JAKARTA (TheInsiderStories) — Good morning! Indonesia’ Finance Minister Sri Mulyani Indrawati regarded that Indonesia’ economy is estimated to grow by 5.3 to 5.6 percent in the 2020’ State revenue and expenditure budget. Indrawati said that President Joko Widodo expected the economy would grow at the upper range. In 2018, Indonesia’ economy grew by 5.17 percent.
Moreover, government will use a wide range to determine the Rupiah exchange rate estimation in the budget draft. This year, Rupiah is projected at Rp15,000 in the state budget, while the recent point has been strengthening to nearly Rp14,000.
The ASEAN Economic Ministers affirmed their commitment to improve investment in the Southeast Asia region. This was realized through the signing of the amendment protocol from the ASEAN Comprehensive Investment Agreement (ACIA) which was held on the sidelines of the 25th ASEAN Economic Minister Retreat (AEM) meeting in Phuket, Thailand, on Tuesday (04/23).
This ACIA agreement is an investment agreement for the ASEAN region which consists of four aspects from investment, namely protection, promotion, facilitation, and investment liberalization. Going forward, said Minister of Trade Enggartiasto Lukita, after This agreement was signed, it is expected to increase the flow of direct investment to Indonesia from ASEAN countries.
As the United States (US) President Donald Trump ordered Iran’ oil buyers to stop their purchases or face sanctions, oil price hit higher price. The Brent crude rose 31 cents a barrel to US$74.35. The global benchmark earlier touched US$74.73, a level not seen since Nov. 1, last year.
On Monday (04/24), Trump demanded the US allies to implement the purchase suspension starting from May 1, ending six months of waivers which allowed Iran’ eight biggest buyers, most of them in Asia, to continue importing limited volumes. Trump said he was confident that Saudi Arabia and the United Arab Emirates will fulfill their pledges to make up the difference in oil markets,
Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries (OPEC) at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd.
Iran’ Oil Minister Bijan Zanganeh considered the US has made a bad mistake by politicizing oil and using it as a weapon. China, Iran’s largest customer with imports of about 585,400 bpd of crude oil last year, formally complained to Washington over the move. Chinese foreign ministry spokesman said that Trump’ move will contribute to volatility in the Middle East and in the international energy market.
The move to increase pressure on Iran came amid other sanctions Washington has placed on Venezuela’s oil exports and as combat threatens to disrupt Libya’s exports.
As the US and China trade war has not met the end, a top White House economic adviser said that he was “cautiously optimistic” the US would strike a trade deal with China, while a lot of progress was being made in negotiations. National Economic Council Director Larry Kudlow said the two nations still had issues to address and were discussing a visitation exchange as part of their ongoing talks.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information About Indonesia