JAKARTA (TheInsiderStories) — Good morning! China will hold the Belt and Road Initiative (BRI) Summit on April 25-27. 37 world leaders in the summit is scheduled to discuss project financing that respects global debt goals and promotes green growth.
The BRI is a key policy of President Xi Jinping and envisions rebuilding the old silk road to connect China with Asia, Europe and beyond with massive infrastructure spending. United States (US) is only sending lower-level representatives, reflecting its unease over the scheme.
The BRI is quite a controversy in some countries, particularly the US, which views it as a means to spread Chinese influence abroad and saddle countries with unsustainable debt through nontransparent projects. US has also criticized Italy’s decision to sign up to the plan last month, the first for a G7 nation.
The BRI draft communique is claimed to support collaboration among national and international financial institutions to provide diversified and sustainable financial supports for projects. They encourage local currency financing, mutual establishment of financial institutions, and a greater role of development finance in line with respective national priorities, laws, regulations and international commitments, and the agreed principles by the UNGA on debt sustainability.
It also encourages the development of green finance including the issuance of green bonds as well as development of green technology. Chinese government’ top diplomat, Wang Yi said that the Belt and Road project is not a geopolitical tool or a debt crisis for participating nations.
But he stated, China welcomes constructive suggestions on how to address concerns over the initiative. The country has repeatedly said Belt and Road is for the benefit of the whole world, and that it is committed to upholding globally accepted norms in ensuring projects are transparent and win-win for all parties.
Moreover, ahead of this week, America will announce home sales data, crude oil inventories, durable goods order, and jobless claim data. One of the most important data, the US will release first quarter Gross Domestic Product (GDP) which could be impacted by the unsolved trade war with China.
While, Bank of Japan (BoJ) will give monetary policy statement, issue outlook report, and announce interest rate decision. The central bank’ monetary policy statement contains the outcome of its decision on asset purchases and commentary about the economic conditions that influenced their decision. The outlook report provides insight into the BoJ’ view of economic conditions and inflation.
In the country, Bank Indonesia will hold board of governors meeting on April 24-25, to announce its 7-Day Reverse Repo. Recently, the benchmark rate is at 6 percent.
Indonesian Rupiah gained strength by 0.35 percent after election. Huge foreign inflows for Rp1.42 trillion (US$101.43 million) entered Indonesian capital market and made the Jakarta Composite Index maintained its upturn by increasing 0.39 percent to 6,507.22.
May you have a profitable week!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information About Indonesia