JAKARTA (TheInsiderStories) — The OPEC and Non OPEC (OPEC+) meeting is set to kickoff starting Dec. 6 in Vienna, Switzerland. The decision by the organization to bolster prices could by cut their production is crucial in an odd market twist.
OPEC needs a unanimous vote to pass the decisions. Iran warns the group to cut of around 1.4 million barrels oil per day (bpd). If failure, said Iran’ OPEC Governor Hossein Kazempour Ardebilione, would send oil prices plunging to US$40 a barrel.
Furthermore, Qatar giving notice of its intention to withdraw from its Membership of OPEC, pursuant to Article 8 of the OPEC Statute, with effect from Jan. 1, 2019. In the past three years, OPEC has seen Gabon (2016) rejoin the Organization and welcomed new members, Equatorial Guinea (2017) and the Republic of the Congo (2018).
Oil prices have plunged by around 30 percent from early October as the market started to fear an oversupply is building up again, due to record high production in Saudi Arabia and Russia, and an all-time high oil output in the United States, coupled with fears of slowing economic and oil demand growth.
From domestic side, Indonesian government will issue global bonds valued at $3 billion for 2019 budget pre-funding, according to Finance Ministry’s General Directorate of Financing and Risk Management yesterday. The bonds will be released in three series, RI0224, RI0229, and RI0249.
Other than that, finance ministry will issue a special sharia bond, Waqf Linked Sukuk in January 2019. For its initial issuance, official target is Rp54 billion ($37.24 million) worth.
While, National Development and Planning Ministry encourages public private partnership (PPP) scheme for education and health projects. There are five PPP projects valued $306.1 million will be realised next year.
Moreover, Health Social Security Organising Agency deficit is estimated to be around Rp16 trillion and still shortage for fulfilling people’s health facilities. Recently, the health sector only had five percent of the 2018 State Budget, while education sector has 20 percent.
The government has halted Trans Papua project in segment 5, following the assassinations of 31 construction workers by rebels. Officials said that the construction will be continued after getting military and police recommendations.
Most of the victims are workers of state-owned developer PT Istaka Karya, in Kali Yigi and Aurak, Nduga regency, Papua. They were allegedly killed by rebel group led by Egianus Koyoga.
Defense Minister Ryamizad Ryacudu stated that the perpetrators must be firmly managed by military, as Indonesia will not doing any negotiation with the rebels.
Yesterday, Asian stocks market consolidated in accordance with Chinese Yuan strengthening. Nikkei, TOPIX, and KOSPI decreased by 2.39 percent, 2.36 percent, and 0.82 percent respectively. Meanwhile, Hang Seng rose by 0.29 percent and CSI increased by 0.21 percent.
The Jakarta Composite Index stepped up 0.56 percent to 6,152.86 supported by basic industry and chemicals sector along with infrastructure, utilities, and transportation sector that grew more than 1 percent.
Foreign recorded Rp1.65 trillion net buy on stocks market. But Rupiah closed weakening by 0.28 percent to 14,293 compared to US dollar.
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