President Joko Widodo announced the new minister members in "Indonesia Maju" cabinet - Photo by President Office

JAKARTA (TheInsiderStories) – Good Morning! Indonesian Presiden Joko Widodo considers dismissing 18 government institutions as part of efficiency. No further details the institution names but he said the decision will take shortly.

On July 13, the Transportation Ministry has released the ministerial decree Number 44 the Year 2020 on additional test for electric vehicles. While, the Finance Ministry will run the state bond auctions today, which is expected to encourage the flow of foreign capital into the country.

For COVID-19 mitigation, Widodo wants to ramp up coronavirus testing by 50 percent to 30,000 daily as infections exceed 75,000 in the country. The President instructed his ministers to boost the nationwide testing capacity from a previous target of 20,000 a day by opening more laboratories.

The pandemic has now killed more than half a million people in six-and-a-half months, and World Health Organization chief Tedros Adhanom Ghebreyesus said there would be no return to the “old normal” for the foreseeable future, especially if preventive measures were neglected.

Meanwhile, President Donald Trump plans to soon scrap a 2013 agreement between the United States (US) and Chinese auditing authorities, a move that could foreshadow a broader crackdown on US-listed Chinese firms under fire for sidestepping American disclosure rules.

The country also rejected China’ disputed claims to offshore resources in most of the South China Sea, a move that may further sour the fraught ties between the world’ largest two economies.

Furthermore, the European Union (EU) is preparing counter-measures on China in response to Beijing’ new security law on Hong Kong, but the likely steps will not amount to economic sanctions. The EU has denounced the decision by China’ parliament to pass national security legislation for the ex-British colony of Hong Kong despite an international outcry.

The Organization of the Petroleum Exporting Countries announced the oil market is getting closer to balance as demand gradually rises, two days before the group and ally Russia meets to decide whether to ease output curbs from August.

On Monday, Indonesian Rupiah edge up 0.07 percent to 14,425 per US Dollar, and the Jakarta Composite Index jumped 0.66 percent to 5,064.45 compared to last week. The analysts rated the strengthening of both instruments still overshadowed by the high number of new cases of COVID-19.

In the coming days, they said, the Rupiah and JCI movements would be limited caused a lack of sentiment. In addition, investors waiting for Bank Indonesia‘ latest monetary decision and the trade balance data.

Other economists assessed that the economic data are relatively better than expectations and have a possibility to drive investor confidence. Externally, the rate that the improvement of China’ economy is expected to have an impact on its trading partner countries, including Indonesia.

In addition, an increasingly alarming pandemic in the US will be enough to worsen the rate of the American Dollar. Under these conditions, they calculated that the Rupiah would move in the range of 14,335 – 14,485 per US dollar and the JCI between 5,020 – 5,110.

Stocks to be watch are PT Astra International Tbk (IDX: ASII), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Astra Agro Lestari Tbk (IDX: AALI), and PT Unilever Indonesia Tbk (IDX: UNVR).

May you have a profitable Day!

Written by Linda Silaen and TIS Intelligence Team. Please Read Our News to Get More information about Indonesia