JAKARTA (TheInsiderStories) – Good Morning. Today, Indonesia holds regional elections to elect 17 governors, 39 mayors and 115 regents. More than 150 million Indonesians will head to the polls.
The regional election is seen as a major exercise in democracy in advance of next year’s presidential polls and a test for President Joko Widodo’s chances to be re-elected. The simultaneous and peaceful election, is expected to mitigate the turmoil resulting from the uncertainty of the external factors.
This day, we predicts the Jakarta Composite Index (JCI) is still difficult to move into positive territory in trading today, Wednesday (27/06). Some negative sentiment from domestic and global side will have a negative impact on the market.
Positive sentiment comes from statement of Finance Minister Sri Mulyani Indrawati yesterday. She projected Indonesian economic growth in the second quarter of 2018 could reach 5.2 percent or better than the first quarter of this year 5.06 percent. Household consumption, investment, government spending and exports are still dominant supporting economic performance in 2Q 2018, added the ministers.
On the other hand, the government will strengthen foreign exchange reserves in order to reduce the current account deficit. So far foreign exchange reserves fell 6.89 percent from $132 billion in January 2018 to $122.9 billion in May.
Foreign exchange reserves fell, as a result of maintaining rupiah stabilization against the U.S dollar and a trade deficit of $2.83 billion as of May. Meanwhile, BI projected a current account deficit in second quarter will widen.