption of useful ideas and their implementation.
The term entrepreneurship actually comes from the word entrepreneur, which can be translated into entrepreneurship. Entrepreneurship is an ability to think creatively and behave in an innovative way that is used as a basis, a source of power driving the goals, tactics, tips and processes in facing life's challenges.
Understanding Entrepreneurship
Entrepreneurship is the ability possessed by someone to see and assess business opportunities, gather the resources needed to take appropriate action and take advantage in order to achieve success.
Understanding Entrepreneurship
Entrepreneurship is essentially the nature, characteristics and character of someone who has the will to realize innovative ideas in the real world creatively.
Creative Process
Preparation
This step covers preparing the mind to be ready to think creatively, formal training, training at work, work experience and taking other learning opportunities. This training provides the basis for building creativity and innovation.
Investigation
This step is expected to develop a strong understanding of the problem, situation or decision.
Transformation
Means must look at the similarities and differences in the information collected.
Incubation
The subconscious needs time to reflect on the information collected.
Illumination
This phase of the creative process occurs during the incubation phase when spontaneous breakthroughs cause a "light bulb to turn on".
Verification
For entrepreneurs, validating ideas ensures accuracy and benefits, is carried out by conducting experiments, running simulations, testing the marketing of products or services, establishing a small-scale guide program, making prototypes and many other activities designed to verify that the new ideas can be applied successfully and practical.
Creativity and Innovation - Definition, Entrepreneurship, Process, Type, Increase, Implementation: Creativity is thinking about something, one's ability to give birth to something new in the form of ideas and real work that is relatively different from what was before.
Understanding of Creativity and Innovation along with Examples
Understanding Creativity
Creativity is thinking about something, one's ability to give birth to something new in the form of ideas and real work that is relatively different from what was there before. According to Zimmerer (1996) to develop skills, a person uses the left hemisphere. Whereas to learn to develop creative skills the right brain is used,
Characteristics of Creativity
Always asking, "Is there a good way? "
Always challenge habits, traditions and routine habits.
Reflect / reflect, think deeply.
Dare to play mentally, try to see the problem from a different perspective.
Be aware of the possibility of more than one correct answer.
See failure and mistakes only as a way to achieve success.
Correlating ideas that are still equal to the problem to produce solutions to innovation.
Having the ability to rise above routine habits and see problems from a broader perspective then focus on the need to change.
Definition of Innovation
Innovation is the process of finding or implementing something new into a new situation. The concept of novelty is different for most people because of its relative nature (what is considered new by someone or in a context can be something long for others in another context).
Innovation is thinking and doing something new that adds or creates benefits (social / economic) (Gde Raka, 2001). To produce innovative behavior one must see innovation fundamentally as a process that can be managed (John Adair, 1996)
Understanding Creativity and innovation
Innovation and creativity differ in the same domain, but have strict limits. Creativity is the first step towards innovation which consists of various stages. Creativity is related to the production of novelty and useful ideas while innovation is related to the production or adoption of useful ideas and their implementation.
The term entrepreneurship actually comes from the word entrepreneur, which can be translated into entrepreneurship. Entrepreneurship is an ability to think creatively and behave in an innovative way that is used as a basis, a source of power driving the goals, tactics, tips and processes in facing life's challenges.
Understanding Entrepreneurship
Entrepreneurship is the ability possessed by someone to see and assess business opportunities, gather the resources needed to take appropriate action and take advantage in order to achieve success.
Understanding Entrepreneurship
Entrepreneurship is essentially the nature, characteristics and character of someone who has the will to realize innovative ideas in the real world creatively.
Creative Process
Preparation
This step covers preparing the mind to be ready to think creatively, formal training, training at work, work experience and taking other learning opportunities. This training provides the basis for building creativity and innovation.
Investigation
This step is expected to develop a strong understanding of the problem, situation or decision.
Transformation
Means must look at the similarities and differences in the information collected.
Incubation
The subconscious needs time to reflect on the information collected.
Illumination
This phase of the creative process occurs during the incubation phase when spontaneous breakthroughs cause a "light bulb to turn on".
Verification
For entrepreneurs, validating ideas ensures accuracy and benefits, is carried out by conducting experiments, running simulations, testing the marketing of products or services, establishing a small-scale guide program, making prototypes and many other activities designed to verify that the new ideas can be applied successfully and practical.
The Impact of Waste on Humans and the Environment
The Impact of Waste on Humans and the Environment
From the wide impact of garbage in various sources, it can pollute the environment both the terrestrial environment which can be viewed in terms of health as a place to nest and spread of germs, while in terms of beauty, of course the decline in aesthetics (not pleasing to the eye).
Kind of air pollution caused, for example, issued an unpleasant odor, dust, toxic gases. Garbage burning can increase carbon monoxide (CO) 2, carbon dioxide (CO2), nitrogen (NO), ammonia sulfur gas and smoke in the air.
Smoke in the air is smoke generated from plastic materials that are carcinogens which means they can cause cancer, be careful when burning trash.
Ways of Processing Waste
Waste management is closely related to the community because of the waste it will live in disease-causing microorganisms (bacteria, pathogens, so the waste must really be processed so as not to cause problems.
Reduce
Reducing the use of consumables that can cause rubbish. Because the more things wasted, the more trash.
Reuse
Seek to find items that can be reused, and to avoid the use of disposable items to maximize the life of an item.
Recycle
Besides looking for items that can be reused, you can also look for items that can be recycled. So that the item can be used instead of becoming garbage.
Replace
This method can be done by observing around. Replace disposable items with items that are more durable, and use items that are environmentally friendly.
Respect (Respect)
This method uses a sense of love for nature, so that it will cause a wise attitude before choosing.
According to Panji Nugroho (2013), various ways that can reduce the negative effects of waste include:
Buildup
This method is done by piling up garbage until it rot, so it can be composted.
Combustion
Burning is a common method, even though in various landfills this method is often used by the government, the weakness of this method is that not all waste can be burned.
Sanitary Landfill
This method is also often used by the government, the way to implement it is by making a new hole to bury the garbage.
Composting
This method is highly recommended because it has a positive impact and produces useful goods from waste that are useful for the environment and nature.
Factors Affecting Indiscriminate Waste
The main factor that accustoms people to littering is the inaccessibility of trash in the location. Lack of a firm warning from the institution, so that someone feels littering is common because in the end there is a janitor cleaning it.
From the wide impact of garbage in various sources, it can pollute the environment both the terrestrial environment which can be viewed in terms of health as a place to nest and spread of germs, while in terms of beauty, of course the decline in aesthetics (not pleasing to the eye).
Kind of air pollution caused, for example, issued an unpleasant odor, dust, toxic gases. Garbage burning can increase carbon monoxide (CO) 2, carbon dioxide (CO2), nitrogen (NO), ammonia sulfur gas and smoke in the air.
Smoke in the air is smoke generated from plastic materials that are carcinogens which means they can cause cancer, be careful when burning trash.
Ways of Processing Waste
Waste management is closely related to the community because of the waste it will live in disease-causing microorganisms (bacteria, pathogens, so the waste must really be processed so as not to cause problems.
Reduce
Reducing the use of consumables that can cause rubbish. Because the more things wasted, the more trash.
Reuse
Seek to find items that can be reused, and to avoid the use of disposable items to maximize the life of an item.
Recycle
Besides looking for items that can be reused, you can also look for items that can be recycled. So that the item can be used instead of becoming garbage.
Replace
This method can be done by observing around. Replace disposable items with items that are more durable, and use items that are environmentally friendly.
Respect (Respect)
This method uses a sense of love for nature, so that it will cause a wise attitude before choosing.
According to Panji Nugroho (2013), various ways that can reduce the negative effects of waste include:
Buildup
This method is done by piling up garbage until it rot, so it can be composted.
Combustion
Burning is a common method, even though in various landfills this method is often used by the government, the weakness of this method is that not all waste can be burned.
Sanitary Landfill
This method is also often used by the government, the way to implement it is by making a new hole to bury the garbage.
Composting
This method is highly recommended because it has a positive impact and produces useful goods from waste that are useful for the environment and nature.
Factors Affecting Indiscriminate Waste
The main factor that accustoms people to littering is the inaccessibility of trash in the location. Lack of a firm warning from the institution, so that someone feels littering is common because in the end there is a janitor cleaning it.
Source of Trash Problems
Source of Trash Problems
Garbage always arises into a complicated problem in a society that lacks sensitivity to the environment. The indiscipline regarding cleanliness can create a chaotic atmosphere due to landfill waste. So many unpleasant conditions will arise.
The unpleasant smell, flying flies, and various diseases are ready to block in front of the eyes. Not only that, the opportunity for environmental pollution accompanied by a decrease in aesthetic quality will become a daily meal for the community.
In the rainy season, this abandoned waste becomes the scariest scourge. Piles of garbage that are not handled properly can clog drainage channels. Garbage disposal in any place, especially rivers, will hamper the surface rainwater so that the flow is only focused at one point.
When rainfall is high, this kind of condition can cause flooding. In fact, Jakarta as the nation's capital has never been separated from these conditions. Almost every year the city of the dream of these migrants is visited by floods.
Fear is present not only when floods hit, but also when the accompaniment of the post-flood situation arrives. Hunger, illness, unemployment, and other social problems become homework to be solved. Although it has been 'experienced' to face the same situation every year, it seems that the core problem caused by this garbage has not yet been the best solution.
Trash is not an easy matter. Not only in densely populated urban areas, rural areas, or other locations can not be separated from this problem. The source of the waste problem is always present, both at the temporary disposal site (TPS), the water disposal site (TPA), as well as the distribution. Here are some of the factors causing the accumulation of waste:
The volume of waste is very large and is not matched by the landfill tamping capacity so that it exceeds its capacity.
Landfill land is increasingly narrow due to displacement by other uses.
The distance of the landfill and the waste center is relatively far up to the time to idle garbage is less effective.
Garbage removal facilities are limited and are not able to nod all rubbish.
Waste management technology is not optimal so it is slow to rot.
Garbage that has matured and turned into compost is not immediately removed from the container so that it is increasingly curled up.
Not all environments have garbage collection locations. People often throw garbage in any place as a shortcut.
Lack of socialization and government support regarding the management and management of waste and its products.
The lack of good education and self-management regarding proper waste management.
Ineffective waste management. This can cause misunderstandings, especially for the surrounding community.
Trash Consumption
Consumption waste is waste produced by humans as users of goods or rubbish that is thrown into the trash. Even so, the amount of waste is categorized far smaller than the waste generated from mining and industrial processes.
Nuclear Waste
Nuclear waste is the result of nuclear fusion and nuclear fission which produces uranium and thorium which are very dangerous for the environment and humans. Therefore, nuclear waste is stored in places that do not have high potential to carry out activities of the intended destination, usually former salt mines or the seabed.
Rubbish
Principles of Waste Management
The following are the principles that can be applied in waste management. These principles are known as 5M (Panji Nugroho, 2013), which are:
Garbage always arises into a complicated problem in a society that lacks sensitivity to the environment. The indiscipline regarding cleanliness can create a chaotic atmosphere due to landfill waste. So many unpleasant conditions will arise.
The unpleasant smell, flying flies, and various diseases are ready to block in front of the eyes. Not only that, the opportunity for environmental pollution accompanied by a decrease in aesthetic quality will become a daily meal for the community.
In the rainy season, this abandoned waste becomes the scariest scourge. Piles of garbage that are not handled properly can clog drainage channels. Garbage disposal in any place, especially rivers, will hamper the surface rainwater so that the flow is only focused at one point.
When rainfall is high, this kind of condition can cause flooding. In fact, Jakarta as the nation's capital has never been separated from these conditions. Almost every year the city of the dream of these migrants is visited by floods.
Fear is present not only when floods hit, but also when the accompaniment of the post-flood situation arrives. Hunger, illness, unemployment, and other social problems become homework to be solved. Although it has been 'experienced' to face the same situation every year, it seems that the core problem caused by this garbage has not yet been the best solution.
Trash is not an easy matter. Not only in densely populated urban areas, rural areas, or other locations can not be separated from this problem. The source of the waste problem is always present, both at the temporary disposal site (TPS), the water disposal site (TPA), as well as the distribution. Here are some of the factors causing the accumulation of waste:
The volume of waste is very large and is not matched by the landfill tamping capacity so that it exceeds its capacity.
Landfill land is increasingly narrow due to displacement by other uses.
The distance of the landfill and the waste center is relatively far up to the time to idle garbage is less effective.
Garbage removal facilities are limited and are not able to nod all rubbish.
Waste management technology is not optimal so it is slow to rot.
Garbage that has matured and turned into compost is not immediately removed from the container so that it is increasingly curled up.
Not all environments have garbage collection locations. People often throw garbage in any place as a shortcut.
Lack of socialization and government support regarding the management and management of waste and its products.
The lack of good education and self-management regarding proper waste management.
Ineffective waste management. This can cause misunderstandings, especially for the surrounding community.
Trash Consumption
Consumption waste is waste produced by humans as users of goods or rubbish that is thrown into the trash. Even so, the amount of waste is categorized far smaller than the waste generated from mining and industrial processes.
Nuclear Waste
Nuclear waste is the result of nuclear fusion and nuclear fission which produces uranium and thorium which are very dangerous for the environment and humans. Therefore, nuclear waste is stored in places that do not have high potential to carry out activities of the intended destination, usually former salt mines or the seabed.
Rubbish
Principles of Waste Management
The following are the principles that can be applied in waste management. These principles are known as 5M (Panji Nugroho, 2013), which are:
Several Types of Waste Characteristics
Several Types of Waste Characteristics
There are several types of waste based on their characteristics, namely:
Organic Trash "Until That Can Be Decomposed"
In this case, rubbish that is easy to rot is like food scraps, vegetables, dried leaves and so on. This waste can be further processed into compost. For example leaves, wood, skin, eggs, animal carcasses, carcasses of plants, animal and human feces, leftovers of human food, cardboard, keratas and others.
Inorganic Trash "Trash That Cannot Be Decomposed"
In this case, rubbish that is not easy to rot, such as plastic food wrapping containers, paper, plastic toys, bottles and glass drinks, cans and so on. This garbage can be used as commercial or sold garbage for other products.
Some inorganic waste that can be sold is plastic food packaging containers, bottles and used drinks, cans, glass and paper, both newsprint, HVS paper and cardboard.
Based on the source
There are several types of waste based on the source, including:
Natural rubbish
Human waste
Waste consumption
Nuclear waste
Industrial waste
Mining waste
Based on its nature
Based on the shape
There are several types of waste based on their shape, which are:
Solid Garbage
Solid waste is all waste material besides human waste, urine and liquid waste. Solid waste can be in the form of "kitchen waste" household rubbish, garden waste, plastic, metal, glass and others. According to the material, solid waste can be grouped again into 2 parts based on their ability which can be decomposed by nature "biodegradability", namely:
Biodegradable
Which is rubbish that can be deconstructed in an offensive manner by both aerobic or anaerobic biological processes, such as: kitchen waste, animal remains, agricultural and plantation waste.
Non-Biodegradable
Which is waste that cannot be broken down by biological processes, this type of waste can be further divided into:
1. Recyclable is waste that can be processed and reused because it has economic value such as plastic, paper, clothing and others.
2. Non-recyclable is waste that has no economic value and cannot be processed or changed again such as tetra packs, carbon paper, thermo coal and others.
Liquid Waste
Liquid waste is liquid material that has been used and is not required to be returned and thrown into landfills. Types of liquid waste can be further divided into two namely:
Black waste is liquid waste that is produced from tolilet and contains dangerous pathogens.
Household waste is liquid waste produced from kitchens, bathrooms, and washing areas. This garbage may contain pathogens.
Natural Trash
Natural waste is waste produced in the wild and integrated through a natural recycling process, such as dry leaves in the forest that decompose into soil. Outside of wildlife, these wastes can be a problem for example dried leaves in a residential environment.
Human Trash
Human waste is a term used for the results of human digestion, such as fress and urine. Human waste can be a serious health hazard because it can be used as a vector of "developmental means" of diseases caused by viruses and bacteria.
One of the main developments in human dialectics is the reduction of transmission of disease through human waste by hygiene and sanitation. Human waste can be reduced and reused as through a waterless urinal system.
There are several types of waste based on their characteristics, namely:
Organic Trash "Until That Can Be Decomposed"
In this case, rubbish that is easy to rot is like food scraps, vegetables, dried leaves and so on. This waste can be further processed into compost. For example leaves, wood, skin, eggs, animal carcasses, carcasses of plants, animal and human feces, leftovers of human food, cardboard, keratas and others.
Inorganic Trash "Trash That Cannot Be Decomposed"
In this case, rubbish that is not easy to rot, such as plastic food wrapping containers, paper, plastic toys, bottles and glass drinks, cans and so on. This garbage can be used as commercial or sold garbage for other products.
Some inorganic waste that can be sold is plastic food packaging containers, bottles and used drinks, cans, glass and paper, both newsprint, HVS paper and cardboard.
Based on the source
There are several types of waste based on the source, including:
Natural rubbish
Human waste
Waste consumption
Nuclear waste
Industrial waste
Mining waste
Based on its nature
Based on the shape
There are several types of waste based on their shape, which are:
Solid Garbage
Solid waste is all waste material besides human waste, urine and liquid waste. Solid waste can be in the form of "kitchen waste" household rubbish, garden waste, plastic, metal, glass and others. According to the material, solid waste can be grouped again into 2 parts based on their ability which can be decomposed by nature "biodegradability", namely:
Biodegradable
Which is rubbish that can be deconstructed in an offensive manner by both aerobic or anaerobic biological processes, such as: kitchen waste, animal remains, agricultural and plantation waste.
Non-Biodegradable
Which is waste that cannot be broken down by biological processes, this type of waste can be further divided into:
1. Recyclable is waste that can be processed and reused because it has economic value such as plastic, paper, clothing and others.
2. Non-recyclable is waste that has no economic value and cannot be processed or changed again such as tetra packs, carbon paper, thermo coal and others.
Liquid Waste
Liquid waste is liquid material that has been used and is not required to be returned and thrown into landfills. Types of liquid waste can be further divided into two namely:
Black waste is liquid waste that is produced from tolilet and contains dangerous pathogens.
Household waste is liquid waste produced from kitchens, bathrooms, and washing areas. This garbage may contain pathogens.
Natural Trash
Natural waste is waste produced in the wild and integrated through a natural recycling process, such as dry leaves in the forest that decompose into soil. Outside of wildlife, these wastes can be a problem for example dried leaves in a residential environment.
Human Trash
Human waste is a term used for the results of human digestion, such as fress and urine. Human waste can be a serious health hazard because it can be used as a vector of "developmental means" of diseases caused by viruses and bacteria.
One of the main developments in human dialectics is the reduction of transmission of disease through human waste by hygiene and sanitation. Human waste can be reduced and reused as through a waterless urinal system.
Understanding Type of Trash and Its Sources
Understanding Type of Trash and Its Sources
Types of Waste - Definition, Sources, Principles, Processing, Factors, Impact: Waste is a material that is wasted or disposed of as a result of human and natural activities that do not yet have economic value.
Types of Waste and Full Explanation
Understanding Trash
Trash has many meanings within the limits of science. But in principle, waste is a material that is wasted or discarded from sources of human and natural activities that do not yet have economic value. The form of waste can be in every phase of matter that is solid, liquid, and gas.
Simply stated, the type of waste can be divided based on its nature. Waste is sorted into organic and inorganic waste. Organic waste or wet garbage is waste originating from living things, such as leaves and kitchen waste.
This type of waste is very easily biodegradable (degradable). Meanwhile, inorganic rubbish or dry rubbish is rubbish that cannot be biodegradable (undegradable). Garbage can be divided as follows:
Human erecta
Human erecta is a term for waste material released by the human body as a result of digestion. Feces (faeces) and urine (urine) are the result. This human waste can be dangerous for health because it can be a vector of disease caused by bacteria and viruses.
Sewage
Household and factory waste water is included in sewage. Household liquid waste is generally channeled into sewers without a filtering process, such as residual bath water, used laundry, and kitchen waste. Meanwhile, factory waste needs to be treated specifically before being released into the chamber to be safer. However, it is not uncommon for this hazardous waste to be channeled into rivers or the sea without filtering.
Refuse
Refuse is defined as material left over from industrial processes or a by-product of household activities. This refuse is what is popularly called trash in terms of everyday society. This rubbish is divided into garbage (rubbish rubbish) and rubbish (rubbish is not rotten and not easily weathered).
Weathered waste is rubbish from household processing or by-products of food market activities, such as vegetables. Meanwhile, non-weathered waste is a type of waste that cannot be weathered at all, such as mica, glass, and plastic.
Garbage is not easy to decompose is rubbish that is very difficult to decompose, but can be destroyed naturally in the long term. This type of waste can be burned (paper and wood) and not burned (cans and wires).
Industrial waste
Industrial waste is generally generated on a large scale and is a waste material from the remnants of industrial processes.
Types of Trash
Proper waste management requires the integration of various aspects ranging from upstream to downstream. Upstream aspects include waste processing activities at the first stage of waste generation, including households, hotels and restaurants.
Steps that can be taken in the upstream aspect are waste sorting based on the type of waste divided into three. Each of these waste groups has their own place. If this classification process is applied, it is expected to facilitate the processing of waste at a later stage.
Types of Waste - Definition, Sources, Principles, Processing, Factors, Impact: Waste is a material that is wasted or disposed of as a result of human and natural activities that do not yet have economic value.
Types of Waste and Full Explanation
Understanding Trash
Trash has many meanings within the limits of science. But in principle, waste is a material that is wasted or discarded from sources of human and natural activities that do not yet have economic value. The form of waste can be in every phase of matter that is solid, liquid, and gas.
Simply stated, the type of waste can be divided based on its nature. Waste is sorted into organic and inorganic waste. Organic waste or wet garbage is waste originating from living things, such as leaves and kitchen waste.
This type of waste is very easily biodegradable (degradable). Meanwhile, inorganic rubbish or dry rubbish is rubbish that cannot be biodegradable (undegradable). Garbage can be divided as follows:
Human erecta
Human erecta is a term for waste material released by the human body as a result of digestion. Feces (faeces) and urine (urine) are the result. This human waste can be dangerous for health because it can be a vector of disease caused by bacteria and viruses.
Sewage
Household and factory waste water is included in sewage. Household liquid waste is generally channeled into sewers without a filtering process, such as residual bath water, used laundry, and kitchen waste. Meanwhile, factory waste needs to be treated specifically before being released into the chamber to be safer. However, it is not uncommon for this hazardous waste to be channeled into rivers or the sea without filtering.
Refuse
Refuse is defined as material left over from industrial processes or a by-product of household activities. This refuse is what is popularly called trash in terms of everyday society. This rubbish is divided into garbage (rubbish rubbish) and rubbish (rubbish is not rotten and not easily weathered).
Weathered waste is rubbish from household processing or by-products of food market activities, such as vegetables. Meanwhile, non-weathered waste is a type of waste that cannot be weathered at all, such as mica, glass, and plastic.
Garbage is not easy to decompose is rubbish that is very difficult to decompose, but can be destroyed naturally in the long term. This type of waste can be burned (paper and wood) and not burned (cans and wires).
Industrial waste
Industrial waste is generally generated on a large scale and is a waste material from the remnants of industrial processes.
Types of Trash
Proper waste management requires the integration of various aspects ranging from upstream to downstream. Upstream aspects include waste processing activities at the first stage of waste generation, including households, hotels and restaurants.
Steps that can be taken in the upstream aspect are waste sorting based on the type of waste divided into three. Each of these waste groups has their own place. If this classification process is applied, it is expected to facilitate the processing of waste at a later stage.
Definition of Solid Waste and How to Treat It
Definition of Solid Waste and How to Treat It
Solid waste is the result of industrial waste in the form of solids, mud or slurry that comes from a treatment process. Solid waste comes from dandomestic industry activities. Domestic waste is generally in the form of household solid waste, solid waste from trade activities, offices, livestock, agriculture and from public places. The types of solid waste, paper, wood, cloth, rubber / artificial leather, plastic, metal, glass / glass, organic, bacteria, egg shells and others.
Explanation of Solid Waste and Its Management Methods
Sources of solid waste itself include sugar mills, pulp, paper, rayon, plywood, nuclear waste, preserving fruit, fish or meat. Broadly speaking, solid waste consists of:
Combustible solid waste.
Non-combustible solid waste.
Solid waste that decomposes easily.
Recyclable waste.
Radioactive waste.
Demolition of buildings.
Mud.
Replace
Replace is an effort to reduce pollution by using goods that are environmentally friendly. For example, using leaves instead of plastic as a wrapper, replacing the use of ordinary plastic bags with biodegradable plastic, biodegradable plastic is environmentally friendly plastic.
Ways of Handling Solid Waste
The activities to minimize solid waste are guided by the concept of implementing sustainable development that saves the use of natural resources, as well as development that gives added value to natural resources. Saving natural resources can be done through four R methods, namely replace, reduce, recycle and reuse, for more details from each of the following.
Reduce
Reduce is an effort to reduce environmental pollution by minimizing waste production. For example, bring your own shopping bag that is bigger than many plastic bags, buy rinso refill packs, fabric softeners, cooking oil, etc. instead of buying bottles every time they run out, buying groceries or other necessities in large packages rather than those small pieces.
Examples of other daily reduce activities:
Choose products with packaging that can be recycled.
Avoid using and buying products that produce large amounts of waste.
Use products that can be refilled (refill), for example stationery that can be refilled again).
Reducing the use of disposable materials.
Use email (electronic mail) to send letters.
Recycle
Recycle is an effort to reduce environmental pollution by recycling waste through special handling and technology. The recycling process is usually carried out by the factory / industry to be made into other products that can be utilized. In this case, the scavengers contributed well at the same time because by sorting out recyclable waste, they could get income. For example used plastics can be recycled into buckets, clothes hangers, plant pots and others.
Other examples of daily recycle activities:
Choose products and packaging that can be reprocessed and easily decomposed.
Processing paper waste into paper or cardboard again.
Doing processing organic waste into compost.
Do the processing of organic waste into goods that are useful and even have a sale value.
Processing waste into a source of fuel.
Reuse
Reuse is an effort to reduce environmental pollution by using and reusing items that should have been discarded. For example utilizing used bottles / cans as containers, utilizing patchwork into mats, utilizing plastic packaging into shopping bags / bags and others.
Examples of daily reuse activities:
Choose containers, bags or objects that can be used several times or repeatedly. For example using a handkerchief instead of using tissue, using a shopping bag from cloth rather than using a plastic bag.
Using electronic storage devices that can be erased and rewritten.
Use the side of the paper that is still blank to write.
Thus the discussion on the Definition of Solid Waste and How to Handling it Hopefully with this review can add insight and knowledge of you all, thank you very much for your visit
Solid waste is the result of industrial waste in the form of solids, mud or slurry that comes from a treatment process. Solid waste comes from dandomestic industry activities. Domestic waste is generally in the form of household solid waste, solid waste from trade activities, offices, livestock, agriculture and from public places. The types of solid waste, paper, wood, cloth, rubber / artificial leather, plastic, metal, glass / glass, organic, bacteria, egg shells and others.
Explanation of Solid Waste and Its Management Methods
Sources of solid waste itself include sugar mills, pulp, paper, rayon, plywood, nuclear waste, preserving fruit, fish or meat. Broadly speaking, solid waste consists of:
Combustible solid waste.
Non-combustible solid waste.
Solid waste that decomposes easily.
Recyclable waste.
Radioactive waste.
Demolition of buildings.
Mud.
Replace
Replace is an effort to reduce pollution by using goods that are environmentally friendly. For example, using leaves instead of plastic as a wrapper, replacing the use of ordinary plastic bags with biodegradable plastic, biodegradable plastic is environmentally friendly plastic.
Ways of Handling Solid Waste
The activities to minimize solid waste are guided by the concept of implementing sustainable development that saves the use of natural resources, as well as development that gives added value to natural resources. Saving natural resources can be done through four R methods, namely replace, reduce, recycle and reuse, for more details from each of the following.
Reduce
Reduce is an effort to reduce environmental pollution by minimizing waste production. For example, bring your own shopping bag that is bigger than many plastic bags, buy rinso refill packs, fabric softeners, cooking oil, etc. instead of buying bottles every time they run out, buying groceries or other necessities in large packages rather than those small pieces.
Examples of other daily reduce activities:
Choose products with packaging that can be recycled.
Avoid using and buying products that produce large amounts of waste.
Use products that can be refilled (refill), for example stationery that can be refilled again).
Reducing the use of disposable materials.
Use email (electronic mail) to send letters.
Recycle
Recycle is an effort to reduce environmental pollution by recycling waste through special handling and technology. The recycling process is usually carried out by the factory / industry to be made into other products that can be utilized. In this case, the scavengers contributed well at the same time because by sorting out recyclable waste, they could get income. For example used plastics can be recycled into buckets, clothes hangers, plant pots and others.
Other examples of daily recycle activities:
Choose products and packaging that can be reprocessed and easily decomposed.
Processing paper waste into paper or cardboard again.
Doing processing organic waste into compost.
Do the processing of organic waste into goods that are useful and even have a sale value.
Processing waste into a source of fuel.
Reuse
Reuse is an effort to reduce environmental pollution by using and reusing items that should have been discarded. For example utilizing used bottles / cans as containers, utilizing patchwork into mats, utilizing plastic packaging into shopping bags / bags and others.
Examples of daily reuse activities:
Choose containers, bags or objects that can be used several times or repeatedly. For example using a handkerchief instead of using tissue, using a shopping bag from cloth rather than using a plastic bag.
Using electronic storage devices that can be erased and rewritten.
Use the side of the paper that is still blank to write.
Thus the discussion on the Definition of Solid Waste and How to Handling it Hopefully with this review can add insight and knowledge of you all, thank you very much for your visit
Explanation of Organic Waste Recycling and Handling
Explanation of Organic Waste Recycling and Handling
Waste is residual material produced from an activity and production process at the household, industrial, mining and so on.
Recycling (Composting)
Waste characteristics, namely:
Micro-sized
Dynamic
Broad impact (distribution)
Long-term impact (between generations)
See the Core List:
Definition of Organic Waste
Organic waste is waste that is described perfectly by aerobic or anaerobic biological processes. Organic waste decomposes easily like food scraps, vegetables, dried leaves, wood chips and so on. Organic waste consists of organic materials such as from home activities from household activities and industrial activities.
This waste can also be easily broken down through natural processes. This waste has stable chemical properties so that the substance will settle into the soil, riverbeds, lakes and seas and will further affect the organisms that live in it. Organic waste can decay (decompose) and break down into smaller, odorless materials (often called compost). Compost is the result of weathering organic materials such as leaves, straw, reeds, garbage, grass and other similar materials whose weathering processes are accelerated by human assistance.
Handling of Organic Waste
In principle, organic waste can be handled without going through recycling and through recycling. Handling organic waste without going through recycling means that the waste can be used directly. For example household waste, in the form of vegetables and used leaves, can be used as animal feed. Whereas the handling of organic waste through recycling is done by making it into compost and biogas fertilizer.
Compost Making
Compost is made from organic waste (leaves, household waste and manure) by breaking down organic materials into inorganic materials. This process is aided by microorganisms through fermentation. Microorganisms that play a role in making compost are known as Effective Microorganisms (EM). This EM consists of aerobic and anaerobic microorganisms. These two groups of microorganisms work together to decipher organic wastes.
Compost is used as a fertilizer for plants that are environmentally friendly and the yields of agricultural plants that use this fertilizer have a higher selling price because of the risk of the entry of harmful substances from agricultural plants that are fertilized with less or even almost no compost compared to agricultural crops that are using chemical fertilizers.
Making Biogas
Biogas is gases that can be used as fuel. This gas is produced from anaerobic decomposition (without oxygen) organic waste (animal waste, plant remnants or both). This process is assisted by the bacterium Metalothrypus methanica). The manufacturing step starts from mixing organic waste and water and then entering the bacteria M. methanica and stored in an airtight place for about two weeks.
Recycling Paper
Waste paper wrapping food, waste paper adaministration activities and waste paper from print media can be utilized by recycling it. Recycling paper produces paper that can be used as opaque paper, wrapping paper or various other crafts.
Thus the discussion on Explanation of Organic Waste Recycling and Handling Hopefully with this review can add insight and knowledge to all of you, thank you very much for your visit.
Waste is residual material produced from an activity and production process at the household, industrial, mining and so on.
Recycling (Composting)
Waste characteristics, namely:
Micro-sized
Dynamic
Broad impact (distribution)
Long-term impact (between generations)
See the Core List:
Definition of Organic Waste
Organic waste is waste that is described perfectly by aerobic or anaerobic biological processes. Organic waste decomposes easily like food scraps, vegetables, dried leaves, wood chips and so on. Organic waste consists of organic materials such as from home activities from household activities and industrial activities.
This waste can also be easily broken down through natural processes. This waste has stable chemical properties so that the substance will settle into the soil, riverbeds, lakes and seas and will further affect the organisms that live in it. Organic waste can decay (decompose) and break down into smaller, odorless materials (often called compost). Compost is the result of weathering organic materials such as leaves, straw, reeds, garbage, grass and other similar materials whose weathering processes are accelerated by human assistance.
Handling of Organic Waste
In principle, organic waste can be handled without going through recycling and through recycling. Handling organic waste without going through recycling means that the waste can be used directly. For example household waste, in the form of vegetables and used leaves, can be used as animal feed. Whereas the handling of organic waste through recycling is done by making it into compost and biogas fertilizer.
Compost Making
Compost is made from organic waste (leaves, household waste and manure) by breaking down organic materials into inorganic materials. This process is aided by microorganisms through fermentation. Microorganisms that play a role in making compost are known as Effective Microorganisms (EM). This EM consists of aerobic and anaerobic microorganisms. These two groups of microorganisms work together to decipher organic wastes.
Compost is used as a fertilizer for plants that are environmentally friendly and the yields of agricultural plants that use this fertilizer have a higher selling price because of the risk of the entry of harmful substances from agricultural plants that are fertilized with less or even almost no compost compared to agricultural crops that are using chemical fertilizers.
Making Biogas
Biogas is gases that can be used as fuel. This gas is produced from anaerobic decomposition (without oxygen) organic waste (animal waste, plant remnants or both). This process is assisted by the bacterium Metalothrypus methanica). The manufacturing step starts from mixing organic waste and water and then entering the bacteria M. methanica and stored in an airtight place for about two weeks.
Recycling Paper
Waste paper wrapping food, waste paper adaministration activities and waste paper from print media can be utilized by recycling it. Recycling paper produces paper that can be used as opaque paper, wrapping paper or various other crafts.
Thus the discussion on Explanation of Organic Waste Recycling and Handling Hopefully with this review can add insight and knowledge to all of you, thank you very much for your visit.
A Complete Explanation of Recyclable Materials
A Complete Explanation of Recyclable Materials
So that the environment can be well maintained, one of the best solutions offered is to carry out recycling activities. Recycling is a process to turn a used material into a new material with the aim of preventing waste that can actually be useful.
A Complete Explanation of Recyclable Materials
To reduce the use of new raw materials, reduce energy use, reduce pollution, land damage and greenhouse gas emissions when compared to a process for making new goods.
In this case, recycling is one of the strategies in managing solid waste consisting of sorting, collecting, processing, distributing and manufacturing used products / materials as well as a major component in modern waste management as well as being a part when in a waste hierarchy process that is known as the "4 R" "Reduce, Reuse, Recyle, and Replace".
Recycling is usually more focused on waste which cannot be degraded by nature which naturally for the sake of reducing land damage. Broadly speaking, recycling is the process of collecting garbage, sorting, cleaning and processing new materials for the production process.
In a limited understanding, for the recycling process must produce goods that are similar to the original goods with the same material. Often this is difficult to do because it is more expensive when compared to the manufacturing process with new materials. So recycling is a process of reusing materials into different products.
Recyclable Materials
There are several materials that can be recycled along with the process, including:
Building material
Used building materials that have been collected will be destroyed using a shredder and sometimes together with asphalt, new bricks, earth and stone. Rougher yields can be used as road coatings such as asphalt and finer results can be used to make new building materials such as bricks.
Battery
In this case the many variations and sizes of batteries make the process of recycling this material relatively difficult. Batteries must be sorted first and each type has a special attention in its processing. Like old batteries that still contain mercury and cadmium, they must be handled more seriously to prevent damage to the environment and human health.
Electronic goods
For popular electronic items such as computers and mobile phones, this is generally not recycled because it is not yet clear how the economic benefits are calculated. Materials that can be recycled from electronic goods such as metals contained in electronic goods are gold, iron, steel, silicon or parts that can still be used such as microchips, processors, cables, reistors, plastics. But the main purpose of the recycling process is for the sake of environmental sustainability, although the economic benefits are still unclear.
Metal
Iron and steel are the most recycled metals in the world. Metal is one of the easiest to be recycled because it can be separated from other waste by magnetism. This recycling includes general metal processes, such as smelting and reprinting.
The results obtained do not reduce the quality of the metal, another example is aluminum which is the most efficient recycled material in the world. But in general, all types of metals can be recycled without reducing the quality of the metal, so that it can be ascertained if the metal can be used as a material that can be recycled indefinitely.
Glass
Glass obtained from bottles and others are cleaned first from contaminants, then melted together with new glass material. It can also be used as building and road material.
Paper
In this case paper can be recycled by mixing used paper that has been made into pulp with new paper material. However, paper will always experience a decrease in quality if it continues to be recycled. This makes the paper must be recycled by mixing it with new material or recycling it into a lower quality material.
Plastic
For this reason plastic can be recycled just as it recycles metal. It's just that there are various types of plastic in this world. For the time being, there are various plastic product codes regarding the types of plastics that make up these materials, making it easier to recycle.
Thus the discussion of the Complete Explanation of Materials That Can Be Recycled I hope that with this review can add insight and knowledge of you all, thank you very much for your visit.
So that the environment can be well maintained, one of the best solutions offered is to carry out recycling activities. Recycling is a process to turn a used material into a new material with the aim of preventing waste that can actually be useful.
A Complete Explanation of Recyclable Materials
To reduce the use of new raw materials, reduce energy use, reduce pollution, land damage and greenhouse gas emissions when compared to a process for making new goods.
In this case, recycling is one of the strategies in managing solid waste consisting of sorting, collecting, processing, distributing and manufacturing used products / materials as well as a major component in modern waste management as well as being a part when in a waste hierarchy process that is known as the "4 R" "Reduce, Reuse, Recyle, and Replace".
Recycling is usually more focused on waste which cannot be degraded by nature which naturally for the sake of reducing land damage. Broadly speaking, recycling is the process of collecting garbage, sorting, cleaning and processing new materials for the production process.
In a limited understanding, for the recycling process must produce goods that are similar to the original goods with the same material. Often this is difficult to do because it is more expensive when compared to the manufacturing process with new materials. So recycling is a process of reusing materials into different products.
Recyclable Materials
There are several materials that can be recycled along with the process, including:
Building material
Used building materials that have been collected will be destroyed using a shredder and sometimes together with asphalt, new bricks, earth and stone. Rougher yields can be used as road coatings such as asphalt and finer results can be used to make new building materials such as bricks.
Battery
In this case the many variations and sizes of batteries make the process of recycling this material relatively difficult. Batteries must be sorted first and each type has a special attention in its processing. Like old batteries that still contain mercury and cadmium, they must be handled more seriously to prevent damage to the environment and human health.
Electronic goods
For popular electronic items such as computers and mobile phones, this is generally not recycled because it is not yet clear how the economic benefits are calculated. Materials that can be recycled from electronic goods such as metals contained in electronic goods are gold, iron, steel, silicon or parts that can still be used such as microchips, processors, cables, reistors, plastics. But the main purpose of the recycling process is for the sake of environmental sustainability, although the economic benefits are still unclear.
Metal
Iron and steel are the most recycled metals in the world. Metal is one of the easiest to be recycled because it can be separated from other waste by magnetism. This recycling includes general metal processes, such as smelting and reprinting.
The results obtained do not reduce the quality of the metal, another example is aluminum which is the most efficient recycled material in the world. But in general, all types of metals can be recycled without reducing the quality of the metal, so that it can be ascertained if the metal can be used as a material that can be recycled indefinitely.
Glass
Glass obtained from bottles and others are cleaned first from contaminants, then melted together with new glass material. It can also be used as building and road material.
Paper
In this case paper can be recycled by mixing used paper that has been made into pulp with new paper material. However, paper will always experience a decrease in quality if it continues to be recycled. This makes the paper must be recycled by mixing it with new material or recycling it into a lower quality material.
Plastic
For this reason plastic can be recycled just as it recycles metal. It's just that there are various types of plastic in this world. For the time being, there are various plastic product codes regarding the types of plastics that make up these materials, making it easier to recycle.
Thus the discussion of the Complete Explanation of Materials That Can Be Recycled I hope that with this review can add insight and knowledge of you all, thank you very much for your visit.
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