Today, Statistic Indonesia announces the latest inflation rate in March - Photo by Finance Ministry Office

JAKARTA (TheInsiderStories) – Good Morning! Today, Statistic Indonesia announces the latest inflation rate in March. Last month the inflation stood 0.28 percent compared to January, year to date was 0.66 percent, and annual inflation landed at 2.98 percent from 2019.

At the same day, President Joko Widodo has agenda to inaugurates Galang hospital for coronavirus patients in Batam Island. While, financial system stability policy forum will give an update on the Presidential Decree Number 1 of 2020 concerning state budget policy and financial system stability for handling COVID-19.

From United States (US), the Federal Reserve (Fed) announced the establishment of a temporary repurchase agreement facility for foreign and international monetary authorities (FIMA) to support the smooth functioning of financial markets, including the treasury market and maintain the supply of credit to households and businesses.

The repo facility will allow FIMA account holders, which consist of central banks and other international monetary authorities with accounts at the Fed Bank of New York, to enter into repurchase agreements with the US’ central bank. In these transactions, FIMA account holders temporarily exchange their treasury securities held with the Fed for US dollars.

While, President Donald Trump prepared Phase 4 policy package called Infrastructure Bill. He shouted, “It should be VERY BIG & BOLD, Two Trillion Dollars, and be focused solely on jobs and rebuilding the once great infrastructure of our Country!”

In Asia, the surge in purchasing managers index (PMI) shows China‘ manufacturing industry has risen after being hit by the coronavirus. The world second largest economy‘ official manufacturing index rose to 52 in March from previous month at 35.7. 

Not only manufacturing, service sector PMI also skyrocketed from 29.8 to 52.3. This further confirms that economic activity in Chine has recovered.

In the commodity market, West Texas Index futures were up 1.05 percent to US$20.48 barrel as the market high hopes on the US’ fiscal stimulus. American Petroleum Institute reported US’ crude inventories rose by 10.48 million barrels last week, while the EIA numbers will announces today.

The market has high hopes for fiscal stimulus again, especially in the US. One of the programs in the stimulus is assistance for the development of the corona virus vaccine.

The administration Trump through a fiscal stimulus package worth $2.2 trillion is trying to speed up the discovery of the corona vaccine. The government provides funding for pharmaceutical companies in the US to increase their productivity.

US government will pour $421 billion to assist Johnson & Johnson in building new production facilities that require an investment of $1 billion. The facility is targeted to produce 1 billion doses of the COVID-19 vaccine.

Internally, President widodo issued a policy of large-scale social restrictions and the status of public health emergencies to tackle the virus outbreak in Indonesia. The policy was taken after establishing COVID-19 as a type of disease and risk factors that cause community emergencies.

In this status, the head of state said that the minister of health would coordinate with COVID-19 task force chief Doni Monardo and regional heads. The legal basis is Law Number 6 of 2018 concerning Health Quarantine. Its expecting the harmonization policies could overcome the coronavirus spread.

On Tuesday, Indonesia Rupiah rebound against the US dollar and ended up 0.17 percent to the level of 16,310 despite the falling JISDOR by 0.19 percent from the previous position at 16,336. While, the Jakarta Composite Index (JCI) closed up 2.82 percent to 4,538.93 compared to prior day.

For today, the analysts rated that the local currency is likely to strengthen again at the level of 16,250 – 16,400 over the Greenback and the index has a chance to strengthen in the range of 4,500 – 4,750.

Today’ recommended shares are PT Bank Central Asia Tbk (IDX: BBCA), PT Indosat Tbk (IDX: ISAT), PT Semen Indonesia Tbk (IDX: SMGR), PT Erajaya Swasembada Tbk (IDX: ERAA), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Jasa Marga Tbk (IDX: JSMR), and PT Lippo Karawaci Tbk (IDX: LPKR).

May you have a profitable day!

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