JAKARTA (TheInsiderStories) — Indonesia financial market welcomed the week in the slowdown phase. Rupiah lost its energy, by decreasing 0.78 percent to 14,747 against the greenback.
The local currency impairment led other emerging markets currency weakening. Followed, Jakarta Composite Index slumped 1.65 percent to 5,777.05, with Rp17.68 billion (US$12.02 million) foreign net sell.
Unsatisfying Balance of Payment is still the sentiment over the weakening. In third quarter, Current Account Deficit (CAD) recorded at US$ 8.8 billion, equal to 3.37 percent of Gross Domestic Product (GDP).
To gain investors trust over Rupiah, Bank Indonesia (BI) start the debut of the Domestic Non-Deliverable Forward auction. Targeted at $100 million, bid entered was $149 million, but BI only accepted $73 million, regarding the calculated offer amount at Rp14,882 against US dollar.
While, Indonesian government will again revise regulation about Mineral and Coal Mining Business Activities. Regulation revision draft is now in Law and Human Rights Ministry, So the regulation can be finished by the end of this year.
The under-discussion regulation will be changed in accordance with some coal mining concession agreement holders have entered contract expiration period. In the new regulation, mining permit must be based on special mining permit.
So companies with coal mining concession agreement will be encouraged to use special mining permit regulation. Then, the government gives coal mining companies to extend contract at least one year and five years maximum before the contract expires. While in the previous regulation, mining companies must submit contract extension at least two years before the contract expires.
There are 5 coal mining contract that will be expired soon, such as PT Tanito Harum in 2019, PT Arutmin Indonesia in 2020, PT Kaltim Prima Coal in 2021, PT Adaro Energy Tbk (IDX: ADRO) in 2022, PT Kideco Jaya Agung in 2023, and PT Berau Coal Energy Tbk (IDX: BRAU) in 2025.
While, Swiss cement company LafargeHolcim has sold its 80 percent stake in its PT Holcim Indonesia Tbk (IDX: SMCB) to PT Semen Indonesia Tbk (IDX: SMGR) with total values $1.75 billion. The divestment comes as part of the Franco-Swiss group’s drive to boost sales by focusing on fewer markets and cutting costs, the company said.
Furthermore Anti-graft commision is investigating Lippo Group’ CEO James Riady meeting with Bekasi’ Mayor Neneng Hassanah Yasin, over Meikarta corruption case. The agency will investigate whether there’s any another discussion about the dirty project. Previously in court hearing, Riyadi has admitted meeting Neneng at the end of 2017.
The anti-graft body has assigned Yasin as suspect, along with Lippo Group Director Billy Sindoro, Bekasi Public Works and Public Housing Spatial Planning Office Head Neneng Rahmi, and three other office heads.
May you have a profitable day!
US$1: Rp 14,747
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.com