Federal Open Meeting Committee - Photo by Federal Reserves

JAKARTA (TheInsiderStories) – Good Morning! Board of governors United States (US) Federal Reserves has a different opinion on the fed fund rate. In the minutes meeting released today on September meeting, the board voted unanimously to lower the interest rate paid on required and excess reserve balances to 1.80 percent and to approve a 1/4 percentage point decrease in the primary credit rate to 2.50 percent, effective Sept. 19.

The decision consistent with the Committee’ moves to lower the target range for the federal funds rate to 1-3/4 to 2 percent, said the board. They also agreed that the next meeting of the Federal Open Meeting Committee would be held on Oct. 29 – 30.

Today, Bank Indonesia to releases Business Activities Index and Prompt Manufacturing Index. While, World Economic Forum announced Indonesian competitiveness index dropped to 50 compared to other countries in the world from previously in the rank 45.

Singapore is the nation closest to the competitiveness frontier. Among large economies, the US ranks highest and continues to be an innovation powerhouse. Among the BRICS, China ranks highest. The lowest places in the rankings are occupied by African economies who have not yet crossed the halfway mark to the competitiveness frontier.

In the politic side, the opposition leader Prabowo Subianto will take position, wether in the current position or join with the Joko Widodo government. As reported, there is a rumor his party Gerindra join the Widodo’ coalition.

On the palm oil issues, Indonesian government is preparing for legal action at the World Trade Organization to challenge the European Union over its Renewable Energy Directive II and Delegated Regulation. As known, the organization has banned the country’ palm oil products on the green climates issues.

From the stock market, PT Lion Mentari Airlines, the operator of Lion Air, has entered the list of companies that will list initial shares on the Indonesia Stock Exchange (IDX). The company owned by Rusdi Kirana targeting to raise around Rp1 trillion (US$70.92 trillion) from the IPO.

Followed the rumor PT Bank Artos Indonesia Tbk (IDX: ARTO) become the digital bank owned by ride-hailing operator GoJek, the lender will hold a public expose on Oct. 14. ARTO shares have risen 1,329.35 percent since the beginning of the year to trade amid the rumor.

Yesterday, Indonesian Rupiah only lift up 0.007 percent to 14,162 against the Greenback. While, the Jakarta Composite Index (JCI) weakened by 0.17 percent to 6,029 due to global sentiment.

For today, Analysts estimated the local currency still in negative zone in the range of 14,117 to 14,182 per US dollar. The hope of a peaceful trade between the US and China was again the main topic at the market.

The latest report showed that Beijing has become more hesitant to agree on a broad trade agreement with the Washington. It reported that the US Government was considering ways to limit the flow of American investor portfolios to China, including potentially delisting Chinese companies from the stock exchange

On the stock index, some analysts are still optimistic that the JCI will be able to be more positive in today. The index is predicted move between 5,990 – 6,142 on Thursday.

The stocks to be watch are PT HM Sampoerna Tbk (IDX: HMSP), PT Unilever Indonesia Tbk (IDX: UNVR), PT Sri Rezeki Isman Tbk (IDXL SRIL), PT Bukit Asam Tbk (IDX: PTBA), PT Adaro Energy Tbk (IDX: ADRO), PT Bank Permata Tbk (IDX: BNLI), PT Astra International Tbk (IDX: ASII), PT Telkom Indonesia Tbk (IDX: TLKM), PT Sarana Menara Tower TBk (IDX: TOWR).

May you have a profitable day!

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