coordinating minister for economic affairs Darmin Nasution rated the trade dispute between United States (US) and China has been calmed after run for months - Photo: Privacy
JAKARTA (TheInsiderStories) — Good morning! United States (US) and China agreed to halt trade war for 90 days. The decision was made on Sunday (12/02), in Group 20′ (G20) sidelines bilateral meeting in Buenos Aires, Argentine.
It was the first face-to-face meeting between US President Donald Trump and China President Xi Jinping since the trade war erupted earlier this year.
The both leaders agreed, no additional tariff will be imposed after Jan. 1, 2019, as Trump previously threatened to impose tariffs to all Chinese import. Followed the decision, trade negotiations between the world’s two biggest and most powerful economies will continue.

In the trade war, US has imposed tariffs on US$250 billion Chinese goods. While China retaliated, imposing tariffs on $113 billion of US goods. The ceasefire between US and China trade is predicted to blow good sentiment over world’s financial market.

During last week, the Rupiah has strengthened by 1.45 percent. Bank of Indonesia (BI) claimed that government has taken stronger policies to maintain economic stability. But BI realised that the Rupiah is still undervalue compared to its fundamental.

Meanwhile, the Jakarta Composite Index last week has been consolidating. It peaked at 6,107.16 on Thursday (11/29), but was then hit by profit-taking on Friday to 6,056.12. Foreign investors also recorded net sell at Rp1.4 trillion ($96.55 million), making Rp45.58 trillion accumulated net sell since early 2018. Even so, Indonesia stocks market’s loss is better compared to other ASEAN countries.

Furthermore, Statistic Indonesia will announces the country inflation data today. Its projected to be maintained at around 3.2 percent at the end of this year. A survey held by the central bank mentioned that November’s monthly inflation will be 0.18 percent. Accumulated in year-to-date, the inflation is estimated at around 2.41 percent. According to Bank Indonesia (BI), the manageable inflation shows that people’s purchasing power is under-control.

While, Asia Development Bank (ADB) predicted Indonesia’s inflation at 3.26 percent in 2018. Based on ADB calculation, Indonesia’s November monthly inflation is at 0.3 percent, higher than BI’s calculation.

Factors affected the inflation are pressure on imported inflation from Rupiah weakening and food price increase over decreasing production due to rainy season.

Ahead of this week, Indonesia will announce consumer survey and foreign exchange statistic are to be announced on Thursday and Friday respectively. From the global side, Australia and India set monetary policy and US to announce non-farm payrolls and earnings.
May you have a profitable day!
US$1: Rp14,500
Written by Linda Silaen and TIS Intelligence Team, Please visit our new website to get more insight on Indonesia’s economy: