Two President and VP Candidates for 2019 General Election - Photo by President Office

JAKARTA (TheInsiderStories) – Good Morning. The two presidential hopefuls, incumbent Joko Widodo and challenger Prabowo Subianto, have outlined their campaign manifesto for the 2019 Presidential Election.

The Widodo’s camp opened the campaign manifesto with aspirations to make ‘a developed, sovereign and independent Indonesia with strong identity and based on mutual cooperation’.

From the other side, the Subianto’s camp aspires to make Indonesia “equitable, prosperous and with dignity, religious, politically independent, economically self-reliant, carries strong national identity which ensures harmonious living among people of different tribes, religions, social backgrounds and races.

The manifesto is attached with objectives to court a specific set of voters.

The Widodo’s camp, with strong supports from the urban middle-class, aspires to improve the quality of human resources, address corruption in governance and legal system as well as ensures sustainable environment.

Subianto’s camp, due to its strong supports from Islamist groups, specifically mentions ‘religious’ and invoked strong resources nationalism sentiments by attaching the article 33 of the Constitution in its campaign manifesto. The opposition also pays special attention on the issue of defense and security.

The General Election Commission will allow both camps to revise the campaign manifesto until the first Presidential debate takes place, schedule of which has not been fixed. The Commission will hold five Presidential debates, according to the plan.

Meanwhile, the financial market was under pressures as investors turn risk-averse due to the Federal Reserve Federal Open Market Committee meeting which started today. The Rupiah weakened to 14,893 per US$1 from 14,865 per US$1. While, he Jakarta Composite Index fell 0.1 per cent to 5,874 with foreign investors net bought equity worth Rp20 billion.

Market had expected the world’s most influential central bank to raise its Fed Fund Rate by 25 bps to 2.00 to 2.25 per cent range in the meeting. Furthermore, another 25-bps hike is also expected in the next meeting schedule in December.

Still, market participants are waiting for remarks by Fed chair Jerome Powell, which could deliver a hawkish statements and reinforced the case that an accelerating path toward monetary tightening is on the table

The latest report on Indonesia’s international investment position by Bank Indonesia (BI) showed the depth of capital outflow from the domestic financial market. Portfolio investment by foreign investors fell to US$249 billion by end of June from $265 billion by end of March and US$270 billion at end of 2017.

The positive news is that most of the drop came from equity while foreign investors’ holding on government debts was relatively stable. Foreign investors’ equity portfolio fell to US$91 billion by end of June from US$105 billion by end of March.

After the Fed’s meeting, BI is schedule to hold its monetary policy meeting. Market consensus showed that BI is expected to deliver a 25 bps hike while some forecast a more aggressive move of 50 bps hike, according to a report by CNBC Indonesia.

BI is on a tightening cycle and had delivered four rate hikes so far this year, setting the reference seven-day reverse repurchase rate at 5.50 per cent.

May you have a profitable day.

Written by TIS Intelligence Team