Statistics Indonesia reported the number of foreign tourist visits in October declined drastically to 88.25 percent to 158,190 visitors compared to last year - Photo by President Office

JAKARTA (TheInsiderStories) – Good morning! President Joko Widodod keep pushing the government program to bring more foreign exchange revenues to Indonesia. Yesterday, he announced a planned to redesign tourist areas on Rinca Island and Komodo Island, in West Manggarai, East Nusa Tenggara.

The large design is an integrated area consisting of Labuan Bajo, Rinca island, Komodo island, and the sea, as well as access to the airport. The President vowed that the construction would be completed by 2022.

Furthermore, Lembaga Manajemen Aset Negara, a state company under Ministry of Finance, signed an agreement with the Toll Road Regulatory Agency and Toll Road Business Entity regarding the payment of land acquisition funds that had been paid in advance by the business entity.

The signing consisted of 29 Toll Road Business Entities, 36 toll road sections and 35 memorandum of understanding with a total value of Rp13.1 trillion (US$922.54 million) for 2019. While the revised allocation for fiscal year 2018, consisted of 24 Toll Road Business Entities, 30 road segments toll road for 27 memorandum of understanding with a total value of Rp15.03 trillion.

Previously, the agency had paid for the National Strategic Project bailout in the form of toll roads worth Rp34.73 trillion or 92.9 percent of the billed Rp37.4 trillion in the first semester of 2019.

Yesterday, the Oil and Gas Special Task Force reported that oil and gas lifting by the end of June had reached 90 percent of this year’ target. In details, oil lifting was 752,000 barrels oil per day and gas lifting 1.05 million barrel oil equivalent per day.

While, after setting up the policy on aircraft ticket prices discount, now the Government asked the flight carrier entities and airport managers to comply with the regulation and the implementation of the policy massively. The provision was enforced by Thursday (07/11).

Days ago, Government-determined discounts are 50 percent of the Upper Limit Tariff of the Low-Cost Carrier for 30 percent of the total aircraft seats provided. The related-business entities included: Garuda Indonesia Group, Lion Air Group, PT Angkasa Pura I (AP I), PT Angkasa Pura II (AP II), PT Pertamina, and PT Air Nav Indonesia.

From abroad, the communist government urged the United States (US) to correct its mistakes using state power to pressure Chinese companies to ensure the development of stable trade relations among the two countries. At the G20 Summit in Japan, President Donald Trump said that US companies could continue selling products to Chinese telecommunications giant Huawei Technologies Co., after a ban was introduced in May.

However, Huawei remains on the Register of Entities. This raises concerns among analysts that the move can be easily withdrawn.

In the mean time, US’ consumer base prices rose the most in almost 1.5 years in June amid solid gains in various goods and services. Signs of underlying inflation rise and a strong labor market reported on Thursday. However, further weakened financial market expectations from a 50 basis point cut at the end of the month and the view that the Federal Reserves will reduce borrowing costs at least twice this year.

The consumer price index  excluding volatile food and energy components rose 0.3 percent last month, the biggest increase since January 2018, after four consecutive months of 0.1 percent. The Labor Department said initial claims for state unemployment benefits fell 13,000 to 209,000 seasonally adjusted for the week ending July 6, the lowest level since April.

Its competitor, China reported the consumer price index (CPI) rose 2.7 percent last month. The increase in monthly CPI remained above 2 percent for four consecutive months, mainly driven by increases in prices of certain consumer goods instead of universal price increases in the market.

Meanwhile, producer prices were flat in June at 0.6 percent, due to lower oil prices and weak global demand, fueling fears that a slowdown in manufacturing from a bruising trade war would increasingly drag the growth of the world’s second-largest economy.

On the Korean Peninsula issues, North Korea threatened to develop special weapons to destroy US F-35 jets acquired by South Korea. North Korea considers the planned acquisition of fighter aircraft by its neighbour as a dangerous step and says South Korea has been presumptuous because it continues to talk about reconciliation and cooperation but at the same time buying more weapons from the US.

On Thursday, the Jakarta Composite Index was finally able to close up with a 0.1 percent gain to 6,417.06, although fluctuations throughout the day. With this, JCI again recorded a rally with three consecutive days of increase. Indonesian Rupiah also gained 0.46 percent at 14,060 against the US dollar.

US$1 = Rp14,200

May you have a profitable day!

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