JAKARTA (TheInsiderStories) – Good Morning! We get a closer look at its deliberations of the Federal Open Market Committee’ meeting after last month kept its easy money policy in place as it continued efforts to boost the economy. Higher interest rates are seen as a boon for banks to boosting net interest margin.
The growing expectations for a further round of fiscal stimulus that could include US$14 billion funding to support the aviation industry boosted airlines also showed up. President Joe Biden’ $1.9 trillion stimulus, which is still being debated on Capitol Hill, could offer another boost to a recovering economy.
Another barometer for the health of the American consumer is retail sales and the data for January that also out today. The analysts expect the retail number to be 1.1 percent compared to a decline of 0.7 in December.
On Tuesday, United States (US)’ secretary of state, Antony J. Blinken, spoke with Indonesian foreign minister, Retno Marsudi. He affirmed the growing significance of the US – Indonesia Strategic Partnership to the prosperity and security of both nations, and pledged to further strengthen the broad range of bilateral ties.
They also discussed the opportunities for increased trade and investment between the two countries. Secretary Blinken agreed on the key role of ASEAN-centrality in the Indo – Pacific, and underscored the importance of protecting and preserving a free and open South China Sea. The two leaders expressed deep concern over the coup in Burma.
In Indonesia, the Food and Drug Monitoring Agency stated it would immediately grant an emergency use authorization for the COVID-19 vaccine made by AstraZeneca following the approval of the World Health Organization. The agency was still waiting for data from the health organization that would be used as material for evaluating the vaccine developed by AstraZeneca and Oxford University.
While, state-run pharmacy firm, PT Bio Farma to distribute Sinovac’ another 7.5 million doses of vaccine for the second vaccination program in this month. The first phase used the imported Sinovac vaccines from China, while the second phase uses vaccines produced by the drug-maker.
Yesterday, Ridha Wirakusumah was introduced by President Joko Widodo as the CEO of Indonesia Investment Authority. Previously, he had served as the president director of PT Bank Permata Tbk (IDX: BNLI) since Dec. 13, 2016. The head of state also introduced Arief Budiman as deputy CEO, Stefanus Ade Hadiwidjaja as Chief Investment Officer, Marita Alisjahbana as Chief Risk Officer, and Eddy Purwanto as Chief Financial Officer.
In the commodity market, energy stocks jumped more than 2 percent as a “deep freeze” impacting large portions of the country and supply disruptions sent US crude prices settled above $60 a barrel for the first time in more than a year. On Tuesday, West Texas Index crude futures up 0.5 percent to $59.80 a barrel and Brent futures down 0.3 percent to $63.13 per barrel.
At the same day, Indonesian Rupiah weakened 0.14 percent to 13,930 over the Greenback and the Jakarta Composite Index (JCI) strengthened by 0.4 percent to 6,292 compared to the prior day. The analysts rated that the improvement in Indonesia’ trade balance in January has not been able to lift positive sentiment towards the market.
Beside, the investors await the monetary policy of Bank Indonesia for the February 2021 period. The policymakers will hold a meeting starting today and the results will be announced on Feb. 18. With this information, the Rupiah is estimated to move in the range of 13,900 – 13,950 and JCI between 6.257 to 6,325 on Wednesday.
Stocks to be watch for today are PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT AKR Corporindo Tbk (IDX: AKRA), PT Astra Agro Lestari Tbk (IDX: AALI), PT Bank Mandiri Tbk (IDX: BMRI), PT Telkom Indonesia Tbk (IDX: TLKM), PT Medco Energi International Tbk (IDX: MEDC), and PT PP Tbk (IDX: PTPP).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia