JAKARTA (TheInsiderStories) – Good Morning! After being anticipated to be reunited post-election, finally President-elected Joko Widodo and former presidential candidate Prabowo Subianto met on Saturday (07/13). However, former vice-presidential candidate Sandiaga Salahuddin Uno stated firmly to remain in the opposition line to control the running of the government.

While, in his presidential address on Sunday, Widodo said he would continue infrastructure development that had already begun while wanting to shift the focus of his priorities to human resource development, investment, human resources, bureaucratic reform, and prudent State Budget uses.

Today, Indonesia Statistics will release trade data during June 2019. In the midst to rise market expectations, its hoped that Indonesia’ trade will record a surplus again, after a surplus of $210 million in May, far better than the position that experienced a deficit of $2.5 billion in prior month. This was driven by export values of $14.74 billion, up 12.42 percent, while import decline 5.62 percent to $14.53 billion.

To maintain trade health until the end of the year, the government has stipulated Government Regulation Number 43 Year 2019 concerning the Basic Policy for National Export Financing to create a conducive business climate and accelerated export growth, especially for micro, small, medium and cooperative businesses.

In addition, Finance Minister Sri Mulyani Indrawati claimed to have prepared a draft law specifically in the field of taxation to increase the flow of incoming investment, including requests for lower income tax rates to other tax incentives.

Recently President Widodo has been repeatedly to talk about tax incentives with at least two bonuses, namely a reduction in corporate income tax rates by up to 20 percent (from 25 percent) and super deductible tax incentives in the form of reducing net income taxed up to 300 percent.

Meanwhile, the Special Task Force for Upstream Oil and Gas Business Activities said that it had signed a revision of the Masela Block development plan with Japanese company Inpex Corporation. The value around the project ranges up to $20 billion.

Last week, after the Federal Reserve (Fed) give a signal to cut its benchmark rate and bring positive stimulus to the global market. This week, other stimulus is expecting from the announcement of the the economic data from the United States (US), China, Japan, Korea, the European Union, and Indonesia.

In the US, with the Fed already widely expected to cut interest rates in July meeting, incoming data on industrial production and retail sales will be eyed for indications of the scale of – and need for – any future loosening of policy.

It said, retail sales are expected to rise for the fourth consecutive month in June, while industrial output growth is set to slow down, after rising the most in six months in May. Other important publications are the price of foreign trade, business inventory, and overall net capital flows.

China statistics and Asian trade figures dominate next week’ data-heavy diary, with a particular spotlight on Chinese GDP. All eyes are on China’s second quarter’s GDP growth, as markets forecasts point to the weakest economic expansion since 2009, amid ongoing trade tensions with the US.

The country will also be releasing industrial output, retail sales, house price index and fixed asset investment. Meanwhile in Japan investors will focus on trade balance, with markets expecting a fall in both exports and imports and June’ consumer price inflation.

IHS Markit forecast China’ economic growth to ease from 6.4 percent in the opening quarter of the year to 6.3 percent. The extent of the slowdown will be important in assessing the impact of recent policy stimulus, as well as guiding the need for any potential future policy action.

Then, central banks in South Korea and Indonesia meet to decide on interest rates. Bank of Korea is not expected to cut its policy rate in July, there are mounting pressures for more monetary support in the face of flagging economic activity.

Furthermore, Turkish economy has begun to show signs of recovery. High interest rates, a measure of calm after local elections earlier this year and efforts to rebuild tense relations with the US have allowed lira, which dropped 12 percent against the dollar in the first four months of this year, to strengthen. Inflation fell to 16 percent, from 25 percent last fall.

While, Beijing-based Asian Infrastructure Investment Bank (AIIB) since its inception in 2016 has channeled $8.5 billion in investment for 45 projects in 18 countries. AIIB members collectively account for 78 percent of the world’ population and 63 percent of global GDP.

Saudi Arabia expanded its 105 billion riyal ($28 billion) industry fund mandate to enable financing of energy, logistics and mining projects as part of a broader effort to develop the royal industry. The change greatly expanded the scope of the Saudi Industrial Development Fund, which previously only provided financing for local manufacturing businesses.

This week, Indonesia’ financial markets is predicted become more attractive due to the release of various economic data. The performance of the Indonesian financial market varies, tends to strengthen.

After the three-day rally in a row, the Jakarta Composite Index closed down 0.68 percent to 6,373.35 on Friday. Until the end of the year, the composite index rate is projected to be in the range of 6,750 levels, supported by the performance of three main sectors, namely the banking, infrastructure and consumer sectors.

And Indonesian Rupiah was closed at the level of 14,008 against the Greenback. This week, the local currency is estimating have a room to strengthen but the Fed’ sentiment is still overshadowing the market.

US$1 =Rp14,100, 3.75 Riyal

May you have a profitable week!

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