JAKARTA (TheInsiderStories) — Good morning! Indonesia’s rank downturn in World Bank’s Ease of Doing Business (EoDB) is considered as “lost focus” by Investment Coordinating Board Chairman Thomas Lembong.
He admitted, the spirit was different compared to two year ago. Indonesia, previously on rank 72nd is now on 73rd.
With the new ranking, Lembong still optimistic the investment still grow 10.5-11.5 percent in 2019, while few days ago, the agency just cut this year’s investment realization target to Rp730 trillion (US$48.67 billion). He highlighted Rupiah exchange rate must be stabilized and regulation should be reformed to attract foreign investment.
While, Indonesia Financial System Stability Committee meeting on Thursday (01/11), rated that economy in third quarter is relatively maintained, amid its high dynamic. Indicators assessed are economic growth, low inflation, adequate foreign exchange, and Rupiah volatility that’s considered under control.
Furthermore State budget deficit is also showing downtrend. Finance Minister Sri Mulyani Indrawati predicted, budget deficit by the end of the year will be lower than 2018’s State budget estimation.
The outlook estimates 2.19 percent deficit. But according to Indrawati, the deficit can be around 1.83 percent. Indonesia state revenue grew 19 percent, supported by tax revenue increase by 16.5 percent compared to last year.
Meanwhile, to boost funding, Sukuk Savings instrument ST-002 offering is officially opened until Nov. 22nd. Finance Ministry targeted Rp1 trillion from the government’s sharia bond, amidst investors’ high interest on sharia financial instrument.
ST-002, tailored for retail investor, is being sold online through 11 distribution partners such as banks, securities, and financial technologies. The instrument offered competitive 8.3 percent return.
Continuous, crude oil prices fell to the lowest level in more than six months on signs that US supply is increasing and speculation that sanctions against Iran will not succeed in reducing exports.
West Texas Intermediate (WTI) oil for December delivery closed down 2.5 percent or 1.62 points to as low as $63.69 per barrel on the New York Mercantile Exchange yesterday, the lowest level since April 9, 2018. WTI dropped below the same technical level in October.
The global benchmark oil, Brent, for January delivery fell 2.58 points to as low as $72.89 on the London-based ICE Futures Europe exchange. Brent crude slipped below the 200-day moving average for the first time since 2017, which is seen as a bearish signal and usually triggers more sales.
Meanwhile, Rupiah uptrend impacted stocks market investors. Jakarta Composite Index increased by 0.07 percent to 5,835.92 with foreign net buy at Rp1.17 trillion.
Analysts predicted that stocks market will enter overbought zone brings into correction.
May you have a profitable day!
US$1: Rp 15,000
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.com