Pancasila

written by Gerry Octaviano, S.Soc, MBA

Nowadays, not many Indonesian can recall 5 of Indonesia's principle or what we called Pancasila.

I will help you to remember.

1. Ketuhanan Yang Maha Esa (star)

2.Kemanusiaan yang adil dan beradab (banyan tree)

3.Persatuan Indonesia (Chain)

4.Kerakyatan yang di pimpin oleh hikmat kebijaksanaan dalam permusyawaratn/perwakilan (bull head)

5.Keadilan sosial bagi seluruh rakyat Indonesia (paddy and cotton)

InsyaAllah, you are not only remember those principles but you should implement as guideline in your social life besides Qur'an and Sunnah.

Allah Wa'Alam

Put the right person in the right place..

Written by Gerry Octaviano, S.Soc, MBA

Put the right person in the right place..

This is the basic problem in any organization. We can take an example, first in Indonesian National Football team, if you change position Cristian Gonzales ((striker)and Markus (keeper), I am sure 100% that Indonesia can not beat Philipines, 1- 0, like what happened today. Therefore, you should put the right person in the right place.

That is one of the foundation in the organization. Another point is in football if you can not score by yourself, you should pass to your partner since his position has better chance to make a score. In Indonesia, in many public and private organizations, we never pass the ball and oftenly do own goal and many times tackling each other.

This explaination is also problem in Islamic Banking. Hopefully, Bank Indonesia can strengthen Islamic Banks. Their officer should know properly what supposed to be, not what it is... We should change our mind set from capitalism (to maximize shareholders' wealth) to follow shariah principle.

Allah Wa'alam

People will not do worship If there is no heaven and hell,, is that true?

Written By Gerry Octaviano, S.Soc, MBA

People will not do worship If there is no heaven and hell,, is that true?

In fact ,,,, this is true. You can ask yourself, do you usually pray Tahajjud in the midnight when your body is really tired? InsyaAllah, you are one of the people who like to pray tahajud.

Tahajjud is sunnah and it is not your obligation but it is really good deeds if you do. It means if you are not praying tahajud it is ok, you will not enter janah or hell.

This is one of the example that people will not do that thing if that you do not do that thing, you will not enter janah or hell. InsyaAllah, you still follow Quran and Sunnah as your way of life. I am also still have a lot of weaknesses.

As you know, salat is making your body really takes a rest. It has proven in some research, one of them which was conducted by Abu Sangkan and some qualified doctors. All the diseases and other problem either physic or mental problem can be cured by doing the right salat. You can find out more detail about salat khusyuk by visiting Abu Sangkan Salat center in Jakarta. I already proved that Salat can cure any problem.

Allah Wa'alam

Bank Indonesia should educate Islamic Banking officer and investor or indonesia citizen about muamalah or syariah properly,,

Written by Gerry Octaviano, S.Soc, MBA

As long Islamic Banking still using fiat money, we can not say Islamic Banking is Islamic since fiat money or money creation or in the bank we know the term multiple deposit creation that is the root of the evil.

However, in legal maxim we know that we should choose lesser evil or in the other word rather than we go to conventional banks, we should go to Islamic Banks.

Actually, Islamic Bank has the pure Islamic Products (partneship) which are mudharabah and Musharaqah. Before, I come to the issue I would like to explain briefly about mudharabah and musharaqah product.

Basically, mudharabah is the partnership agreement between 2 parties or more which consist of rabbal mal (investor) and mudharib (entrepreneur) and at the beginning of contract they already agreed ratio in sharing profit. But, the loss is burden to rabbal mal (investor) if the loss is not because of mudharib's negligent . The concept in here is sharing profit but loss is burden to investor if loss is not because of mudharib's negligent. The basic concept in shariah is investors can not guarantee their capita, that's why riba is haram since investors guarantee their income, as consequence, they can relax sit on their luxury sofa and wait the interest comes to them by charging fix or fluctuate interest rate is the evident.

In practice, Islamic Banking covers themselveswith the name of mudharabah but actuall they offer interest rate like conventional banks do.

There is the story about an innocent Islamic Bank officer went to Investor's office. At the beginning, this innocent officer was going to explain his bank's mudharabah product but this investor can not really understand and this investor asked about how much interest rate per yer or equivalent ratethat this guy can give to this investor. Then, this officer called his marketing manager and then this manager told him to give fix rate 9.5% p.a. for example. Eventually, this investor agreed.

From this real story we can see that Indonesian people is lack of knowledge about Islamic Product which is the mudharabah and musaharaqah are the solution of the global crisis which was mentioned by US and other westers countries economic experts.

Bank Indonesia and media should support Islamic Banking in educating Indonesia citizen without charge. In order to implement properly Shariah principle in Islamic Banking we should focus on Research and Development (R&D).

Allah Wa' Alam

Malaysia and Indonesia should love each other

Educated our people to love each other

I am so disappointed about relationship between Indonesia and Malaysia became unhealthy. It is because the human nature such as greedy, pride, and behind that there is game that created by politicians and involved other countries.

Why don't forgive each other, all the things in this world belong to Allah SWT and we are just act as trustees. Thus, this fight should not happen.

We should make the big problem becomes smaller and the small problem becomes nothing.

Historically, we were one land (satu rumpun). Please don't proceed this fight, and do not mock each other even small thing.

by gerry octaviano

Short Selling

Short Selling

written by Gerry Octaviano

Have you heard about these two words??
I am sure by typing those words in uncle google you can figure out what short selling is.

I wanna raise the issue about short selling transaction that usually occurs in the secondary market.

from the words itself u can understand the meaning of short selling.

1. It means u only borrow stock from the broker that u will know it will depreciate (decrease the value);
2. then u sell it to other parties and sell it at par value;
   
3. after sometimes the value of the stock is depreciated then u buy from the secondary market;
   
4. lastly, u return the stock to the broker;
5. The aim is to get profit from that, but u have to give a fee to the broker.
   

for example:

• firstly, u investigate the stock that will depreciate (the price decrease) after some days in the stock exchange.
• Now, u borrow that stock from the broker.
• 23 July 2010, Gerry borrows stock A from Kinan (broker) with value of RM 3/ share.
• 23 July 2010, Gerry sells that stock A to Helmi at RM 3/share.
• 24 July 2010, the stock A depreciate (the price decrease) and it becomes RM 2/ share
  
• 24 July 2010, Gerry buys stock A from other parties.
• 24th July 2010, Gerry returns the Stock A to Kinan including the fee.
• Gerry gets profit (RM3 -RM 2= 1, can u imagine the stock can be thousands unit).

As we know, the price of the stock is fluctuated.

According to the Qur'an and the sunnah it is prohibited to sell property that u are not own. In this case you only borrow the stock and sell it.

Another reason, it creates injustice to other people that u know the price of the stock will decrease but u sell to other person.

It does not describe the shariah compliant since it is only buy and sell stock not really for investment. Short investment for long term investment can create inefficiency and many problems.


I will not put the specific hadith and what surat in the contract that related to my papers unless i get request from u. thanx

Allah Wa'alam

PENALTY in Islamic Perspective

written by Gerry Octaviano


Do you think penalty is halal or haram ?
It can be both depends on the way you implement penalty.

Usually, companies already set up the amount of penalty in the beginning of the contract and it is agreed by mutual consent. However, it is prohibited to set up the penalty by bilateral agreement.

What is it supposed to be?
1. It is supposed to be by unilateral (set by creditor) ;thus, can not be included in the contract.
2. It depends on the situations
3. You have to give more time to your debtor
4. If still does not pay, you can impose penalty
5. But, you have to justify the penalty is it for.

for example:

A (seller) sells a car to B (buyer)at deferred payment (4 years installment).
After 4 years B still can not finish it the payment.
A has to respite or give more time to B.
If, B still does not pay, B can impose penalty.
However, B has to justify the amount of penalty.
Since, A does not deserve profit more than they have to get. Hence, the penalty belongs to CHARITY.

Wa Allah A'lam