President Joko Widodo engages in light discussion with the Head of Gerindra Party Prabowo Subianto at State Palace last year - Photo by President Office

JAKARTA (TheInsiderStories) – Good morning. The most important news that came up on Monday was the announcement by former President Susilo Bambang Yudhoyono, or SBY, that his Democratic Party will support Prabowo Subianto’s bid in  the presidential election next year.

But as people says, the devil is in the detail. It is highly unlikely that SBY’s support for Subianto is unconditional. The former President has been pushing his son Agus Harimurti Yudhoyono to play a larger role in Indonesian political scene, though such attempts mostly met with failures.

The Vice-Presidential candidacy is the most coveted position and Subianto certainly gets a lot of thinking before deciding on his running mate. The Keadilan Sejahtera Party, which has proven to be a loyal ally to Subianto’s Gerindra Party, wants the candidacy, a desire that the party’s apparatus had shown in public.

Any aspiring candidates for the Presidential Election must submit their application by August 10 at the latest.

Turning to the market now, the Jakarta Composite Index had enjoyed quite a run, rising 0.64 per cent to end at 6,027 on Monday (30/07), capping off gains for the seven consecutive days. Foreign investors net bought stocks worth Rp235 billion yesterday.

Statement by Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan that the government may remove the domestic market obligation policy for coal miners is the overriding sentiment in the stock market on Monday.

However, according to Rosan Roslani, chairman Indonesian Chamber of Commerce, who met with Luhut to discuss the plan, the government’s was not to remove the policy completely but to lower its quota from currently 25 percent of national output.

Investors in the stock market will also watch for the last day for Indonesia’s listed companies to submit their financial results for Jan-Jun period. Results from some of the companies had been either in line or beat market expectations, with some exceptions.

The rupiah strengthened to Rp14,409 a dollar on Monday from Rp14,483 on Friday (27/07), while the yields of government bonds continued to move favorably.

Both indicators would boost the government’s confidence in bond auction today, targeting to raise Rp10-20 trillion from sales of 10-year, 15-year and 20-year papers as well as treasury bills.

Investors in the domestic market also is anticipating for the release of July inflation data by the Statistics Indonesia on Wednesday (01/09). Meanwhile, The energy and mineral resources ministry is expected to announce the fate of Rokan Block after its contract expires in 2021 with both current operator Chevron and state owned Pertamina are vying for the lucrative field.

Hope you have a profitable day.

Written by Staff Editor, Email: theinsiderstories@gmail.com

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