JAKARTA (TheInsiderStories) — Good morning! British Prime Minister Theresa May still lead the Conservative party, after won the leadership challenge by winning 200 votes to 117 votes against her yesterday (12/13). But British Exit planned still risky.
To prevent the Brexit plan from being vetoed in the Parliament, May would have to persuade the 117 members of the party who had voted against her. She promising would step down from the leader of the party before the 2022 general elections.
Still impacted by the easing tension between United States and China, most Asian markets closed in green territory. Nikkei increase by 0.99 percent, TOPIX by 0.62 percent, HangSeng by 1.29 percent, and Shanghai 1.55 percent.
Whilst, Jakarta Composite Index rose by 1.01 percent to 6,177.72 with foreign net buys at Rp686.44 billion (US$47.34 million). The Rupiah also strengthened by 0.28 percent to 14,536 against US dollar, continuing its uptrend in the last few days.
Indonesia’s current account deficit (CAD) received attention from the World Bank. In September, the CAD recorded at $8.8 billion or equal to 3.37 percent of gross domestic product (GDP).
To manage the issue, the World Bank suggested that Indonesia increase it’s foreign direct investment (FDI) and exports. It recognized that Indonesia has limited FDI and slow export growth.
According to Fund calculations, the contribution of FDI to GDP stands at only 1.7 percent and needs to be filled with portfolio inflow to adjust the balance of payments.The current situation, however, shows portfolio inflows decreasing from external factors, the Rupiah is prone to depreciation and bond yields tend to increase.
Moreover, Transportation Ministry invites foreign investors to invest in Indonesia’s three port hubs, Tanjung Priok in the capital city, Patimban in West Java Province, and Kuala Tanjung in North Sumatera Province. The Government also pledged to ease permit, security, and investment assurance to attract foreign investors.
The ports of Tanjung Priok, Patimban, and Kuala Tanjung will be doors for commodity export and import. Tanjung Priok is Indonesia’s largest and busiest port, while Patimban will focus on cars and motorcycle foreign trade, and Kuala Tanjung is considered a strategic location to connect with Malaysia and Singapore.
The government encouraged Indonesia’s unicorns—big valuation start-up companies—to be listed in the stock market. Unicorn has valuation in a range of $1 billion to $10 billion. There are six unicorns in Indonesia, such as GO-JEK, Traveloka, Tokopedia, and Bukalapak.
According to Industry Ministry, Indonesia’s digital industry revenue potency is projected to reach $150 billion in 2025. The rapidly growing digital industry can also create employment for 17 million people.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.co