JAKARTA (TheInsiderStories) – Good morning! Near deadline, United States (US) government discussion to solve border wall funding has broken down. As quoted from Bloomberg, Republicans and Democrats have stopped communicating for now.
Previously, both parties have agreed to negotiate the wall and expected to meet a decision before mid-February. If there is no decision, US can have another government shutdown, after the longest shutdown in the history that ended last month.
The acting White House chief of staff Mick Mulvaney said, shutdown is not the most likely option, but that he’ absolutely can not rule it out. The negotiators proposed border wall is reported between US$1.3 billion and $2 billion. It is far lower compared to President Donald Trump’ demand at $5.7 billion.
Meanwhile, Trump in his twitter threatened to use executive power to build the US-Mexico tall wall. He said, “The Democrats just don’t seem to want Border Security. They are fighting Border Agents recommendations. If you believe news reports, they are not offering much for the Wall. They look to be making this a campaign issue. The Wall will get built one way or the other!”
US is also facing another round of negotiation with Chinese officials next week. On Feb. 14, US Trade Representatives Robert Lightizer and Treasury Secretary Steven Mnuchin will lead US delegation to Beijing. The previous trade talks held in Washington last week, it seemed to see a ray of light.
Trump stated that he will not meet China President Xi Jinping before the end of the trade truce. US and China 90-day trade truce set to end on March 1. If both superpowers could not meet an agreement prior the D-day, US will impose more import tariffs on $200 billion China’ goods. If the worst-case scenario would happen, US-China trade tension definitely will create a worsening global economic turmoil.
While, Indonesia obliges halal labeling for consumer products and services this year. By the halal certificates issuance, government may receive Rp22.5 trillion annual revenue.
Now the halal regulation is waiting for President Joko Widodo’ approval. Indonesia will implement the halal label mandatory on October 17. For the implementation, halal certification will be done in partnership between Halal Products Guarantee Agency and Indonesian Ulema Council.
The rules require certification for all goods and services related to food, beverage, drugs, cosmetics, chemical, biological and genetically engineered products as well as all consumer goods. But it will be implemented gradually. Three to five years for food and beverage products, then five to seven years for health products.
On the last day of trade last week, Rupiah weakened slightly by 0.1 percent. Jakarta Composite Index declined by 0.22 percent to 6,521.66 with Rp205.31 billion foreign net sells. While most sectors were slumping, consumer goods, property, and infrastructure sectors had a resiliency in the downfall condition.
This week, two candidates for 2019 presidential election will face the second debate on Feb. 17 carries the theme of energy, environment, infrastructure, food, and natural resources. Then, Indonesia will release 2018’ retail sales survey, fourth quarter of 2018’ residential property price survey, February’ import export, and December 2018’s foreign debt statistic data.
In overseas, China will announce the trade, credit and direct investment data while United Kingdom (UK), US, Japan, and Malaysia to release GDP data. The Bank of England Governor Mark Carney will give a remark on the following day, to talk about the UK monetary policy.
Moreover, Federal Reserve Governor Jerome Powell will also deliver his speech, that may hint clues about further rate. Both UK and US then will announce their inflation and retail sales data this week.