The minutes of Federal Open Market Committee show the policymakers preparing to change tact on bond purchasing before begin to raise the target range for the federal funds rate - Photo by Federal Reserves Office

JAKARTA (TheInsiderStories) – Good Morning! The Federal Open Meeting Committee decided to keep the Fed Fund Rate in the range of 0 percent to 0.25 percent. The central bank also promised continue to release stimulus in the form of bond purchases and asset-backed securities over the coming months to restore the economy of the United States (US) from the impact of the pandemic.

As the pandemic continues, governments and central banks in the world continue to redouble their efforts to restore the economy by pouring incentives that have so far reached US$11 trillion. While, the tension between US – China continued after two US military reportedly returned to mainland China. Both aircraft were detected entering the Taiwan Strait and flying near the coasts of Zhejiang and Fujian.

In Asia, Thai government extended the country’ state of emergency for the fourth time until August 31 to reduce the transmission of the virus. The country has not detected new cases of COVID-19 for about two months. Overall, Thailand has reported 3,298 cases and 58 deaths.

In Indonesia, the task force reported that 2,381 more people have tested positive bringing a total of 104,432 confirmed cases and 74 deaths caused the virus. Total deaths now reached 4,975 people. The government is still monitoring other 57,393 suspects.

In the meeting with investor in London, the government encourages British investors to invest in Indonesia’ digital economy given the growing middle class and the country’s e-commerce market. There are 175 million people actively using the internet and 338 million cellular subscriptions in the country, and the digital economy market is projected to surge more than 300 percent.

Then, the government delayed the implementation of green biodiesel followed the virus outbreak. And, Bali will open for local tourists by the end of this month and gradually open for foreign tourists starting early September.

On Wednesday, Indonesian Deposit Insurance Corporation cut the guarantee interest rate for rupiah deposits at commercial banks and rural banks by 25 basis points to 5.25 percent and 7,75 percent, respectively. But, the agency maintained the foreign currency deposits at commercial banks at 1.50 percent. The guarantee interest rate is valid from July 30 to Sept. 30, 2020.

Yesterday, Indonesian Rupiah depreciated 0.06 percent to 14,543 per US Dollar. While, the Jakarta Composite Index closed up 0.04 percent to 5,111 compared to previous day. Today the stock index is estimating move in the range 5,070 – 5,260 and the local currency between 14,500 – 14,550 over the Greenback.

Stocks to be watch for today are PT Gudang Garam Tbk (IDX: GGRM), PT Barito Pacific Timber Tbk (IDX: BRPT), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Central Asia Tbk (IDX: BBCA), PT Unilever Indonesia Tbk (IDX: UNVR), PT Kalbe Farma Tbk (IDX: KLBF), PT Krakatau Steel Tbk (IDX: KRAS), PT Jasa Marga Tbk (IDX: JSMR), PT Bukit Asam Tbk (IDX: PTBA), and PT Ciputra Development Tbk (IDX: CTRA).

May you have a profitable day!

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