Economy, Business and Investment

In the field of economics, said the investment has been commonly used and is often interpreted as investment money with the purpose of seeking profits. In Indonesia, investment topics listed in the Statement of Financial Accounting Standards (SFAS. 13), which is an asset that companies use to growth in wealth (accreation of wealth) through the distribution of investment returns, such as royalties, interest, dividends, and rent.

In terms of time (duration), the investment can be divided into two categories, namely Investment Current and Long-Term Investments. Investment smoothly, that is an investment that is easy and can be immediately cashed. These investments are intended to be held for a year or less than a year. Meanwhile, long-term investments are investments held in the long term is intended as a reserve fund.

For some companies or peorangan, investment activity is an important element in the operation of the company or individual. And performance appraisal companies or individuals may be entirely dependent on the reported results of investment activity.

Some companies make investments as a form to store the excess funds. And, several other companies make investments to strengthen business relationship or get an advantage from planting investment.

An investment can be in the form of debt, both short-term debt or commercial debt, or equity instruments. Generally, the investment has a form of financial rights, such as investment land, buildings, gold, diamonds, or commodities, other commodities that can be marketed. For some types of investments, there is an active market that can form the market value. For these types of investments, market value is used as a benchmark setting a reasonable value.