Indonesia's Forex Reserves US$123B in February
Bank Indonesia Headquarters at Central Jakarta - Photo: Special

JAKARTA (TheInsiderStories) – Good morning! This afternoon, board of governors Bank Indonesia (BI) will announce their monetary policy stance. Last July the central bank has cut the BI-7DRR to 5.75 percent after hold the rate for two years.

While, United States (US) Federal Reserves (Fed) in their meeting notes in July 30 – 31, saw a couple of policymakers voiced their preference to make a 50 basis point rate rate cut in July to address the low inflation. But several policymakers favored maintaining the same target range at July meeting.

Based on US’ government data, the country had 501,000 fewer jobs in March 2019 than previously reported, suggesting that hiring was not as strong in the past year as it seemed. Then, President Donald Trump has spent days arguing that recession fears are a media construct meant to take him down.

Rather than play off the idea of a downturn, Trump leaned into it — and even suggested that a short-term recession might simply be the cost of waging his much-needed trade war with China.

From Europe, German Chancellor Angela Merkel said she would discuss how to make sure Britain’ divorce from the European Union (EU) is as smooth as possible when she holds talks later on Wednesday with British Prime Minister Boris Johnson.

Brussels poured cold water on Johnson’ suggestion in a letter to European Council President Donald Tusk that the controversial Irish border backstop proposal should be dropped by the EU as part of a Brexit deal.

He tweeted that “the backstop is an insurance to avoid a hard border on the island of Ireland unless and until an alternative is found. Those against the backstop and not proposing realistic alternatives in fact support reestablishing a border. Even if they do not admit it.”

From Asia, Iranian President Hassan Rouhani after meet Supreme Leader Ayatollah Ali Khamenei, said that the sanctioned on oil exports are brought down to zero. He rated, unilateral pressure against Iran can’t be to some global leaders advantage and won’t guarantee their security in the region and the world.

In the three-way talks with South Korea and Japan, Chinese Foreign Minister Wang Yi said the North Asian countries agreed to work together to support free trade and maintain regional growth. The countries reaffirmed their commitment to creating a free-trade zone between them and complete negotiations by the end of the year on the 16-nation Asian trade pact known as the Regional Comprehensive Economic Partnership, he adds.

The three neighbors face rising economic anxiety as Trump upends the US’ traditional role as a defender of a free trade system that has supported the rapid growth of their export-dependent economies. China has moved over the past couple of years to quiet security disputes with Japan and South Korea that disrupted economic ties.

On Wednesday, the Jakarta Composite Index fell 0.68 percent to 6,252 compared to prior day. A total of 147 shares went up, 249 shares went down and 148 shares didn’t change. Total foreign investor sales reached Rp609.22 billion (US$42.90 million) in all markets.

At the same day, Indonesian Rupiah weakened 0.21 percent to Rp14,268 over the US Dollar. For today, BI and Fed decisions on their monetary stance its expecting give fresh air to the market.

The observers sees the composite index will move in the range 6,190.52 to 6,381.54. Some stock to be considered by investors are PT Adhi Karya Tbk (IDX: ADHI), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Rakyat Indonesia Tbk (IX: BBRI), PT Blue Bird Tbk (IDX: BIRD), PT HM Sampoerna Tbk (IDX: HMSP), PT Medco Energy International Tbk (IDX: MEDC).

May you have a profitable day!

US$1: Rp14,200

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