JAKARTA (TheInsiderStories) — Happy new year! After the turmoil in 2018, year 2019 is predicted to have some continuous uncertainties. Indonesia will face presidential election in October. While United States and China trade tension hasn’t ended yet.
In 2018, Indonesian Rupiah depreciated by 5.7 percent to 14,481 against US Dollar. While, Bank Indonesia (BI) announced the Jakarta Interbank Spot Dollar Rate at Rp14,385. The Jakarta Composite Index closed at 6,194.49, fell 2.54 percent compared to the previous year.
Global market also experienced the same pattern. United States (US), the maker of world’s economy turmoil, didn’t come up well itself. S&P 500 fell by 6.2 percent, but its monthly flow slumped by 9.2 percent, worst record in the last eight decades. Dow Jones Industrial Average and Nasdaq Composite dropped respectively at 5.6 percent and 3.9 percent.
US President Donald Trump told Fox News Channel that he would negotiate to end government partial shutdown, but also insisted the border security. Trump purposely shutting down the government due to dispute with Democrats over US$5 billion border wall. The proposal has been ongoing since Dec. 22, 2018, is the third time during Trump’s ruling.
Furthermore, North Korea supreme leader Kim Jong Un warned Trump to relax economic sanctions. If not, Kim said, the country would take another way to maintain the country’s interests and peace.
He also stated that willing to meet Trump again to have denuclearisation talks. Moreover, Kim mentioned about strengthening ties with South Korea.
Ahead of this week, Statistic Indonesia will announce 2018 inflation rate. Previously, BI projected that last year’s inflation would be at 3.07 percent. This is below the central bank’s initial prediction at 3.02 percent, and the state budget target at 3.5 percent.
In the region, Japan, Singapore and several European countries also will release manufacturing Purchasing Managers Index data, which is estimated to remain stagnant. US will also publish the same data, then to be followed with jobless claims report.
Then, Chairman of Federal Reserves Jerome Powell will meet the former chairs Janet Yellen and Ben Bernanke in American Economic Association annual meeting. Market will eye Powell remarks, on Friday (01/04), which is expected to give hints about US future 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