JAKARTA (TheInsiderStories) – Indonesian government pay attention on the Rupiah movement and trade war. Therefore, President Joko Widodo summoned ministers and related stakeholders in the financial sector to highlight the latest economic developments.
After the meeting, Coordinating Minister for Economic Affairs Darmin Nasution explained, the President Widodo and and the stakeholders discussed the issues caused have a potential to disrupt stability. To anticipate it, the government has pushed investment flows to support national economic resilience amid the dynamics of global economic uncertainty.
Today, Rupiah slightly increased to 14,434 over the Greenback and the Jakarta Composite Index (JCI) dropped 1.05 percent to 6,071.20 from previous day.
Rated the situation, analyst of PT Binaartha Sekuritas M. Nafan Aji explained there are two factors affected movement of index today. One of them is the unsolved negotiations between United States (US) and China related to trade war.
According to him, US did not see fully commitment from China to resolve disputes bilaterally. Consequently, US imposed import duty on Chinese products of 25 percent which caused both of their currencies move fluctuated.
Furthermore, investors also realize there will be many selling actions in this month or called Sell on May and Go Away. In this action, many investors change their portfolios by moving their investments from stocks to bonds or vice versa.
“However, it will not last in long time, so tomorrow there will be a sign of rebound,” he said.
Economist of PT Bank Central Asia Tbk (IDX: BBCA) David Sumual also did not see any significant impact from the weakening of the Rupiah because it last temporary. As the result, it will not impact on economic fundamentals such as economic growth or lending.
The two parties, US and China, that caused the weakening of the rupiah are also believed will renegotiate to solve the issue because there is no fastest way other than that to complete the issue of trade war.
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