JAKARTA (TheInsiderStories) – Good morning! Twelve peoples were killed in a gun battle with armed separatist rebels in Nduga Distrik in West Papua, where over a dozen construction workers were massacred last year. The military believed the attacked was orchestrated by the Free Papuan Movement (FPM), which claimed responsibility for the December attacked.
The shooting in Nduga district began in December 2018. At that time dozens of workers on the Trans Papua bridge construction project from PT Istaka Karya were killed in a mass shooting claimed by the military wing of the FPM. A member of military personnel was killed in the shooting. For this incident the Trans Papua development project was stopped.
The Indonesian government reacted. A joint Indonesia military and Police team was formed to pursue this rebels group. Some have been detained, but many are still hiding in the forest.
From economic side, foreign ownership in Government Bond kept increasing. According to Directorate General of Financing and Risk Management for Ministry of Finance, State securities owned by foreign investors recorded Rp944.56 trillion (US$67.46 billion).
While, China will make illegal to force technology transfer from foreign investors to their Chinese partners, as United States has been demanding such thing as part of the trade deal. China is expected to pass the new law next week.
Moreover, the country will remove market entry restrictions for foreign investors to ensure that domestic and foreign firms are treated as equals. It is lowering market barriers for foreign firms by allowing to set up ventures in which they have full ownership, instead of being forced into joint ventures with local partners, in more industries.
The efforts taken to help support economic growth, which slowed down last year to its lowest rate in 28 years. Foreign investment has been as one of the six areas that it must stabilize in 2019, along with employment, growth, trade, domestic investment and market expectations.
Foreign direct investment in China amounted to $135 billion in 2018, an increase of 3 percent from a year earlier, according to Chinese government data. But foreign investment into the world’s second biggest economy have slowed over last decade, which could deprive China of access to advanced technologies and marginalize the country in the development of future global supply chains.
Beijing is trying to lure more foreign capital and technology to support its plan to upgrade its manufacturing industries and boost the development of new, hi-tech sectors. Not only that, but China will also roll out more opening-up measures in the agriculture, mining, manufacturing and service sectors, allowing wholly foreign-owned enterprises in more fields.
Furthermore, United Kingdom may delay its due to leave European Union (EU) if House of Commons rejects the proposed Brexit deal in the next vote. If Prime Minister Theresa May’ deal does not get approval, it is likely that the parliament will vote to extend the Article 50 procedure, to not leave the EU without a deal, and where we go thereafter is highly uncertain.
There was also an explicit warning: vote for the prime minister’s deal because otherwise, it’s delay and a soft Brexit. The House is still scheduled to have the next Brexit vote on March 12, only around two weeks before the Brexit implementation. But the negotiations is still continuing with the EU, with expectation that the backstop clause will be solved.
At the meantime, The European Central Bank (ECB) pledges to maintain low interest rate for at least the rest of the year, amid threat of recession. Moreover, ECB would also offer cheap loans for the EU’s troubled banks that need funding. The announcement came as the ECB sharply cut its economic growth forecasts for 2019 from 1.7 percent to 1.1 percent.
On the financial market, Indonesian Rupiah strengthened by 0.12 percent to 14,140. Jakarta Composite Index increased by 0.25 percent to 6,457.95. A huge amount of foreign funding entered the market, amounted Rp4.12 trillion.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia