JAKARTA (TheInsiderStories) – Good morning! Indonesian central bank (BI) meeting today to take position on its monetary stance. On June 20, the Bank maintained a benchmark rate at 6 percent to ensure the availability of liquidity in the money market.
Some analysts expecting the central bank to cut its benchmark rate four times this year. The reason, United States (US) Treasury bond yields now in a low level and oil prices are falling.
Recently, some central banks around the world start an easing monetary action. Possible similar steps will taken by BI in the second half of 2019, said the observers.
While Japan, to announce its trade balance during June. In May, Japan posted a trade deficit of JPY967 billion. Exports fell for the sixth consecutive month while imports fell after rising in April.
In Europe, the European Central Bank (ECB) is ready to act if necessary to maintained the inflation below 2 percent. Previously, the ECB kept its benchmark rates for at least one year and President Mario Draghi firmly opened the door for more stimulus in the following weeks. The council will meet again to discuss monetary policy on July 24 – 25.
Recently, the eurozone economy, which had risen by 0.4 percent in the first quarter of 2019, signed of “somewhat weaker growth” in the second and third quarters and the risk remained downward sloping due to the global uncertainty. Eurostat reported the prices in the 19-nation euro zone were 1.3 percent in June, compared with a fast estimate of 1.2 percent.
Inflation in May was 1.2 percent, the lowest level since April 2018. In that month, prices were 0.2 percent higher, slightly more than the market forecast of 0.1 percent.
Still from the Eurozones, European ministers said they were still committed to maintaining Iran’ nuclear agreement. They regreted that US had re-imposed sanctions on Iran “even though the country has implemented its commitments under the agreement.”
The ministers reaffirmed their views that the agreement was the only option to limit Iran’ nuclear program. But Iranian Foreign Minister Mohammad Javad Zarif rated there is a little reason to be optimistic that Europe could save a Joint Comprehensive Action Plan.
Iran has sent a variety of different signals about its intentions in recent days, with President Hassan Rouhani expressing willingness to open new talks with the US if President Donald Trump remove the sanctions to his country.
Otherwise, America seems to be reneging on promises not to hold military exercises with South Korea, placing talks aimed at making North Korea leave its nuclear weapons in danger. Trump, who said to restart stalled working-level negotiations with North Korea during a surprise meeting with its leader Kim Jong Un last month, appeared uninterrupted, reaffirming that he did not feel urged to complete a quick agreement.
Yesterday, EIA Petroleum Status reported US’ crude oil stockpiles fell 3.116 million barrels in July 12. This is the fifth consecutive weeks US’ crude oil inventories decline amid the soar global crude oil prices.
In Asia, Malaysia and Indonesia will challenge the EU’ palm oil ban in the World Trade Organization (WTO). The two nations are currently also reviewing its relations with the EU and its member countries.
The ministers also agreed that Council of Palm Oil Producing Countries must continue to work on current issues related to the palm oil industry, such as demand, productivity, price stabilization, smallholder welfare, and positive image of palm oil along its value chain.
In the country, President Joko Widodo has signed Government Regulation Number 50 Year 2019 concerning the Import and Delivery of Certain Transport Equipment and the Submission and Utilization of Taxable Services for Certain Transport Equipment that are Not Collected by Value-Added Tax. In this regulation, the government excludes the value-added tax for leasing transportation, including airplanes.
Meanwhile, PT Indonesia Asahan Aluminum (Inalum) and the North Kalimantan Government signed a memorandum of understanding regarding the aluminum industry cluster construction project in province. The targets the factory could produce 2 million tons of aluminum, which is carried out in stages.
In the investment side, Visa has invested in Indonesian ride-hailing firm GOJEK, as part of a deal to spread digital payments throughout Southeast Asia. This investment is part of GOJEK’ ongoing Series F funding round.
Moreover, the state-owned lender, PT Bank Mandiri Tbk (IDX: BMRI) reported the consolidated net profit in the first semester of 2019 grow 11.1 percent to Rp13.5 trillion (US$964.25 million) compared to last year. While the loan rose 12.1 percent Rp690.5 trillion at the end of June 2019.
Yesterday, the Jakarta Composite Index entering the red zone and closed down 0.11 percent or 7.27 points to 6,394.61. While Rupiah is able to survive below the level of 14,000 per US dollar or slightly weakened 0.34 percent when compared with yesterday’ rate at 13,935.
Today, the composite index and the domestic currency its expecting go to green zone followed the BI decision. While the stocks to be watch for today such as PT Jasa Marga Tbk (IDX: JSMR), PT AKR Corporindo Tbk (IDX: AKRA), PT Summarecon Agung Tbk (IDX: SMRA),and PT Nippon Indosari Corporindo Tbk (IDX: ROTI).
Then, PT Mayora Indah Tbk (IDX: MYOR). PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Unilever Indonesia Tbk (IDX: UNVR), PT Telkom Indonesia Tbk (IDX: TLKM), and PT Kalbe Farma Tbk (IDX: KBLF).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia