JAKARTA (TheInsiderStories) – Good Morning! Chairman of Federal Reserve, Jerome Powell, sees the United States (US) economy to emerge from its COVID-19 hibernation. He also sees the economy is and job creation to start growing much more quickly.
But, he warned that the pandemic still posed a risk to the US economy. Now, the investors await US’ consumer price index for March will releases today, where is expected to be up 0,5 percent in monthly basis and 2.5 percent over last year.
In Asia, China’ trade data for March is expected to be out this morning. While, Energy and Infrastructure Minister Uni Arab Emirate (UAE), Suhail Al-Mazrouei, said that his country may invest on a COVID-19 vaccine production facility in Indonesia. He was speaking after President Joko Widodo announced that a major road in Jakarta renamed as Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed.
He also said, Emirati investment is targeting new sectors in Indonesia, such as renewable energy, strategic and military manufacturing, production of the COVID-19 vaccine, as well as agriculture, food security, digital education, tourism, and the creative economy. UAE has announced US$10 billion worth of investments with the Indonesian Investment Authority.
In Indonesia, President Joko Widodo has a bilateral talk agenda with Germany on Tuesday. While, Papua Police chief, Mathius D. Fakhiri has instructed to tighten security at airports and airfields following the burning of a cooper helicopter allegedly committed by the armed criminal group at Aminggaru Ilaga Airport on April 11.
According to him, four people have been on the wanted list of the joint team of the Indonesian Military and the National Police to be prosecuted according to the law. While, senior minister for political, legal, and security affairs, Mahfud MD confirmed that the government will extended the special autonomy funds for Papua which has been running since 2001 and planned to revise several regulations on the law of Papua status.
On Monday, Indonesian Rupiah dropped 0.21 percent to 14,595 per US Dollar, fell to its lowest level since Nov. 3, and the Jakarta Composite Index (JCI) down 2 percent to 5,948.79 compared to the previous day. The analysts assessed that both have weakened due to global and regional sentiment.
The decrease triggered by the capital outflow from the domestic market, which fell by more than 2 percent on Monday. Then, the release of unsatisfactory domestic data also put pressure on the instruments. Indonesia’ Retail Sales data for February still contracted 18.1 percent compared to previous year.
The positive sentiment come from US bond market, the 10-year US Treasury yield rate that has begun to fall and its expect to encourage capital inflows to enter Indonesian market. With this information, the local currency is estimated to move between 14,500 – 14,650 and the JCI in the range 5,900 – 6,100.
Stocks that can be considered are PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Gudang Garam Tbk (IDX: GGRM), PT HM Sampoerna Tbk (IDX: HMSP), PT Astra International Tbk (IDX: ASII), and PT Bank Mandiri Tbk (IDX: BMRI).
May you have a profitable Day!
Written by Linda Silaen and Editorial Team, Please Read Our News to Get More information about Indonesia