Consumer Confidence Index Decline in March 2019
This afternoon, Bank Indonesia will make a decision on the latest monetary policy for this month after cut the benchmark rate by 25 basis points to 4 percent in July- Photo by Bank Indonesia

JAKARTA (TheInsiderStories) – Good Morning! After two-days meeting, today, Bank Indonesia (BI) will announces their monetary stance in October. Last month, for the second time, the central bank cut its benchmark rate, Deposit Facility interest rate, and Lending Facility Interest rate by 25 bps to 5.25 percent, 4.5 percent, and 6 percent, respectively.

Some analysts predicted that the central bank will kept the BI-7DRR position in this month.

Three ministers stayed as party leader after Indonesian President allowed his cabinet member to hold double position unlike the first period. As known Prabowo Subianto, Airlangga Hartarto and Suharso Monoarfa lead Gerindra Party, Golkar Party, and Persatuan Pembangunan Party. 

The president said that the important thing is for these ministers to be able to allocate their time well and at any time can dismiss the minister if deemed unable to carry out their duties.

From Europe, British’ Prime Minister Boris Johnson, said French’ President Emmanuel Macron could veto another extension to the Brexit deadline. He made the remark during a private meeting with Labour Party Leader Jeremy Corbyn, who raised doubts about the scenario.

The premier held fruitless talks with Corbyn after failing to persuade Parliament to rush his Brexit deal into law and must wait for the European Union (EU) to decide whether to agree a request for a three-month delay. Donald Tusk is keen on pushing the deadline back to Jan. 31, and EU ambassadors will meet later.

At the same day, EU lawmakers condemned Turkey’ offensive in northeast Syria and prepared the way for new financial sanctions against the Ankara. EU members have protested over its incursion but are split over how to respond to it.

In Asia, there is still positive sentiment surrounding trade in the Asian stock exchanges, a good-pitched comments that China has again stocked regarding relations with the United States (US) in the field of trade. Chinese deputy foreign minister Le Yucheng, said that US and China had made progress in trade negotiations.

In the past week, foreign investors pulled out from Indonesian market and recorded net sell Rp518.37 billion (US$36.76 million) and year to date Rp18.88 trillion. Finance Minister Sri Mulyani Indrawati did not deny that the emergence of pessimistic attitudes from a number of state financial institutions could trigger investor concerns.

But she believed, through an improving the quality of the industrialization process in Indonesia and trade policy, the country have ability to face the problem.

Yesterday, Indonesian Rupiah slightly down 0.09 percent to 14,025 per US Dollar and the Jakarta Composite Index up 0.52 percent to 6,257.81 compared to yesterday. The strengthening of Rupiah and the stock index was driven by domestic investors’ buying actions worth of Rp 7.3 trillion.

For today, the observers are optimistic that the local currency will move in a range of 13,900 – 14,000 against the Greenback, While the stock index is estimating between 6,123 – 6,302.

The stocks to be watch for today are PT Astra International Tbk (IDX: ASII), PT HM Sampoerna Tbk (IDX: HMSP), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Central Asia Tbk (IDX: BBCA), PT Jasa Marga Tbk (IDX: JSMR), PT Kalbe Farma Tbk (IDX: KLBF), PT Nippon Sari Corporindo Tbk (IDX: ROTI), PT Mayora Indah Tbk (IDX: MYOR), and PT Unilever Indonesia Tbk (IDX: UNVR).

May you have a profitable day!

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