Managing director of the International Monetary Fund, Kristalina Georgieva, proposed an a new SDR allocation of US$650 billion to provide additional liquidity to the global economic system - Photo by World Bank Office

JAKARTA (TheInsiderStories) – Managing director of the International Monetary Fund, Kristalina Georgieva, proposed an a new SDR allocation of US$650 billion to provide additional liquidity to the global economic systemIf approved, a new allocation would add a substantial direct liquidity boost to countries without adding to debt burdens.

It would also free up badly needed resources for member countries to help fight the pandemic, including to support vaccination programs and other urgent measures. In addition, she said it would complement the range of tools deployed by the IMF to support our membership in this time of crisis.

In Europe, the block is facing a third wave of COVID-19 that has forced major countries in the bloc like Germany, France and the Netherlands to batten down the hatches with fresh lockdown into easter that will likely set global growth back. Pandemic fears in the continent hit new highs this week after the infection rate in Germany rose to above 100 per 100,000 inhabitants.

That prompted German Chancellor, Angela Merkel, to keep in place the restrictions until April 18. The infections in Poland are also more than three times higher to Germany, while Italy was girding for a nationwide lockdown from April 3 to 5.

In the United States (US), Federal Reserve chair, Jerome Powell, and treasury secretary, Janet Yellen, provided little reprieve for the broader market. Yellen said the impact of corporate tax hikes on prices and consumers are “very unclear” but added the funds raised from taxes would help the government’ spending plan including an infrastructure package and the creation of good jobs in the economy.

While, Powell shrugged off inflationary pressure and continued to back the central bank’ accommodate monetary policy stance, saying the rise in price pressures this year will likely be a “one-off.” His doubling down on lower for longer monetary policy comes just a day after the Federal Open Market Committee signaled that the first rate could hike could come sooner than 2024.

In Indonesia, House of Representatives agreed to process 33 draft law in this year. Some of the new law are in broadcasting, taxation, roads, state-owned enterprises, new and renewable energy, disaster management, food and drug control, national sports systems, protection of domestic workers, state civil servants, prohibition of alcoholic beverages, conservation of living natural resources and ecosystems issues.

Then, reforms to the development and strengthening of the financial sector, elimination of sexual violence, protection of personal data, Indonesia’ continental shelf, special autonomy for Papua province, narcotics, central and regional financial balancing, the state capital, civil procedural law, archipelago areas, and village-owned enterprises.

In the commodity market, oil prices tumbled 6 percent on concern over new pandemic and slow vaccine rollouts in Europe. Last week, American Petroleum Institute reported US’ crude inventories rose by 2.9 million barrels after a draw of 1 million barrels in the previous week. West Texas Index crude price fell by 6.2 percent to 57.76 a barrel and Brent oil price dropped by 5.9 percent to $60.79 per barrel.

Yesterday, Indonesian Rupiah closed up 0.07 percent to 14,397 against the US Dollar and the Jakarta Composite Index (JCI) dropped 0.77 percent to 6,252.71 compared to the previous day. The analysts rated both movements influenced by falling US treasury bond yields and there is no significant news in the market.

From domestic side, the investors digest Indonesia’ economic growth projection to contract by 1 to 0.1 percent in the first quarter of 2020 and the realization of the national economic recovery program of Rp76.59 trillion until March 17, or 10.9 percent of the total budget in 2021.

With these various information, Rupiah is estimating move in the range 14,400 – 14,525 versus the Greenback and JCI between 6,200 – 6,350. Stocks to be watch are PT Bukit Asam Tbk (IDX: PTBA), PT Adaro Energy Tbk (IDX: ADRO), PT Indika Energy Tbk (IDX: INDY), and PT Indo Tambang Megahraya Tbk (IDX: ITMG).

Then, PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Mandiri Tbk (IDX: BMRI), PT Astra Agro Lestari Tbk (IDX: AALI), and PT London Sumatera Indonesia Tbk (IDX: LSIP) stocks.

May you have a profitable Day!

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