Archive for January 2009

Human Inflation   Leave a comment

A writing I get from my fellow Ebi….You might want to see his blog to. Visit his at: A very nice article and so moving

One afternoon in 2002, I met a friend by a coincidence. It was right outside the Mandarin Hotel in Sudirman Road. He was just come back from Germany, to see his brother and grandma. Well, he is half Germany.
“what’s new from Germany ?” I asked. “I found a new theory.” He replied. “What’s the theory?” I said enthusiastically. He always was an inspired friend to talk with. I love the way he conveyed his idea. Thought-provoking but yet never want to be dominant speaker. He listened to you as if you have his full attention. And most of all he is a very resourceful man. He once come to my room in University of Indonesia’s dormitory and give me “Food for thought” as preparation before heading to International Student Festival in Throndheim, Norway, back in 1999. And he had to walk to train station late at night, not to mention in the dark scary part of UI’s forests. Hmmm…. suddenly I miss that conversation!

Anyway…. The theory that we were talking under that burning sun and polluted air on Jalan Sudirman was new for me. He said”I think inflation is not only on money, Ebi. It also applies on human. I found that human is worth more in Germany than here in Indonesia ”Well….I was having some short of “racism” paranoid, at one moment, but then I asked “How could you come up with such a conclusion?”
“In Germany, I found that human is treated better than here. Look at the place where we stand here. Just a small pavement for pedestrians, a lousy transportation, not to mention low-quality and expensive education” He replied.
“That might be because we have so many population and Germany has only a few population” He explained further ”As the number of people increase, its individual value is decreasing, isn’t it the same as inflation? The more money in the country, the less its value since its purchasing power decreased” This “human inflation” theory has never been so much valid for me before this morning. Almost all national media in Australia put the story of two miners who was entombed 1 km underground for two weeks, and eventually make a great escape. Surely, the first two weeks news was much influenced by this so called tragedy. It even outweighs the news on interest rate raised by RBA which impacts most of mortgage holders. Two human lives make a difference in the last two weeks media colours. People concern about it. The government and labour associations speak out about the case. In short, they put efforts to save these two lives.

Not let’s come back to Indonesia. How would the reaction if the same things happened. I believe we could not hope to much cover on the same story. People have “got used” to such news. Death due to bus crashed by train or other traffic accidents, due to natural disasters, mal-nutrition babies, etc…etc…(not to mention death due to criminal acts)

Is there such a human inflation? Are we valuing less when we have more? Isn’t saving one life equal to saving the human as a whole? I don’t want to answer it simply because sometimes the fact is too far from the norm.


Posted January 23, 2009 by hamzahritchi in Everyday

Steve Job’s health, accounting materiality and disclosure..   2 comments

We know already bout what happened to Apple’s Steve Job’s current health. What is seemingly intriguing to me is the impact of his condition to what happened on the stock floor. According to the SEC’s Regulation Fair Disclosure (Reg FD), public companies are required to disclose “material information” to all investors simultaneously. Obviously, this rule attempts to limit insider trading that occurred because of the information leak that might lead to action imbalances due to information asymmetry of selective disclosure.

The disclosure of SJ’s health made Apple shares plumed to $192.24 from May 2008. Following to the story, rumors over the need to have SEC further investigation arises. The question is, does Apple screw up the investors with this health information? Here comes accounting practice on materiality and disclosure to play the role. From my viewpoint, determining whether Apple violates the rule should be considered from two consecutive factor, putting aside that the information is potentially misleading (validity). First, identify the level of materiality and second, examine what level of disclosure taken to respond the materiality.

The definition of “material information” is somewhat subjective, but it’s essentially anything that investors would likely thing as important driving forces on every investment decision will be taken. In Apple case, though materiality is quite subjective, it’s more black and white conclusion that its disclosure cousin. Anything that has substantial effect on corporate’s earning, and off course eventually owner’s wealth, is material. And to me, for company like Apply, SJ figure is determining, hence material to accounting reporting. Bottom line, if you’re not sure, disclose it. Ok, done with materiality. Did Apple disclose it? sure they did..but how they disclose?…let’s jump to disclosure.

Disclosing a particular information is more tricky than materiality. Say you wanna disclose this health problem to the dance floor, but in what ways?. Article by Steve Tobak from provides a nice way of doing disclosure in one sentence, “how long can a company keep material information confidential before it leaks?”. So, if company feels that the leak to become reality is highly likely, it better discloses the information sooner than later. But be careful not to think that disclosure should be done after the information is leak. I’m not saying that disclosure equivalent with the leak of information.

So, question should be posed first is whether leak takes place in relation to SJ’s email to his employee? if yes, is it intentional? The answer should be seen to the action that follows the leak. If the time the leak precedes the disclosure is long,than violation of Reg FD happens. But if the disclosure is issued immediately, Apple’s hand should be clean.

Anyone wants to comment?

Posted January 23, 2009 by hamzahritchi in Business

SAP ERP Business Process   Leave a comment

I guess this short description about SAP would attract accountant to make a career no only in audit and tax.

Demand for finished products from customer will be recorded by Sales department in a sales order document. Sales order data can be analyzed by Inventory department. If there are not enough finished products in
current stock, the sales order can trigger a production order that request the Production department to start producing the finished products. In order to produce the finished products maybe it requires some raw materials that have to be bought from vendors. The production order can trigger a purchase requisition for the raw materials. The purchase requisition will be processed by Procurement department to be a purchase order that is sent to vendor. Vendor will deliver the raw materials and Inventory department will receive them.
Accounting department will record the vendor’s invoice and Finance department will process the payment. Once the raw materials are available, the Production process begins. Then the finished products will be
delivered to the customer, and Finance department will send invoice to the customer.All of the above processes need man powers that are managed by HR department and paid by Payroll Accounting department.

All of the above processes can be recorded by SAP R/3 in:
* Sales and Distribution (SD) module.
* Production Planning (PP) module.
* Material Management (MM) module.
* Finance & Controlling (FI/CO) module.
* HR Module.

Certain transactions in the above example also trigger accounting business process. FI/CO module posts accounting documents for some transactions that have an accounting effect in SD, PP, and MM module,
such as finished products issue for sale to customer, raw materials receipt from vendor, etc. These processes will affect the financial reports such as Balance Sheet and Profit & Lost Statement.

Pusat Studi ERP Indonesia

Posted January 22, 2009 by hamzahritchi in Information System

[Call For Papers] Asia Modelling Symposium 2009   1 comment

Deadline : 31 Januari 2009.
AMS2009 will be held over 3 day period in Indonesia, with days 1 and 2 on 25 and 26 May in Bandung and day 3 on 29 May in Bali. For participants starting their trip in the UK, the conference organizers are preparing a 10 day travel and accommodation package to include 4 days in Bandung and 6 days in Bali, details will be made available on this website in due course.


Call for Papers
The Symposium will focus on all aspects of modelling and simulation techniques, particularly those involving intelligent and hybrid intelligent systems in engineering, remote sensing and wireless technologies. Models in computational intelligence, hybrid and connectionist systems, evolutionary algorithms and fuzzy systems are used by designers, implementers and managers to improve understanding, evaluation and assessment. Modelling and Simulation techniques provide fundamental support at all stages of the life cycle in application areas such as industry, business, energy, transport and the environment.

Papers are invited in these and other areas:
– Industry, Business and Management
– Algorithms, Methods and their Applications
– Methodologies and Tools
– Energy, Power Generation and Distribution
– Distributed Systems and Networks
– Geographical Information Systems (GIS)
– Environment and Health
– Education and Training
– Bioinformatics
– Remote Sensing applications & technologies – Robotics, Fuzzy modelling, Control and Automation
– Software Agents and Agent Based Simulation
– Knowledge and Data Mining
– Neural Networks and Evolutionary Computation
– Swarm Intelligence & Technology
– Architectures of Intelligent Systems
– Image, Speech and Signal Processing
– Internet Modelling, Semantic Web and Ontologies
Submission Guidelines
You are invited to submit:
– full paper of 6 pages (A4 format) for oral presentation,
– proposal to organize a technical session and/or workshop.

Submissions must be original, unpublished work containing new and interesting results that demonstrate current research in all areas of intelligent systems modelling and simulation and their applications in science, technology, business and commerce. As in previous years (see AMS2007 and AMS2008 on the IEEE website) the proceedings of the Conference will be published in the IEEE Digital Library. The conference is organised by Asia Modelling and Simulation Society and is co-sponsored by

– IEEE UK &RI Computer Chapter
– Asia Modelling & Simulation Society
– UK Simulation Society
– European Council for Modelling & Simulation

Submission implies the willingness of at least one of the authors to register and present the paper. All papers are to be submitted electronically,- see full instructions under Paper Submission below, in PDF or Word format. All papers will be peer reviewed by at least three independent referees of the international program committee of AMS2009.

Authors of the best papers will be invited to revise and extend their work for publication in a special issue of theInternational Journal of Simulation: Systems, Science and Technology.
Conference website:

Posted January 22, 2009 by hamzahritchi in Scholarships and Study

The power of Community(2.0)   Leave a comment

Did you ever feel that every pieces of your footstep in your life at a point in time may at least lead you to a wiser and bigger meaning of something? well I maybe one of those who thing that way. I see that mailing list and my reading during the last two weeks lead me to to start understanding how collaborative working can rule the new competition.
I’ve been reading this cool book for about two weeks from the first day I bought it at a bookstore in Bandung. Oh yeah, I forget. Anyway, the book is entitled Wikinomics. Pretty eye catching for an impulse book reader like me by just looking at the cover. Though I read its Indonesian translated version, the message is pretty clear and delivered nicely. It’s a pity that I’m in the middle of my peak time to finalize some stuff for the end of January.
Authored by Don Tapscott and Anthony D. Williams, the book is promising a new look of how information society revolutionizes. It’s not food company vs food company anymore. It’s not also rivalry between two competing value chains. It’s way bigger than that. What happened now is global competition. I’m not talking global in a “multinational” or “enterprise-wide” sense, but global in the sense that all people are powered by the new version of the little e- (e-business, e-commerce, e-money, e-banking) to enhance new innovation, new product and even bigger, a new paradigm. Collaboration, seems to be the most looked up buzzword to define how people are now enabled to create a new kind of working style, dumping self and license protected product and services.Whole range of collaborations now exist to demonstrate the capability of shared-working: blogs, wikis, peering, open source application, and to my knowledge, mailing list.

In Indonesia, the wave of collaboration is also moving on. I realize the going by looking how community media is having its evolution. From 20 mailing list I have been joining so far, at least now I’m part of some mailing lists that serve for certain domain of knowledge. One community/ mailing list, KOM-TEK, stands for KOMputer TEKnologi, is an Indonesian -based mailing list dedicating for improving the member skill. It is a place where few humble and IS experienced people are dedicating themselves for the development of Indonesia human resources, especially in ERP and other enterprise application. They hold ranges of free ERP trainings given that internet connection is available. As a result, now more people are coming that are competitive for ERP human resources market after they graduate from the training.

Another mailing list, IPOM-APICS are opening opportunity for those who are interested in industrial engineering and its related field. The mailing list is associated with APICS (a non profit organization that offers three internationally recognized professional certification programs:CPIM – Certified in Production and Inventory Management, CFPIM – Certified Fellow in Production and Inventory Management, and CSCP – Certified Supply Chain Professional designation. Since its formation, the mailing list has been able to provide its member access to knowledge in operation management.

Having read this, I guess it’s not impossible to create new innovation from this community controlled area. And that’s what I call the power of community.

Posted January 22, 2009 by hamzahritchi in Information System

Dr. Doom   1 comment

A nice article I saw from

Who Is Nouriel Roubini?
By Alice C. Chen
published on 1/05/2009

Is economist Nouriel Roubini a prophet or a perpetual pessimist who happened to get it right? In 2004, the New York University professor started to see disturbing trends he thought would lead to a crippling U.S. recession and a global slowdown. While other economists echoed his view at times, Roubini was the most consistent and bearish, even when his predictions failed to happen. So, most mainstream economists dismissed him simply as a perma-bear.
Five years after his initial warnings, he’s one of the most sought-after advisers in the world, strategizing with entities like Congress and international finance ministries.
Key Stats
• Name: Nouriel Roubini
• Also known as: “Dr. Doom”
• Age: 50
• Profession: NYU economics professor, co-founder of the economic-analysis firm RGE Monitor.
• Why he matters: Since 2004, Roubini has been the most pessimistic — and most accurate — predictor of the economic crisis. People ignored him then. They don’t anymore.

His Predictions
While other economists thought the real estate bubble would burst, they didn’t realize the extent of the devastation because housing is only about 6 percent of America’s GDP. Roubini, however, was one of the few who saw the link between housing and consumer spending, which makes up more than 70 percent of the U.S. GDP and about 25 percent of the world’s purchases of goods and services. As real estate prices soared, consumers used home equity loans to finance more expenditures.“(T)he only way you can liquefy your wealth is by using your home as your ATM machine, and that is exactly what has happened in the last few years,” Roubini told an audience at the International Monetary Foundation in 2006.


Roubini also saw the makings of a massive, global trade imbalance. The U.S. was borrowing from China to purchase Chinese goods. China was buying commodities from Latin America and the Middle East to produce those goods. If China experienced any internal disruptions and it stopped financing the U.S., the dollar would devalue, consumer spending would drop, and a global economic slowdown would result.

Bottom line: America was borrowing from other countries to fund consumption and housing rather than productive investments that create exportable goods and services. Roubini concluded the trend was unsustainable. “The bursting of the housing bubble is going to lead to broader systemic banking problems,” he told the IMF audience. “The rest of the world is not going to be able to decouple from the U.S. even if it is not going to experience an outright recession like the United States.”

His Method
While many economists rely mostly on rigorous econometric formulas, Roubini assumes that quantitative methods alone can’t explain unprecedented moves in the global economy. So, he adds a heavy dose of intuition, historical analogies, and circumstantial observation to his work. He derives most of his forecasts from simple data like supply-and-demand models and ratios of home price versus rent and home price versus income. Other economists use computers to crunch data, but Roubini uses his brain, says Christian Menegatti, lead analyst at Roubini’s firm RGE Monitor. His nontechnical framework has been likened to those used by noted economists Joseph Stiglitz and Paul Krugman. And Roubini told the New York Times that Alan Greenspan and John Maynard Keynes have influenced his methodology. His approach to economics isn’t radical, but his style can be considered flamboyant, says Brad Setser, who co-wrote a book with Roubini and is now a fellow at the Council on Foreign Relations Center for Geoeconomics. A recent Roubini blog post illustrates the point: “(T)hese Bush hypocrites who spewed for years the glory of unfettered wild west laissez faire jungle capitalism allowed the biggest debt bubble ever to fester without any control (and) have caused
the biggest financial crisis since the Great Depression.”

The Debate
Anirvan Banerji, director of research at the Economic Cycle Research Institute, praises Roubini for correctly capturing the nature of the crisis but points out that his timing was repeatedly off. What if the Fed had adjusted interest rates or businesses stopped hiring based on impending recessions that didn’t occur?
But, Darrell Duffee, a finance professor at Stanford’s Graduate School of Business, says timing is not so important. “His skeptical commentary has been very, very useful,” says Duffee, who added that Roubini’s warnings were meant to straighten out the financial sector. Indeed, in November 2004, Roubini warned on his blog, “(S)erious financial distress from unsustainable fiscal and current account deficits cannot be ruled out.”
Banerji also criticizes Roubini for changing his justifications for the recession as he kept missing the timing. First it was the trade deficit, then oil price shocks, then the housing downturn, and finally the credit crisis, Banerji says. “There’s something lacking in terms of understanding what triggered the recession,” he adds.
Supporters argue that Roubini emphasized different vulnerabilities but his overarching argument remained the same. “The U.S. wasn’t borrowing from the world to finance productive investment (and) that process would end badly,” says Setser.

His Solution
Roubini expects things to get worse before they get better and predicts the recession will last at least until the end of 2009. In general, he advocates for the government to stabilize the economy through monetary and fiscal policy. Here are his recommendations to stop the credit crisis:
• Temporarily freeze all foreclosures.
• Create massive fiscal stimulus packages of at least $400 billion for public works, infrastructure spending, unemployment benefits, and tax rebates to lower-income households. Provide grants to state and local governments in dire need of funding.
• Coordinate interest-rate cuts globally.
• Temporarily insure all bank deposits. Allow insolvent banks to shut down and partially nationalize solvent but distressed banks.
• Open credit lines to solvent financial institutions and companies.
• Inject money into banks by buying equity.
• Coordinate a global effort to gradually adjust trade imbalances.
Policy makers around the world have heeded most of Roubini’s suggestions. Hopefully the one who saw it all coming sees the correct solution as well.

Posted January 9, 2009 by hamzahritchi in Business

Palestine update   Leave a comment

Victims list … over 700 people were sacrificed for something or nothing? While European people started to rally protesting the violence against Palestinian ( I would say, genocide indeed), Indonesia government that’s obviously the largest muslim country in the world (?) seems do very little move to support Palestine. Where the hell humanity gone?

Posted January 8, 2009 by hamzahritchi in Islam