JAKARTA (TheInsiderStories) – Good Morning! World Bank senior economist for Indonesia, Ralph van Doorn sees the national economy may shrink zero percent of gross domestic products (GDP) in this year amid the large-scale social distancing implementation by several regions. Last year, the economic grow stood at 5.02 percent of GDP last year.
While, deputy governor fro Jakarta province, Ahmad Riza Patria said, his administration would restrict people’ movement in 62 community areas categorized as the red zone of COVID-19. Then, religion ministry has cancelled this year’ hajj trip over concerns about the continuing of the epidemic.
The important agenda today in Indonesia, President Joko Widodo will lead a limited meeting on the economic recovery program after COVID-19 pandemic. As reported, the Southeast largest economy prepared US$43 billion funds for the program
From United States (US), President Donald Trump administration has announced an investigation into a string of countries that are adopting digital services taxes, including Indonesia, European Union, Britain, Italy and Brazil, which could lead to new punitive tariffs by Washington and exacerbate global trade tensions. Earlier, Washington has used the sanction for China during “trade war” process.
In Asia, Chinese government plans to issue U$666 billion of bonds in this year to encourage the economic growth. President Xi Jinping’ administration needs much cash to drive the economy amid the COVID-19 outbreak.
On the tension with China, Trump has put another sanctions for its “rival” like threatened to withdraws all the country’ investment for china and end privileges for Hong Kong. He also cutting US ties with the World Health Organization caused claiming it is being influenced by Beijing.
On the commodity issues, oil prices are heating up amid plans to extend production restrictions between OPEC and its allies. This morning, the price of the West Texas Index crude oil contract for July 2020 rose 3.87 percent to $36.81 per barrel and Brent crude oil contract for in August 2020 up 3.29 percent to $39.58 a barrel.
Yesterday, the oil cartel members are still debating when to hold the next meeting from the initial planned on June 9. For now, Russia and several other producers said to support the extension of the current month’ production cuts.
On Tuesday, Indonesian Rupiah gained 2.35 percent to 14,415 per US dollar and the Jakarta Composite Index (JCI) jumped 1.98 percent to 4,847.51 compared to previous day. For today, the analysts expect the strengthening will be quite limited amid many uncertainties resulting from the new normal and fears of unrest in the US.
It said, the market responded positively to the lockdown easing plan to move the wheels of the economy in several countries including Indonesia. They said, the positive catalyst could potentially bring the local currency back to the level of Rp13,000 against the Greenback.
The Rupiah is projected to continue strengthening with a potential support level in the range of 14,300 and resistance level of 14,500 per US dollar. While, the JCI is estimated move in the range 4,900 – 5,000.
Stocks that can be considered today are PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Centra Asia Tbk (IDX: BBCA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Adaro Energy Tbk (IDX: INCO), PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Astra Internasional Tbk (IDX: ASII), PT Semen Indonesia Tbk (IDX: SMGR), PT Adhi Karya Tbk (IDX: ADHI), and PT Medco Energy Tbk (IDX: MEDC).
May you have a profitable Day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia