Japanese exports fell at the fastest rate since the 2009 global financial crisis to JPY4.18 trillion (US$39.03 billion) in May, the custom office announced today (05/17) - Photo: Special

JAKARTA (TheInsiderStories) – Group of 20 (G20) leaders gathered in Osaka, Japan, starting today. The meeting of United States (US) President Donald Trump with Chinese’ President Xi Jinping and Russian President Vladimir Putin are in the spotlight.

Trade, geopolitical tensions, climate change, are on the agenda of the summit of the G20. Many participating are calling for a broader perspective in tackling global crises.

Donald Tusk, president of the European Union in the meeting with Japanese Prime Minister Shinzo Abe, said this event will become a difficult G20 meeting cause there are global challenges to be met. He opined, the countries need to step up to avoid the climate threats, reform the World Trade Organization and prepare for the digital revolution.

From domestic side, Indonesia’ Constitutional Court reject all the exception of Prabowo Subianto – Sandiaga Salahuddin Uno pair on the 2019 presidential election, The chairman Anwar Usman read the decision today (06/27).

Commenting on the decision, the opposition leader Prabowo Subianto respected the decision and said will take another legal action if there is a window to do that. While Joko Widodo – Ma’ruf Amin pair urged Indonesian peoples to gather again and build the nation.

Finance ministry of Indonesia decided to changes import duty for Indian raw sugar from 10 percent to 5 percent. The regulation will take into effect on July 8, 2019. Its hope that India will reciprocate by opening up its market to Indonesian exports such as palm oil.

Then, World Bank approved a $300 million loan for Indonesia to accelerate rural poverty reduction and improve service delivery in over 66,000 villages in 380 rural districts across the country. The investments in these areas its expecting will help villages to improve their budget spending, which will lead to better development results. 

Furthermore, Indonesia expects the supplies of Russian SU-35 fighter jets to start by the end of 2019, said Indonesian Defense Minister Ryamizard Ryacudu. He assured that the country would not cancel the contract on jet supplies despite the US sanctions against Russia.

In trade areas, Indonesian government continues to work to increase bilateral cooperation with South Korea and Japan at
various fields, said Indonesian Minister of Industry Airlangga Hartarto. Indonesia-Korea Comprehensive Economic Partnership Agreement in 2019 targeting the bilateral trade between the two countries to reach up to $30 billion in the next 2022.

While, in the meeting with Japan’ Minister of Economy, Trade, and Investment Hiroshige Seko in Osaka, on Thursday (06/27), the ministers signed a framework of the implementation of the New Manufacturing Industry Development Center (MIDEC) project under the cooperation framework of the Indonesia-Japan Economic Partnership Agreement.

New MIDEC activities includes automotive, electronic, textile, food, beverage and chemical and metal industries. In addition there are also seven cross sectors, namely metal working, tooling, welding, SME development, export and investment promotion, green industry (energy, waste, emission), and industry 4.0 (digitalization, automation, policy reforms).

Yesterday, Indonesian Rupiah jumped to 14,187 from previous day closed at 14,218 against the US Dollar. Today the local currency is estimating will move again in territory positive after the Constitutional Court decision.

May you have a profitable day!

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