United States' Federal Reserve hold its federal funds rate at 2.25 percent to 2.5 percent in June - Photo by Federal Reserves Office

JAKARTA (TheInsiderStories) – Good morning! Federal Reserve chairman Jerome Powell send a signal to could soon cut federal funds rates (FFR), sending S&P 500 stock index above 3,000 for the first times. Recently the United Central bank maintained its benchmark rate at 2.25 – 2.5 percent.

In the hearing with the United States’ (US) House Financial Services Committee, he promised to “be patient” in adjusting interest rates and hinting at a possible cut rate as much as half a percentage point later this year.

While, the Government and Bank Indonesia ensure the inflation rate for 2019 remains within the target range of 3.5 percent ± 1 percent. In the first semester of 2019. So far, the official said, the inflation was maintained at the level of 3.28 percent in annual basis and 2.05 percent during January to June, or still under control in accordance with the target for 2019.

In China, the government will stabilize trade by reducing tariffs, improving export tax rebate policies and cutting insurance fees for export companies, said premier Li Keqiang. China, he said, will improve the policy tools and roll the measures out at the right time.

Yesterday, President Donald Trump accused Iran of quietly enriching uranium for a long time and said US sanctions would increase “substantially” soon. The US nuclear watchdog held an emergency meeting on Tehran’ violations of the US$150 billion nuclear agreement made by the Obama administration.

Iran has instead said it reacted to harsh US economic sanctions on Tehran since Trump withdrew from the nuclear powers agreement last year, and said all steps could be reversed if Washington returned to an agreement.

While Britain, France, and Germany are considering their next steps, divided between pressure to show their displeasure with Iran’ violations and want to maintain the agreement signed by the signatories in 2015 as vital to prevent a wider war in the Middle East.

From the country, state-owned train developer PT Industri Kereta Api (INKA) will build a 195 kilometer railroad line from Laos to the port area in Vietnam with an investment of Rp9 trillion (US$633.8 million) to support Indonesia’ coal exports to Laos. Its estimating, around 6.5 million tons per year and Laos potassium imports to Indonesia are one million tons per year. This project is expected to be completed within 2.5 years.

Furthermore, Indonesian ride-hailing app GOJEK and Thailand’ largest lender Siam Commercial Bank Plc, are set to announce a strategic partnership on Thursday, the companies said yesterday. GOJEK is saying to have secured an investment from SCB.

In Thailand, GOJEK operates under the name Get and offers GetPay, a wallet function that users can top up through Kasikornbank Pcl and SCB banks’ apps.

Ego Syahrial, the secretary-general of energy and mineral resources ministry, said Indonesia’ proven oil reserves will only support about 12 years of exploitation, because the country had 3.3 billion barrels of proven oil reserves, while estimated production was 800,000 barrels per day.

Furthermore, he said, Indonesia also has a small number of natural gas reserves, which is only 1.53 percent of the world’s total reserves, or 97.5 billion cubic feet. The country’ oil production is currently declining, besides the discovery of new oil wells does not yet exist.

According to the Organization of Petroleum Exporting Countries (OPEC) data, the total world oil production in 2019 averaged 80,622,000 barrels per day. Approximately 68 percent came from the top ten countries, and overlapping 44 percent came from the four current OPEC members.

The top five producers are the United States, Saudi Arabia, Russia, Iraq, and Iran. While Indonesia is in a position to 22 after Columbia and the United Kingdom. Indonesia still relies on global oil by exporting oil for domestic needs.

On Wednesday, the Jakarta Composite Index up 0.35 percent or 22.36 points ot 6,410.68. While, Rupiah against the US dollar closed stagnant in the spot market at the level of 14,125, same as the position of the trading closing the previous day.

US$1: Rp14,200

May you have a profitable day!

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

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