President Republic of Indonesia Joko Widodo will deliver his speech today at the Parliament - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Indonesian President Joko Widodo will deliver his speech on the country direction in 2020 at the People’s Consultative Assembly and House of Representatives. As he promised, the Indonesian leader also will announce the new capital city of the country.

Last month, the government and parliament has set the macro assumption indicator for the 2020 State Budget. For 2020, the economic growth set in the range 5.2 to 5.5 percent, inflation at three percent with one percent deviation, and three months letter of the state treasury at 5 percent to 5.6 percent.

Then, Rupiah against US dollar is set at Rp14,000-15,000, Indonesia Crude Price in the range of $60 – $70 per barrel, oil lifting 695,000 to 840,000 barrels per day also the gas lifting is estimated at 1.19 million to 1.3 million barrels of oil equivalent per day.

Indonesia’ external debt rose 10 percent in the second quarter (Q2) of 2019 compared to same period in 2018, primarily due to withdrawal of external debt and the strengthening of Rupiah against US dollar.

Bank Indonesia (BI) said, the rising of total external debt mainly driven by government external debt, amid slower growth of private external debt. The country’s total debt recorded US$391.8 billion in the 2Q 0f 2019, consisted of government and central bank debt of $195.5 billion, as well as private debt (including state-owned enterprises) amounted to $196.3 billion.

On Thursday, Indonesian Rupiah weakened 0.20 percent to 14,274 per US dollar and in the middle rate of BI, the local currency weakened 0.44 percent to 14,296. While, the Jakarta Composite Index slightly dropped to 6,257.59 compared to prior day.

The weakening on the financial market, according to some observer, was influenced by the fears of slowing global economic growth, especially in the European region. Five countries are projected to be in recession due to a trade war that led to a currency war are Britain, Germany, Italy, Mexico and Brazil.

In addition, US bond yields continued to decline while domestically  July trade balance deficit $63.5 million was better than analyst projections. For today, they said, Rupiah has the potential to strengthen in the range 14,213 to 14,306 against the US dollar.

US government bond yield curve slipped below the 2 percent level, suggesting investors expect gloomy prospects for its economy. China pledged to launch countermeasures if the White House carries out its recent plan to impose 10 percent tariffs on an additional $300 billion of Chinese imports.

U.S.-initiated trade offensives against its major trade partners have weighed heavily on the export-oriented German economy as well as that of the European Union as a whole. Germany’ gross domestic product (GDP) shrank by 0.1 percent from April to June from the previous quarter.

While, US’ Retail sales data for July rose 0.7 percent last month. Sales rose an even stronger 0.9 percent if auto dealers and gasoline stations are omitted.

On Friday, the composite index is estimating move in the range 6,123 to 6,372. The stocks to be watch are PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Central Asia Tbk (IDX: BBCA), PT Astra International Tbk (IDX: ASII), PT Jasa Marga Tbk (IDX: JSMR), PT Telkom Indonesia Tbk (IDX: TLKM), PT HM Sampoerna Tbk (IDX: HSMP), PT Wijaya Karya Tbk (IDX: WIKA), PT PP Tbk (IDX: PTPP), and PT Adhi Karya Tbk (IDX: ADHI).

May you have a profitable day!

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