Indonesian government to form the New Capital Development Authority Agency to implement the state' capital program - Photo by President Office

JAKARTA (TheInsiderStories) – Indonesian government to form a New Capital Development Authority Agency to implement the state’ capital program. The agency have obligation to prepare, build and then the transfer process of the plans.

For the development of the new capital city as much as possible it would not use the government funding. The government wants to use new development funding sources, including in this case inviting investment, foreign investors.

While, state-owned energy producer, PT Pertamina signed a procurement cooperation FAME content 30 percent (B30) with 18 biofuel entities until the end of 2020. Pertamina had prepared 28 FAME acceptance points for B30.

The companies are PT Sinarmas Argo Resources and Technology, PT Sinarmas Bio Energy, PT Batara Elok Semesta Integrated, PT LDC Indonesia, PT Tunas Baru Lampung, PT Ciliandra Perkasa, PT Darmex Biofuels, PT Bayas Biofuels, Kutai Refinery Nusantara, PT Cemerlang Energi Perkasa, PT Pelita Agung Agrindustri, PT Pertama Hijau Palm Oleo, PT Intibenua Perkasatama, PT Sukajadi Sawit Mekar, PT Musim Mas, PT Multi Nabati Sulawesi, PT Wilmar Bioenergi Indonesia, and PT Wilmar Nabati Indonesia.

Other report said, GoJek is nearing an agreement to buy 5 percent of local taxi operator PT Blue Bird Tbk (IDX: BIRD). The provider would pay about $30 million for the transaction. The deal would build on an existing partnership between the two parties and also mark as one of the latest investments for GoJek.

In addition, Indonesia plans to cut back its retail bond issuance next year after a sharp weak sales in 2019. The country doubled the number to 10 times this year, with an aim to raise Rp80 trillion (US$5.71 billion) from 2018 sold Rp46 trillion.

To fund the 2020 fiscal deficit, the government would sell two new types of bonds in 2020 namely diaspora bonds and Sustainable Development Goals bonds. Next year, Indonesia plans to raise Rp735.52 trillion from the bond market.

From India, the Solvent Extractors’ Association said last November palm oil imports stood at 671,863 tons, the lowest since July 2018 or fell 3 percent from a year ago. The number also the lowest level in 17-months as refiners curtailed purchases of refined palm oil from Malaysia fearing a hike in import tax.

Yesterday, Indonesian Rupiah weakened 0.14 percent to 14,010 and the middle rate of Bank Indonesia also dropped 0.16 percent to 14,004 a US Dollar over the largest trade deficit as reported by statistic bureau. While, the Jakarta Composite Index closed up 0.23 percent to 6,211.59 compared to prior day.

The analysts rated a deficit of $1.33 billion depressing the local market. In addition, the Federal Reserves decision to kept its benchmark rate also weighed the performance of the Rupiah and JCI.

Tonight a lot of economic data from Europe will come out. If the data was released poorly, the American dollar would potentially strengthen again and will give a pressures to the local market.

They projected that the weakening of major instruments could continue while the investors awaiting the central bank’ governors meeting on Thursday and Friday.

In addition, they tended to wait and see about the details of phase one United States and China trade agreements. Today, the observes sees the local currency move in a limited scale between 14,030 to 14,180 per US dollar and the stock index in the range 6,089 – 6,260.

The stocks to be watch PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Jasa Marga Tbk (IDX: JSMR), PT Astra International Tbk (IDX: ASII), PT Telkom Indonesia Tbk (IDX: TLKM), PT HM Sampoerna Tbk (IDX: HMSP), PT Unilever Indonesia Tbk (IDX: UNVR), PT Gudang Garam Tbk (IDX: GGRM), PT Indofood CBK Sukses Makmur Tbk (ICBP), PT Indo Tambangraya Megah (IDX: ITMG), and PT Bukit Asam Tbk (IDX: PTBA).

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