Bank Indonesia (BI) has intervened the spot market and Domestic Non Deliverable Forward (DNDF) to stabilize the Rupiah - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! Bank Indonesia to announce foreign exchange (forex) reserves today. At the same day, coordinating minister for maritime and investment will discuss nickel ore export ban.

Last month the central bank announces the country’ forex reserves stood at US$124.3 billion. This value is lower 1.66 percent than the position at the end of August, worth of $126.4 billion.

While, Luhut Binsar Panjaitan has halt nickel ore export ban since Oct. 30 for temporally to evaluate the nickel mining contract and assured that the ban will fully effective on Jan. 1, 2020. He stated, The cessation of nickel ore exports was carried out after it was detected that there had been a quota increase up to three times, since the announcement of the acceleration of the nickel ore export ban in 2020.

Based on reports received, the average export reaches 100 – 130 ships per month, more than the normal capacity of around 30 vessels per month.Panjaitan said the ban of nickel ore exports will be lasted in the one to two weeks since Oct. 30.

On Tuesday, Chinese government is holding an informal level meeting minister of the World Trade Organization (WTO) in Shanghai. This meeting aims to produce a formula in support
the 12th WTO Ministerial Conference to be held in Kazakhstan in
2020.

Deputy trade minister Jerry Sambuaga, conveyed that Indonesia will continue to push for the completion of negotiations fisheries subsidize to overfishing as well the practice of disobedience to regulations and illegal fishing. And, in the agricultural sector, Indonesia continues to encourage the formation of permanent solutions on community food reserves for food security and effective completion of Special Safeguard Mechanism.

At the same place, he also met Pakistani minister of trade, Abdul Razak Dawood, talked on the Indonesia-Pakistan Preferential Trade Agrement agreement. At the meeting, Sambuaga revealed the importance of palm oil products for Indonesia and the possibility of Indonesian palm oil entrepreneurs investing in Pakistan.

He also met with the secretary of state and minister of foreign affairs of Norway, Mariane Hagen. At this meeting, the issue of fisheries subsidies and development was discussed sustainable.

Yesterday, Indonesian Rupiah weakened 0.39 percent to 14,023 but Bank Indonesia middle rate strengthened 0.28 percent to Rp 13,992 against the US dollar. While, the Jakarta Composite Index (JCI) closed down 0.74 percent to a level of 6217.54.

The pressures in the stock market followed by a net sell action from foreign investors totaling Rp401.78 billion (US$28.70 million). Some analyst rated, the local index movement in today’ trading still has the potential to be corrected, although it is relatively limited.

Furthermore, the easing of the trade war between United States (US) and China succeeded in lifting the movement of the greenback. Market optimism reappeared after Chinese President Xi Jinping said, the two superpowers are ready to provide clearer solutions to end the trade war that has been running for more than a year.

Before the existence of trade certainty between the two largest economies, other safe haven assets such as the Japanese Yen, Swiss Franc and gold prices managed to advance. But this week, the strength of the US dollar has increased because the Non Manufacturing PMI data for the October period managed to jump to the level of 54.7.

In addition, rising world oil prices also contributed to the country’ currencies that depend on commodities, such as Indian Rupees, Malaysian Ringgit, the Australian Dollar and the exception of the Rupiah, weakening.

On Wednesday, West Texas Intermediate (WTI) surged 26 cents to $56.23 and Brent crude gained 55 cents to s$61.74 a barrel after data showed that US inventories dropped by 1.7 million barrels last week.

Trade war sentiment is predicted to still influence the movement of the local currency and JCI. Therefore, the observers saw the possibility of Rupiah continuing to weaken and move in the range 13,990 – 14,050 per US dollar and JCI between 6,180 – 6,300 compared to prioe day.

For today, the analysts advised investors to focus on defensive stocks such as PT Indofood Sukses Makmur Tbk (IDX: ICBP), PT HM Sampoerna Tbk (IDX: HMSP), PT Telkom Indonesia Tbk (IDX: TLKM), PT Jasa Marga Tbk (IDX: JSMR), PT Bukit Asam Tbk (IDX: PTBA), PT United Tractors Tbk (IDX: UNTR), and PT Astra International Tbk (IDX: ASII).

May you have a profitable day!

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