Bank Indonesia (BI) will announced its monetary policy today and its expecting to cut its benchmark rate to help the economy - Photo by Bank Indonesia Office

JAKARTA (TheInsiderStories) – Bank Indonesia (BI) to announces the latest monetary policy today after kept its benchmark rate last month. Recently, deputy governor Dody Waluyo stated that there is still room to reduce the benchmark rate.

In November, the central bank kept the BI seven days reverse repo rate (BI-7DRR) at 5 percent, deposit facility rate 4.25 percent and lending facility rate 5.75 percent. The Bank also relaxed the reserve requirement for commercial and sharia banks by 50 bps to 5.5 percent and 4 percent, respectively at the latest meeting.

This morning, President Joko Widodo was scheduled to review the potential of hydro power project in North Kalimantan. Then, ministry of finance will announce the latest information on the 2019 State Budget followed by coordination meeting on B30 program and palm oil replanting at the coordinator ministry for economic affairs.

In addition Palm Oil Plantation Fund Management Agency will hold a year-end press conference. From the capital market state-owned coal miner PT Aneka Tambang Tbk (IDX: ANTM) hold a shareholders meeting.

From Europe, president of the European Union (EU), Ursula von der Leyen, have warned that the deadline will limit the scope of Brexit after Britain Prime Minister Boris Johnson ruled out the extending talks to end of 2020. Brussels expects that the draft mandate for the negotiations will be approved by members of EU in February and the negotiation to begin on March 1.

Yesterday, National Police reported one officer was killed after being persecuted by a group of residents in Yahukimo region, Papua. Aside, there were two other victims who were injured as a result of being tortured by a group of residents and there were two vehicles that were also burned by the mob.

While, PT Ashmore Asset Management, the investment manager will list 10 percent or 111.11 million shares at the Indonesia Stock Exchange (IDX) on January 2020. The initial offer will run until Dec. 19 and listing at the bourse on Jan. 14, 2020.

On Wednesday, Indonesian Rupiah edged up 0.06 percent to Rp 13,988 A US Dollar and the Jakarta Composite Index (JCI) closed up 0.69 percent to 6,287.25 compared to previous day. The analysts rated the announcement of the monetary policy by BI has drive the major instruments direction.

Beside, they said, the external factor related to the first stage of the US – China trade deal also triggered the market. In addition, Renny said that the Federal Reserves‘ statement stating that it would keep interest rates flat until the next year would also be a positive sentiment for the market.

Today, the observers sees the external sentiment would still dominate the movement of the Rupiah and JCI, especially the development of impeachment by US’ House to President Donald Trump. The effect of window dressing action also began to have an impact on the stock index.

Based on the various data, they predicted the local currency will move In the range 13,880 – 14,020 compared to American Dollar. While, the composite index between 6,200 – 6,350.

The stocks to be watch for today are Aneka Tambang Tbk (IDX: ANTM), PT Astra Agro Lestari Tbk (IDX: AALI), PT London Sumatera Indonesia Tbk (IDX: LSIP), PT Sampoerna Agro Tbk (IDX: SGRO), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Mandiri Tbk (IDX: BMRI), and PT Telkom Indonesia Tbk (IDX: TLKM).

May you have a profitable day!

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