JAKARTA (TheInsiderStories) — Good morning! American Dollar fell off against other countries’ currencies, following midterm election result that brings Democrats to control parliament. Observers rated, opposition legislative may triggered volatility in financial market due to President Donald Trump’s possible hardship to run his policy.
Rupiah has been gaining its power this week ended at 14,651 yesterday, even a better increase compared to other countries, thanks to foreign funds inflow. In stocks market, foreign funds recorded Rp1.1 trillion (US$74.32 million) net buy.
The Jakarta Composite Index also gaining strength as well this week. On Thursday ()8/11), the market closed inclining 0.62 percent to 5,976.8, moved by two state-owned biggest banks, PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Mandiri Tbk (IDX: BMRI), also telecommunication provider PT Telekomunikasi Indonesia Tbk (IDX: TLKM).
Meanwhile, Lion Air repeated trouble by hitting airport’s pole, had made Transportation Ministry investigated the incident. Wing of Lion Air JT-633 hit coordinate point pole in Fatmawati Soekarno Airport in Bengkulu, on Wednesday (07/11) evening. Authority will announce later whether the plane is flightworthy or not.
Furthermore, Indonesia will follow two international summits next week. First, ASEAN Summit that will be held on Nov. 13th-15th in Singapore and APEC Summit on Nov. 17th-18th in Papua New Guinea. Indonesia will bring Regional Comprehensive Economic Partnership (RCEP) issue in APEC Summit, so country leaders can commit to settle the negotiation. While in ASEAN Summit, Indonesia will discuss about Indo Pacific concept.
Today, Indonesia’s third quarter balance of payment will be announced. In second quarter, Indonesia balance of payment was deficit for US$ 4.3 billion by cause of current account deficit.
If the third quarter result also shows deficit, Rupiah and Jakarta Composite Index is estimated to be impacted.
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