Indonesia's Forex Reserves US$123B in February
Bank Indonesia has an agenda to announces the latest foreign exchange reserves today - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! Board of governor of Bank Indonesia (BI) has an agenda to announced their latest monetary policy after hold the seven day reverse repo rate in August. While, United States Federal Reserves decided kept the target range for the federal funds rate at 0 to 0.25 percent.

Apart from BI, Bank of Japan and the Bank of England also has an agenda to announce their policies today. At the same day, the Asian Development Bank hold an annual meeting to discussed the latest various issues around the globe.

While, Yoshihide Suga officially become the Prime Minister of Japan on the election day on Wednesday. He will serve out Abe’ term as party leader until September 2021. The chief cabinet secretary, 71, has said he would pursue the predecessor’ signature “Abenomics” and foreign policies.

On Wednesday, Indonesian Rupiah closed up 0.01 percent to 14,843 per US Dollar and the Jakarta Composite Index (JCI) closed down 0.83 percent to 5,058.48 compared to prior day. The Analysts sees that the local exchange rate and stock index have a window to strengthen again, influenced by a combination of external and internal sentiment.

According to them, Powell’ dovish statement is still a positive catalyst for both instruments. Domestically, market players are also awaiting the outcome of the BI meeting and most of them expect the central bank to maintain its benchmark interest rate for the Seven Days Reserve Repo rate at 4 percent.

Another sentiment within the country still comes from the discussion of the 2021 State Budget. The market focus related to the National Economic Recovery Program (ERP) funds and the capital injections for state-owned enterprises.

So far, the realization of ERP is still low, only 34.1 percent of the total budget Rp695 trillion, of which the incentive for business is only 16.39 percent. The low absorption of stimulus become a concern for investors about the possibility of economic contraction in the third quarter of 2020.

Based on various sentiments, they estimated that the Rupiah will move in the range of 14,750 to 14,900 per US dollar and JCI between 5,010 – 5,120.The stocks that can be watched for today are PT Bank Central Asia Tbk (IDX: BBCA(, PT Barito Pacific Timber Tbk (IDX: BRPT), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT United Tractors Tbk (IDX: UNTR), and PT Indocement Tunggal Perkasa Tbk (IDX: INTP).

Then, PT Aneka Tambang Tbk (IDX: ANTM), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bumi Serpong Damai Tbk (IDX: BSDE), PT Bank Negara Indonesia Tbk (IDX: BBNI) PT Ciputra Development Tbk (IDX: CTRA), PT Telkom Indonesia Tbk (IDX: TLKM), and PT Bank Mandiri Tbk (IDX: BMRI).

May you have a profitable Day!

Written by Linda Silaen, Please Read Our News to Get More information about Indonesia