JAKARTA (TheInsiderStories) – Starting today, Indonesian President Joko Widodo will make a visit to Malaysia and Singapore. The leaders is estimating will discuss various issues around the region, especially on haze problem.
On Monday, Widodo has ordered all government officials not to making strategic decisions until October 2019. As an example State Own ministry has scheduled to overhaul boar of state companies’ management in this month.
Moreover, the Indonesian leader its expecting to sign presidential decree on Indonesian Sustainable Palm Oil (ISPO) and to be published soon. Deputy at the coordinating ministry for economic affairs Musdhalifah Machmud said, the draft law now being harmonized at the Ministry of Law and Human Rights.
Currently, there are 502 ISPO certificates issued with an area of 4.1 million hectares owned by private companies 459 certificates, 34 certificates by state-owned company and nine certificates by cooperatives.
Today, Bank Indonesia will release the Retail Sales Survey and on the next day Balance of Payments (BoP) position in the second quarter of 2019. Last june, the retail sales at 7.7 percent and the BoP surplus of $2.4 billion.
From United States (US), President Donald Trump administration’ designation of China as a currency manipulator has raised the risk of foreign exchange intervention. Senior at People’s Bank of China (PBoC) reassured that Remimbi won’t continue to weaken fell below RMB$7 a dollar for the first time since 2008.
Following the development of US and China trade tension, central banks in emerging Asia its expecting are poised to cut rates, as they bolster their economies against a wave of global uncertainty and to buildup in foreign reserves. Global financial turmoil also raising the question how Bank of Japan to act at their meeting.
In South Korea, the policymakers said on Wednesday they ready to take steps to curb any herd behavior in the market and would consider cutting interest rates again if needed. Bank of Korea Governor Lee Ju-yeol and Finance Minister Hong Nam-Ki said that the authorities were closely monitoring markets after volatility spiked in recent days in the wake of a dramatic escalation in US – China trade war.
In July, Bank of Korea delivered a surprise rate cut as a trade row with Japan added to pressure on the economy already struggling from the broadening fallout of the Sino-U.S. trade dispute.
In Asian market, the selling continued with Shanghai stocks down almost 2 percent to their lowest since February, Hong Kong’ Hang Seng is down more than 1 percent, South Korea’ Kospi lowered 1.5 percent and Japan’ Nikkei dropped 0.7 percent.
The sell-off on Asian stock markets continued today as the PBoC continues to set the midpoint of the Yuan at a weaker level. The central bank set the midpoint at RMB6.9996 over the greenback. The PBOC continued to weaken the yuan when the US Treasury labeled China the nickname “currency manipulator”.
It s suspected that the PBoC stepped is intended as another form of Chinese counterattack against new duties that will be executed by the US early next month. It feared that the move by the Chinese central bank will make the US hotter, which in turn will make it more difficult for the two countries to sign a trade agreement.
On Wednesday, the Jakarta Composite Index bolted 1.38 percent to the level of 6,204. The composite index managed to advance in the green zone when the majority of the major Asian stock exchanges were trapped in the red zone. The triggered is positive news from US -China trade dispute.
In an interview with CNBC, White House Economic Adviser Larry Kudlow said that Trump was still open to signing a trade agreement with China. If the trade agreements can be signed, he believed that there will be flexibility related to import duties on Chinese goods.
For today some analysts recomended to watch PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Astra International Tbk (IDX: ASII), PT Telkom Indonesia Tbk (IDX: TLKM), PT HM Sampoerna Tbk (IDX: HMSP), PT XL Axiata Tbk (IDX: EXCL), PT Mayora Indah Tbk (IDX: MYOR), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), and PT Nippon Indosari Corporindo Tbk (IDX: ROTI) shares.
Yesterday, Indonesian Rupiha strengthened 0.32 percent compared to the position of the previous day. Today the market is expecting keep stronger over the new deputy governor senior of Bank Indonesia Destry Damayanti will apply loose monetary policy.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia