JAKARTA (TheInsiderStories) – Good morning. Indonesia is in grief. A tsunami triggered by a 7.7 richter scales hit a coastal city of Palu, the capital of Central Sulawesi and Donggala, leaving at least 832 people dead, . The casualties is expected to rise as there’s still few area without communication established including Donggala, a home of around 300,000 people.
An amateur recorded a video seconds before the high waves hit Palu and Donggal, showing tall water quickly engulfing the coastal area of the city.
Search and rescue team along with the military had been deployed to search from survivors possibly trapped in the rubles of buildings destroyed by the earthquake. Rescue attempt, at present, focused on a hotel in the city, where around 50 people may be trapped below the rubles.
The disaster damaged key infrastructures in the surrounding area. Power and communication network were out for a long time and an iconic Ponulele bridge was destroyed. At least 290 aftershocks were recorded in the aftermath.
Disaster and Mitigation Agency was among the first responders, sending team to establish channel of communication, asses the damage and deliver assistance. President Joko Widodo had visited the disaster-stricken area and Finance Minister Sri Mulyani Indrawati said the Disaster and Mitigation Agency had asked for Rp560 billion of initial budget for rescue and rehabilitation efforts.
Indonesia is geographically located on the meeting point of two tectonic plates, making the archipelago very prone to earthquakes and tsunami. In August, a strong earthquake rocked Lombok, West Nusa Tenggara, leaving more than 500 people dead in the aftermath.
The government refused to declare Palu and Donggala tsunami as a national disaster, a designation that will immediately release funds for emergency efforts. One of the consideration is that local governments are still operational. The government also refused to declare Lombok earthquake as a national disaster.
Former President Susilo Bambang Yudhoyono, whose Demokrat Party sides with the opposition in the 2019 General and Presidential Election, has called for a temporary suspension of campaign activities due to the disaster.
Moving to the economy, financial market is expected to see stability or maybe some gains as the US Federal Reserve, and also Bank Indonesia, had met market expectations by delivering rate hike, instilling confidence.
The Statistics Indonesia is scheduled to release September inflation data on Monday. Bank Indonesia’s Governor Perry Warjiyo said the economy is expected to see a 0.06 per cent on-month deflation and 3.02 per cent on-year inflation in September.
Inflation has been tame so far this year, despite falling rupiah puts pressures on prices, providing BI some flexibility with regards to policy response.
While, oil price may see volatility as more experts continue to pile on their opinion that the commodity may move closer to the $100 per barrel level. The chief reason is the final wave on US economic sanctions against Iran which will remove some 1.5 million barrel per day of oil from global supply when it takes effect on November 4.
Still, there are some joint efforts from the European Union and Iran that could circumvent the US sanctions and allowing the Middle East nation to continue commercial activities with international partners.
Another issues to watch this week from the global are inflation data released across Asia, Australia and India set monetary policy, and US non-farm payrolls. While in the country, the attention still revolve around the presidential election and natural disasters in Palu and Donggala.
May you have a profitable day.
Written by TIS Intelligence Team