Cabinet Secretary Pramono Anung and the Coordinating Minister for the Economy Darmin Nasution conveyed their information to the press after the B30 Limited Meeting at the President's Office, Jakarta, on Monday (08/12) - Photo by President Office

JAKARTA (TheInsiderStories) – Good Morning! Indonesian president Joko Widodo wants diesel with 30 percent bio-content (B30), to be in use by January 2020 to rise palm oil consumption and reduce fuel imports. Indonesia currently has a mandatory B20 program and its expecting save US$5.5 billion dollar per year in fuel imports.

According to deputy minister for energy and mineral resources Arcandra Tahar, during January to July, the country consumed around 2.95 million kiloliters of fatty acid methyl ester (FAME). The country hope to consume 6.2 million kiloliters of FAME over the full year and 9.6 million kiloliters in 2020.

On mineral ore, Indonesia aims to speed up enforcement to ban the exports into force in 2020 from initially 2022, said coordinating minister for maritime affairs Luhut Binsat Pandjaitan. He expect that the change of timeline should not disrupt ongoing development of smelters.

As of July, Indonesia had 13 operating nickel smelters with input capacity of 24.52 million tons. Based on government data, the 22 more nickel smelters are currently under development with additional capacity of 46.33 million tons.

Nestlé Indonesia, a subsidiary of Nestlé S.A., based in Switzerland, pumps US$100 million investment to increase production by 25 percent, from 620,000 tons per year to 775,000 tons per year. The food producer aims to build three factory in West Java.

Financial Service Agency (FSA) has set a target of 5 million domestic investors in Indonesia’ financial market by 2021 to reduce reliance on foreign investment. Currently, the country has more than 995,000 individual stock market investors, 1.39 million investors in mutual funds and more than 272,000 in government bonds.

Foreign investors account for the lion’ share of daily trade on the Indonesia Stock Exchange (IDX) owned 47 percent of Indonesian government bonds at the end of the second quarter. While, the number of the companies listed on the IDX has risen to 634 in the past four years.

On Monday, Indonesian Rupiah ended at 14,250 from last week at 14,120 against the US Dollar. While, the Jakarta Composite Index (JCI) dropped 0.5 percent to the level of 6,250.60.

The local currency and JCI’ performance is inversely proportional to the majority of major Asian stock exchanges, which are actually comfortable to trade in the green zone. Yesterday, Shanghai index skyrocketed 1.45 percent and the Kospi index rose 0.23 percent and Hang Seng index fell 0.44 percent.

Corrections that have occurred in recent times on the stock exchanges of China and South Korea open up space for market players to take action today. On the other hand, existing sentiments limit buying actions by the Chinese stock market players.

United States (US) President Donald Trump opens the possibility that the Washington – Beijing trade dialogue scheduled for early next month could be canceled. He tweeted last weekend, “Maybe, but we’ll see. Negotiations are still scheduled.”

He also said that the US would not do business with Huawei Technologies Inc., if trade agreements could not be reached but that can change if there is a US-China trade agreement. In May, Trump declared a national emergency in the technology sector through an executive order.

With these rules, Commerce Minister Wilbur Ross has the authority to block transactions in the field of information or communication technology that pose a risk to America’ national security. Along with this policy, Huawei Technologies and 70 affiliated entities are included in the list of companies that are prohibited from buying devices and components from US companies without government approval.

For today, analysts recommended shares of PT Sinar Mas Multiartha (IDX: SMMA), PT United Tractors Tbk (IDX: UNTR), PT Bank Central Asia Tbk (IDX: BBCA), PT Sumber Alfaria Trijaya Tbk (IDX: AMRT), and PT Gudang Garam Tbk (IDX: GGRM) to be watch.

May you have a profitable day!

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