The White House expects United States' (US) Congress to approve the legislation needed to avoid a government shutdown at the end of September, when current spending bills expire - Photo by the White House Office

JAKARTA (TheInsiderStories) – The White House expects United States’ (US) Congress to approve the legislation needed to avoid a government shutdown at the end of September, when current spending bills expire. Part of government funding legislation is separate from negotiations between both parties over another pandemic relief bill.

The president’ spokesman said, talk has increased in Washington about merging the two issues. While, US department of employment data showed weekly jobless benefit claims fell more than predicted to 881,000 from 1 million in the previous week.

In Europe, France launched a EUR100 billion (US$119.05 billion) economic stimulus package to repair the economic damage caused by the COVID-19. President Emmanuel Macron’ administration said the investment would include large expenditures on green energy and transportation.

The so-called “French relaunch” program aims to reverse the situation caused by rising unemployment and to restore tax cuts to businesses. In the second quarter of this year, the country’ economy shrank 13.8 percent between April and June, the biggest quarterly decline since World War Two.

No important agenda in Indonesia today. But investors attention closely to Bank Indonesia (BI) dilemma. In a media talked in this week, President Joko Widodo has said still needs the central bank to help the economic recovery and plans to revise the BI and other financial institution laws.

His statement was disappointed the market players, caused they expect the burden sharing was only a short-term or ad hoc policy. In addition, they are also worried about the discourse on amendments to the new Law. One option is the return of the Monetary Board to the way during the New Order era.

The Monetary Board leads, coordinates and directs monetary policy in line with the government’ general economic policy. Later, the board will consist of the minister of finance as chairman, one minister for the economy, the governor and senior deputy of BI, and the chairman of the the Financial Services Authority. This is expected to boost inflation in Indonesia.

On Thursday, Indonesian Rupiah closed down 0.22 percent to 14,777.5 per US Dollar and the Jakarta Composite Index (JCI) closed down 0.59 percent to 5,280.81 compared to the previous day. The analysts rated, the disappointing data from US and the domestic issues make the financial market will have less ammunition to strengthen.

They estimates that the Rupiah will move in the range of 14,600 – 14,800 versus the American Dollar and JCI between 5,102 – 5,250. Stocks that can be watched today are PT Bumi Serpong Damai Tbk (IDX: BSDE), PT Adaro Energy Tbk (IDX: ADRO), PT Gudang Garam Tbk (IDX: GGRM), and PT Bank Mandiri Tbk (IDX: BMRI).

Then, PT Astra Agro Lestari Tbk (IDX: AALI), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Unilever Indonesia Tbk (IDX: UNVR), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), and PT HM Sampoerna Tbk (IDX: HMSP).

US$1: EUR0.84

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by Linda Silaen, Email: linda.silaen@theinsiderstories.com