Number of foreign tourists in Indonesia declined sharply due to the COVID-19 outbreak - Photo by President Office

JAKARTA (TheInsiderStories) – Good Morning! Number of foreign tourists in Indonesia declined sharply due to the COVID-19 outbreak. The statistic bureau reported the number of arrivals in the country was down 30.42 percent to 885,100 people in February, said the chief, Suhariyanto on Wednesday (01/04).

The annual visits also declined 28.85 percent. The biggest decline was from China In February, dropped by 94.11 percent. The second biggest decline is for Hong Kong arrivals, which fell 93.12 percent. However, there were slight increases in arrivals of tourists from Malaysia and Japan.

Until Wednesday, as many as 103 coronavirus patients have recovered in Indonesia, while the total number of infections has climbed to 1,677 and the death toll rose from 136 to 157, said government spokesperson for COVID-19 response, Achmad Yurianto.

From global, oil company executives who have been affected by massive oil price declines such as Exxon Mobil Corp, Chevron Corp, Occidental Petroleum Corp and Continental Resources Inc. planned to meet with President Donald Trump tomorrow. The meeting planned to address the price war between Saudi Arabia and Russia.

Yesterday, West Texas Intermediate May 2020 contract corrected $17 cents to the level of US$20.31 a barrel and the price of Brent oil for the June 2020 contract closed down $1.61 to as low as $24.74 per barrel.

In Indonesia, Rupiah weakened 0.86 percent to 16,450 against the US Dollar and the Jakarta Composite Index (JCI) closed down 1.6 percent to 4,466. The analysts said that both instruments was overshadowed by many negative sentiments in the market.

Manufacturing data (PMI) from Asia and Europe show a quite alarming economic slowdown amid the sentiment spread of COVID-19Almost all countries both in Asia and Europe have manufacturing PMI data that contracted below 50.

Only China managed to print manufacturing PMI data above 50, which is in position 52. In Indonesia, IHS Markit reported the PMI in March 2020 was 45.3. Lower compared to the previous month at 51.9, which is the lowest in the history since April 2011. 

In addition, the widening budget deficit, March inflation is too low at 0.1 percent, and other negative data. Furthermore, the analysts rated, the weakening of the Rupiah and JCI was driven by anxiety from the spread of COVID-19.

Goldman Sachs report on the revise down of US economic growth to -34 percent in the first quarter of 2020 from earlier -24 percent. Its also estimates that US’ unemployment rate will rise to 15 percent by the middle of this year and the economy will begin to recover in the second half of 2020 as the spread of the virus slows. Recovery will occur gradually starting in May or June.

On Wednesday, majority of Asian stock exchanges declined. The Nikkei index corrected 4.50 percent, TOPIX 3.70 percent, HangSeng 2.19 percent, and CSI300 0.30 percent to accompany the weakening of the US futures exchange which reached more than 3 percent in early second quarter 2020.

With the various data, they sees the local currency will move in the range of 16,400 to16,700 per US Dollar. While, the stock index between 4,080 – 4,200

Stocks to be watch are PT Perusahaan Gas Negara (IDX: PGAS), PT Waskita Karya Tbk (IDX: WSKT), PT Bukit Asam Tbk (IDX: PTBA), PT Ace Hardware Tbk (IDX: ACES), PT Astra Internation Tbk (IDX: ASII), PT Sri Rejeki Isman Tbk (IDX: SRIL), PT Telkom Indonesia Tbk (IDX: TLKM), PT HM Sampoerna Tbk (IDX: HMSP), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Central Asia Tbk (IDX: BBCA), and PT Mayora Indah Tbk (IDX: MYOR).

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia