JAKARTA (TheInsiderStories) – Here’s several news could affect stock market condition compiled by our team :
*President Joko Widodo and Japanese Prime Minister Shinzo Abe are expected to witness the signing of an agreement on a joint study of the Jakarta-Surabaya semi-high-speed railway next week. The deal on the $7.8 billion railway would be the first of several projects worth billions of dollars, which Japan and Indonesia will undertake under a public-private partnership scheme involving state-owned and private companies from both countries. Other projects include the $3 billion Patimban deep-sea port in West Java, a $487 million project to electrify and double the number of lanes to four on the railway line connecting Manggarai Station in Central Jakarta and Cikarang, an industrialized area in West Java.
*The Indonesian government is set to roll out 15th policy package which will be about logistics and the practice of single data and information submission through the Indonesia National Single Window portal later this month, Coordinating Minister for Economic Affairs Darmin Nasution said. The new regulation is expected will reduce dwelling time duration.
*Agriculture Ministry has targeted to stop the import of corn that is used as raw material for producing livestock feed in 2017. The ministry has expanded the corn plantation area by two million hectares and encouraged feed producers to buy corn produced locally, Directorate General of Animal Feed Triastuti Andajani said in a statement. The Indonesian Feed Millers Association has forecast that feed production in 2017 could reach 18.5 million tons, and it would need 9.25 million tons of corn. Independent farmers will need some 3.6 million tons of corn based on the assumption of 300,000 tons of consumption per month. Corn demand for animal feed in 2017 is estimated to reach 12.85 million tons, or 1.1 million tons per month on an average. In September, the ministry and the association had signed a memorandum of understanding, which was followed by cooperation between the agriculture offices in 33 provinces and local feed producers to buy corn produced locally. The ministrys data revealed that corn imports in 2016, as of December, had declined to 884,679 tons, or 68 percent as compared to imports during the last five years.
*PT Semen Indonesia Tbk (SMGR) prepared a capital expenditure of Rp 6 trillion in 2017 mostly use to expand the construction of factories in Aceh and Kupang with capacity of 2.5 million to 3 million tons per year, Corporate Secretary Agung Wiharto said. The plant in Aceh targeted for completion in 2019, while in Kupang targeted for 2020. In addition, the working capital will also be allocated for the manufacture of packing plants in Bengkulu and Maluku. Then to complete the project of power generation hits 35 watts in Tuban. This year, the company targeting the production up 5% to 64 million tons.
*The price of West Texas Intermediate crude oil (WTI) again heating up and is now perched above US$53 per barrel. WTI oil price in February 2017 delivery contract on the New York Mercantile Exchange climbed 0.15% to US $ 53.34 per barrel compared to the previous day. The latest, reported OPEC oil output fell 310,000 barrels per day in December 2016 along ago. It is caused by the production disruptions in Nigeria. Not to mention, the American Petroleum Institute recorded a US oil stocks last week fell 7.43 million barrels last week. It becomes a positive indication that the market will be followed by an official report of the government-owned Energy Information Administration (EIA) on Thursday.
*Crude palm oil (CPO) price continued its decline. The increase in stocks and a decline in exports in Malaysia apparently enough to shake the market so that the price was finally corrected. According to Bloomberg, CPO prices in March 2017 delivery contract in Malaysia Derivative Exchange slipped 0.48% to a level of RM3,126 per metric ton compared to the previous day. Meanwhile, during the week of crude palm oil has been corrected to 0.64%.
*Gold prices in February 2017 delivery contract in the Commodity Exchange soared 0.62% to US$1,172.50 per troy ounce compared to the previous day. Ahead of the inauguration of Donald Trump as the 45th US president on Jan. 20, 2017 the demand for safe havens such as gold jumped. In addition, after the release of the FOMC minutes are indicative of disagreements between Fed officials about the chances of a rate hike this year, the USD was attacked by the correction.