JAKARTA (TheInsiderStories) – Good morning! Bank Indonesia (BI) reported that in the fourth quarter (4Q) of 2018, balance of payment (BoP) surplus US$5 billion surplus. The surplus is supported by the investment in that period.
Even so, the trade balance is predicted to be deficit at above $8 billion, following the previous periods. According to the central bank’ Governor Perry Warjiyo, there are pressure on the global economy and the lowering price of domestic commodities.
Government targeted to slash trade balance deficit to 2.5 percent by the end of this year. To reach the target, government made some attempts to increase export, develop B20 development, boost tourism, and accelerate infrastructure projects.
While, the Ministry of State-Owned Enterprises (SOE) set the target to complete six state-owned holding companies (HoldCo) for this year. The establishment of the holdings will be carried out in stages.
Minister of SOEs Rini Soemarno said, the first stage will be done on February 2019, by completing the infrastructure holding and housing development. Furthermore, the ministry will complete the remainder, HoldCo which are financial, insurance, port and strategic industry holding. With the establishment of the holding, it is expected to reduce the company’ cost.
Recently, there are six holdings have been established, oil and gas led by PT Pertamina, forestry led by PT Perhutani, agriculture led by PT Perkebunan Nasional, and mining led by PT Indonesia Asahan Aluminium.
This month, two SOE HoldCo, infrastructure and housings is targeted be finished. Next month, Soemarno aims to finish insurance and port holdings. Meanwhile, banking holding will be finished in April.
Furthermore, Indonesia’ Ministry of Energy and Mineral Resources will open another block auction, first time in the year. Five blocks include the exploration block of Anambas block, West Ganal block, and West Kaimana block. Meanwhile, ex-production blocks West Kampar and Selat Panjang will also be included in the auction. In the ministry’s working plan, there are 10 blocks that be in the auction this year.
Moreover, Industry Ministry asked South Korea and China to invest in Indonesia’ electricity car-related. Director General of Metal, Machinery, Transportation Equipment and Electronics said that Japan has developed its electricity vehicles.
Yesterday, Rupiah depreciated to 14,112 amid uncertainties on United States (US) – China trade war. While, the Jakarta Composite Index closed gaining by 0.43 percent to 6,464.18. Meanwhile, there was a huge amount of foreign net but at Rp14.61 trillion. This doubled the total net buy from early 2019.
From global side, United States’ Federal Reserves maintained its benchmark rate at 2-1/4 to 2-1/2 percent. The reasoned, Federal Open Market Committee met in December indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate.
May you have a profitable day!