JAKARTA (TheInsiderStories) – Good Morning! Indonesian students hit the street in days demanding the government and parliament to cancel several laws. While, global heats up again after United States and its neighboring partner give a bad news on their trade deals.
On Monday (09/23), hundreds of scholars from a wide range of campuses in Indonesia marched to protest at the House of Representatives demanding the completion of the country’ reform. This major protest was sparked by the government and parliament’ insistence to amend a number of bills such as Corruption Eradication Commission, Criminal Code, and land bill.
In the meeting between President Joko Widodo and the House of Representatives at the stated, both parties agreed to delay the ratification of the laws such as Land and Criminal Code. But, the Head of States asserted that he will not issue a regulation in lieu of law to annul Corruption Eradication Commission Law that has been amended.
From Papua, Indonesian Police suspect that the riots like the one at Waimena in Papua, could not be separated from the role of Benny Wenda, who now lives in England is the leader of the United Liberation Movement for West Papua.
National Police’ spokesman Brigadier General Dedi Prasetyo claimed that the West Papua National Committee and Papuan Student Alliance also involved. At present, a number of officials of the two organizations are in the legal process related to the riots in the land of Papua.
He also reported, Indonesia’ counterterrorism squad arrested nine suspected militants accused of plotting a suicide bomb attack on police using high-explosive materials. Six people were arrested in Jakarta’ satellite city of Bekasi, two others in northern Jakarta and another in western Jakarta.
The group led by a militant cell leader, Abu Zee Ghurobah, are believed linked to Jemaah Anshorut Daulah, a local militant network affiliated with the Islamic State group.
In United States (US), President Donald Trump questioned the decision of his negotiating team led by Finance Steven Mnuchin, who asked the Chinese delegation to postpone a trip, after two days of talks in Washington. Mnuchin said the trip was delayed to avoid confusion over the talks. China had committed to buy a lot of agricultural products and the US had to send them as soon as possible.
At the same day, Trump also said he would want to know what would result from a third summit with North Korean leader Kim Jong-Un before agreeing to hold it. In the meeting with Trump, on the sidelines of the United Nation General (UN) Assembly meeting, South Korean President Moon Jae-in said he would like to see the two leaders hold a third summit.
Still on trade issues, US – Japan trade deal was stalled at the last minute when Japanese officials sought guarantees that the Trump administration would not charge national security tariffs on Japanese-made cars and parts. Trump and Japanese Prime Minister Shinzo Abe aim to sign a trade agreement at a meeting this week on the sidelines of the UN General Assembly in New York.
So far, Trump has refrained from following up on his threat to impose tariffs of up to 25 percent on Japanese and European imported cars and spare parts in the middle of ongoing trade negotiations with his partner.
On Monday, Indonesian Rupiah closed down 0.21 percent to the level of Rp 14,085 against US dollar. At the same day, the Jakarta Composite Index (JCI) also dropped 0.41 percent to 6,206.20
Analysts rated, that the market was noisy again due to the current conditions of the trade deal. Negative catalysts also come from heating up geopolitical conditions in the Middle East.
This development triggered an increased safe haven demand, such as the US dollar and make risk assets such as Rupiah were abandoned, they said. The student’ demonstrations related to several revisions of the law could add negative sentiment to the market, said the analysts.
Its estimating the local currency and JCI will continue to weaken today (9/24). The Rupiah its expecting will move in the range of 14,000 – 14,150 over the greenback and the stock index possible to touch 6,100 level.
The observers recommended PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT PP Tbk (IDX: PTPP), PT Bank Permata Tbk (IDX: BNLI), PT HM Sampoerna Tbk (IDX: HMSP), PT Telkom Indonesia Tbk (IDX: TLKM), PT Aneka Tambang Tbk (IDX: ANTM), and PT Vale Indonesia Tbk (IDX: INCO) to be watch.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia