JAKARTA (TheInsiderStories) – Good morning! Massive crowds march in London demanding a second Brexit referendum. A day after marched, Chancellor Philip Hammond said a second referendum likely to be one of the options put to lawmakers in the coming days.
Last week, European Union Parliament gave a two-tier extension for United Kingdom Prime Minister Theresa May’ Brexit planned by softening the threat of an unconditional divorce after initial talks at the summit in Brussels which lasted from 21-22 March.
While, expected to near the deal, United States (US) and China will have another high-level trade talks this week. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to Beijing on March 28. Then, on April 3, China Vice Premier Liu He will visit Washington.
US’ President Donald Trump said that negotiations with China were progressing and a final agreement seemed probable, as the world’ two largest economies seek to ease tensions from an eight-month-old trade war. Earlier, he mentioned that Chinese imports tariffs are still on the table, even though Chinese counterparts have asked the tariffs to be removed as part of any deal.
Amid the unsolved trade war with the US, China is confident for achieving its 2019′ key targets. To achieve it, China will further deepen market-oriented reforms and open up its economy. China aims economic growth between 6 percent and 6.5 percent for this year, lower than 6.6 percent growth last year. Furthermore, China’ imports of goods are expected to exceed US$12 trillion in the next five years.
Last week, Rupiah against US Dollar weakened by 0.39 percent to 14,165. But Bank Indonesia is confident that local currency will continue to gain power this year. Lower global uncertainty and controlled Federal Reserve policy are considered able in attracting foreign inflow to Indonesia, said official.
There are still some other factors like US and China trade war and Brexit. So, the central bank’ move on reference rate refers to maintaining stability from external factors.
Furthermore, Indonesian government will re-assess relations with some countries that support European Union policy over palm oil. The EU Delegated Act of Renewable Energy Directive II (RED II) is regarded discriminative to Indonesian palm oil commodity, as Crude Palm Oil contributed $17.89 billion on Indonesian exports last year.
Coordinating Minister for Economic Darmin Nasution little bit worried that if discrimination against palm oil continues, it will affect the good relations between Indonesia and the European Union that have been around for a long time. At this time, the country are conducting intensive discussions on the Indonesia-EU Comprehensive Economic Partnership Agreement negotiations.
Indonesia just inaugurated its first ever Mass Rapid Transit (MRT) in Jakarta. The 16 kilometers of Japanese-made first phase MRT investment valued Rp16trillion ($1.13 billion). Meanwhile, the second phase is estimated to have a bigger investment amount at Rp22.5 trillion for 8.6 kilometers.
Ahead of this week, Indonesia will update February’ money supply. Another Asian country, Japan will announce retail sales and unemployment rate. Bank of Japan is going to report summary of opinions which includes projection for inflation and economic growth.
Then, US will publish data of consumer confidence, crude oil inventories, and new home sales which are estimated to get better. Moreover, America will announce its 2018’ Gross Domestic Product that’s estimated slowing down, impacted by trade war with China.
The UK will also release its last year’ GDP. Amid Brexit uncertainty, EU Central Bank Mario Draghi will speak about the zone’ economic policy this week.
May you have a profitable week!