Market News

Market News - 5-11 February 2017

Self-Sufficiency in Rice Achieved, Indonesia to Become Rice Exporter?” - Indonesia Investments - 10 February 2017

Indonesia's agriculture minister says Indonesia is ready to become a rice exporter after it become self-sufficent in 2016 producing 79.17 million tons of rice. The minister also added that the export destinations for Indonesian rice has already been determined and has already export organic rice to five countries, including Belgium.  The goal of becoming self sufficent has rarely been achieved due to rapidly expanding population and non-optimal techniques. With nearly all Indonesian eating rice everyday, it is a source of national pride to achieve rice self-sufficiency.

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Life Insurance Loses IDR 3.5T, While Overall Insurance Profit Fell 9 Percent” - CNN Indonesia - 10 February 2017

Last year was not a lucky year for the insurance industry. With loss gaining up to IDR 3.5t while the year before that was around IDR 10.23T. Based on the statistic from the Finacial Security Authority (OJK), the overall loss for insurance was 9 percent. For general business insurance, the gross premiums only increased by 10 percent, lower than expected with was around 15-20 percent. 

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Govt Puts Moratorium Against Indian Buffalo Meat Import” - Tempo English - 9 February 2017

The govt temporarily stops the import of buffalo meat from India, due to a tighthening of regulation from countries that are not foot and mouth disease free. The MK ruled to tighten by enacting terms and conditions as well as requirements in the events of an emergency.  Though it can be made possible during situations such as national disasters and depleting meat supply. The govt also decided not to revise the derivative rules of law on Husbandry and Animal Health.

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Moody’s Raises Indonesia Debt Rating Outlook to ‘Positive’” - The Jakarta Post - 9 February 2017

Moody Investors Service has revised the outlook on Indonesian government debt to satbel. It attributed its improved outlook due to emerging signs of reduction in structural constraints on Indonesian rating. As well as it vulnerability to external shpcks  as a result of measures fostering a narrower current account deficit and higher foreign exhange reserves. Meanwhile a downgrade is unlikely even with the psotive outlook. But a rating upgrade would result in further progress in sustainably and demonstrasting enhanced institutional strength.

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Gold Prices Rise Due to Geopolitics Uncertainty” - Antara News - 9 February 2017

In the COMEX division in New York Mercantuke Exchange closed with gold shares rising than of wednesday (Thursday morning local time). It is due to the uncertainty of European and US politics and it turn pushes the gold bars prices. In addition to the USD index decreasing to 0.07 percent and  the Dow Jones Industrial Average going down to  33 points or 0.17 percent. Investors are now slowly moving to the gold shares because of the potential votes on Marine Le Pen and US President Donald Trump new policy.

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Gov't Expects Marine Tourism to Generate USD 4 Billion” - Tempo English - 8 February 2017

Marine tourism is expected to generate up tp USD 4 billion by 2019, four times higher than its current contribution to the tourism industry. Presently, the marine tourism contributes around 40 percent overall to Indonesia's foreign exhange earning from tourism. Indonesia remains unable to untap it marine tourism potential while boasting of its islands and surrounding water. Compared to Malaysia which contributes 40 percent, though it said the sub sector is facing regulatory, human resources and service management problem, hence why it is lower than its neighboor. 

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Suporting Export, Sri Mulyani: Ask investors to trust Indonesian Export Financing Agency” - Kompas - 7 February 2017

Finance minsiter Sri Mulyani has asked investor to keep believing in Indonesia Eximbank (LPEI) which in turn is able to push Indonesian Export  industry. To support the Eximbank will put out bonds as much as IDR 14 trillion or as much as USD 500 million. The hope is so that they are able to reach out to small and medium sized industries. With the market even mre diverse, the Indonesian economic sector will be stronger.

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SOE Assets to Grow 11% in 2017” - Tempo English - 7 February 2017

The ministry of State Owned Enterprises or SOE is predicted by gain a 11.22 percent increase compared to last year. The data showed SOE assets in 2016 increased by 9.8 percent and were higher than the gorvernment's initial target when compared to 2015, and it was helped by assets growth. Meanwhile, SOE liabilities are predicted to hit IDR 4.643 trillion in 2017.

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Asia Shares Track Wall Street Higher, Dollar Becalmed” - Tempo English - 6 February 2017

Asian shares gathers momentum on Wall street while the US dollar hobbled down by lack of progress on US Fiscal stimulus. MSCI index of Asia Pacific outside Japan inched up 0.3 percent while Australia with 0.5 percent and Japan Nikkei rose 0.7 percent respectively.China Central Bank has also raised short-term interest rate. Even though US jobs jumped more than expected in January, its wages growth is still low. The outlook is cautious for the dollar having lost 2.3 percent. Oil prices also spiraled up since the US sanctions on some Iranian individuals.

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“Stock Index (JCI) Opens at 8.75 Points After Positive Outlook” - Media Indonesia - 6 February 2017

Due to market optimism, the index price in the Indonesian Stock Exchange on Monday opened at 8.75 percent. While 45 leading stocks moved up higher of 2.95 points. However, market participants are expected to remain cautious given the global sentiment is not concrete. Especially with the new US administration sanctions on several Iranian entities could threaten global economy and stability.

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