President Joko Widodo and Singapore Prime Minister Lee Hsien Loong Meet Today for Leaders Retreat - Photo by President Office

JAKARTA (TheInsiderStories) – Good Morning! Indonesian President Joko Widodo and Singapore Prime Minister Lee Hsien Loong will meet today as part of a leaders retreat to review the bilateral partnership between the two countries. The bilateral meeting was follow up on discussions at their last leaders retreat in Bali on Oct. 11, 2018.

Today, both leaders will also witness the signing of an agreement on Electronic Data Exchange to Facilitate and Secure Trade, as well as a memorandum of understanding between the national archives of both countries on archives cooperation. Singapore and Indonesia share close trade and investment ties, with bilateral trade reaching $65 billion in 2018, a 9.4 percent increase from the previous year.

United States government stepped in to help payments companies after being lobbied by Mastercard and Visa. As known, Indonesian rules were set to force foreign companies to process credit and debit transactions through a domestic partner in the country’ payments network.

Being required to work with a partner in the National Payment Gateway likely would’ve increased card networks’ operating costs in Indonesia, as they’d need to alter their systems to incorporate and operate with the partner, said the two providers.

In his speech in Montreal, Canada, World Bank boss David Malpass, has warned that global growth could fall short of the 2.6 percent it predicted in June. Ahead of the World Bank and International Monetary Fund’ annual meetings next week, he also reminded that global growth was “slowing” and said he expected it to be even lower than the forecast from four months ago due to Brexit, Europe’ recession, and trade uncertainty.

On the denuclearization issues, North Korean leader Kim Jong Un rated the failure of his team negotiators with the United States (US) team caused the Washington offers nothing except demands. Last week, the denuclearization talks in Sweden between officials from Pyongyang and Washington have broken off. Since June, US officials has struggle to persuade North Korea, which is under sanctions banning much of its trade due to its nuclear program.

On Monday, US and Japan signed a limited trade agreement. US’ farmers have been operating at a disadvantage in Japan since Donald Trump withdrew from the Trans-Pacific Partnership agreement. Previously, the other 11 Pacific Rim countries went ahead without the United States and were enjoying preferential treatment in Japan.

Still from US, Trump warned China that if the country does anything “bad” to quell protests in Hong Kong, trade negotiations with his country would suffer. A fresh round of Hong Kong protests remained small on Monday night as the city cleaned up from a chaotic weekend in which demonstrators battled with police.

On Syrian issues, Trump have strongly stated if Turkey doesn’t do anything that he asked, he will totally destroy and obliterate the Economy of the Recep Tayyip Erdoğan’ country. He impressed. “They must, with Europe and others, watch over the captured ISIS fighters and families. The U.S. has done far more than anyone could have ever expected, including the capture of 100 percent of the ISIS Caliphate. It is time now for others in the region, some of great wealth, to protect their own territory.”

In Indonesia, transportation ministry will launch a trial run for light rail transit (LRT), in its Greater Jakarta line in East Jakarta, this week. The trial run would be conducted after PT Adhi Karya Tbk (IDX: ADHI) received sets of LRT’ carriages manufactured by the state-owned company PT Industri Kereta Api, said the minister Budi Karya Sumadi. The government has two years to conduct the LRT’ trial run before the train becomes commercially operational by November 2021. 

Entering the final quarter of 2019, energy and miniral resources ministry set the reference coal price to US$64.8 a ton, down 1.5 percent compared to last September’ price at $65.79 per ton. The ministry stated, that the price movement was still influenced by the trade war between US and China.

On Monday, Indonesian Rupiah weakened 0.18 percent to 14,155 against the US Dollar. While, the Jakarta Composite Index (JCI) again touched the resistance level at 6,000.582, or closed down 1 percent from last Friday.

Some analysts rated, if the weakening continues, both major instrument could lowering further. The local currency its expecting move in the range of and the stock index in between 5,700 – 5,800.

One of the sentiments that made the Rupiah and the composite index down today was the decline in the value of foreign exchange reserves. Bank Indonesia has reported last month’ reserves down to $124.3 billion from August worth of $126.4 billion.

The rest of the sentiment comes from the global side, said the observes. Uncertainty still surrounds the meeting of the US and China related to trade war. Market still waiting the decision of the Federal Reserve moves.

Another negative sentiment came from the American purchasing managers index data which showed results below the level 50 twice in a row. This further raises fears of an economic recession in the land of Uncle Sam.

The stocks to be watch for today are PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Central Asia Tbk (IDX: BBCA), PT Ban Mandiri Tbk (IDX: BMRI), PT Sarana Menara Nusantara Tbk (IDX: TOWR), PT Adaro Energy Tbk (IDX: ADRO), PT Medco Energy International Tbk (IDX: MEDC), PT Astra International Tbk (IDX: ASII), and PT United Tractor Tbk (IDX: UNTR).

May you have a profitable day!

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