Indonesia and South Korea signed Joint Declaration on Settlement of Indonesia - Korea Comprehensive Economic Partnership Agreement (CEPA) on Monday (11/25) in Busan, South Korea - Photo by President Office

JAKARTA (TheInsiderStories) – Good Morning! Indonesia and South Korea signed Joint Declaration on Settlement of Indonesia – Korea Comprehensive Economic Partnership Agreement (CEPA) on Monday (11/25) in Busan, South Korea. The signing also marks that the two countries are now one step closer to the close the deal.

Minister of trade Agus Suparmanto, said, after the signing, both parties will continue the legal scrubbing process of the agreement and targeted to be completed in February 2020 and can be signed in the first half of 2020. The countries expect the value of trade could reached US$60 billion after the completion from now around $18.62 billion.

In Details, Indonesian exports to South Korea were recorded
amounting to $9.54 billion and Indonesia’ imports from South Korea amounting to $9.08 billion. Indonesia posted a trade surplus $460 million. The main export commodities to South Korea are coal, copper ore, natural rubber, plywood and tin and Indonesia’ main import from South Korea is rubber synthetics, sheet steel products, electronic products, and synthetic filament woven fabrics.

Still on trade, deputy minister for trade affairs, Jerry Sambuaga and Chile’ deputy minister of foreign trade, Rodrigo Yáñez, meet today to finalize Indonesia – Chile CEPA this morning. Continuing negotiations with Chile has a strategic significance for Indonesia in enhancing the country’ relations in Latin America, as it is a potential market among non-traditional markets.

Chile is expected to become a liaison country or a hub in breaking the Latin American market. Chile is a country that is quite proactive in international trade policy because it has 28 Free Trade Agreements (FTAs) and Partial Preferential Agreements (PPA) with more than 60 countries.

At the same day, the leaders of South Asian Nation (ASEAN) will gathered at ASEAN – Republic of Korea Summit in Busan. The leaders will discuss the evaluation of 30 years of the cooperation and the next 30 years cooperation.

Today, finance ministry will auction five series of SUKUK with indicative value Rp7 trillion ($500 million). The Five series are SPN-S15052020 will mature on May 15, 2020; PBS002 series will mature on Jan. 15, 2022 with a coupon of 5.45 percent; PBS026 which has fixed benefits and will mature on Oct. 15, 2024; PBS022 which offered with interest rate 8.625 percent and will mature on April 15, 2034; then PBS015 with 8.00 percent coupons due on July 15, 2047.

In the 2019 State Budget, the ministry targeting the net issuance of government bond worth of Rp389 trillion. In the fourth quarter of this year, the government has raised Rp127.02 trillion from six auctions of SUKUK and five times on government bond’ auctions.

From United States (US), chairman of Federal Reserves Jerome Powell in his speech on Monday, said that the current level of interest rates should sustain the economic expansion. According to him, this year have left interest rates at a level “likely to remain appropriate.”

Now, said the chairman, the target federal funds rate in the range of 1.50 to 1.75 percent. He saw monetary policy as “well positioned,” he reiterated that policymakers are not on a “preset course” and said the central bank’ path on rates could change if there were a “material reassessment” of economic conditions.

Yesterday, Indonesian Rupiah closed up 0.04 percent to 14,086 and Bank Indonesia middle rate (JISDOR) strengthened 0.06 percent to 14,091 a US Dollar compared to end of last week. While, the Jakarta Composite Index (JCI) closed down 0.48 percent at 6,070.762 compared to last Friday.

On Tuesday, the local currency is expecting move in the range 14,025 – 14,105 against the American Dollar and the stock index between 6,050 to 6,090. Some analysts rated, the financial market to be more influenced by China, which is indicated to start importing many goods from Indonesia, especially commodities sector. While from domestic, there has no strong enough sentiment to influence the market movements.

They recommended PT Panin Financial Tbk (IDX: PNLF), PT Smartfren Telecom Tbk (IDX: FREN), PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bukit Asam Tbk (IDX: PTBA), PT Aneka Tambang Tbk (IDX: ANTM), PT Waskita Karya Tbk (IDX: WSKT), PT Barito Pacific Timber Tbk (IDX: BRPT), PT Sarana Menara Nusantara Tbk (IDX: TOWR), PT Wika Beton Tbk (IDX: WTON), and PT PP Tbk (IDX: PTPP).

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