Demonstrators flooded the airport' arrival and departure halls - Photo by GettyImages

JAKARTA (TheInsiderStories) – Good Morning! Hong Kong‘ government pledged HK$4 billion (US$510.85 million) stimulus to help bolster the economy after hit by months of unrest. Its a third round of fiscal measures in this year.

The stimulus, the government said to support the sectors most impacted by social unrest, such as fuel, airfare subsidies, retail and hospitality. Some measures, may be all for naught if businesses remains stale amidst the ongoing protests and to drive consumption away from Hong Kong.

From United States (US), President Donald Trump has reacted furiously to footage of world leaders apparently making fun of him, calling Justin Trudeau “two-faced” then canceling a press conference and cutting short his attendance at a NATO summit in London, England. During the meeting a “leak” video has spread to public demonstrated he and other leaders joked on him.

At the summit, the leaders have agreed to pay $130 billion more per year, and by 2024, that number will become $400 billion, Trump tweeted yesterday. After the last meeting with other leaders, he heading back to Washington and rejected to joint the press conference.

From the country, Bank Indonesia (BI) announced a new regulations requiring importers to report how much foreign currency they use for overseas purchases from next year, in a move to step up monitoring of money flows. Since 2012 the central bank ordered exporters to receive their earnings through local banks, hoping that some of the funds would be kept onshore to increase the domestic savings and make the Rupiah less volatile.

While, Moody’s Investor Service rated, Indonesia’ gross domestic product is expected to grow by only 4.9 percent in this year and further decline to 4.7 percent in 2020 as weak commodity prices continue to hit the economy hard. However, the growth is expected to slightly recover to 4.8 percent in 2021.

The country’ economic growth stood at 5.02 percent in the third quarter of this year, down from 5.05 percent in the second quarter, as investment and exports plunged while household spending stagnated.

On Wednesday, Indonesian currency strengthened 0.07 percent to 14,105 and the middle rate of BI also strengthened 0.03 percent to 14,125 a US dollar. But the Jakarta Composite Index (JCI) closed down 0.34 percent to 6,122 compared to previous day.

According to analysts, the weakening of the composite index could not be separated from the statement of Trump, who delayed the trade war agreement. This made the majority of Asian markets and the Dow Jones Industrial Average weakened.

Today, they estimated that the Rupiah and JCI movement will be hit by global sentiment, one of which is still around the postponement of the trade war agreement. Recently, Trump signaled the suspension of trade agreement with Beijing until the US presidential election in 2020.

Other global sentiments, they said, came from the political upheaval in Hong Kong with the demonstrations that were not yet over. This condition is further aggravated by Washington’ interference in Hong Kong’ domestic affairs.

The observers viewed, the local currency and JCI will tend to move sideways. They projected that Rupiah move in the range 14,100 to 14,175 over the Greenback. While the stock index between 6,070 – 6,150 on Thursday.

The stocks that should be observed for today are PT HM Sampoerna Tbk (IDX: HMSP), PT Gudang Garam Tbk (IDX: GGRM), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Astra International Tbk (IDX: ASII), PT Unilever Indonesia Tbk (IDX: UNVR), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Indofood CBP Makmur Tbk (IDX: ICBP), and PT Jasa Marga Tbk (IDX: JSMR).

US$1: HK$7.83

May you have a profitable day!

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