Morning Briefing: Rupiah, JCI, Advance amid Lower Fed Rate Projection

Federal Open Meeting Committee - Photo by Federal Reserves

JAKARTA (TheInsiderStories) — Good morning! The Rupiah upswung by 0.83 percent to 14,408 per US dollar, affected by lower United States’ Federal Reserves (Fed) rate hike prediction. The governor Jerome Powell indicated that the Fed rate increase will be lower than the previous prediction, three times hike of 25 bps each.

 

The sentiment attracted foreign funds to enter emerging markets. Foreign funding recorded Rp690.89 billion ($47.00 million) net buy, higher than the few net purchases in the last several weeks.

 

While, the Jakarta Composite Index rose 1.95 percent. It bounced from below 6,000 to 6,107.168. Several sectors grew by more than two percent, such as basic industry and chemicals, consumer goods, also property, real estate and building construction. The property, real estate, and construction sector led with the highest increase by 2.9 percent.

 

Even so, global uncertainty is still making investors cautious of with the G20 meeting next coming up end of this week. In the meeting, United States President Donald Trump is scheduled to meet China President Xi Jinping to discuss the ongoing trade war between both countries.

 

Then, over the critics from the businessmen, Indonesian President Joko Widodo has committed to removing the medium and small medium enterprises (MSME) sector from the Negative Investment Lists, included in the 16th Economic Policy Package.

 

Furthermore, Indonesia just launched its very first-ever synthetic rubber factory, PT Synthetic Rubber Indonesia. Located in Cilegon, West Java, the plant was a US$ 437 million investment.

 

Synthetic Rubber Indonesia produces poly-butadiene rubber and solution styrene butadiene rubber. The company is owned by Michelin and PT Chandra Asri Petrochemical Tbk (IDX: ASRI), with 55 percent and 45 percent ownership respectively.

 

Yesterday, Indonesian ride-hailing firm GO-JEK has launched a beta version of its app in Singapore. During the beta phase, only rides beginning and ending in the eastern and south-central part of Singapore will be available.

 

It said, priority will be given to cardholders of Singapore’ DBS Bank, GO-JEK’s payment partner. The company has been signing up drivers in recent weeks. Now, the incumbent dominant app in Singapore was Grab.

May you have a profitable day!

US$1: Rp14,700
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.com