JAKARTA (TheInsiderStories) – Good Morning! Chinese Renmimbi weakened to 7.18 to the US dollar, less than a month after Beijing let the currency pass a threshold. People’s Bank of China set its mid-point rate at 7.0884 against the Greenback, weaker than its previous benchmark.
The currency has been dropping in recent weeks after China and United States (US) announced tariffs on a wider range of both countries’ goods. Its reported, Chinese and US officials are struggling to agree on a schedule for a round of trade negotiations that were expected in this month.
The Renmimbi fell to an 11-year low against the US dollar and stocks dropped as the trade dispute with America escalated, the weakest since February 2008 and its second-biggest one-day drop of the month. The Indian Rupee plunged 1.2 percent in tandem with its stock markets as investors priced in data released late Friday (08/30), which showed that its economy grew at its weakest pace since 2013 between April and June.
In Europe, Pound sterling fell 0.7 percent to as low as $1.1981 and Euros fell 0.3 percent to $1.0942. The pound fell below the level of $1.20, for the first time since 2017, after British Prime Minister Boris Johnson threatened to hold early elections if the parliament not pass his’ no deal Brexit.
From the country, coordinating minister for politic, legal and security affairs Wiranto, said that internet in Papua will back to connect on the Sept. 5. However, he said this would be done if the situations under control.
He also said to limit access for foreigner in Papua and West Papua after deported four Australian last weekend. He said limiting the number of foreigners visiting in the two provinces aimed to protect Papuans and also to prevent supporters of Papua independence to enter the island.
Yesterday, President Joko Widodo lead two limited meeting on taxation and Industry 4.0. He said, the tax reforms to be carried out by the government are not only important for the realization of social justice, but also contribute to improving the investment and export climate so as to strengthen the country’ economy amid global uncertainty.
Finance minister Sri Mulyani Indrawati stated, that, the government prepared draft laws on provisions and taxation facilities that will regulate income tax, value added tax, and general tax provisions. She added, that the law was made to improve the Indonesian economy, increase investment funding, adjust the income principle for individual taxpayers with territorial principles, encourage voluntary taxpayer compliance, create justice for the business climate in the country and place various tax facilities in one law.
On the acceleration of the application of the Industry 4.0 road map, the Head of State discussed the follow-up of the program since launched on April 4, 2018. With theme “Making Indonesia 4.0”, the government wants to pursue a comprehensive revitalization of Indonesia’ industry.
In the road map, the government made five national industries as the focused, such as food and beverage, textile and clothing, automotive, electronics and chemical industries. Through the program, the country expect will opening ten million new jobs in 2030.
Yesterday, Indonesian Rupiah and the Jakarta Composite Price together closed down as demand for risk assets dwindled and sluggish global manufacturing outlook. The local currency slipped 0.24 percent to 14,228 per US dollar. While, the composite index down 0.46 percent to 6,261.59 from the previous day.
The latest weakness in Purchasing Manufacturing Index from China and most countries in Asia is weighing on regional currencies. Asian along with European exchanges weaken after several major currencies dropped significantly on Tuesday.
Nickel price extend the extraordinary rally after Indonesia imposed a ban nickel ore export earlier than initial planned in 2022 to Jan. 1, 2020. While, Organization of Petroleum Exporting Countries (OPEC) oil production increased in August, the first increase since the oil cartel and its allies started a new round to reduce their production at the beginning of the year.
Nigeria and Saudi Arabia led the production push by OPEC, which collectively increased by 200,000 barrels oil per day (BOPD) to 29.99 million BOPD. Russia also pumped 11.29 million BOPD, more than its limit under the OPEC agreement.
For today, some analysts rated Rupiah and JCI still move in red zone with resistance level 6,187 to 6,372. They recommended PT Trada Alam Minera Tbk (IDX: TRAM), PT Barito Pacific Tbk (IDX: BRPT), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT MNC Sky Vision Tbk (IDX: IPTV), PT HM Sampoerna Tbk (IDX: HMSP), and PT Aneka Tambang Tbk (IDX: ANTM) to be watch.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia