This morning, Bank Indonesia will hold an annual meeting to give a direction to the financial industry players - Photo by BI Office

JAKARTA (TheInsiderStories) – Good Morning! This morning, Bank Indonesia will hold an annual meeting to give a direction to the financial industry players. One of key speaker at the event is President Joko Widodo.

While, coordinating minister for maritime and investment affairs, Luhut Binsar Pandjaitan, and state-owned minister, Erick Thohir, flying to Japan, to seek support on the Sovereign Wealth Fund (SWF). Both ministers are scheduled to meet the officials from the Japanese economy ministry, trade and industry ministry office, and several financial institutions including the Japan Bank for International Cooperation.

The SWF, will be called the Nusantara Investment Authority, is an institution formed through Omnibus Law Number 11 of 2020 on Job Creation. The Indonesian government hopes that the SWF can promote the improvement of the investment climate, develop the value of state assets and support economic development, particularly in supporting the realization of national priority projects.

From Japan, the central bank’ board members, Hitoshi Suzuki, asserted that Bank of Japan (BoJ) should allow super-long bond yields to rise moderately as part of efforts to make its stimulus program sustainable. Currently, the Bank seeks to keep short-term interest rates at around -0.1 percent and 10-year bond yields at around zero as part to revive the economy with low borrowing costs.

Still from Japan, the final Jibun Bank Japan Services Purchasing Managers’ Index (PMI) was edging up to a seasonally adjusted 47.8 from 47.7 in October. Surveyed firms said a third wave of COVID-19 infections had depressed demand and led to more challenging business conditions.

In China, the Caixin/Markit services PMI rose to 57.8, the second highest reading since April 2010, from October at 56.8. Total new business in November hit the highest level since April 2010, with new export business expanding for the first time in five months, the survey showed.

While, the Australian economy grew by 3.3 per cent in the third quarter of this year, allowing the country to exit its first recession in almost 30 years. Businesses have begun to rebound and consumer spending has surged with the transmission of virus outbreak being brought under control, with a 7.9 percent rise in household spending.

Some media reported, Russia, Iraq, Nigeria and the United Arab Emirates expressed interest in supplying the market with more oil in 2021. It saying more talks were needed to overcome the differences between the producers.

Yesterday, Indonesian Rupiah edged up 0.04 percent to 14,125 versus the Greenback and the Jakarta Composite Index (JCI) closed up 1.56 percent to 5,813.98 compared to the previous day. The analysts rated the economic recovery could be helped by positive sentiment towards risk assets with a successful test of the vaccine.

On the other hand, there is news of the United States (US) fiscal stimulus and the central bank which has maintained its low interest rate policy which also provides positive sentiment because it supports the economic elections. However, the increase in the positive cases was a burden for the strengthening of the instruments.

With this information, they estimated that Rupiah will move in the range of 14,100 – 14,150 and JCI between 5,840 – 5,900. Stocks to be watched for today are PT Bank Mandiri Tbk (IDX: BMRI), PT Bukit Asam Tbk (IDX: PTBA), PT Jasa Marga Tbk (IDX: JSMR), PT HM Sampoerna Tbk (IDX: HMSP), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT United Tractors Tbk (IDX: UNTR), and PT Unilever Indonesia Tbk (IDX: UNVR).

May you have a profitable Day!

Written by Linda Silaen, Please Read Our News to Get More information about Indonesia