President Joko Widodo was Visiting Paddy Field in Indrawayu West Java - Photo by President Office

JAKARTA (TheInsiderStories) – Good morning. President Joko Widodo district fund program approved by Indonesian parliament. In the meeting with government on Thursday (26/10), Budget Committee for the parliament agreed to allocated Rp3 trillion (US$206.90 million) funds for the program.

Previously, the government proposed to divert part of village funds into district funds. In the draft of 2019 State Budget, the country allocated Rp70 trillion for the village funds and part of it, Rp3 trillion will allocated to district funds.

Immediately the ruling president’s planned has been criticized by Prabowo Subianto’s team, his contender in 2019 Presidential Election. Vice chairman of the House of Representatives Fadli Zon reminded that the government should not arbitrarily budget without a clear legal umbrella.

He stated, the proposal came ahead of the presidential election which raised questions. The deputy chairperson of the People’s Consultative Assembly Hidayat Nur Wahid also criticized the Widodo’s district funds program not having a clear legal umbrella, but had already been budgeted in a hurry.

He continued, the budget without a legal umbrella means a budget corruption and will be problematic. He also invited the community to judge for themselves whether the budgeting of the district funds in the 2019 State Budget was political or not.

From global, United States’s (US) President Donald Trump may raise the issue of China with his Russian counterpart Vladimir Putin at the Paris-hosted summit on Nov. 11. The recent visit by Trump’s National Security Adviser John Bolton to Russia signaled that Washington seeks common ground with Moscow on containing Beijing.

Russia expects a full-fledged and serious discussion on the future of bilateral relations with the US. The Paris talks also will focus on nuclear agreements by Syria, Ukraine, North Korea and China. The goal of Trump’s administration now is to prevent further rapprochement between Russia and China, and ensure that Moscow has a more reserved stance.

Go to the financial market, yesterday (25/10), the Rupiah edged up 0.06 percent in the spot market at 15,188 per US dollar compared to previous day. But the local currency corrected 0.11 percent to 15,210 against the greenback based on the Jakarta Interbank Spot Dollar Rate data.

The domestic sentiment is projected to dominate the strengthening with the results of the issuer’s financial statements in the third quarter (3Q) of 2018, as well as the strengthening Rupiah. As an example, PT Bank Central Asia Tbk (IDX: BBCA) announced 3Q’s profit growth of 9.9 percent year on year to Rp18.5 trillion.

The largest private bank in Indonesia realized credit of Rp515.56 trillion or grew by 17.2 percent from the same period the previous year of Rp439.88 trillion.

Meanwhile, the Jakarta Composite Index maintained its rebound and closed in the green zone with an increase of 0.80 percent or 45.55 points at 5,754.96 levels on Thursday (25/10).

May you have a profitable day.

US$1: Rp14,500

Written by Linda Silaen, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.com

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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

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