JAKARTA (TheInsiderStories) — United Kingdom (UUK) House of Common will have another vote over Brexit, as Premier Theresa May expects for more negotiations to European Union (EU). She has spoken to European Commission President Jean-Claude Juncker about her intention.
There are seven amendments to be voted by the House. If the motions were approved by the House, May could have a greater power to negotiate Brexit divorce deal with the EU. Backstop clause is included in the motion.
In the negotiation, the premier would seek backstop clause replacement with alternative arrangements to avoid a hard border in Ireland. If backstop clause can be scrapped from the agreement, a no-deal Brexit can be prevented.
Previously, backstop clause was the main cause of Brexit proposal rejection by the parliament. According to plan, backstop will be imposed, if UK and EU cannot reach a trade deal in 21 months transition period after officially implemented in March.
Backstop is made to prevent hard border between North Ireland and Ireland. However, there is no clarity about the backstop implementation period. There’s a possibility that backstop can be implemented forever after UK and EU agreed on a trade deal.
UK’ Poundsterling strengthened against US Dollar ahead of this Brexit’ big movement. Meanwhile, Indonesian Rupiah slightly depreciated to 14,098 against Dollar, as US is now having trade talks with Chinese official, in Washington.
The Jakarta Composite Index closed decreasing 0.34 percent to 6,436.48 yesterday, even though there was Rp607.51 billion foreign inflow to the market. All sectors but infrastructure and miscellaneous industries were slumping.
Even though China’ economy is predicted to slowdown more amid the trade war with US, Finance Minister Sri Mulyani Indrawati mentioned that it doesn’t mean that Indonesia’ goods and services demand will be hit. She said, Indonesian government will focus on supporting domestic demand. So far, domestic consumption contributes around 50 percent of the Gross Domestic Product.
Other than that, according to Indrawati, maintaining investment climate is important. Government will keep giving fiscal incentives and simplify procedures to create an attractive investment climate. Not just that, she added that incentives will also be given to boost export.
Furthermore, Indonesia’ Toll Road Management Agency is targeting to auction six toll road projects (to the private sector), most of which are on the island of Java starting from this first quartel (1Q) with a total investment of around Rp 137.74 trillion (US$9.77 billion).
While, Ministry of Marine and Fisheries targeted that Japan’ investment in fisheries sector can reach Rp1 trillion, from the recent Rp500 billion. Japan is now the third biggest country that invests in Indonesia’ fisheries sector.
Indonesian officials have met Japan External Trade Organization. Japan has stated their interests to invest in fisheries logistic, cold chain, trade, and processing.
Moreover, Indonesia asked Japanese government to scrap tariff on Indonesia’ fisheries products, said Minister of Marine and Fisheries Susi Pudjiastuti. Recently, Japan imposes seven percent tariff to Indonesia’s fisheries products. Meanwhile, Thailand and Vietnam get zero export tariff.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please visit our website to get more insight on Indonesia’s economy