JAKARTA (TheInsiderStories) – Good Morning! President of Indonesia, Joko Widodo, has signed the Government Regulation Number 10 of 2021 concerning the negative investment list. One of the articles stealing the public limelight is the opening of investment in alcoholic drinks in Papua, East Nusa Tenggara, Bali, and North Sulawesi provinces.
The new regulation has criticize by ulema councils and other moslem society. Still from the country, finance ministry plans to hold a state bond with an indicative target of Rp45 trillion (US$3.16 billion) from the seven series offered, including treasury bills and fixed rate to fulfill part of the financing target in the 2021 State Budget.
On the COVID-19 development, the World Health Organization warns that the current pandemic is likely to be endemic. The director general, Tedros Adhanom Ghebreyesus, also reported the number of new cases had increased in the past week in Europe, America, Southeast Asia and the eastern Mediterranean due to easing public health measures, continued circulation of variants, and people who were careless.
In the United States (US), huge stimulus package US$1.9 trillion will now move to the Senate for further deliberation. Separately, Iran dismissed opening talks with the US and the European Union to revive the 2015 nuclear deal, insisting Washington must first lift the unilateral sanctions that have sharply reduced Iranian oil exports.
In Asia, China‘ factory activity growth slipped to a nine-month low in February, while manufacturing in Japan expanded the fastest in more than two years. In addition, preliminary data also showed that South Korea’ February imports were down 14.7 percent from a year earlier.
Furthermore, the Organization Petroleum Exporting Countries and its allies, will meet on Thursday and could discuss allowing as much as 1.5 million barrels per day of crude back in the market. Before the meeting, Brent crude oil for May rose 1.9 percent to $65.66 per barrel and West Texas Intermediate crude futures jumped 1.9 percent to $62.68 a barrel.
On Monday, Indonesian Rupiah weakened 0.14 percent to 14,255 versus the Greenback while the Jakarta Composite Index (JCI) strengthened 1.55 percent to 6,338.51 levels compared to prior day. The analysts rated, the weakening of the local currency caused of the capital outflows followed the raised US Treasury yields.
These made investors choose to get out of risky asset investments and entered US bond market. Domestically, the inflation data for February at 0.10 percent on monthly basis and the second vaccination program sent a positive sentiment to the financial market.
With such information, the Rupiah is expected to move in the range of 14,180 – 14,300 versus the US Dollar and the JCI between 6,256.03 to 6,351.18 today. Stocks to be watch for today are PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Ace Hardware Tbk (IDX: ACES), and PT Indocement tunggal Perkasa Tbk (IDX:).
Then, PT Semen Indonesia Tbk (IDX: SMGR), PT Timah Tbk (IDX: TINS), PT Unilever Indonesia Tbk (IDX: UNVR), PT Astra International Tbk (IDX: ASII), PT Pakuwon Jati Tbk (IDX: PWON), PT Kalbe Farma Tbk (IDX: KLBF) stocks.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team. Please Read Our News to Get More information about Indonesia