G20 Finance Ministers and Central Bank Governors Meeting - Photo by G20

JAKARTA (TheInsiderStories) – Good Morning! Today, the policymaker to announces the Bank Indonesia (BI) seven days reverse repo rate. Some analysts hope the central bank cut its benchmark rate to help the economy.

At the same day, President Joko Widodo will deliver his direction to the Investment Coordinating Board’ meeting in Jakarta and hen, he will fly to Pekanbaru, Riau. Several ministers become the speakers in the event, like coordinating minister for maritime and investment Luhut Binsar Panjaitan, coordinating minister for economic affairs Airlangga Hartarto, finance minister Sri Mulyani Indrawati, and other ministers.

On Thursday, Panjaitan will lead the coordination meeting on green investment in Papua and West Papua at his office, Hartarto will be the Speaker at the Power Breakfast CEO, and coordinating minister for politics and security affairs, Mahfud MD chaired a meeting regarding military procurement plans for 2024 and the purchase of the Sukhoi SU-35 fighter jet.

The coordinating minister for human development and cultural, Muhadjir Effendy, will lead a coordination meeting regarding the handling of Indonesian citizens from the Japanese Princess Diamond ship and anticipatory steps for the entry of the Covid-19 virus. Then, Indonesian coal mining association will hold a press conference on the impact of the mandatory use of national vessels for coal exports.

In Asia, China reported a dramatic drop in new coronavirus cases in Hubei province, while Japan grappled with criticism over its failure to prevent the spread of the disease on a cruise ship filled with quarantined passengers. So far, over 2,100 deaths and 74,000 cases because of the virus.

The world second largest economy is struggling to get its economy back on track after imposing severe travel restrictions to contain a virus that emerged in Hubei late last year. But, International Monetary Fund managing director, Kristalina Georgieva, believed that China’ economy would bounce back quickly if the disruptions end soon.

In Europe, the leaders will clash this week over the European Union‘ 2021 – 2027 budget as Britain’ leaves a 75 billion Euro (US$81 billion) hole in the bloc’ finances. For the coming seven-year cycle, the starting point for talks is 1.074 percent of the bloc’ gross national income or 1.09 trillion Euros. By contrast, the organization national budgets claw in 47 percent of annual output on average.

In addition, United States (US) Federal Reserve signaled the possibility of maintaining the benchmark interest rate for months to come. The signal was shown amid concerns regarding their inflation target, the potential for space to further increase employment, and the risks arising from the Covid-19 and trade.

In South America, Argentina‘ central bank lowered the benchmark interest rate to 40 percent from 44 percent on Wednesday, the seventh cut since the country’ new Alberto Fernández’ government took over in December. The bank said the cut was based on a slowdown in inflation and that the move was aimed at helping revive economic growth and to avoid defaulting on its debts.

In the capital market, state-owned lender, PT Bank Negara Indonesia Tbk (IDX: BBNI) hold the annual shareholders today. While, PT Bank Central Asia Tbk (IDX: BBCA) will release its 2019 financial statements.

Yesterday, Indonesian Rupiah slightly weakened by 0.01 percent to 13,695 per US dollar and the Jakarta Composite Index (JCI) closed up 0.7 percent higher to 5,928 compared to prior day. Now, the market waiting for BI’ board of governors Meeting.

The central bank is predicted to cut BI 7-DRR from 5 percent to 4.75 percent to hold the domestic economy from the corona virus attack (Covid-19). Based on various data, the local currency its expecting move in the range of 13, 600 – 13,705 versus the Greenback and the JCI between 5,850 – 6,020.

The following shares BBNI, BBCA, PT Perusahaan Gas Negara Tbk (PGAS), PT Vale Indonesia Tbk (IDX: INCO), PT Antam Tbk (IDX: ANTM), PT London Sumatera & Plantation Tbk (LSIP), PT Gudang Garam Tbk (IDX: GGRM), PT AKR Corporindo Tbk (IDX: AKRA), PT Astra International Tbk (IDX: ASII), PT Telkom Indonesia Tbk (IDX: TLKM), PT Pakuwon Jati Tbk (IDX: PWON) recommended by the analysts.

May you have a profitable day!

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