The two pair of Presidential Candidates mingle at the GEC's office on Friday (21/09) - Photo: Privacy

JAKARTA (TheInsiderStories) – Good morning. The campaign period for the 2019 General and Presidential Election officially started on Sunday (23/09), with the Demokrat Party from the opposition made headlines for refusing to sign the peaceful campaign declaration after some unruly behaviors by supporters of the ruling coalition.

The party’s chairman, Susilo Bambang Yudhoyono, was on his way to the signing ceremony before he met with some supporters from the informal grouping of President Joko Widodo supporters ‘ProJo’ calling the former President to support the incumbent instead.

It is thinly reference to Yudhoyono’s initial reluctance to support the opposition camp after his party’s vice president nomination, Agus Harimurti Yudhoyono, was rejected.

Drama aside, the General Election Commission has received the initial campaign fund from both camps. The opposition camp reported Rp2 billion (US$137,931) as the initial fund, while the ruling coalition declared Rp11 billion.

The funding gap is expected to widen as Widodo’s camps continues to garner supports from Indonesia’s business circles. The latest is the head of Indonesia’s Chamber of Commerce and Industry and Young Entrepreneurs Association who have declared their personal support for Widodo’s re-election.

The ruling coalition wasted no time to get their campaign machines into fourth gear. West Java is an area in focus for the ruling coalition with the province’s governor Ridwan Kamil had been deployed to secure votes. Widodo lost to the opposition’s candidate Prabowo Subianto in West Java in the last presidential election.

While, the financial market may move in mixed direction with this week’s key agenda would be the US’s Federal Reserves (the Fed) meeting, which the market had expected to result in a 25 basis points hike in the Fed Fund Rate. The market will also anticipate reactions from the US President Donald Trump who had openly criticized the Fed for hiking its rate due to the adverse impact on growth.

The Federal Open Meeting Committee meeting will be subsequently followed by Bank Indonesia’s (BI) board of governors meeting. Market may expect another rate hike by BI though it might depend on the Fed statements and clues on whether the path to monetary tightening is accelerating.

Furthermore, commodity prices may react after oil cartel OPEC and Russia refused a call by US President Donald Trump to boost output to stave off surging oil prices.

The equity market reported a strong gain last week and ended up 0.4 per cent at 5,958 on Friday (21/09) with foreign investors net bought stocks worth Rp1.1 trillion. On Friday, the Rupiah strengthened to 14,824 per US$1 from 14,839 per US$1 on Thursday.

Despite the recent volatility in the financial market, the Indonesian Stock Exchange remained confident that the number of listed companies will hit 600 by end of the year, which means at least 20 companies will perform initial public offering for the remainder of 2018.

US$1: Rp14,500

May you have a profitable day.

TIS Intelligence Team, Email: theinsiderstories@gmail.com

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