JAKARTA (TheInsiderStories) – Good morning. Both political camps dug grounds and stuck to their own narratives in presenting their case to court voters in the next general and president election.
The opposition camp, which has made a political blunder due to its blind faith on criticisms against the government, continued their attack on the lack of economic progress experienced by the common people.
Prabowo Subianto, the opposition’s presidential candidate, said 99 percent of Indonesians are living on the edge. Subianto was not entirely mistaken as he cited a World Bank report that Indonesia’s richest 1 per cent controls more than half of 50 per cent of the nation’s wealth.
However, it was the way that Subianto presented the data and used an angle that serves his political purpose. His criticisms came after the incumbent candidate, President Joko Widodo, made a call to abandon the politics of lies, a thinly-veiled attack on the opposition.
The opposition seem desperate to use any available tools on its criticisms as it faces an uphill battle against the ruling coalition. Lingkaran Survey Indonesia Denny JA, a pollster, said the ruling coalition may secure 60 percent of the vote due to its favorable political momentum, media supports and strong financial backing.
Amid the political tension, yesterday, president Widodo met with Saudi Foreign Ministers and expressed concerns on the death of journalist Jamal Khasshoggi, which has triggered a geopolitical tension in the middle east.
Despite the ongoing tension, the domestic financial market was relatively quiet. The Jakarta Composite Index gained 0.1 per cent at 5,840 with foreign investors net sold equity worth Rp64.5 billion (US$4.45 billion). The Rupiah strengthened to 15,192 per US$1 from 15,221 per US$1.
Market investors would largely stay on the sideline awaiting the outcome of Bank Indonesia’s monetary policy meeting which starts today. Market has expected the central bank will stand pat on its reference seven-day reverse repurchase rate after five hikes so far this year.
Sentiments on the stock market are mixed as investors are anticipating for the release of corporate earnings for the nine month period.
The government’s debt auction will also be on investors’ agenda. The government aimed to raise as much as Rp20 trillion from auction of bond benchmark series and treasury bills.
So far, demand on the debt auction remains robust and the government always raised the maximum amount of proceeds.
From overseas, investors are closely monitoring the development in Italy after the European nation was downgraded by Moody’s Investors Service. As the fourth-largest economy in the eurozone, Italy’s economic issues would raise questions on the future of the European Union, which its stalemate on negotiation a British exit from the grouping also a cause for a global concern.
Oil prices started to see some downside momentum as investors are weighing on between the tight supply condition due to US economic sanctions on Iran and also the slowdown on economic growth.
May you have a profitable day.
Written by TIS Intelligence Team