Morning Briefing: Tensions over the Brexit Negotiations

JAKARTA (TheInsiderStories) – Good morning! British’ Prime Minister Theresa May just finished her negotiation with European Union (EU) officials over the Brexit agreement. As the talks went strained, she and European Commission President Jean-Claude Juncker will have another meeting in this month.

It is only 50 days away from United Kingdom (UK) officially leaves EU. Despite near to deadline with unsolved issues, May vowed to still deliver Brexit on time. May expects put a vote on the House of Commons’ table by the end of February.

Previously, Juncker has said that EU will not reopen the previously-agreed UK’s withdrawal agreement. But EU is open for non-binding relationship document to later be voted in UK parliament.

In the meeting, May also spoke about European Council President Donald Tusk’ comments about a “special place in hell” for those who campaigned for no-deal Brexit. May said, Tusk was not helpful and caused criticism in the UK.

As quoted by BBC, Brexit Secretary Steve Barclay and EU negotiator Michel Barnier will hold talks in Strasbourg on Monday (02/11). These talks would cover alternative arrangements for backstop clause about the Irish border.

In the country, Statistic Indonesia released income per capita that reached US$3,927 during 2018, increased from $3,876 last year. By this, Indonesia’ degree raised to upper-middle income country, based on World Bank report.

Coordinating Minister for Economic Affairs Darmin Nasution considered, Indonesia’ income per capita increase is not a guarantee to be a developed country. He added, many South American countries have increasing revenue, but do not categorized as developed countries.

Meanwhile, Indonesia’ struggle to achieve high income country-rank with $12,056 income per capita is still a long way to go. Indonesia must first get out from middle income revenue country before 2045, to prevent middle income trap.

Head of National Development Plan Bambang Brodjonegoro stated that Indonesia needs a stable economic growth above 5.1 percent to reach high-income country.

Followed the agreement with Switzerland, Indonesian Deposit Insurance planned to chase PT Bank Century’s assets with values $161.6 million. According to the agency data, the ex-owner of the bank’ Robert Tantular has bring the assets $156 million to Switzerland and $5.6 million in Hong Kong.

Furthermore, another Lippo Group-related property company aims to be listed in Indonesia Stock Exchange. PT Bliss Properti Indonesia which is known as Blacksteel Construction, will issue 20-30 percent shares through initial public offering.

Lippo’ official has shown its seriousness by doing mini expose to the stocks market authority. Bliss Properti is a shopping mall developer, focuses in east Indonesia and Java island.

Yesterday, Indonesian market looked sluggish. The Jakarta Composite Index closed declining 0.17 percent to 6,536.45, although there was Rp372.83 billion ($26.63 million) foreign net buy. Indonesian Rupiah weakened to 13,978 against US Dollar after days of strengthening.

May you have a profitable day!

US$1: Rp14,000

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to get more on Indonesia’s economy