Indonesia' House of Representatives ratifies the Seventh Package of Commitments on Financial Services under the Association of Southeast Asian Nation Framework Agreement on Services today - Photo by ASEAN Secretariat

JAKARTA (TheInsiderStories) – Good Morning! The Special ASEAN Summit and the ASEAN Plus Three related to COVID-19 via video conference will be held today (04/44). President of Indonesia, Joko Widodo is planned to take part in the two special summits.

The series of meetings will discuss joint steps in handling, containing and mitigating the impact of the pandemic, ensuring the smooth supply of the regional supply chain for food, medicines and other essential items, also protecting ASEAN citizens and utilizing a number of collaborations ASEAAN Plus Three. The leaders is expected to produce a declaration on COVID-19.

This morning, President Widodo also will lead a limited meeting on 2021 State Budget. The virus impact is expected will coloring the government budget after this year, the head of state decided to widened the deficit over than 5 percent and slice the economic growth around 2.3 percent of gross domestic products.

At the same day, coordinating minister for economic affairs, Airlangga Hartarto will hold a special meeting with parliament to discuss labor law together with the economic ministers under him. In addition, Bank Indonesia (BI) will announces the monetary decision for April.

Last month, the central bank has cut its BI seven days repo rate by 25 basis points to 4.75 percent, the deposit facility interest rate and lending facility rate to 3.75 percent and 5.25 percent. On Monday, the Bank indicated deteriorating business conditions in the first quarter of 2020, as reflected by a contraction 5.56 percent in the weighted net balance after recording 7.79 percent growth in the fourth quarter of 2019.

Business activity has stalled in several economic sectors, including the manufacturing industry, trade and food service activities, mining, transportation, communication, and construction, as a result of compressed demand and supply disruptions stemming from COVID-19 outbreak.

Respondents predicted business activity slightly increase in the second quarter of 2020, with the corresponding weighted net balance improving to 2.13 percent. By sector, respondents anticipated a surge of activity in terms of agriculture, livestock, forestry and fishing (1.57 percent) in line with the ongoing harvesting season in several production hubs, as well as services (1.32 percent).

While, Indonesian leader declared a national disaster after death toll rising and the positive cases increasing amid the COVID-19 outbreak. He pour the rules in the presidential decree and reaffirms that regional government heads must follow the policies of the central government in handling the pandemic.

Widodo also instructed health minister Terawan Agus Putranto to increase the number of swab tests to 10,000 per day. The country reported 316 new cases over the past 24 hour to bring the positive cases to 4,557 and the death toll 399.

On Monday, Russia’ president, Vladimir Putin had a telephone conversation with President Widodo at the Indonesian side’ initiative. Current issues of developing bilateral cooperation in other areas was also touched upon.

When discussing the pandemic, the two leaders confirmed their intention for close cooperation in the fight against the infection and agreed to step up contacts between the healthcare ministries of both countries.

From global, World Bank – International Monetary Fund (IMF) Meeting starts today. The Funds has scheduled to release the latest estimating on the global economy amid the pandemic.

While, President Donald Trump plans to re-open United States (US) economy after closed for several weeks. In the daily briefing, he noted that the number of deaths from the virus had begun to plateau, indicating that social distancing efforts had succeeded. The virus has killed more than 22,000 American people and shut down all essential travel and businesses.

Yesterday, Indonesian Rupiah strengthened 1.57 percent to 15,630, far leading the performance of other Asian currencies, the majority of which actually weakened before the US dollar. Meanwhile, the Jakarta Composite Index corrected 0.54 percent to 4,623,894.

The analysts rated, the strengthening of the local currency occurred by the market expectation the central bank to cut its interest rates again In addition, investors now avoiding risky assets because the number of COVID-19 positive cases in the world is increasing rapidly.

Based on the various data, they predicted the Rupiah will move in the range of 15,600 – 15,800 against the Greenback and the stock index in the range of 4,302 – 4,718.

A number shares to wacth for today are PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Mandiri Tbk (IDX: BMRI), PT Telkom Indonesia Tbk (IDX: TLKM), PT Gudang Garam Tbk (IDX: GGRM), PT Jasa Marga Tbk (IDX: JSMR), PT Indofood Sukses Makmur Tbk (IDX: ICBP), PT Adhi Karya Tbk (IDX: ADHI), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Ace Hardware Tbk (IDX: ACES), PT HM Sampoerna Tbk (IDX: HMSP), PT Vale Indonesia Tbk (IDX: INCO), and PT Wika Beton Tbk (IDX: WTON).

May you have a profitable day!

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