Statistic Indonesia will announce the latest trade balance data in September - Photo by Finance Ministry Office

JAKARTA (TheInsiderStories) – Good Morning! Today, Statistic Indonesia will announce the latest trade balance data in September. In August, Indonesia posted a trade surplus of US$85.1 million, swinging from a $940 million gaps in the same month a year earlier, as exports fell 9.99 percent to $14.28 billion and imports dropped at 15.60 percent to $14.20 billion.

Yesterday, the Jakarta Police Chief Gatot Eddy Pramono announced the police had exercised its discretion to not issue any notice for a protest from Oct. 15 – 20 to maintain a “secure condition”, as a number of global state leaders were scheduled to attend President Joko Widodo inauguration. This ban also applies to protests aimed at the House of Representatives.

At the same day, president inaugurated the operation of the Palapa Ring project which became the backbone for equitable access to telecommunications throughout the archipelago. The project, in the form of building an optical cable network connecting all regions of Indonesia, began in 2016 by the government.

It departs from the idea that Indonesia’ digital economic potential is enormous, but is still constrained by the limited access of the public to the digital sector through internet penetration. The project is divided into three work packages, namely the West Palapa Ring Package, the Central Palapa Ring Package, and the East Palapa Ring Package.

From United States (US), President Donald Trump imposed a sanction to Turkey and asked President Tayyip Erdogan to stop its military incursion in Syria. On Monday, said vice president Mike Pence, Trump had told Erdogan in a phone call to an immediate ceasefire. He also said he would travel to the region soon to try to mediate the crisis.

Trump said he had increased tariffs on imports of Turkish steel back up to 50 percent, six months after they were reduced, and would immediately stop negotiations on what he called a US$100 billion trade deal with Turkey.

On Monday, Indonesian Rupiah closed down 0.01 percent to 14,139 per US dollar and the Jakarta Composite Index (JCI) dropped 0.34 percent to 6,126.87 from a prior day. Throughout the year 2019, the stock index has fell 1.09 percent.

Some analysts rated, the strengthening of JCI was supported by the positive reaction of the global stock markets to the expectation of the easing of the trade war between the US and China. Some investors held out hope that Britain still had a chance to avoid a messy exit from the European Union (EU) at key negotiations on Thursday and Friday, that will determine whether or not Britain is headed for no-deal Brexit.

Traders cautioned that sentiment remains fragile because the outcome of Brexit talks is far from certain and the US – China trade war remains a risk to global growth. A perceived lack of progress in resolving a prolonged trade row between the two largest economy in the world weighed on investor confidence.

A number of signs of progress from trade talks between the US and China over the weekend strengthened the Asian stock market, but some investors remained uneasy with the existing damage to the global economy.

On the other hand, data from China underscored the weakening exports and imports in the US dollar which continued to shrink, deeper than expected, in September. Liquidity also decreases with holidays in Japan and partial market holidays in the United States to coincide with Columbus Day.

While, Russia and Saudi Arabia ensured that the agreement to cut global production continues, following global crude oil prices that continue to weaken. Russian Energy Minister Alexander Novak said that there were no ongoing talks to change the global production agreement.

So far, he said, OPEC and non-OPEC oil producing countries have limited production to support prices. In the same place, Saudi Arabian Energy Minister Abdulaziz bin Salman said OPEC + showed a high level of commitment to the current agreement. He also called for concentration on the stability of the oil market rather than price.

For today, the local currency and the stock market waiting for the trade balance data. In this conditions, some analysts estimated the JCI will move in the range of 6,080-6,170.

Shares quite attractive for today are PT Wijaya Karya Tbk (IDX: WIKA), PT Vale Indonesia Tbk (IDX: INCO), PT Bukit Asam Tbk (IDX: PTBA), PT Medco Energy International Tbk (IDX: MEDC), PT Bank Tabungan Negara Tbk (IDX: BBNI), PT HM Sampoerna Tbk (IDX: HMSP), PT Unilever Indonesia Tbk (IDX: UNVR), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Timah Tbk (IDX: TINS), PT Adhi Karya Tbk (IDX: ADHI), and PT Waskita Karya Tbk (IDX: WSKT).

May you have a profitable day!

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