ndonesian central bank overhauled the provisions on export proceeds and foreign exchange for imports as stipulated in Bank Indonesia Regulation (PBI) Number 22 of 2020 - Photo: Privacy

JAKARTA (TheInsiderStories) – Good morning! Responding to China’ import duty policy on Indonesian stainless steel products, Minister of Industry Airlangga Hartarto commented that the government will review it and will take action to respond it. Starting today, the second largest economy impose anti-dumping duties to Indonesia, European Union (EU), Japan, and South Korea

On the other side, uncoated paper products from Indonesia were released from anti-dumping duties of South Korea, according to the Korea Trade Commission (KTC) last week. In a report, KTC recommended that the imposition of temporary anti-dumping duties on paper imports from Indonesia amount to about 3-7 percent and there was no loss to the domestic paper industry.

While, Finance Minister Sri Mulyani Indrawati said the presidential regulation draft regarding electric cars had been initialed. At the draft, there was various types of fiscal and tax incentives that could be utilized by the car manufacturer, including tax holidays, tax allowances, and import duty incentive.

Today, President Joko Widodo will open the National Coordination Meeting of the Meteorology, Climatology and Geophysics Agency at the State Palace. The meeting was held in view of the scientific conditions and disasters that have almost continuously crushed Indonesia, both in the earth, tsunami, floods, landslides or droughts.

Data from the National Disaster Management Agency as of July 22, 2019, said there were seven provinces, 75 districts, 490 sub-districts and 1,821 villages affected by drought.

State-owned energy producer, PT Pertamina chose Boot & Coots, a US-based company, that has proven experience in resolving events at Gulf Mexico, to handle the post-emergence impact of gas bubbles in the offshore oil and gas wells of the YYA-1 area of PT Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) in Karawang, West Java. To handle the risk of environmental pollution, Pertamina has mobilized 27 ships and 12 sets of Oil Boom.

Minister of Planning and Strategic Investment of the Timor Leste Xanana Gusmao and Coordinating Minister for Politics, Law and Security Affairs Wiranto have signed a boundary agreement that became a benchmark between the two countries. The borders of the area in question are in Noelbesi and Citarana in Kupang Regency covering an area of 1069 hectares, and in Bijael Sunan Oben, North Mid-Timor with an area of 142.6 hectares.

From abroad, an Iranian oil tanker which has down about 20 million barrels of oil in a Chinese port, which marks the country’ oil exports to China, is predicted to create a pile of crude oil at the doorstep of the world’ biggest buyer. This supply doesn’t violate local customs or appear in the country’s import data.

However, oil storage has the potential to suppress global prices if the Chinese refinery decides to withdraw, even when the Organization of the Petroleum Exporting Countries and allies curb production because of slowing growth in the main economy. This also allows Iran to continue pumping and moving oil closer to potential buyers.

West Texas Intermediate plunged more than 20 percent from the end of April to mid-June when the United States (US) – China trade war increased. Since recovering from some of the losses, oil traded near $57 a barrel.

In Britain, Members of Parliament will determine their steps to vote, whether they want Boris Johnson or Jeremy Hunt as the next Prime Minister after Theresa May’ resignation on May 24. On Wednesday, May will return to Downing Street and give the final speech to the country. She will then travel to Buckingham Palace to tell the Queen about his appointed successor.

Turning to global security issues, Turkey threatened to launch operations against US-backed Kurdish fighters if it could not reach an agreement with the Washington to push them away from the Turkish border, a minister said on Monday (07/22). President Donald Trump’ main envoy, James Jeffrey, preparing to attend an important round of talks in Ankara this week.

Turkey suspects the US supports the aspirations of the militant group for its own government east of the Euphrates River in Syria and uses the group as a proxy force to defend US interests in the region. Turkish troops seized the border area west of the Euphrates River last year and have warned that Ankara will not allow the terrorist group to build land relations between areas under its control along the 911 kilometers border with Turkey.

Yesterday, the Jakarta Composite Index closed in the red zone at 6,433, a declined of 22.9 points or 0.35 percent. Rupiah also lowered to 13,940 against the US dollar, a slightly dropped 0.07 percent compared to last weekend.

For today some analysts recommended PT Bank Negara Indonesia Tbk (IDX: BBNI), PT BPD Jatim Tbk (IDX: BJTM), PT Unilever Indonesia Tbk (IDX: UNVR), PT Sri Rejeki Isman Tbk (IDX: SRIL), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT HM Sampoerna Tbk (IDX: HMSP), PT Telkom Indonesia Tbk (IDX: TLKM), and PT Pakuwon Jati Tbk (IDX: PWON) stocks to be watch.

US$1: Rp14,000

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia