Finance Minister Sri Mulyani Indrawati said Government will Review Import Tax After Get Protest from the Importers - Photo by MoF Office

JAKARTA (TheInsiderStories) – Good morning! Ministry of Finance (MoF) reported in the firs half (1H) of 2019, Indonesia’ 2019 State Budget deficit worth of Rp136 trillion (US$9.7 billion), rose 22.5 percent from the same period in 2018 at Rp111 trillion. Is equivalent 0.84 percent of gross domestic products, higher than the same period last year of 0.75 percent.

While, in the midst of the widening deficit, the government remains optimistic and predicted economic growth in the 2H of 2019 to be 5.2 percent, higher than the 1H at 5.1 percent. This figure is lower than the 2019 State Budget target of 5.3 percent.

To rise oil production, the government has delivered the Masela Block‘ Plan of Development (PoD) to Japan’ Inpex Corp., and British oil producer Shell. The development of the oil block is estimated need costs $19.8 billion, and began operating stagesly from 2027-2055. With the agreement, Inpex and Shell obtained 27 years of a contract extension until 2055.

In addition, Indonesia noted the value of coal exports in January-June 2019 fell by 4.98 percent to $11.22 billion, compared to the same period last year of $11.81 million. The fall in selling prices due to excessive supply is said as a trigger for the declining.

GAIKINDO reported, in June total national car sales dropped 29.24 percent to 59,539 units from a mont ago 84,146 units. In the 1H of 2019 total car sales 481,577 units of this year targets around 1.1 million units. One of the country’ large producer, PT Astra International Tbk (IDX: ASII) car sales also decreased by 7.4 percent, or only 326,182 units from the same period of 2018 sold 352,210 units.

Today, Prabowo Subianto said he would discuss his steps with the Gerindra Party and other coalition parties after met Joko Widodo last week. The condition is no longer the return of leader of Front Pembela Islam Habib Rizieq, but join with Widodo’ coalition or stay as an “outsider”, who remains responsible, democratic, polite, ethical, and loyal and objective towards government work.

From abroad, Managing Director of International Monetary Fund (IMF) Christine Lagarde has send her resignation letter to board of the Fund on Sept. 12, 2019. Currently, Lagarde one of the strong candidates for the President of the European Central Bank. In the interim period, the Executive Board has chosen David Lipton as acting managing director of IMF.

In the United States, President Donald Trump insisted that he could impose additional tariffs on Chinese goods if he wanted, after pledging to postpone more duties in the war ceasefire he reached with Xi Jinping last month.

However, China on Tuesday rejected Trump’ suggestion that Beijing needed a trade agreement with the US because its economy was slowing down, saying this was “totally misleading” and that the two countries wanted a deal. This week, US negotiators were expected to hold more talks with China, and both of them could travel to Beijing for a meeting if productive telephone discussions.

On the Korean peninsula issues, North Korea warned that upcoming US – South Korea military exercises could endanger new talks, saying that President Trump promised to postpone such training during his last meeting with Kim Jong Un.

But US and South Korean military leaders say such training is needed to maintain combat readiness, North Korea has long criticized them as “preparations for the invasion” of territory and driving slices between its allies in Japan and South Korea.

On Tuesday, the Jakarta Composite Index fell 16.35 points or 0.25 percent to 6,401.88 because influenced by profit-taking action. In the spot market, Indonesian Rupiah also closed down 15 points or 0.11 percent to the level of Rp13,935 against the US dollar.

For today, investors are still awaiting a decision on the Bank Indonesia interest rate policy, which will be decided at the governor council meeting held from today to Thursday. While, the compsite index is estimating move in the range 6,302 – 6,488.

The stocks to be watch PT HM Sampoerna Tbk (IDX: HMSP), PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Central Asia (IDX: BBCA), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Mayora Indonesia Tbk (IDX: MYOR), and PT Jasa Marga Tbk (IDX: JSMR)

US$1: Rp14,000

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia

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