United States (US) treasury department reported budget deficit widened to US$738 billion in April led by massive levels of new spending and lower tax collections - Photo by White House

JAKARTA (TheInsiderStories) – Good Morning! United States (US) treasury department reported budget deficit widened to US$738 billion in April led by massive levels of new spending and lower tax collections. Last month, President Donald Trump’ administration spent about $980 billion but brought in only $242 billion in tax income.

In February, the lawmakers have approved almost $3 trillion in emergency relief in response to the downturn and postponed certain tax requirements for businesses and individuals. Now, the lawmakers are already at work on a fifth relief package.

From Asia, Indian Prime Minister Narendra Modi announced the stimulus package 20 trillion Rupees ($264.16 billion), equal to 10 percent of gross domestic products, to help the economy get back on its feet after weeks of restrictions. The figure will include over than 5.5 trillion Rupees of measures already unveiled by the government and the central bank.

In Indonesia, President Joko Widodo will lead a limited meeting with topic basic food needs during a pandemic. While, finance ministry’ official hold a presser on the economic recovery program.

On Tuesday, finance ministry has won Rp20 trillion ($1.33 billion) of the state bond in the latest auction. Previously, the ministry offered four series namely SPN12200814, SPN12210429, FR0081 series Government Bonds, FR0082, and FR0080 with target indicative in the same amount.

Yesterday, Indonesian Rupiah closed down 0.07 percent to 14,905 per US Dollar and the Jakarta Composite Index (JCI) was corrected by 1.1 percent to 4,588. The local currency became the third worst daily performance among other Asian currencies like South Korea’ Won dropped 0.36 percent and the Taiwan Dollar fell 0.197 percent.

The analysts rated, the weakening of the two major instruments caused the market’ response to the projected number of Indonesia’ unemployment rate in this year. Its predicted the rate rises to 12 percent compared to last year at 9.75 percent.

In addition, the market is currently worried about the development between US and China could risk of a trade war “live” again. Concerns over the second wave of COVID-19 spread in some countries have also been a negative catalyst for both instruments.

Base on the various data, the analysts sees Rupiah will move in thin range between 14,810 – 14,550 against the Greenback and the JCI between 4,474 – 4,726.

Shares that can be considered for today are PT Bank Central Asia Tbk (IDX: BBCA), PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Vale Indonesia Tbk (IDX: INCO), PT HM Sampoerna Tbk (IDX: HMSP), PT Jasa Marga Tbk (IDX: JSMR), PT Wijaya Karya Tbk (IDX: WIKA), PT XL Axiata Tbk (IDX: EXCL), PT Nippon Sari Corporindo Tbk (IDX: ROTI), PT Unilever Indonesia Tbk (IDX: UNVR), and PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP).

US$1: 75.71 Rupee

May you have a profitable day!

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