JAKARTA (TheInsiderStories) – Good Morning! United States (US) and China maintained an effective communication and planned to have a meeting in Washington DC next month, said commerce ministry’ spokesperson Gao Feng, yesterday.
The Chinese ministry made it clear message they are keen to strike a deal, but at the same time they will not be pushed around. Beijing admitted that further trade tensions will be harmful to everyone and foreign firms operating in China won’t come under pressure. At the same time, the country is willing to flex its financial muscles to inflict pain on the US should it see fit.
Still from China, on Thursday, Chinese President Xi Jinping met with Philippine President Rodrigo Duterte in Beijing. Xi said he is willing to work with Duterte to grasp the trend a strategic and long-term perspective, to lead the sound development of bilateral ties. Duterte is on a visit to China from Aug. 28 to Sept. 1 on Xi’ invitation.
The political mood in Italy has lightened, as there is a possibility the Five Star Movement and the Democratic Party might form a government and in turn avoid a political crisis in the near-term. Markets like stability and the possibility of a government being formed is boosting sentiment.
Yesterday, Italian President Sergio Mattarella formally gave Giuseppe Conte a mandate to form a new government. Conte, who became prime minister on June 1, 2018, announced on Aug. 20 that he planned to hand in his resignation to Mattarella.
From Indonesia, a peaceful protest led by the field coordinator and chairperson of the West Papua National Committee in the Deiyai Regency , Stevanus Pigai turned to be in anarchy. Initially, the demonstration run peacefully but an hour later the situation changed after thousands of people shouting “Free Papua”, hoisting Morning Star Flag and attacking with arrows, machetes and stones.
The apparatus said, the masses acted brutally and blindly throwing stones and shooting with arrows at the security forces and the Regent’ office and caused one military personnel died due to the wounds of arrows, stabbing and stones, and five other personnel were injured (two army and three police) because of arrows and stones. While from the protesters, two badly wounded, one from an arrow shot and one from a gunshot on the leg.
Indonesian government has relaxed the requirement for international tourists to claim a value added tax (VAT) for refund of goods purchased in Indonesia. The steeped is aiming to boost tourism in the country and encouraging small and medium enterprises to join the tax refund program.
Based on a finance ministerial regulation issued on Aug. 23, tourists allows to request a VAT refund using multiple receipts of purchase with a minimum cumulative amount of Rp500,000 (US$35.21).
While, state-owned cement producer, PT Semen Indonesia Tbk (IDX: SMGR) through its subsidiary PT Mitra Kiara Indonesia started construction of a mortar plant with a capacity of 375 thousand tons per year in Narogong, West Java. The unit is part of the company to do business in the downstream cement industry, which is expected to increase the competitiveness of the Company and capture opportunities for the growth of the downstream cement industry.
MKI mortar plant was built on an area of 2 hectares is targeted to be operational in 2020. Currently Semen Indonesia has mortar products produced by PT Solusi Bangun Indonesia.
After change management of PT Bank Mandiri Tbk (IDX: BMRRI), today State Own Enterprises (SOE) ministry will shake up PT Bank Negara Indonesia Tbk (IDX: BBNI) and on Monday (09/02) PT Bank Rakyat Indonesia Tbk (IDX: BBRI). The ministry acted has bring up the rejection from workers union at BBRI and PT Bank Tabungan Negara Tbk (IDX: BBTN).
On Thursday, Indonesian Rupiah rose 0.11 percent to 14,235, the Jakarta Composite Index also closed up 0.12 percent to 6,289.12, and yields on 10-year benchmark tenor bonds rose 2.2 bps.
While, majority of major Asian stock exchanges fell. Nikkei index down 0.09 percent, the Shanghai index dropped 0.1 percent, and the Kospi index decreased 0.4 percent. Stock market players were nervous because of US-China relationships.
On Sept. 1 is the date of the application of new import duties by US and China. End of last week, China announced that it would impose import duties on imported US products worth $75 billion in the range from 5 – 10 percent.
Furthermore, China also announced the imposition of a 25 percent import duty on cars from US manufacturers, as well as a 5 percent import duty on car parts, effective on Dec. 15. To note, China has previously stopped charging the import duty in April, before now reactivating it.
The US responded by announcing that as of Oct. 1, it would increase import duties on $250 billion of imported products from China, from the current 25 to 30 percent. The relations between the two countries had heated up when China was furious with unilateral claims made by US’ President Donald Trump.
The stock to be watch PT Bumi Resources Tbk (IDX: BUMI), PT Bumi Resource MInerals Tbk (IDX: BRMS), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT MNC Vision Network Tbk (IDX: IPTV), PT HM Sampoerna Tbk, PT Bank CIMB Niaga Tbk (IDX: BNGA), PT PP Tbk (IDX: PTPP), and PT Vale Indonesia Tbk (IDX: INCO).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia