JAKARTA (TheInsiderStories) – Good Morning! Again, Federal Reserve (Fed) Bank of New York intervened the market with what is called an overnight repurchase-agreement operation via a 14-day repo operation. While, European Central Bank (ECB) left its policy mix unchanged, amid tensions among the top officials over how to respond to the region’ economic slowdown.
At the same day, Bank Indonesia (BIC) sliced its benchmark rate 25 basis points to 5 percent and the Central Bank of Turkey cut its one-week repo rate by 250 basis points, from 16.5 percent to 14 percent. The decisions was above market expectations.
The Banks said the improvement in inflation expectations and mild domestic demand conditions supported the disinflation in core indicators. Turkey’ annual inflation rate dropped to single digits for the first time since July 2017, standing at 9.26 percent in September, according to Turkish Statistical Institute.
From United Kingdom, Prime Minister Boris Johnson says he will give member of parliaments more time to debate Brexit deal if they agree to Dec. 12′ general election. He expected the European Union (EU) to grant an extension to his Oct. 31′ deadline. The EU is expected to give its verdict on extending Brexit today.
In Asia, China aims to buy at least $20 billion of American agricultural products in a year if it signs a partial trade deal between the two countries. The second largest economy also would consider boosting purchases further in future rounds of talks.
Yesterday, Japanese Prime Minister Shinzo Abe and South Korean premier Lee Nak-yon agreed they must work to ease the feud between the two neighbors that has spilled over into trade and security. Lee urged Abe to continue communications, adding “we will make an effort to solve issues that we have different positions on through wisdom.”
From Indonesia, President Joko Widodo will announce the vice minister for his second term to company the appointed ministers. He also scheduled to visit Papua end of this week to inaugurate Holtekamp, the longest bridge in the province.
The bridge was first mega project in Papua during his first term. The bridge, located in Jayapura Bay, part of 4,325 kilometer of Trans Papua road network.
Good news come from FIFA Council Meeting in Shanghai, Indonesia was chosen to host the U20 World Cup soccer championship in 2021. Welcoming this big event, Widodo said, Indonesia prepared ten stadiums, from Bung Karno Stadium in Jakarta, Pakansari Stadium in Bogor to Manahan Stadium in Solo.
On the economic development, BI still optimistic the loan growth still possible to grow 10 – 12 percent until end of 2019. During January – August, the credit rose 8.59 percent, slowed compared to the July, which was recorded at 9.58 percent compared to last year.
On Thursday, finance minister Sri Mulyani Indrawati officially hoisted the cigarette excise tax rate through ministerial decree Number 152 of 2019 concerning Tobacco Product Excise Tariff signed on Oct. 18. The excise and cigarette tariffs varied from 365 to Rp1,790 per stick. The policy will effective starting Jan. 1, 2020.
Indonesian House of Representatives Speaker Puan Maharani will process the fit and proper test national police chief candidate Idham Aziz to replace Tito Karnavian. Widodo has sent a letter requesting approval from the House of regarding the plan to appoint Aziz as the new chief on Oct. 22.
Yesterday, Indonesian Rupiah closed up 0.21 percent to 14,054 over the Greenback and the Jakarta Composite Index (JCI) closed higher 1.31 percent to 6,339.647 compared to yesterday. The effect of the change of Joko Widodo’ ministers are fading among market participants.
Beside, The investors is still waiting for Brexit developments until the end of the month. For today, some analysts rated the local currency move between 14,010 to 14,070 per US dollar and the JCI in the range 6,350 – 6,380.
The stocks to be watch for today are PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Indofood CBK Sukses Makmur Tbk (IDX: ICBP), PT HM Sampoerna Tbk (IDX: HMSP), PT Unilever Indonesia Tbk (IDX: UNVR), PT Bank Tabungan Negara Tbk (IDX: BBTN), PT Timah Tbk (IDX: TINS), PT Medco Energy International Tbk (IDX: MEDC), PT Aneka Tambang Tbk (IDX: ANTM), PT Vale Indonesia Tbk (IDX: INCO), and PT AKR Corporindo Tbk (IDX: AKRA).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia