JAKARTA (TheInsiderStories) — Good morning! In the One Belt One Road Initiative Summit in Beijing, Chinese official said that the program sustainably aims to prevent and solve debt risk complained by borrowing countries. Finance Minister Liu Kun denied the critics mentioning that infrastructure development for increasing trade and investment has created financial cost burden to several countries.
He stated, the countries involved in the Belt and Road, also international communities are encouraged to use the working framework in managing debts. In the communique draft, 37 world leaders attended the meeting will be agreed on the project financing that considers global debt objectives and encourages upward growth.
Liu revealed, local currencies will be used to reduce uncertainty currency risk. Moreover, China will follow market principles and rely on commercial funding for financing the Belt and Road. Other than that, there will be more transparency for the projects, vowed Chinese official.
Indonesia Vice President Jusuf Kalla along with some other ministers attended the summit. Kalla is also met Chinese Vice President Wang Qishan. They discussed cooperation in trade, especially trying to solve the wide Indonesia-China trade balance deficit, investment, also research and science.
According to Kalla, China has agreed to import more of Indonesian palm oil. As one of the world’s biggest palm oil producers, Indonesia expects the commitment to be realized soon.
While, Bank Indonesia (BI) estimated that in the first quarter, Indonesia’s economy grew by 5.2 percent, supported by consumption. People’s purchasing power and confidence, along with election expenditure and continuity of fiscal stimulus, including through social assistance are some of the factors.
The central bank realized that there was an investment slowdown in the beginning of the year, but it is estimated to turn stronger in the next quarters. BI’ Governor Perry Warjiyo is optimistic that Indonesia economy could grow in a range of 5-5.4 percent.
Rupiah continued its depreciation by 0.29 percent, following the central bank’s decision to maintain the 7-Day Reverse Repo rate (7-DRR rate) at 6 percent. But Bank Indonesia considered that the recent Rupiah currency is undervalue and still has a room to grow, especially if there’s an improvement of global economy condition.
Yesterday, Rupiah ended at 14,204.80 over the Greenback.
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