Chinese VP Liu He arrives in Washington to conclude a phase one trade agreement with the US - Photo by CGTN

JAKARTA (TheInsiderStories) – Good Morning! United States (US) President Donald Trump is slated to sign the phase one trade deal with Chinese Vice Premier Liu He today. But, according to treasury secretary, Steven Mnuchin, Washington will maintain tariffs on Chinese goods until the completion of a second phase of the agreement.

The signing occurs a week before the US Senate is due to begin its impeachment trial of Trump. The world’ two largest economies have spent nearly two years embroiled in a bitter trade dispute that imposed tit-for-tat levies on each other’s commodities, mechanical parts and finished goods.

Today, Statistic Indonesia will release the export import data of the country during 2019. Last November, the trade deficit declined to US$1.33 billion after a surprise of $161.3 million surpluses in the prior month and from $2.05 billion in the same month a year earlier. Export fell to $14.01 billion and import went on $15.34 billion.

At the same day, President Joko Widodo will lead limited meeting on Omnibus Law for Employment Right and Taxation. While, the coordinating minister for politics, law and human rights, Mahfud MD, has scheduled to visit Natuna Island.

Then, ministry of finance will Inaugurate the Joint Export Office and launch the INSWMobile Application. In addition, SKKMigas to launches a one door service policy witnessed by energy and mineral resources minister, Arifin Tasrief.

On Tuesday, finance ministry has issues five series SUKUK with total amount Rp7 trillion (US$500 million) from the total demands worth of Rp59.14 trillion. The funds use for deficit financing of 2020 State Budget. 

The movement of the Indonesian Rupiah against US Dollar is projected to strengthen supported by market optimism that the first phase of the US and China trade war negotiations will end peacefully.

Yesterday, the local currency edged down 0.05 percent to 13,680 and the middle rate of Bank Indonesia strengthened to 13,654 compared to American Dollar. While, the Jakarta Composite Index closed up 0.46 percent to 6,325,40 from previous day/

The analysts rated, the prospect of a trade war between the US and China become a positive sentiment to the market. In addition, the Shino’ export and import performance throughout December was quite positive.

On the other hand, softening British’ economic data also helped the investors expectations that the Bank of England will cut its benchmark rate in the near future. From domestic, the trade balance data is expecting also give other stimulus to the market.

Based on various data, the local currency its expecting move in the range 13,650 to 13,710 per US Dollar. And the stock index between 6,274.29 – 6,305.05.

Stocks to be watch for today are PT Astra International Tbk (IDX: ASII), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT CIMB Niaga Tbk (IDX: BNGA), PT Aneka Tambang Tbk (IDX: ANTM), PT Elnusa Tbk (IDX: ELSA), PT Vale Indonesia Tbk (IDX: INCO), PT Panin Life Tbk (IDX: PNLF), PT Chandra Asri Petrochemical Tbk (IDX: TPIA), PT Barito Pacific Timber Tbk (IDX: BRPT), PT Unilever Indonesia Tbk (IDX: UNVR), and PT Wijaya Karya Bangunan Gedung (IDX: WEGE).

US$1: Rp14,000

May you have a profitable day!

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