JAKARTA (TheInsiderStories) – Good Morning! United States (US) secretary of commerce Wilbur Ross will meet Indonesian minister today to discuss various economic issues. He will meet two coordinating ministers Airlangga Hartarto and Luhut Binsar Panjaintah this noon.
On US – China trade deal, Ross said that very good progress was being made and he was hopeful that it would be a precursor to a much more robust agreement. A phase one of trade deal between the two largest economy in the world is under discussion and may be signed later this month.
On Tuesday, United Nations reported that the trade war has cut US imports on Chinese goods more than a quarter or US$35 billion in the first half of 2019 and raised prices for American consumers. Both have been fighting in a trade war over the past 16 months despite hopes that an initial agreement will be signed this month.
It said, if the negotiation fails, almost all Chinese imports of goods to the United States worth more than $500 billion can be affected. The report also showed US imports from China that were subject to tariffs fell to $95 billion from the same period last year of $130 billion.
On the commodity issues, the secretary-general of The Organization of the Petroleum Exporting Countries (OPEC), Mohammad Barkindo, said the oil market outlook for next year may have upside potential. He also said all options were open including a deeper cut to oil output amid forecasts of oversupply.
The organization and its allies led by Russia will meet in December. Since January, OPEC+ implemented a deal to cut output by 1.2 million barrels per day until March 2020.
From Indonesia, President Joko Widodo to attendees various meeting with bankers, government official and investors. His speeches its expecting will give more views for the business players.
At the same day, Bank Indonesia will announce the Retail Sales Survey Report in September. Last month the index lowering to 1.1 percent, after a 2.4 percent increase in the previous month.
The retail sales performance was supported by high-growth of group parts and accessories, as well as other household commodity groups such as electronic goods other than audio/video and household furniture.
On the regional election, General Election Commission has received budget Rp9.8 trillion ($700 million) to hold next year’ even in nine provinces and 265 regions. Indonesia will held the simultaneous local elections on Sept. 23, 2020.
Yesterday, Indonesian Rupiah closed up 0.32 percent to 13,969 against the US Dollar, while the Jakarta Composite Index (JCI) strengthened 1.36 percent to 6.264,15 from prior day. For today, some analysts sees, news of an agreement that would end the tariff war has become a positive catalyst for emerging market.
The movement also supported by the central bank’ monetary policy sentiment which is expected to keep interest rates at a record low, 0.75 percent. Beside, the third quarter economic growth of 5.02 percent helped the market confindence.
For today, the observer rated the local currency will move in the range 13,950 – 14,050 over the Greenback and the composited index between 6,150 -6,350.
Stocks to be watch for today are PT HM Sampoerna Tbk (IDX: HMSP), PT Jasa Marga Tbk (IDX: JSMR), PT Indocement Tunggal Perkasa Tbk (IDX: INTP), PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Gudang Garam Tbk (IDX: GGRM), PT Ciputra Development Tbk (IDX: CTRA), PT Wijaya Karya Tbk (IDX: WIKA), PT Astra International Tbk (IDX: ASII), PT PP Tbk (IDX: PTPP), PT AKR Corporindo Tbk (IDX: AKRA), and PT Adaro Energy Tbk (IDX: ADRO).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia