JAKARTA (TheInsiderStories) – Good morning! Indonesian Coordinating Investment Board will announce the realization investment for second quarter (2Q) of 2019. In the 1Q of this year, the realization recorded Rp195 trillion (US$13.93 billion), up 5.3 per cent rise compared to 1Q 2018 of Rp185.3 trillion.

In the series of seducing foreign investors entering Indonesia, yesterday, President Joko Widodo met Japan’ Softbank Group. The investment company aimed to invest another $2 billion in Singapore’ Grab Holdings to create more unicorns in Indonesia.

On the other hand, Widodo urged that the giant seawall must be immediately to built and completed considering Jakarta is one of the fastest-sinking cities in the world. Estimated in 2050, a third of Jakarta’ territory will be under the sea. Ten years ago, the government had begun the construction of another wall surrounding the Jakarta coastal area with a total budget of $42 billion.

Traveloka, one of the largest online travel companies in Southeast Asia, reported is in talks with investors to raise fresh funds $4.5 billion. One of Indonesian unicorn, which calculates global travel company Expedia Group Inc., e-commerce giant China JD.com Inc., and venture capital firm Sequoia Capital, is looking for ways to raise $500 million in its latest funding round.

While, the ministry of finance on Monday managed to collect sales of the Savings Bond Retail (SBR007 series) with a total purchase order volume of Rp3.2 trillion. Even though in July 2019 there was no retail SBR due and its coupon rate was lower than the previous SBR series, its sales achievement exceeded the indicative target of Rp2 trillion.

On Monday, oil prices edged up as the prospect of a rate cut by the United States (US) Federal Reserves (Fed), pessimism over the Washington and Beijing trade talks, and worries about slower global economic growth. Brent crude oil rose 7 cents to $63.53 a barrel and West Texas Intermediate crude jumped 15 cents to $56.35 a barrel.

The rising of crude oil prices also supported by supply risks cause the tensions remain high around the Strait of Hormuz, where about one-fifth of the world’ oil trajectory.

Traders and investors oversee the Fed decision this week. Its hope the central bank governors cut its benchmark rate for the first time since the depth of the financial crisis more than a decade ago.

President Donald Trump itself urged the central bank to go beyond making “small interest rate cuts” this week, increasing pressure on the central bank to reduce borrowing costs more than Wall Street expected by a half percent. But the Fed’ policymakers have repeatedly said they will not take orders from the president.

Furthermore, tensions rose between Iran and the West, after Iranian commandos captured a British-flagged tanker in the Gulf in this month in retaliation for the seizure of an Iranian tanker by British forces near Gibraltar. On Monday, Britain told Iran that if it wanted to “get out of the dark” it must follow international rules and release British-flagged tankers seized by its forces in the Gulf.

At the same day, US and Chinese trade negotiators shifted to Shanghai for its first direct talks since the G20 ceasefire in June. Officials and businesses hoped Washington and Beijing could at least detail the commitment to the “good intentions” movement and clear the way for future negotiations.

In Britain, Prime Minister Boris Johnson said there was an opportunity to reach the space for a new Brexit deal with the European Union (EU) and he also wanted a large new trade agreement. According to him, the new free trade agreement allows Britain to take back control of tariffs and regulations and to do things differently where we want them to be. Johnson also ruled out another referendum on Scottish independence after the 2014 vote.

Yesterday, the Jakarta Composite Index closed down 0.41 percent to 6,299 and Rupiah lowered to 14,015, or down 0.11 percent compared to last weekend.

For today, the composite index is estimating move in the range 6,272 – 6,488. The stock to be watch PT Kalbe Farma Tbk (IDX: KLBF), PT Pakuwon Jati Tbk (IDX: PWON), PT Astra International Tbk (IDX: ASII), PT London Sumatera Plantation Tbk (IDX: LSIP), PT Waskita Beton Tbk (IDX: WTON), PT Sri Rezeki Isman Tbk (IDX: SRIL), PT Gudang Garam Tbk (IDX: GGRM), and PT Tower Bersama Infrastructure Tbk (IDX: TBIG). 

US$1: Rp14,000

May you have a profitable day!

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