JAKARTA (TheInsiderStories) – Good Morning! This afternoon, Bank Indonesia (BI) will release its monetary policy while United States (US) Federal Reserves kept the benchmark rate even get pressures from many parties, including President Donald Trump.
Then, Indonesian President Joko Widodo will attend the 34th ASEAN Summit in Thailand and the G20 Summit in Japan. The President said, in participating in the two summits, Indonesia must be able to take advantage of this momentum primarily to strengthen the country’s economy and national interests.
At the ASEAN Summit itself, Widodo saw a number of issues that could potentially be lifted by Indonesia like trade war between the US and China and its relevance to economic stability in the Asian region and handling of marine waste in the ASEAN region as well as efforts to accelerate peace in Rakhine State, Myanmar.
As for the G20 Summit, the Head of State wants to raise the issue of global economic and financial issues, especially in relation to increasing investment. In addition, Indonesia and other countries can also discuss on the digital economy and artificial intelligence.
In the limited meeting, Widodo said that investment and exports are key to resolving the problem of the current account deficit and the trade balance in the country. The breakthrough investment, exports and taxation discussion has been carried out six times but so far, he urged the working cabinet ministers create an innovation in making policies that could boost the investment and exports.
While, Finance Minister Sri Mulyani Indrawati revealed, her ministry will take a breakthrough step in the tax field, such as tax holidays and tax allowances or even income tax to make Indonesian tariffs lower.
Regarding the super deduction tax, she hoped that the Government Regulation will come out soon. She pointed out that the county will give an incentives for motorized vehicles and the exemption of value added tax for leasing aircraft from abroad which had been imposed to reduce the burden on airlines.
Early Thursday, a powerful earthquake with magnitude of 6.3 struck west of Jayapura, in West Papua, the Unite States’ Geological Survey reported. So far, there were no damage and Indonesian authorities said there was no risk of a tsunami.
On Wednesday (06/19), Asian markets rallied after Trump said to meet Chinese President Xi Jinping next week to end a bruising trade war. Previously, he had warned that if Xi did not turn up he would hike tariffs on virtually all China’ exports to the US.
Adding to the upbeat mood were comments from the European Central Bank’ president Mario Draghi, that hinting to cut the interest rates to support the stuttering eurozone economy.
Furthermore, oil prices retreat after rallying on hopes that a resolution to the trade war would boost demand for the commodity. West Texas Intermediate crude for July delivery fell 0.3 percent to $53.76 a barrel on the New York Mercantile Exchange. August Brent crude also shed 0.5 percent to $61.82 a barrel on ICE Futures Europe.
Investors hoped now on the OPEC‘ next meeting. They hopes the group and its other key producers led by Russia will extend output curbs beyond this month to soak up excess supplies.
Yesterday, Indonesian Rupiah closed at 14,290 against the Greenback from previous day at 14,292. This morning, the local currency open higher at 14,227 to anticipate the central bank meeting.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia