Indonesia' economic growth dropped to 2.97 percent of the total Gross Domestic Product (GDP) in the first quarter (1Q) 2020 compared to the same period of last year, the statistic bureau reported today (05/05) - Photo by ADB

JAKARTA (TheInsiderStories) – Good Morning! Today, Statistic Indonesia will announces the gross domestic product (GDP) of the countries in fourth quarter of 2019. In the second quarter of last year, the Southeast Asia largest economy grow 5.02 percent.

Other agenda, several ministers, ceos and experts will speaks at Mandiri Investment Forum 2020 to support the private participation in the investment sector and guard the national’ GDP. The minister of public works and public housing, Basuki Hadimuljono and minister of transportation Budi Karya Sumadi were scheduled to attend a work meeting on the tourist destination with members of the House of Representatives.

Then, other commission meet the director general of electricity at energy and mineral resources ministry, Rida Mulyana. Moreover, PT Bio Farma Tbk will hold a media briefing on the new pharmacy hodling and manufacturer PT Chandra Asri Petrochemical Tbk (IDX: TPIA) hold a shareholders meeting.

Yesterday, President Joko Widodo has instructed his aides to assess the impact of the coronavirus on the Indonesian economy and the trade with China. As reported, the government halt all travel to and from China took effect on Monday and ban the food and beverage products starting today until next two weeks.

Last year, the country imported US$44.5 billion of non-oil and gas products from China, representing almost 30 percent of total import in Indonesia. In addition, 1.9 million Chinese tourists visited Indonesia in 11 months, nearly 13 percent of overall foreign tourist visits.

Until Tuesday, death toll in China was recorded at 490 peoples, an increase of 65 peoples from the previous day. While, deaths outside of China occurred in the Philippines and Hong Kong as many as one person each. Total number of peoples has infected with the virus reached 24,325 people.

From a total, 2,792 of them are in critical condition. On the other hand, the number of patients who were declared cured also increased to 907. This virus has also spread to 27 other countries in Asia and Europe. Japan, Thailand and Singapore, which recorded 33, 25 and 24 cases.

On Tuesday, Bank Indonesia managed to intervene in the bond and money market. The policy has make Rupiah up 0.19 percent to 13,715 a US Dollar and the Jakarta Composite Index (JCI) ended up 0.65 at 5,922.34 compared to prior day. The strengthened of two major instruments also driven by interest rate cuts and stimulus by the People’s Bank of China.

The strengthening also occurred in Asian stock markets, which majority closed trading with green notes. The Nikkei index (+0.49 percent), TOPIX (+0.69 percent), HangSeng (+1.21 percent) and CSI300 (+2.64 percent) rose significantly after experiencing a pessimistic start to the week.

In addition, West Texas Index oil prices rose after a series of selling actions due to fears of falling demand in China which is experiencing a health crisis. Investors are weighing restrictions on Chinese travel and business stoppage along with measures introduced by Beijing to support growth as the Chinese economy hits.

On the other hand, European bourses also opened trading with optimism following the strengthening of Asian stock exchanges. The Eurostoxx index (+1.24 percent), FTSE (+1.36 percent) and DAX (+1.09 percent) experienced an increase above 1 percent. Mining and energy stocks led the jump after several issuers released earnings reports above expectations.

For today, some analysts viewed, the strong sentiment its expected comes from Statistics Indonesia. They predicted that Indonesia’ economic growth will have a negative growth of 1.67 percent quarterly. On an annual basis stood at 5.04 percent and overall grow 5.03 percent in 2019 from a year ago stood at 5.17 percent.

With all various economic data, the local currency its expecting move in the range 13,680 – 13,777 and the stock index between 5,900 to 6,000 compared to yesterday.

The stocks that can be examined for today are TPIA, PT Kimia Farma Tbk (IDX: KAEF), PT Indofarma Tbk (IDX: INAF), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Astra International Tbk (IDX: ASII), PT Semen Indonesia Tbk (IDX: SMGR), PT Indocement Tunggal Perkasa Tbk (IDX: INTP), PT Kalbe Farma Tbk (IDX: KLBF), PT Bank Tabungan Negara Tbk (IDX: BBTN), PT Jasa Marga Tbk (IDX: JSMRO, PT Adaro Energy Tbk (IDX: ADRO), PT Timah Tbk (IDX: TINS), and PT Antam Tbk (IDX: ANTM).

Reuters contributed to this report

May you have a profitable day!

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