Large Ships for Export in Tanjung Priok Port - Photo by President Office
JAKARTA (TheInsiderStories) — Good morning! Indonesia keeps maintaining its inflation rate in this early 2019. According to Bank Indonesia’ (BI) third week price monitoring survey result, January 2019’s inflation is estimated to be at around 0.5 percent month-on-month. While, annual inflation is projected at 3 percent.
The Bank said, low commodity price and controlled foodstuffs supply demand supports the small inflation. The central bank said does not see any worsening inflation risk ahead.
BI’ Governor Perry Warjiyo stressed that food supply and distribution is more than enough. Moreover, the central bank claimed a manageable Rupiah depreciation. He revealed, that BI will coordinate with the central and regional government to maintain low inflation.
Foreign inflow keeps coming to emerging countries like Indonesia. Until Jan. 17, there were Rp14.75 trillion (US$1.05 billion) foreign inflow entered almost all instruments. Government securities is the highest instrument penetration by foreign investors, with Rp11.48 trillion then Rp3.21 trillion entered stocks market.
The figure is still lower compared to the previous month. In December 2018, foreign inflow reached $1.9 billion. But Warjiyo believed that the continuing foreign inflow is due to Indonesia’s low investment risk and good domestic economy condition.
On the last trade day last week, Rp928.38 billion foreign funding entered stocks market. It made Jakarta Composite Index increased by 0.37 percent to 6,448.15, with sectors moved consolidating. While Rupiah against US Dollar decreased gradually last week to 14,182.
It seems that there are some confusions in the market. From United Kingdom (UK), Prime Minister Theresa May and opposition Jeremy Corbyn have not met to solve the Brexit deal. Corbyn accused that May is incapable in preventing a cliff and backing down.
UK is world’s fifth biggest economy. So if the UK falls to crisis cliff due to Brexit, the impact will be world wide.
World is now also waiting for United States and China trade talks in World Economic Forum in Davos, Switzerland on Jan. 22. US’ President Donald Trump will not be attending the meeting, due to the unsolved and longest in the history shutdown.
Trump proposed three years protection for young immigrant or so-called dreamer, in exchange of getting border wall $57 billion funding to parliament. But Democrat rejects.
Ahead of this week, May is expected to speak about the country’s development, which Brexit will be one of the talks. Japan has several data releases such as trade balance, benchmark rate, and Purchasing Manufacturing Index
May you have a profitable week!
US$1: Rp14.100
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia