Indonesian government is preparing measures similar to the 2008 global financial crisis, including buying back government bonds and halting income tax, said finance minister Sri Mulyani Indrawati - Photo by the MoF Office

JAKARTA (TheInsiderStories) – Good Morning! Finance minister Sri Mulyani Indrawati claimed Indonesian government is preparing stimulus similar to the 2008 global financial crisis, including buying back government bonds and halting income tax for individuals and corporations. The policy taken to restore confidence in the financial markets and soften the economic impacts of COVID-19 and oil price war.

She said, the new incentives are income tax 21 (PPh 21, PPh 22 and PPh 25), and the acceleration of value added tax restitution. The coordination meeting on the new stimulus held today led by coordinating minister for economic affairs, Airlangga Hartarto.

Then, President Joko Widodo has scheduled to lead a limited meeting on Papua Special Autonomy Fund and Accelerated Settlement of Land Issues in North Sumatra. While, minister of trade and the Indonesian Chamber of Commerce and Industry plans to hold a national dialogue with the theme improving the trade Balance by encouraging exports and managing imports.

On the coronavirus cases in Indonesia, the government spokesperson, Achmad Yurianto, announced a total of 27 cases in the country. Globally, total cases reached 119,177 and 4,295 deaths.

Major stock market bounced back on Tuesday, on anticipation that the White House could get a stimulus package after the meeting United States (US) President Donald Trump with Republican. But the wild cards still exist as to whether Congress will go along with his payroll tax reduction and whether paid sick leave will also come about.

In Asia, Japan, and South Korea have agreed to continue dialogue on export controls. Japan imposed curbs on exports to South Korea of three materials used to make semiconductors in July last year. The two countries have agreed to hold the next round of talks in South Korea, they said in their statements.

On Wednesday, Australia unveiled a A$2.40 billion ($1.56 billion) health package to combats the spread of the coronavirus, said Prime Minister Scott Morrison. The country has also extended its travel ban for Italy, after reported expanded a lockdown to cover the entire country contain by the virus.

While, Reserve Bank of Australia’ deputy governor, Guy Debelle said, the central bank would consider unconventional policy should interest rates be cut by a further quarter point to an effective floor of 0.25 percent. The Bank has already slashed rates by 100 basis points since last June to a record low 0.5 percent.

In addition, British‘ new finance minister Rishi Sunak will pledge billions of pounds to fight the impact of coronavirus. And, the Bank of England might add its firepower to the attempt to stave off the risk of a new recession. The tax-and-spending plan has been billed as a chance for Prime Minister Boris Johnson to direct investment toward poorer regions.

In the commodity market, oil prices managed to rebound after Wall Street trading rise and Amin Nasser, CEO of Saudi Aramco, said the oil giant would increase supply to 12.3 million barrels per day (bpd) in April, 300,000 bpd above its maximum production capacity. Brent crude futures rose 3.7 percent to US$38.60 per barrel and West Texas Intermediate crude gained 2.8 percent to $35.33 a barrel compared to previous day.

While, the Energy Information Administration will issue its weekly report on oil inventories. The US stockpiles are expected to have risen by 2.27 million barrels for the week ended March 6.

On Tuesday, Indonesian Rupiah dropped 1.05 percent to 14,393 per US Dolar and the Jakarta Composite Index rebounded 1.64 percent to 5,220.83 compared to prior day. For today, the analysts rated the local currency will move between 14,150 – 14,450 against the American Dollar and the stock index in the range 5,078 – 5,360.

Stocks to be watch for today are PT Bumi Serpong Damai Tbk  (IDX: BSDE), PT Bank Rakyat Indonesia Tbk  (IDX: BBRI), PT Jasa Marga Tbk (IDX: JSMR), PT Perusahaan Gas negara Tbk (IDX: PGAS), PT Adaro Energy Tbk (IDX: ADRO), PT Bank Mandiri (Tbk (IDX: BMRI), PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Astra International Tbk (IDX: ASII), PT Unilever Indonesia Tbk (IDX: UNVR), and PT Bank Central Asia Tbk (IDX: BBCA).

May you have a profitable day!

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