JAKARTA (TheInsiderStories) — Good Morning! Indonesian central bank released a new regulation PBI No.21/5/PBI/2019 concerning the transactions facilities in money transaction in foreign exchange (forex) markets. By this policy, BI want to ensure transaction providers have a good governance, an effective risk management, fairness, and equal opportunities for prospective transaction providers.
At the same time, Finance Ministry lowered the minimum limit for the government bond purchases in the domestic primary market by means of a private placement. These changes are contained in the regulation concerning Sales of Sovereign Debt Instruments in the Domestic Market through Private Placement.
The ministry decided to reduce the minimum amount of government bonds purchasing offer in Rupiah from Rp300 billion to Rp250 billion (US$17.60 million), with a nominal minimum for one series of Rp10 billion or its multiple. Then, for the foreign currencies, government lowered the limit from $50 million to $25 million with a nominal minimum value for one series of $ 1 million or equivalent to other foreign currencies.
Furthermore, Tranportation Minister Budi Karya Sumadi is now trending amid public critics over expensive transportation ticket prices. Netizen even made a hashtag #PecatBudiKarya which means fire him as minister.
Sumadi chose to not comment the hashtag. But recently, according to him, the ministry is assessing further to lowered the ticket’ upper rate. Coordinating Minister for Economic Affairs Darmin Nasution has give him one week to settle the airfare ticket prices.
On global side, China’ top trade negotiator Liu He will travel to the United Stated (US) on May 9-10 for high-stakes talks as prospects dimmed for maintaining a fragile trade truce after President Donald Trump threatened to raise tariffs on Chinese goods starting this Friday.
Vice Premier Liu will meet with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, according to a statement on the Chinese Ministry of Commerce website.
The statement said, if Trump administration implement the tariffs threats on Friday, it means the talks fall apart and the country need to be prepared for worse than worst. At the same time, China is preparing retaliatory tariffs on US imports should Trump carry out his threat.
It said, China would make its retaliatory tariffs effective one minute after the US, if the decision to add an extra 25 percent in duties on US$200 billion of Chinese imports comes into force.
Indonesia has another shock over its currency. The Rupiah against US dollar has been stagnant yesterday, yet reached one of its most weakening points at 14,290.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia