ITHB MoU with Maybank: promoting investment literacy
The high number of criminal cases involving investment frauds is attributable to the fact that many people still have poor knowledge about finance. To make the situation worse, there are investment scammers who seek personal gains at the expense of others.
Aware of the malicious effects of this vicious circle, Harapan Bangsa Institute of Technology (ITHB) is committed to improving its students’ knowledge about finance, particularly investment. When the students already have an adequate level of investment literacy, they can transfer their knowledge to the community at large.
This idea was expounded by ITHB Rector Dr. Ir Samuel Tarigan, MBA when he opened a Studium Generale on “Starting Reksadana Mutual Funds Investment” at the Harapan Bangsa Campus, Jalan Dipati Ukur 80-84, Bandung (Friday, 9/11/2015). The general lecture itself was presented by Ronggo Bawono, Manager of Investment Product, Wealth Management, and Segment Strategy Department at BII Maybank.
According to Tarigan, it is important that universities involve a practitioner, such as a BII Maybank manager, in educating students about investment. Experienced investment experts like Ronggo Bawono have the “capability to explain about investment,” explained Dr. Tarigan. We must open up our young generation’s mind to the importance of investments, particularly in the capital market. Capital market investments are very popular in developed countries and have become one of the most important enablers of economic growth. Sadly, we currently have a low level of investment literacy in Indonesia, Dr. Tarigan added.
Dr. Tarigan hopes that with their knowledge the students will be able to reap the fruits of investments and thus secure their welfare in the future.
Further, Dr. Tarigan expressed his appreciation for the cooperation between BII Maybank and ITHB. Dr. Tarigan states that producing reliable investment managers is one of the top priorities for the business department.
Meanwhile, in his lecture, BII Maybank Manager of Investment Product, Wealth Management, and Segment Strategy Department Ronggo Bawono said that the Indonesian market was predicted to still follow the fluctuation of the global economy. However, Bawono argued, despite the current declining trend, the market would improve in the near future.
Bawono added that the Indonesian obligation market was now at the bottom level following a drastic decline of about 30 percent. According to him, the decline could on the one hand be a sign of an upcoming crisis. However, on the other hand, it could also open opportunities for investors. Bawono’s optimism was not groundless. In his view, given the present dynamics, the market would soon recover.
“If we observe closely, the inflation rate is still under control. This means that theoretically, interest rates would normally go down. However, with the Fed being in a state of uncertainty, interest rates would likely decrease only after the market becomes stable,” said he.
With interest rates decreasing, Bawono continued, the economy would start to wriggle from its dormant state, reviving the growth of the capital market. Thus, it is now the right time of everyone, including students who wish to learn about capital market investment, to invest in the capital market.
In his lecture session Bawono also explained about the importance of starting investment since an early age. Reksadana mutual funds are a highly recommended investment instrument for beginners. By investing, Bawono emphasized, people can maintain their purchasing power amidst the pressure of inflation. Investment can also bridge the gap between post-retirement spending and earning.
“I’m amazed to see that ITHB students have keen interests in investment. In fact, many of them already have basic knowledge about investment, including reksadana mutual funds. It’s a good thing that you have an investment management course here. Through this kind of activity, the students can learn to implement their knowledge on investment through reksadana investment schemes, commented Bawono.
The event was also marked with the signing of a Memorandum of Understanding (MoU) between ITHB and BII Maybank. As set forth in the MoU, BII Maybank will extend a sponsorship scheme for the Investment Management course at Harapan Bangsa Business School (HBBS), opportunities for Harapan Bangsa students to undertake a job training program at BII Maybank, recruitment opportunities for ITHB/HBBS fresh graduates, and a run joint Community Service project by BII Maybank and HBBS.