JAKARTA (TheInsiderStories) — Good morning! On Monday (04/15), Chinese Premier Li Keqiang met Japanese Foreign Minister Taro Kono at the high-level economic dialogue between the two countries. China and Japan are two of the world’ major economies.
At the meeting, Li welcome Japanese companies to expand their investment in China. He also hope that the two countries further enhance cooperation in the area of innovation, finance, third-party market and tourism.
The premier said China stands ready to work with Japan and other relevant parties to promote the negotiation of the China-Japan-Republic of Korea free trade agreement and the Regional Comprehensive Economic Partnership (RCEP) to create more opportunities for regional countries.
While, European Union (EU) is now ready to launch negotiations with the United States (US). They will cover a strictly limited set of issues stemming from the July Joint Statement of EU’ Presidents Jean-Claude Juncker and US’ President Donald Trump.
The mandates also clarify that the negotiating directives for the Transatlantic Trade and Investment Partnership (TTIP) agreed in June 2013 must be considered obsolete and no longer relevant.The final agreement will need be concluded by the Council after obtaining the consent of the European Parliament.
In the country, Indonesian government planned to scrap State-Owned Enterprises Ministry. It is going to convert the authority into super-holding. Even without the ministry, government will still directly control the super-holding.
Indonesia will copy Singapore’ Temasek Holdings and Malaysia’ Khazanah Nasional Bhd. Recently, Indonesian government is on process of establishing holdings based on each sector.
Furthermore Indonesia recorded US$388.7 billion foreign debts in February. Compared to the same period last year, the debts amount increased by 8.8 percent.
Bank Indonesia considered the debt is still under-control. Especially, 86.3 percent of the foreign debts are long-term. The central bank said that the foreign debts account for 36.9 percent of the Gross Domestic Product (GDP).
The portion of foreign debts are nearly balanced between state debt and private debt. State debt amount increased by 7.3 percent, while the private debt spiked higher by 10.8 percent. According to the central bank, state debt increase was caused by productive sectors financing. Moreover, government issued sharia bond in February.
Then the government established level of industry readiness assessment indicator in implementing Industry 4.0 technology era. The indicator named Industry 4.0 Readiness Index aims to be a roadmap in reaching world’s 10th biggest economy in 2030.
Industry Minister Airlangga Hartarto said, McKinsey studies showed that the roadmap potentially gives US$120-150 billion to national GDP in 2025. Moreover, it can support the economic growth by 1-2 percent.
Ahead of presidential election, Indonesian market gained power. Rupiah against US Dollar moved strengthening by 0.6 percent. It is now reaching its best point since March. Jakarta Composite Index increased by 0.45 percent to 6,435.15, although there was Rp344.79 billion foreign outflows.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia