Social Construction of Trust in the Investment of "Bodong"

DOI

10.2991/icbmr-17.2017.22How to use a DOI?

Keywords

Investment, Ponzi Scheme, Social Construction, Trust

Abstract

This paper aims to explain how trust is constructed in the investment of "bodong" in Indonesia. Investment of "bodong" is the emic concept of Indonesian business community about investment with Ponzi scheme. The growth of "bodong" investment occurred in a legal and socio-political settings where absence of regulation, literacy and oversight of financial services activities, as well as the transition from a controlled democracy to a liberal democracy. The social construction of trust in "bodong" investment is the result of the interrelation between the strategy of the trustee and the trustor's motivation. The trustee strategy includes the use of the effects of reference groups, bonuses, advertisements and charity activities displayed. The majority of trustor did not understand about this investment. The trustor's motivation includes very high profits, the influence of reference groups, attractive bonuses and charity displayed by trustee. The small group of trustors who have understood this type of investment, the opposite is true, the distrust of "bodong" investment is deconstructed by doubts about their own knowledge and understanding because it is different from the reality faced and the speculative behavior they have. Therefore, policies on increasing the literacy of financial investment and banking in the community and supervision of business activities are needed. This paper is produced from qualitative research on 50 informants that gathered by snowball sampling method. The primary data was collected through in-depth interviews. While secondary data were gathered through online media news and documents from related offices. The data were analyzed by using model from Miles and Huberman.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Damsar Damsar
AU  - Indrayani Indrayani
PY  - 2017/11
DA  - 2017/11
TI  - Social Construction of Trust in the Investment of "Bodong"
BT  - Proceedings of the International Conference on Business and Management Research (ICBMR 2017)
PB  - Atlantis Press
SP  - 227
EP  - 237
SN  - 2352-5428
UR  - https://doi.org/10.2991/icbmr-17.2017.22
DO  - 10.2991/icbmr-17.2017.22
ID  - Damsar2017/11
ER  -