JAKARTA (TheInsiderStories) — Good morning! United States (US) and China’s decision to halt the trade war for 90 days has had a positive impact on the world economy. After days of positive gains, Rupiah continued strengthening by 0.6 percent to 14,252 versus US dollar.
Stocks markets are also in bloom. Most Asian markets closed in positive territory. Shanghai closed up 2.78 percent, HangSeng 2.55 percent, TOPIX gained 1.3 percent, and Nikkei was up by 1 percent.
The Jakarta Composite Index also surged by 1.02 percent to 6,118.32, although there was 776.77 billion Rupiah foreign net sell. All sectors showed increases with mining recording the highest hike, by 2.51 percent.
Go to other issues. Indonesian government offered senior unsecured dollar-denominated notes with undisclosed amount.
The notes will rank pari passu with all of the Government of Indonesia’s current and future senior unsecured external debt. The proceeds of the notes are intended for general budgetary purposes.
Then, Indonesia and Japan are expected to soon complete the General Review Indonesia-Japan Economic Partnership Agreement (IJEPA). Indonesia is eyeing potential market access extensions, especially in fisheries, agriculture, and forestry products. Indonesia also asked for a win-win proposal over health workers human resources, agriculture, and creative economy issues.
Delegations from Indonesia and Japan will reconvene in early 2019 to solve outstanding issues. IJEPA is Indonesia’s first bilateral trade agreement, signed in 2007 and effective in 2008.
Based on the agreement, both countries can have a general review, 5 years after the implementation. IJEPA preliminary meeting was held initially in 2014 and the discussions are still ongoing.
Business Competition Supervisory Committee stated more than 300 companies have not reported merger or acquisitions in the last few years. It may seem trivial, but merger and acquisition reports submitted to the agency is bound by the Law Number 5 Year 1999 concerning Prohibition of Monopolistic Practices and Business Competition, Article 28 and 29. If violated then the company must pay up to Rp25 billion ($17.24 million) fine.
Go to the global issues, Qatar stated that it will leave Organization of the Petroleum Exporting Countries on Jan. 1, 2019, after becoming member for 60 years. Qatar will be the first mideast country that exits OPEC. It said, the decision to leave OPEC was aimed to focus on developing and increasing gas production.
Qatar is one of liquified natural gas (LNG) main exporters, as it provides 30 percent world’s LNG supply. While Qatar produced 600,000 barrel per day (bph) oil, only 2.4 percent of OPEC oil production at 25 million bph. In the last 1,5 year, Qatar was imposed with economy embargo by some of its neighbour countries. Responded the embargo, Qatar tried to boost gas production.
May you have a profitable day!