JAKARTA (TheInsiderStories) — Good morning! Indonesian Rupiah gained strength this week, as the central bank effort to maintain the local exchange rate. While, the Jakarta Composite Index also puffed with good sentiments and closed in green territory at 5,923.93.
Several key data released this week. Bank of Indonesia (BI) has announced the retail sales survey growth dropped in September, as it only grew 4.8 percent in annual basis. While in August, the retail sales index increased 6.1 percent.
Furthermore, the Consumer Confidence Index also slumped to 119.2 bps in October, from 122.4 bps, due the pessimism over Indonesia’s economic growth. Today, BI will release October’s foreign exchange reserve (forex) data.
Meanwhile, Government is accelerating Jakarta Mass Rapid Transit (MRT) phase 2 construction from Hotel Indonesia roundabout to Ancol areas in North Jakarta, starting by the end of this year. Transportation Minister Budi Karya Sumadi said, Balaraja – Cikarang route will also be developed simultaneously.
Until now, MRT phase 1 development—16 kilometers Hotel Indonesia roundabout to Lebak Bulus—has been finished for 97 percent. The first MRT in Indonesia, is expected to operate in March 2019.
Another steps to implemented by the Government is the electricity car regulation will release soon. The industry ministry expect the rules can be settled this year. It will be stipulated in Presidential Regulation. The policy will contain electricity car road map and incentives like super deductible tax to industry players.
Go to global issues, Indonesia encouraged Malaysian government to soon realize biodiesel biodiesel 20 percent (B20) plan. The policy implementation is considered important in increasing crude palm oil demands.
While, amid United States (US) – China trade wars, China Vice President Wang Qishan said that his country is ready to speak with US counterpart to solve trade wars. Moreover, China-US bilateral trade has been tied for 4 decades.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.com