Indonesian Digital Banking will Grow Rapidly in Coming Years

JAKARTA (TheInsiderStories) – Most of financial market in the world plummeted after China struck back United States (US) President Donald Trump’ threatened to impose another 10 percent tariffs for US$300 Chinese goods on September. Demand for haven assets spiked on concern the conflict between the world’ two biggest economies will weigh on global growth.

On Monday (08/05), the Jakarta Composite Index fell by 2.59 percent to 6,175.7 points while Indonesian Rupiah dropped 0.35 percent to 14,300 against the Greenback. At Indonesia Stock Exchange, foreign investors sold off shares with a total amount of Rp1.1 trillion (US$76.92 million).

During the day, Asian indices like Japan’ Nikkei, Hong Kong’ Hang Seng and Singapore’ Strait Times Index also fell deeper into the red throughout the day. The S&P 500 Index continued its drop about 5 percent, while the Dow Jones Industrial Average plunged almost 500 points.

The 10-year Treasury yield tumbled to as low as 1.74 percent, approaching the level it fell to the day after Trump’ 2016 election. While, China’ yuan sank beyond 7 a dollar. The Japanese yen rallied while gold made a run toward $1,500 an ounce. Bitcoin traded near $11,800 and oil price slid to near $55 a barrel in New York Stock Exhange.

While, Trump rated that the Yuan slide as a ‘currency manipulation”’ and urged the Federal Reserve (Fed) to counter the Chinese action. Then, the European Union rated that Britain premier Boris Johnson has no intention of renegotiating the withdrawal agreement a no-deal Brexit as his “central scenario”.

In Indonesia, Finance minister Sri Mulyani Indrawati still optimistic that economy of the country could ended at 5.2 percent in this year even until end of June the growth only 5.05 percent. So far, President Joko Widodo said that the State Budget only contributed 14.5 percent of Indonesia’ gross domestic products (GDP). Statistic Indonesia reported until June, 2019, the amount of GDP reached Rp3,963.5 trillion.

He also sees, in 2020 the global economy is still fraught with uncertainty. Therefore, he hoped the state budget in 2020 should be able to describe the strength and durability of national economy in the face of external shocks. Simultaneously, he said, can show the direction of the Indonesian economy.

From Asia, Malaysia is confident it can reach an agreement with China to settle tensions in the South China Sea after its neighbors warned that incidents in the disputed waters had “eroded trust.” The country is “very hopeful” that a code of conduct for the area will be completed within the three-year deadline or earlier.

As trade tensions between the two largest economy escalated, Malaysia was concerned that possible sanctions against the nation could prevent it from trading with China. Vietnam is a cautionary tale, with the US imposing duties on steel imports from the country in July.

Yesterday, South Korea announced to invest about 7.8 trillion won ($6.48 billion) in research and development for local materials, parts and equipment over the next seven years in an effort to cut the reliance on Japanese imports. The move comes after its neighbor dropped the country from its “white list” with fast-track export status, intensifying a row over wartime forced laborers.

In July, Japan tightened controls on the export of materials used to make chips, South Korea’ top export item, which threatened to disrupt global semiconductor supplies used by tech giants such as Apple and Huawei.

For today’ trading some analyst recommended PT Astra International Tbk (IDX: ASII), PT Telkom Indonesia Tbk (IDX: TLKM), PT Adaro Energy Tbk (IDX: ADRO), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Central Asia Tbk, PT Perusahaan Gas Negara (IDX: PGAS), PT Gudang Garam Tbk (IDX: GGRM), and PT Kalbe Farma Tbk (IDX: KBLF).

US$1 =Rp14,300

May you have a profitable day!

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