JAKARTA (TheInsiderStories) — Good morning! Bank of Indonesia lowering the 2019’s economic growth projection, in accordance with the 7-Day Reverse Repurchase (7-DRR) rate increase to 6 percent in the latest Board of Governors meeting. Previously, the central bank predicted Indonesia economy may grow by 5.1 percent to 5.5 percent next year.
The central bank said, global economic slowdown is happening and estimated to impact 2019. Three world’s biggest economies have shown their curtails, such as China, Japan, and Germany.
Japan and Germany economic slowdowns have been seen in third quarter this year. While China has some signals over its diminishing economy, in opposite with United States that China has trade war with.
Furthermore, Rupiah built up strength for 5 days respectively, thanks to catalysts made by Indonesian government. For the first day of the week, the local currency appreciated slightly by 0.05 percent to 14,586 over the US dollar. But the raise was around 2 percent since November 13th.
Seeing market response to monetary policy and economic policy package, Rupiah is predicted to gain more power for the next few days. Nevertheless, global sentiments will also impact the Rupiah flow.
But unlike Rupiah, the Jakarta Composite Index halted 0.11 percent to 6,005.29, although foreign recorded Rp601.36 billion (US$40.91 million) net buy. Several big market cap stocks such as PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT HM Sampoerna Tbk (IDX: HMSP), PT Astra International Tbk (IDX: ASII), and PT Adaro Energy Tbk (IDX: ADRO) contributed as the most laggard of the day.
While, PT First Media Tbk (IDX: KBLV), PT Internux, dan PT Jasnita Telekomindo 2,3 GHz frequencies revoke was delayed from plan. Indonesia Communication and Informatics ministry stated that the frequency license revoking decision hasn’t been discussed by Finance Ministry.
Moreover, the companies sent letters, Monday morning, mentioning they will pay the arrears. Their payments have due on Nov. 17 and government previously planned to revoke the frequency license on Nov. 19.
According to official, those 3 companies haven’t paid the frequency fee for 3 years since 2016. During 2016-2017, First Media arrears was Rp364.84 billion, Internux was Rp343.57 billion, and Jasnita was Rp2.19 billion. If added with 2018, First Media has around Rp490 billion arrears while Internux arrears is Rp438 billion.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.com