United States' Federal Reserve hold its federal funds rate at 2.25 percent to 2.5 percent in June - Photo by Federal Reserves Office

JAKARTA (TheInsiderStories) – Good morning! Prime minister of Italy, Giuseppe stepped down in the culmination of a political crisis that was sparked since earlier this month. During his speech at the parliament, he blamed minister for domestic affairs, Matteo Salvini, sinking the ruling coalition and endangering the economy for personal and political gain.

He also accused the head of the League party of seeking to cash in on his rising popularity. Soon after Salvini resigned, the head of state to start formal consultations with parties to see if a new coalition can be formed. One option would be for the Five Star Movement to form a new alliance with the centre-Left Democratic Party.

In United States (US), Federal Reserves (Fed) will announce its monetary stance after cut the rate 25 basis points. President Donald Trump has shouted the American central bank should cut the Fed Fund Rate 1.0 percent.

At the same day, board governor of Bank Indonesia (BI) will start the two-days meeting before announce the result tomorrow. Last month the central bank has lowered BI-7DRR rate to 5.75 percent and its expecting will hold the rate amid the market vulnerability.

From global side, US’ Secretary of State Mike Pompeo noted, America has removed nearly 2.7 million barrels of Iranian oil from global markets by reimposing sanctions on all purchases of the country. Washington reimposed sanctions on Iran’ regime in November after pulling out of a 2015 nuclear accord between Tehran and six world powers.

Yesterday, Indonesian government signed an agreement with Africa in infrastructure and transportation projects with worth of US$822 million. Among them are PT Wijaya Karya Tbk (IDX: WIKA), PT Waskita Karya Tbk (IDX: WSKT, PT Kimia Farma Tbk (IDX: KAEF), PT Bio Farma, PT INKA, PT Len Industri, and PT Kereta Api Indonesia.

In July, total car sales in Indonesia rose 50 percent from 59,539 units in June to 89,110 units but dropped significantly compared to July 2018 sold 07,474 units. During January to July the manufactures has sold 570,331 units from this year target’ 1.1 million unit.

Sales of the market leader in Indonesia, PT Astra International Tbk (IDX: ASII) recorded 44,357 units, an increase of 67.13 percent compared to June 2019 sold 26,539 units.

Indonesian authority sent hundred of polices, curbs internet speed amit riots in Papua and West Papua. On Tuesday, violent unrest with gunshots has been reported from Sorong in West Papua, while protests over racism also occurred in other cities such as Merauke, FakFak and Biak to protest racial abuse and violence against Papuan students in several cities of Java over the Independence Day last weekend.

On Tuesday, Ministry of Finance issued State Sharia bond worth of Rp8 trillion (US$563.38 million). The amount is on target even the market volatile. In its announcement, the ministry said the demand still high Rp18.05 trillion.

Yesterday, Indonesian Rupiah closed up 0.18 percent to 14,255 against the Greenback while the Jakarta Composite Index slightly dropped to 6,295.74 from previous day.

For today, the composite index is estimated will move in the range 6,123 to 6,327 with stock to be watch PT Astra International Tbk (IDX: ASII), Waskita Karya, Wijaya Karya, PT Telkom Indonesia Tbk (IDX: TLKM), PT Indosat Ooredoo Tbk (ISAT), PT Jasa Marga Tbk (IDX: JSMR), and PT Pakuwon Jati Tbk (IDX: PWON).

May you have a profitable day!

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