Foreign minister, Retno Marsudi, warned the United States (US) and China not to involve Indonesia in their battle in South China Sea - Photo by MoFA Office

JAKARTA (TheInsiderStories) – Good Morning! Foreign minister, Retno Marsudi, warned the United States (US) and China not to involve Indonesia in their battle in South China Sea. Military activity in the sea has increased this year along with hostile rhetoric and antagonistic policy moves from both countries.

While US’ secretary of state, Mike Pompeo, and his counterpart, Wang Yi have stepped up their diplomacy in an effort to persuade the Association of Southeast Asian Nation (ASEAN) members to be more sympathetic to their positions.

Still from the country, local media reported that Indonesian citizens were ban from entering more than 50 countries, such as Malaysia, Saudi Arabia, and Japan. As an example on Sept. 7, 2020, the Malaysian government imposed an entry ban for Indonesian citizens because it is a country have with more than 200,000 COVID-19 cases.

On the policies side, senior economic minister, Airlangga Hartarto, said Indonesia plans to revise its palm oil export levy rules as part of moves to underpin an ambitious biodiesel program. Every increases by US$25 will raises the export levy by $5 a ton of crude palm oil (CPO).

Since June of 2020, the country has collected a maximum $55 levy per ton of CPO. Indonesia collects the export levy to finance the gap between the production cost of fuel made from palm oil and from the crude oil price.

In addition, Indonesian government plans to  impose stamp duty on shares, collective share certificates, bonds, sukuk, other debt securities, checks, giro bill, acceptances, drafts, warrants, options, deposits, and the like. This is stated in the Stamp Law which will be passed by the parliament this month.

The rate charged for stamp duty has increased to over Rp5 million (US$340.13) from the original level Rp1 million. The current regulations are stamp duty of Rp3,000 for under Rp1 million transaction and Rp6,000 for above Rp1 million. In addition, there will also be a digital seal. The implementation will begin in early 2021.

Yesterday, finance ministry absorb Rp22 trillion in state bond auctions from its indicative target of as much as Rp40 trillion. In the auction, it was seen that investor demand decreased by 33.29 percent to Rp52.26 trillion from the previous auction due to increased risk averse.

Globally, oil prices retreated after falling 7.6 percent on Tuesday, as Brent crude fell below US$ 40 a barrel for the first time since June 15, 2020. A recovery in stalled Asian demand, the end of the US summer driving season and increased supply from oil producers incorporated in OPEC+ are signaling a bleak near-term outlook for oil prices.

As of Tuesday night, the West Texas Index for the October 2020 contract had slumped 1.09 percent to $36.36 a barrel. While, the price of Brent oil for the November 2020 contract fell 5.31 percent or to a level of $39.78 per barrel.

At the same day, Indonesia Rupiah closed down 0.17 percent to 14,765 per US Dollar but the Jakarta Composite Index (JCI) closed up 0.3 percent to 5,244 compared to previous day. The Greenback still strengthen against global currencies due to the improving sentiment in last week’ US economic data.

Apart from that, market concerns on the relationships between the US and China. It appears that China is starting to retaliate against the issue of blocking its semiconductor companies. The domestic sentiment come from the foreign exchange reserves data and the statement of the minister of finance, Sri Mulyani Indrawati regarding the independence of Bank Indonesia.

Based on various developments, the analysts rated, the Rupiah still move in the negative territory and move in the range of 14,650 to 14,850 against the American Dollar. While, JCI between 5,102 –  5,328.

The stocks to be watch for today are PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Gudang Garam Tbk (IDX: GGRM), PT Jasa Marga Tbk (IDX: JSMR), PT Ramayana Lestari Sentosa Tbk. (IDX: RALS), PT Waskita Karya Tbk (IDX: WSKT), PT Astra International Tbk (IDX: ASII), and PT Bank Central Asia Tbk (IDX: BBCA).

Then, PT Bank Mandiri Tbk (IDX: BMRI), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Sri Rejeki Isman Tbk (IDX: SRIL), PT Ace Hardware Tbk (IDX: ACES), PT Bekasi Fajar Industrial State Tbk(IDX: BEST), PT Sarana Menara Nusantara Tbk (IDX: TOWR) and PT Perusahaan Gas Negara Tbk (IDX: PGAS) stocks.

May you have a profitable Day!

Written by Linda Silaen, Please Read Our News to Get More information about Indonesia