United States - China' trade talks suffered a major setback last week - Photo: Special

JAKARTA (TheInsiderStories) – United States (US) and China have reportedly reorganized to start of serious negotiations next week to complete a year-long trade war between the world’ two largest economies, an official said on Thursday (07/04).

An official from the US Trade Representative Office said the two main negotiators have been communicating by telephone since the end of last week, when President Donald Trump and Chinese President Xi Jinping agreed to relaunch stalled negotiations in May.

Ahead of the trade peace, President Trump accused China and Europe of playing “big currency manipulation games” and “pumping money into their systems” to compete with US. Via his Twitter account, Trump said, the US must match their efforts “or continue to be puppets” that watch other countries manipulate the currency.

Trump wants a weaker dollar to help increase exports. Trump’s focus on the dollar emerged last month after the European Central Bank said it might loosen policy, pushing the euro down against the dollar. The Euro touched the highest of the day in Trump’ tweet.

The Dollar Spot Index fell around 0.5 percent this year, after rising 3.2 percent in 2018. But using a weighted measure of Federal Reserve trade, the dollar was not far below the strongest since 2002, threatening to make US exports less competitive outside country.

Amid the new tensions, the European Union (EU) community is now waiting for the election of a new leader. Some big names have been nominated, including French President Emmanuel Macron an Manfred Weber after Managing Director International Monetary Fund Christine Lagarde put up the nomination.

Furthermore, super tanker that violates European Union sanctions by bringing 2 million barrels of Iranian crude to Syria has been detained in Gibraltar, according to a report. The ship owned by Singapore-based Grace Tankers Ltd., believed to be heading to the Baniya Refinery in Syria, which is a government-owned facility under the control of Syrian President Bashar Assad and is subject to the EU’ Syrian Sanctions Regime.

From the country, state-owned oil and gas producer, PT Pertamina for the first time carried out the initial export of Smooth Fluid-05 of 4,000 barrels to Algeria as many as 27 Isotank with a total value of more than Rp10 billion (US$704.25 million). Export cargo loading will be carried out from 3-6 July 2019 from Balikpapan Refinery which has a production capacity of 1.8 million barrels per year.

In anticipation of export violation, Finance Minister Sri Mulyani Indrawati issued a minister regulation Number 98 Year 2019 concerning on Tariffs for Administrative Sanctions in the Form of Fines and Procedures for Imposing, Collection, and Depositing Administrative Sanctions in the Form of Fines for Violations. since July 1.

The regulation contains provisions for sanctions in the form of fines for exporters who violate the foreign exchange provisions resulting from natural resource exports.

On the other side, the ministry of industry expressly rejected the proposal of the ministry of finance to impose a tax Rp30,000 per kilogram (kg) or Rp200 per sheet for plastic products. Referring to Law Number 39 Year 2007 concerning Excise, plastic does not fall into that category.

While from the industry side, this excise will reduce the competitiveness of local players in facing plastic bags from other countries. The Indonesian Olefin, Aromatic and Plastic Industry Association actually asked the government in this case the Ministry of Finance to review the proposed implementation of excise tariffs on plastic bags.

Then, the government is committed to advancing tourism and the regional economy by accelerating the resolution of problems around the area of development of Special Economic Zones (SEZ). President Joko Widodo said, there were many problems and policy making that needed coordination between various parties to be resolved immediately.

During his visit to Tanjung Pulisan SEZ, in Minahasa Utara District, North Sulawesi, the President wanted to ensure that all existing obstacles could be resolved immediately, and asked the regional government to cooperate with all interested parties.

While to ignite Southeast Asia’ largest economy, Widodo will announce a major cabinet reshuffle in October. Some key ministers will be revoked, including State-Owned Enterprises Minister Rini Soemarno, Fisheries Minister Susi Pudjiastuti, Energy and Mineral Resources Minister Ignasius Jonan and Coordinating Minister for Economic Affairs Darmin Nasution. While Finance Minister Sri Mulyani Indrawati will remain in her current role.

Today, the Indonesian Police will release the development of the results of the investigation into the riots in the May 21-22 riot, demonstrations related to the 2019 Election around Election Watch office in Central Jakarta. The clash between the police and the mob of rioters was unavoidable.

This situation caused the police and the masses to be suspected of being rioters. A total of 447 suspected mass rioters were secured. Tito Karnavian, the National Police Chief has formed a joint investigation team to investigate the riots that took place in Central Jakarta, West Jakarta and East Jakarta from May 22-23.

Yesterday, in the spot market trading, Rupiah closed down 0.14 percent against the US dollar to the level of 14,135 compared to the previous day. While, the Jakarta Composite Index stayed in the green zone until the close of trading, or rose 0.21 percent or 13.345 points to 6,375,967.

May you have a profitable day!

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