JAKARTA (TheInsiderStories) — Good morning! Bank Indonesia (BI) announced consumer confidence index (CCI) resulted good optimism. In December, CCI recorded at 127 points, increased from 122.7 points in November. On average, the consumer confidence index was 123.6 percent during 2018.
Furthermore, the central bank governor Perry Warjiyo signaling the central bank won’t raise the BI 7 Days Reverse Repo rate soon. The reason, he said, the last rate increase in November had already priced in the Federal Reserve’ rate increase in December and the expected tightening until March.
While, Trade Minister Enggartiasto Lukita admitted that non-oil and gas export growth didn’t achieve 11 percent target in 2018. He said that export during January to November 2018 was only rising by 7.47 percent. The unachievable target is caused by United States (US) and China trade tariff war. Moreover, China is one of the most significant Indonesian export market.
To tackle the condition, government tries to establish trade agreement with a lot of countries. The Ministry of Trade predicted that Preferential Trade Agreement (PTA) with Mozambique and Tunisia will be finished in the first semester. For export market extension, Indonesia will also start PTA cooperation with Bangladesh and Srilanka.
Other than that, Indonesia is also exploring trade in goods agreement with Turkey. It is an early stage towards Comprehensive Economic Partnership Agreement as the final stage. Indonesia is also seeking free trade agreement with South Korea, as the discussion had been held in 2014 and stopped.
Go the financial market. Yesterday, Rupiah against US Dollar extended surging by 1.7 percent to 14,105, the strongest lift in the last several months. Asian stocks market also closed in green territory. TOPIX boosted by 2.81 percent, Nikkei escalated by 2.44 percent, HangSeng rose by 0.82 percent, and CSI raised by 0.61 percent.
The Jakarta Composite Index increased by 0.2 percent to 6,287.22 with agriculture sector led the highest upturn at 1.95 percent. Foreign investors recorded net buy at Rp396.64 billion (US$27.35 million).
The market upsurge is blown by US and China first day of meeting in Beijing, that aims to resolve trade dispute between the world’s two biggest economies. This is the first discussion between both countries after US President Donald Trump and Chinese President Xi Jinping talks in Argentina, early December 2018.
Chinese Vice Premier Liu He unexpectedly attended the meeting. Previously, China had said that the talks would be led by an official from Ministry of Commerce. Liu’s participation in the meeting signals that China is attaching high importance to the talks, even if the main participants this time are mid-level officials.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia