JAKARTA (TheInsiderStories) – Good morning! United States deficit is estimating worth of US$1 trillion in 2020, as President Donald Trump cut the tax an spending policies, said the Congressional Budget office on Thursday (08/22). The deficit in 2019′ fiscal year is predicted will reach $960 billion, which ends on Sept. 30.

In Asia, Indian Rupee fell to its lowest level in 2019 led by a sudden depreciation in the Chinese Renmimbi that hit fresh 11-year lows as well as a sell-off in the Indian equity markets. The Rupee closed down at 71.816 to US dollar.

US – China concerns seemed to have amplified after Trump said he is the “chosen one” to wage a trade war with China. While, Chinese commerce ministry spokesman Gao Feng said that Beijing will have to retaliate if the Washington follows through with new tariffs.

On the Korean Peninsula issues, South Korea said will terminate its military intelligence-sharing pact with Japan, the latest swipe in an intensifying tit-for-tat trade and diplomatic dispute between the neighbors. Earlier this month Japan had removed South Korea from a so-called “white list” of countries that receive preferential export treatment.

Malaysia‘ Prime Minister Mahathir Mohammad looks set to shake up his cabinet member with no change in personnel but portfolios. But the reshuffle will see Parti Keadilan Rakyat’ president Anwar Ibrahim, who is set to take over as premier mid-term under a deal agreed with PH leaders, remain outside the Cabinet.

In other issues, the prime minister said he allowed Indonesia’ GOJEK operation in Malaysia to help the local bike hailing service before was disorganized and doesn’t benefit the the small business. The Youth and Sports Ministry and the Transport Ministry have been tasked to discuss in detail on developing GOJEK’ services in the country.

Bank Indonesia sees lower growth in Europe, China, Japan and India based on the current development in the global economy. Indonesian economy itself, the central bank rated, also slowing down and its estimating grow below the midpoint of 5.0 to 5.4 percent.

President Joko Widodo ordered National Police Chief General Tito Karnavian to crack down on perpetrators of racial and ethnic discrimination followed the situation in Papua and West Papua. Head of State said he would invite leaders from the two provinces to the Palace next week.

Based on reports from Karnavian, Army Chief’ Commander Marshal Hadi Tjahjanto, and Coordinating Minister for Political, Legal and Security Affairs Wiranto who was in Papua, he said, the level of security in Papua had now been lowered. 

Indonesian nickel miners association said on Thursday that it will continue to ask the government to comply with the 2022′ nickel ore export ban timetable. Indonesia, the main exporter of nickel, considered to implementing an early ban on ore exports, sparking supply concerns among investors on the Shanghai Futures Exchange and the London Metal Exchange.

Widodo has asked his ministers not to make strategic decision before the official start of their second term in October. Indonesian officials did not give a timetable for president’ decision to the ban nickel ore exports.

Yesterday, Indonesian Rupiah closed down 0.03 percent to14,239 and the JISDOR middle reference rate at 14,234 per US dollar or strengthened 0.18 compared to prior day. The Jakarta Composite Index (JCI) also dropped 0.22 percent to 6,239 from Wednesday.

For today, some analysts rated the movement of the Rupiah and JCI will influenced by the results of the speech of US’ Federal Reserves chief Jerome Powell. He will give a speech in Jackson Hole and will give signs whether the central bank will reduce interest rates further or not.

Although the Fed is expected to hold interest rates, the analysts sees that Rupiah and JCI have a window to strengthen tomorrow. They opined, the reduction in BI-7DRR rate as a preemptive step to encourage economic growth from the impact of the global economic slowdown. Today, PT Bank Permata Tbk’ economist Josua Pardede sees Rupiah will move in the range of 14,200 – 14,300 against the Greenback with the possibility of strengthening.

The stocks to be watch for today are PT Smartfren Telecom Tbk (IDX: FREN), PT Bumi Resources Tbk (IDX: BUMI), PT HM Sampoerna Tbk (IDX: HMSP). PT Bank Mandiri Tbk (IDX: BMRI), PT Kalbe Farma Tbk (IDX: KLBF), PT Aneka Tambang Tbk (IDX: ANTM), and PT Bank Negara Indonesia Tbk (IDX: BBNI).

May you have a profitable day!

US$1: Rp14,200

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