JAKARTA (TheInsiderStories) — Good morning! This week starts with an end of 35 days United States (US) government shutdown, the longest record in US history. But the government re-opening is only temporary until Feb. 15th.
US President Donald Trump still insisted US$5.7 billion border wall. He threatened to declare state of emergency and re-shutdown the government if he doesn’t get the border security funding on the deadline.
US economy has lost $6 billion caused by the shutdown, according to S&P Global Ratings. There was productivity loss caused by the furloughed workers and paralyzed economy. The shutdown had made around 800,000 federal workers left unpaid. Most of them proposed for unemployment allowance or retired allowance to fill their empty income during the government closing.
US Dollar is expected to regain power after the government re-opening, as shutdown has given bad sentiment over its currency. But Indonesian Rupiah was one of the world’s currencies that got benefit in American Dollar depreciation.
Global economic uncertainties bring Indonesian government expanding export market. In the World Economic Forum held in Davos, Switzerland, Indonesia’ Industry Minister Airlangga Hartarto asked Japan External Trade Organization to strengthen both countries small and medium enterprises cooperation. He met Jetro Chairman Hiroyuki Ishige and told his intention, so Jetro keeps facilitating Indonesia-Japan SMEs link and match.
Both parties have also agreed on deepening Indonesian manufacture sector through investment and market access extension. It will not only be in automotive and components industries, but also in textile, electronic, food and beverage, also packaging.
Japan has been Indonesia’s biggest investor for years. During January-September 2018, Japan’s investment reached $3.8 billion for 2,731 projects.
Not only that. Indonesia is also working on to finish Indonesia-Turkey Comprehensive Economic Partnership Agreement, to maximize export into the area. The negotiations are divided into six issues, market access and text draft, customs and trade facilities, trade remedies, technical trade, sanitation and phytosanitary barriers, also legal agreement.
According to Trade Ministry’s Director of Bilateral Negotiation Ni Made Ayu Marthini, Indonesia’ export to Turkey keeps increasing in the last three years. In 2017, Indonesia exported $1.7 billion goods to Turkey. By the IT-CEPA agreement, both countries exports are projected to reach $10 billion in 2023.
To boost tourism, Indonesia now eyes India as the world’s second biggest population. Compared to 2012, India tourists visit to Indonesia has multiplied around three times in 2018 to 535,550. This year, Indonesia’ Tourism Ministry targeted 800,000 visitors from India.
Ahead of this week, world’ attention will be on the British parliament vote over Brexit, January 30th. If the parliament couldn’t agree on the EU agreement, the country may have a no-deal Brexit.
Furthermore, Federal Reserves will announce its interest rate which is predicted to be on hold, amid the central bank’ plan to act prudent this year. US will also release November 2018′ trade balance.
In Asia, Hong Kong will publish its trade balance. While Japan will issue December 2018′ retail sales. And prior to that, Japan’s central bank will decide monetary policy, including the reference rate.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia