Indonesian President Joko Widodo may continue to seek the central bank’ help in financing the state budget deficit until 2022, if the economic growth below than 2021' targets - Photo: Special

JAKARTA (TheInsiderStories) – Bank Indonesia reported foreign exchange reserves at February amounted to US$130.4 billion, slightly lower than the position in January 2020 of $131.7 billion. The foreign exchange reserves are equivalent to financing 7.7 months of imports or 7.4 months of imports and payments of government foreign debt, and are above the international adequacy standard of around 3 months of imports.

The policymaker assesses that forex reserves are able to support the resilience of the external sector and maintain macroeconomic and financial system stability. The decline in foreign exchange reserves in February was partly influenced by the payment of government foreign debt.

Today, the central bank will announces the consumer survey report for February and the next day a retail survey report for January. Last month the consumer 121.7 or down 3.7 percent versus December 2019 amounting to 126.4 and the retail survey at fourth quarter of 2019 slightly accelerating to 1.5 percent from 1.4 percent in the third quarter of 2019.

Globally, after worldwide Purchasing Manager Index surveys showed the world economy contracting at the steepest rate since 2009 as the coronavirus disrupted supply chains and hit sectors, markets will be watching keenly for remedial policy action from central banks and governments, either via fiscal or monetary stimulus.

The recent Federal Reserves rate cut will see eyes turn to the European Central Bank’ policy meeting next week. More limited policy maneuver in Europe than the United States (US), but we expect an enhancement of liquidity provision, a 10-basis point deposit facility rate cut and a modest increase in the monthly pace of net asset purchases to be announced. There is a risk, however, that the Governing Council may struggle to agree on such a comprehensive package of measures.

Europe also sees some key data out of Germany, which will add insight into the health of the eurozone’s largest industrial sector at the start of the year, while in the United Kingdom, the government sets out its post-Brexit spending and tax plans in its Spring Budget.

In the US, consumer confidence data are the pick of the bunch, highlighting the degree to which the coronavirus has affected households’ willingness to spend. Inflation numbers are also updated, and should show price pressures easing.

Then in Asia, investors will seek to gauge the potential of production recovery in mainland China by assessing the speed to which firms restart work. Data highlights include Taiwan’ trade statistics, industrial output in India and Malaysia, inflation figures in mainland China and India, plus Japan’s machinery orders.

In Indonesia, the country announces six people has been affected by COVID-19 and from 23 suspected in 25 provinces across the nation. Globally, more than 107,000 people have been infected and 3,600 have died.

In Italy, the number of cases jumped 25 percent in a 24-hour period to 7,375, while deaths climbed 57 percent to 366. It was the largest daily increase for both readings since the contagion came to light on Feb. 21.

The Australian Government is expected to release fiscal stimulus worth A$10 billion ($6.62 billion) to protect the economy from the effects of the coronavirus. Australian finance minister Josh Frydenberg, said that the virus has a significant impact on tourism, education, agriculture and manufacturing. Governments around the world have pledged more than $54 billion budget supporrt to fight the effects of the virus.

On Friday, Indonesian Rupiah weakened 0.48 percent to 14,243 per US Dollar and the Jakarta Composite Index (JCI) closed down 2.48 percent to 5,498.54. The analysts rated, the outflow of funds in rupiah-denominated bonds continued in the past week amid the spread of COVID-19.

For today they believed the market is still worried by the World Health Organization warning that coronavirus has the potential to become a pandemic. In fact, Moody’s warned that the outbreak would trigger a global recession in the first half of 2020.

With all various data, the observers viewed the local currency move in the range 14,110 – 14,320 compared to Greenback. While, the stock index between 5,473 to 5,552.

Stocks to be watch for today are PT Astra International Tbk (IDX: ASII), PT Kalbe Farma Tbk (IDX: KLBF), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Tabungan Negara Tbk (IDX: BBTN), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Bank Mandiri Tbk (IDX: BMRI), PT Waskita Karya Tbk (IDX: WSKT), PT Astra Agro Lestari (IDX: AALI), and PT London Sumatra Indonesia Plantation Tbk (IDX: LSIP).

US$: AUD1.51

May you have a profitable Week!

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

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