JAKARTA (TheInsiderStories) — Good morning! President Joko Widodo sent unclear message on the liberation of cleric Abubakar Ba’asyir after get critics from the society. Last week the Indonesian leader said to release the kingpin terrorist for humanitarian reasons.
Yesterday, head of the Presidential Staff Moeldoko said that efforts to release Ba’asyir were postponed because several legal requirements were not fulfilled, such as the principle of remaining loyal to the country and Pancasila.
Meanwhile, Minister of Law and Human Rights Yasonna Laoly added that the government would not release the radical Moslem cleric if it did not meet the stipulated legal requirements.
On the economic side, Indonesian government debt largely increased to Rp4,418.3 trillion (US$313.35 billion) during 2018. In four years Widodo’s ruling government debt hiked by Rp1,809 trillion. As a comparison, only Rp1,309 trillion debt added in 10 years of former President Susilo Bambang Yudhoyono era.
Finance Minister Sri Mulyani Indrawati said, the swelling debt is not something to be worried about, as the debt ratio to Gross Domestic Product (GDP) is around 30 percent. She stressed that it is relatively secure, especially compared to some other countries.
Furthermore, Coordinating Minister for Economic Darmin Nasution explained that the swelling debt was not used for consumptive things. Indonesian government’s effort in accelerating infrastructure has made a lot of funding needs. Nasution added, benefit of infrastructure projects will be felt in the next multi-years.
At the meantime, government is now officially implement regulation that obliges exporters to place natural resources export earnings into domestic banks, as the regulation stated in Government Regulation number 1 year 2019. If an exporter doesn’t follow the mandate, government could give administrative sanction, such as revoking its export license or business permit. Not only mentioning sanction, the regulation will also be detailing the goods from natural resources.
Starting a fresh year, several companies considered that it is the right time to get funding from the market. A state-owned enterprise PT Sarana Multigriya Finansial will issue Rp1.85 trillion bond in three series. Then, a cellular operator PT XL Axiata Tbk (IDX: EXCL) will issue at least Rp1 trillion bond and another Rp1 trillion Islamic bond in five series within a range of 370 days to 10 years maturity.
Yesterday, Rupiah gained strength at around 0.2 percent to 14,188 compared to US dollar. On the opposite, the Jakarta Composite Index fell 0.26 percent after days in green territory. The JCI closed at 6,451.17 with Rp142.34 billion foreign net sell.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia