Shopping at Supermarket - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! Today, Statistic Indonesia to announce inflation and tourism data in August. Last month the rate went up 0.31 percent (MoM), year to date (January-July) is 2.36 percent, and in annual basis inched up to 3.32 percent.

From global, Starting Sunday (09/01), China started to impose additional tariffs on some of the Unites States (US) goods on a US$75-billion target list. The extra 5 and 10 percent tariffs were levied on 1,717 items of a total of 5,078 products originating from America and next on Dec. 15.

The two countries have begun imposing additional tariffs on each other’ goods in the latest escalation of their bruising trade war that has sent shockwaves through the global economy. The Trump administration will begin collecting 15 percent tariffs on more than $125 billion in Chinese imports.

This week, some countries will release the Purchasing Manager Index (PMI) Survey, providing updates on global business conditions midway through the third quarter, which could prove influential in steering central bank policy decisions. July’ surveys pointed to global growth running at one of the weakest rates for three years.

In US, non-farm payrolls and PMI data will be eyed for clues as to whether the Federal Reserves is likely to add more stimulus. In Asia, the impact of trade wars and – in the case of Hong Kong – political unrest will be under scrutiny via PMI data, trade numbers for China and South Korea’ GDP.

Then Australia will releases second quarter GDP figures, which IHS Markit forecasts to come in at an annual rate of just 1.6 percent, which will be the weakest growth for nearly a decade. Australia also sets monetary policy, with mounting pressure for more policy support.

Last week Energy and Mineral Resources (EMR) and the House of Representatives’ Commission VII agreed that the electricity subsidy worth of Rp62.21 trillion ($4.38 billion) in the 2020 State Budgetm higher than the this year at Rp59.32 trillion.

According to the minister Ignasius Jonan, the realization of electricity subsidy up to July valued Rp30.89 trillion. He predicted by the end of this year the realization only 81.25 percent of the total budget.

Last week, Indonesia Rupiah strengthened 0.28 percent to 14,198 over the Greenback and the Jakarta Composite Index (JCI) rose 1.16 percent to 6,328,47 compared to previous day. Analysts rated, news that US and China also the Fed became a positive catalyst for the market.

Investors more confident to lower interest rates again at the Sept. 18′ meeting to support the economy in dealing with trade risks. The reason, in the second quarter of 2019, US’ GDP dropped to the weakest since the first quarter of 2017 at 2 percent.

While from domestic, collaboration between the Government and Bank Indonesia which continues to intervene in the Domestic Non Delivery Forward market in this week has succeeded in bringing the local currency close at a significant level over the weekend.

Rupiah is estimating move in a limited range 14,165 to 14,233 per US dollar, while the JCI at 6,187 – 6,372. The stock to be watch for today are PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bumi Resources Minerals (IDX: BMRS), PT Adaro Energy Tbk (IDX: ADRO), PT Telkom Indonesia Tbk (IDX: TLKM), PT Astra International Tbk (IDX: ASII) , PT Waskita Karya Tbk (IDX: WSKT), and PT Barito Pacific Timber Tbk (IDX: BRPT).

May you have a profitable week!

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