JAKARTA (TheInsiderStories) – Good morning! The 27 leaders of European Union (EU) finally endorsed United Kingdom’s (UK) withdrawal yesterday. But this does not mean that England steps is easy to officially attain Brexit.
The country still needs House of Commons approval, which some of the parliament members firmly rejected. UK is scheduled to leave the EU on March 29, 2019.
Go to domestic issues, as an effort to spread its trade market nets, Indonesia keeps supporting global free-trade. In Geneva, Swiss, the country stated its openness over the World Trade Organization
(WTO) reformation and modernization, aims to give positive change in multilateral trading system and accommodate developing countries.
As G-33 coordinator, Indonesia also asked public stock holding and special safeguard mechanism. Suggestion to reform WTO sparked amid the global trade uncertainty.
On the other hand, WTO seems to be weakening in carrying out its functions, seen by the failing Doha round negotiation, protectionism done by its country members, trade pressure increase, US blockade threat over appellate body members filling, and WTO’s un-effective monitoring system.
Also in Geneva, Trade Minister Enggartiasto Lukita, along with Swiss, Liechtenstein, Iceland, and Norway, inked the seven years negotiation Indonesia-European Free Trade Association (IE-CEPA
) joint statement. So the agreement can be officially signed in December.
EFTA is Indonesia’s 23rd highest non-oil and gas export destination and 25th biggest non-oil and gas importer. Last year, Indonesia-EFTA trade value reached US$2.4 billion, with $1.31 billion export and $1.09 billion import
Then local oil & gas producer, PT Energi Mega Persada Tbk
(IDX: ENRG) planned to issue as many as 15 billion new shares until September 2019. Edoardus A Finance Director Windoe revealed, the rights issue plan had received the blessing from its shareholders last September.
Furthermore, Coordinating Minister for Economy Darmin Nasution said the pressure on Rupiah
would not yet be over although it is relatively stable hovering in a narrow range of 14,500-14,600 per US dollar.
He said, the external pressure brought about by normalization policy of the Federal Reserves, the trade war threat and commodity price fall would still determine the rupiah condition. Therefore, Nasution added, government will continue to redress the current account deficit
Last week, Rupiah currency exchange got better day by day, thanks to domestic sentiments, ended at 14,552 over the greenback. While, the Jakarta Composite Index bounced back above 6,000 after suffered in the red territory and foreign net sell.
Today, Indonesia Stock Exchange
will launch acceleration of market transaction settlement from T+3 to T+2, aspire to expedite capital flow liquidity. Indonesia becomes the second country in ASEAN that implements such system.
Meanwhile, some other countries like United States, Canada, Japan, and Saudi Arabia have implemented the T+2 transaction settlement.
After get funding from investors, State-Own Enterprises ministry to sell PT Merpati Nusantara Airlines
shares to private investors, following its homologation stated by court. The airlines had received funding commitment for Rp6.4 trillion (US$435.37 million), disbursed in stages, from PT Intra Asia Corpora to re-operate in 2019 after years off and in debt.
This week, South Korea sets its monetary policy, US and India will announces its GDP data, FOMC to release its minutes meeting and Euro-area inflation. From domestic side, the negative list investment and current account deficit still become the major issues beside politics.
May you have a profitable week!
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: www.tisintel.com