President Joko Widodo has signed a special rule  Government Regulation Number 23 of 2020 regarding Economic Recovery Program (ERP), which was just enacted yesterday (05/11) - Photo by President Office

JAKARTA (TheInsiderStories) – Good Morning! Today, President Joko Widodo has schedule to lead the limited meeting on foreigner movement in Indonesia. While, the central bank’ governor will give an update on the latest domestic economy condition amid the COVID-19.

In West Papua, National Police reported there has been a shooting carried out by the armed Group of employees of gold and copper miner, PT Freeport Indonesia, which caused one death and six injured. The two victims who suffered serious injuries being taken to Tembagapura Hospital and other victims suffered minor injuries and have received treatment at the site.

In Asia, People’s Bank of China rejoined the ranks of global central banks easing monetary policy by cut its seven-day reverse repo rate by 20 basis points to its lowest-ever rate 2.2 percent. While, Japan’ factory output rose in February at a slower pace to 0.4 percent than the previous month at 1.0 percent gain.

In Japan, a rise in domestic coronavirus cases has stoked worries of tougher social distancing restrictions, while a decision to postpone the Tokyo Olympics Games threatens to push the fragile economy into recession. Prime Minister Sinzo Abe has pledged a huge stimulus package that would be bigger than one launched during the global financial crisis to cushion the outbreak’s hit to growth.

The world’ third-largest economy reported the jobless rate held steady while the availability of jobs dropped in February. The seasonally adjusted unemployment rate was 2.4 percent in February, unchanged from January. The jobs-to-applicants ratio also fell to 1.45 in February from 1.49 in January.

In Europe, World Health Organization sees the potential stabilization of COVID-19 outbreak in the region. As of Monday morning, a total of 31,726 new cases of COVID-19 have been reported in Europe, which marked the lowest growth since last Friday, said the organization.

From Italy, health minister Roberto Speranza said, the government will extend its nationwide coronavirus-related lockdown measures at least until the Easter season. Italians have been under lockdown for three weeks. Its reported total death tally rise to 11,591 since the outbreak emerged on Feb. 21.

Around the world, the virus has infected more than 700,000 people and killed about 35,000 and disrupting global trade, tourism and supply chains and prompting city lockdowns.

On Monday, oil prices tumbled to a 17-year low after United States (US) President Donald Trump pushed back the timeline for reopening the US economy from April to June, creating an even more pressing problem of near-term oversupply. West Texas Index futures crude price were down 4.6 percent to US$20.52 a barrel and Brent crude futures price also dropped  4.8 percent at $26.62 per barrel.

In the financial market, the Dow futures contract was down 0.2 percent to 21,398, the S&P 500 futures contract was flat and the Nasdaq 100 futures contract was up 0.1 percent. While, the US Dollar index rose 0.4 percent against a basket and also strong against most emerging market currencies and British’ Pound.

In Indonesia, finance ministry will release seven series of government bond with an indicative target of Rp22.5 trillion (US$1.4 billion) today. In detail, the series offered are SPN12200703, which will mature on July 3, 2020, SPN12210401, which will mature on April 1, 2021, at a discount coupon rate.

Then, FR0081 (6.50 percent), FR0082 (7.00 percent), FR0080 (7.50 percent), FR0083 (7.50 percent), and FR0076 (7.375 percent). The proceed from the bond issuances will use for 2020 State Budget deficit financing.

On Monday, Rupiah closed down 1.04 percent to 16,338 against the Greenback pressured by profit taking by investors. The Jakarta Composite Index (JCI) also plunged 2.88 percent to 4,414.

Analysts assess, the weakening of the local currency and index caused by market concerns related to the spread of COVID-19 which is getting worse around the world. The high epidemic is a major concern for investors as is the case in the US, Europe, and Indonesia. If the pandemic is not resolved immediately, the number of victims more and the lockdown implemented by many countries, investors will increasingly avoid risky assets, including the local currency.

They project that today, the Rupiah will test the level of 16,250 to 16,575 per US dollar. Meanwhile the JCI will move in the limited range of 4,325 – 4,476.

Some of the recommended shares for today are PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Indosat Tbk (IDX: ISAT), PT XL Axiata Tbk (IDX: EXCL), PT Kalbe Farma Tbk. (IDX: KLBF), PT Astra International Tbk (IDX: ASII), PT HM Sampoerna Tbk (IDX: HMSP), PT Gudang Garam Tbk (IDX: GGRM), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Central Asia Tbk (IDX: BBCA), PT Mayora Indah Tbk (IDX: MYOR), and PT Unilever Indonesia Tbk (IDX: UNVR).

US$1: Rp16,000

May you have a profitable day!

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