_20… · Web viewLast week JCI closed up 1.39% to 6,361.84 compared with the previous day at 6,274.54, the positive sentiment of the trade deal between the U.S. and China

Weekly Report Jan 07-11, 2018By :Ana DairianaEmail : [email protected]

STOCK MARKET

Source : Indonesia Stock Exchange

Last week JCI closed up 1.39% to 6,361.84 compared with the previous day at 6,274.54, the positive sentiment of the trade deal between the U.S. and China. Besides, the Fed also signaled that it will not promptly tighten its monetary policy. The stance is estimated to continue further until this week when investors keep their eyes on China's trade balance. In the domestic market, investors are estimated to digest the result of Bank Indonesia (BI) Board of Governors Meeting dated Thursday, 01/17/19. The meeting discusses its benchmark rate estimated to be stable at 6.0% JCI have chance to continue strengthening this week. The market player will wait and see Rupiah movement and the balance of trade who will release this week.

Analyst MNC Sekuritas, Edwin Sebayang said the sentiment global and local will be balance and give good tend to JCI. Domestic sentiment will give influence to foreign funds flowing to Indonesia market. He Forecast JCI will strengthen and the Resistance level 6,380-6,500, while the support level 6,262-6,014. The rupiah strengthened to Rp 14,045 similar with all Asia currency. Due to demand for USD still low on this January. USD / IDR exchange rate on this week expected to be in the range between resistance at 14.1750- 14.488, while support levels 13,990 - 14,943.

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USD/IDR Exchange Rate

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Indonesia Stock Exchange, Weekly Statistics, Jan 07- 11, 2019

Source : Indonesia Stock Exchange

WEEKLY NEWS SUMMERY

Indonesia eyes amnesty funds with new investment instruments

Indonesian authorities are working to develop new investment instruments with “good” returns in a bid to retain onshore more than US$10 billion that was repatriated under a tax amnesty program three years ago, with officials acting before a lock-in period on the funds expires later this year.The tax amnesty began in 2016 and unearthed some $360 billion in previously undisclosed assets in Indonesia and abroad, with more than 900,000 people taking advantage of the reprieve. An estimated Rp 147 trillion ($10.4 billion) was repatriated from overseas, with the returned

funds locked in for a minimum of three years in assets such as gold, property and infrastructure.Indonesia’s rupiah is the best-performing Asian currency this year, rebounding about 8 percent from a two-decade low last year, when it was caught up in an emerging markets selloff triggered by rising US interest rates.(Kontan. Jan 11, 2019)

Only 15% of foreign exchange earnings converted to rupiah: BIBank Indonesia has announced that only 15 percent of foreign exchange earnings to October 2018 had been converted into rupiah. small conversion percentage was caused by

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exporters' need to fulfill various obligations like repaying foreign debt, paying foreign investors and purchasing raw materials for manufacturing export products. he figure could increase once the Integrated Foreign Exchange Information Monitoring System (SiMoDis), launched jointly by BI and the Finance Ministry on Monday, had becoem fully operational.(The Jakarta Post. Jan 08, 2019)

2018 export growth likely to be 7,5%, says trade ministerTrade Minister Enggartiasto Lukita has estimated that export growth in 2018 would reach only 7,5%, far below the targeted 11%, although the official result has not been released. Last year's 11% target was already lower than the 16% export growth achieved in 2017. he lower export growth to global economic turbulence that led to a decline in local market demand. The trade minister's projection reflects Indonesia's trade balance predicament, which recorded a US$ 7,52 billion deficit in November. The government, he said, would keep expanding bilateral and multilateral trade agreements in order to secure access to foreign markets and drive exports(Kontan. Jan 08, 2019)

Official Reserve Assets Continue to IncreaseIndonesia's official reserve assets at the end of December 2018 continued to increase to USD120.7 billion, higher than USD117.2 billion at the end of November 2018. The reserve

asset position was equivalent to financing of 6.7 months of imports or 6.5 months of imports and payment of government external debt, and well above the international standard of reserve adequacy of 3 months of imports. Bank Indonesia considers that the official reserve asset position is able to support the external sector resilience and maintain macroeconomic and financial system sustainability.The increase in foreign exchange reserves in December 2018 was mainly influenced by oil and gas foreign exchange receipts, global bond issuance and withdrawal of government foreign loans. Going forward, Bank Indonesia considers the official reserve assets remain adequate supported by confidence in the stability and upbeat outlook of domestic economy as well as export performance that remains positive.(BI Release. Jan 8, 2019)

PROPERTY

Housing program exceeds 1 million target in 2018The Public Works and Housing Ministry’s data shows 1.13 million new houses were built in 2018, exceeding the 1 million new houses target. Since President Joko “Jokowi Widodo launched the one million houses program on April 29, 2015, more than 3.54 million houses have been constructed – 699,770 million in 2015, 805,169 in 2016 and 904,758 in 2017, according to a press statement from the ministry.The state budget contributed 20 percent of construction costs,

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particularly for houses allocated for low-income families, dding that the other 30 percent of the houses were obtained through a government mortgage program. Meanwhile, the remaining 50 percent of home were constructed independently by both individuals and developers.70 percent of which were for allocated low-income families, the government wants to narrow the backlog in the housing sector from 7.6 million in 2015 to 5.4 million in 2019 (the Jakarta Globe. Jan 09, 2019)

Products DIRE Grown slowThe development of Real Estate Investment Fund (DIRE) products in still slow. nowdays only two DIRE products that have launched.Most recently, PT Ciptadana Asset Management again launched the editorial entitled DIRE Ciptadana Perotelan Property Padjajaran (DIRE Padjajaran). Previously in 2012, Ciptadana Asset Management has owned DIRE products and has been listed on the Indonesia Stock Exchange (IDX).

The first Ciptadana DIRE product is DIRE Ciptadana Properti Retail Indonesia with portfolio assets of Solo Grand Mall, a retail mall located in Solo, Central Java. the potential of the DIRE to develop at this time has been increasingly supported by the government, by giving relaxation to the Land and or Building Rights Acquisition (BPHTB) from 5% to a maximum of 1% for land and buildings that are assets of the REF (Real Estate Investment Fund). Although the property sector is

currently still sluggish,property sector is optimistic the property sector can improve along with the development of the BOARD.(Kontan. Jan 09, 2019)

Other :

PLN may issue another global bond this yearState electricity company PLN has maintained its option to issue another global bond this year to fund the flagship 35 gigawatt (GW) program, although the company is also open to the possibility of seeking other financing instruments. PLN would need between Rp 80 trillion (US$5.68 billion) and Rp 90 trillion in investment this year.PLN issued last October global bonds worth around US$1.5 billion in the US dollar and euro. The bonds were issued to fund 35 GW power plant projects, which have been initiated since 2015. The bonds were issued in three tenors --$500 million bonds with a 10 year and three month tenor, $500 million bonds with a 30 year and three month tenor and 500 million euro bonds with a seven year tenor -- with interest rates at 5.37, 6.25 and 2.87 percent, respectively. (kontan. Jan 11, 2019)

PTPP : Constructs Rest Area in Batang-Semarang PTPP plans to construct, develop, and operate rest areas in the route of

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Batang-Semarang toll roads. The plan aims to boost recurring incomes. Thus, cooperating with WSKT, PPRO, and JSMR, it will establish a joint venture, namely PT PP Sinergi Banjaratma. PTPP injects the capital of IDR20.61 billion or 32.5% of the total paid-up capital into the jointventure company. (Kontan. Jan 11, 2019)

Indo Straits budgeted Rp 1.95 billion to buy back shares of the MESA programPT Indo Straits Tbk (PTIS) has just conducted a meeting agenda related to the share buyback program Management and Employee Stock Allocation (MESA), for employees who have resigned and have not repaid employee debt for the MESA program.To carry out the agenda, the costs to be incurred by PTIS are estimated at Rp. 1.95 billion. With repurchase for the number of shares, there were 8,655 shares. Where the nominal value of the repurchase is IDR 255 per share. (Bisnis Indonesia. Jan 11, 2019)

M&A Rumor Sent This Stock Soaring 25 Percent in One DayShares of PT Indosat Tbk jumped 25 percent in one day and lost half of that gain the next day, all thanks to an M&A rumor that the company says isn’t true.Vietnamese telecommunications operator Viettel Global Investment JSC may buy a stake in the Indonesian mobile carrier. Shares slid as much as 16 percent Thursday after Indosat CEO Chris Kanter denied the talk and said the company’s Qatari

majority shareholder has no intention of selling.Shares of Indosat slumped 65 percent in 2018, and are up more than 20 percent this year. Kanter said Indosat’s main shareholder, Qatar’s Ooredoo QPSC, has no intention to divest its 65 percent stake and the company has had no discussions with Viettel about possible acquisition, without elaborating. Indonesia’s government holds about 14 percent in Indosat.(Bloomberg. Jan 10, 2019)

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Documents

_20… · Web viewLast week JCI closed up 1.39% to 6,361.84 compared with the previous day at 6,274.54, the positive sentiment of the trade deal between the U.S. and China