The Complicated Problems of Insurance

The Problems

Insurance industry is one of the business way that initially supposed to be one of the most prospective industry in Indonesia since the country have large people population. However, in the process of the industry, there are many problems which has been attached. Start from the market structure problems, until the customers’ ones.

First, there are over supply phenomenon between insurance producer and the consumers. Whereas, Indonesia with the population until 220 million people should be an affluent market to grow. So, what’s the problem? The affluent market has convoked may players to play within. So, the players is too many, and they just become minor companies so that they get difficulties to expand their operations. As we know, the market leader here only have 12,08% market share.

Let’s Talk About The Oil Price in Indonesia

Yesterday, my friend showed me about the Kwik Kian Gie’s article about his counter statement against the increasing of fuel price in Indonesia, last June. The same things has been shown by Professor Kwik in Aula Setyaningrum, University of Indonesia 4 years ago. I don’t know, is Mr Kwik speaking up as an economist or politician. The Mr Kwik’s article can be read in here. He said that we still have profit although the world oil price has been raised since we have our own oil reserve and it can be sold with low price (moreover, it can be free). We just have to spend the production costs to make the raw oil materials into finished good like premium, pertamax, etc. Instead of sold to another countries, the oil should  be retained to fulfill our needs. So, the government still can subsidize the civilians. It looks like a good idea, right? But for me, Mr Kwik opinion doesn’t make sense.

Trading, Branding, & Change

Salam,

The world is about trading. why did I type those words? It’s not solely that I’m a business student, but more than that. Trading, what is trading? trading is a mechanism between many sides for exchanging something that they’re owned. It has done since pre-history era. In those moments, the trade doesn’t use any medium of exchange like money, in which goods or services are exchanged for other goods and/or services too. I’m interested in many real phenomenon that all of things have been practiced. For instance, an employee actually just sell his labor so that the firm give them some incentives like wage, salary, bonus, etc. Even in Pariaman’s culture, a marriage is decided based-on bride’s side bid. If the groom is a doctor, for instance, consequently the bid offer will be higher than a farm. So as man-woman dating in Jakarta, in which a man must have something special that can be “sold” against the woman in order to the woman is interested in him. If the man is poor,whether in financial or educational position, then he’ll get the couple in same or similar with him. It’s like a supply-demand theory in the equilibrium market. That’s above, only little instances that’s occurred in this world.