Indonesia Leads EM Rally as Carry Appeal, Growth Lure Investors

[Indos]

Jakarta Composite Index Hits New Record as Market Sentiment Remains Positive​

Faisal Maliki Baskoro

September 14, 2024 | 10:56 am


Jakarta. The Jakarta Composite Index (JCI) set a new record over the weekend, rising 0.18 percent to 7,812.131 from its previous high of 7,798.154 on Thursday. Market capitalization also hit an all-time high, climbing 4.46 percent to Rp 13,390 trillion ($868.82 billion).

For the week, the JCI gained 1.17 percent, closing at 7,812.131 from 7,721.846. Foreign investors posted a net buy of Rp 17.95 trillion on Friday, bringing the total net buy for 2024 to Rp 51.40 trillion.

Average daily transaction value surged 40 percent to Rp 14.98 trillion, while daily trading volume increased 10.79 percent to 23.34 billion shares. The frequency of daily transactions also rose by 1.66 percent to 1.14 million.

NH Korindo Sekuritas expects the JCI to remain buoyed by regional market sentiment and speculation of a potential US Federal Reserve rate cut during the September 17-18 FOMC meeting. Despite a higher-than-expected 0.2 percent rise in the US Consumer Price Index (CPI) for August, attention remains focused on the anticipated Fed decision.

“The JCI remains in positive territory, with weekly gains nearing 1 percent. A 'let your profit run' strategy, paired with a trailing stop, has proven effective,” NH Korindo noted in its report on Friday.

As of Sept. 13, 106 bond and sukuk issuances from 64 issuers, totaling Rp 89.69 trillion, have been recorded. The Indonesia Stock Exchange (IDX) now lists 587 bond and sukuk issuances worth Rp 462.16 trillion and $60.12 million. Additionally, 186 series of Government Securities (SBN) and nine Asset-Backed Securities (EBA) are listed, with a total nominal value of Rp 6,182.86 trillion and $502.10 million.

On the global front, US stocks ended the week higher, driven by gains in technology stocks like Microsoft and Broadcom. The S&P 500 rose 0.5 percent, nearing its record high, while the Dow Jones Industrial Average added 297 points. Anticipation of a Federal Reserve rate cut next week also bolstered market sentiment.

Jakarta Composite Index Hits New Record as Market Sentiment Remains Positive

The Jakarta Composite Index (JCI) set a new record over the weekend, rising 0.18 percent to 7,812.131 from its previous high of 7,798.154

jakartaglobe.id

 

[Indos]

Indonesia's Trade Surplus Extends to 52nd Consecutive Month​

The Jakarta Globe

September 17, 2024 | 2:01 pm



Jakarta. Indonesia reported a trade surplus of $2.9 billion for August, marking the 52nd consecutive month of surplus, up from the $2.04 billion surplus in July, the Central Statistics Agency announced on Tuesday.

The trade surplus streak, which began in May 2020, continued despite the August figure being $220 million lower than the same period last year.

Indonesia's exports for August totaled $23.56 billion, a 5.97 percent increase from July and a 7.13 percent rise compared to the same month last year.

In contrast, imports fell by 4.93 percent to $20.67 billion compared to the previous month, though they saw a year-on-year growth of 9.46 percent.

In terms of bilateral trade, Indonesia's largest surplus was with the United States, amounting to $1.7 billion, followed by India with $1.08 billion, and the Philippines with $847.3 million.

However, the country recorded its largest trade deficit with China, at $1.1 billion, along with a $549.7 million deficit with Australia and $312.8 million with Singapore.

For the eight months ending in August, Indonesia's cumulative trade surplus stood at $18.85 billion.

Indonesia's Trade Surplus Extends to 52nd Consecutive Month

Indonesia's largest surplus was with the United States, amounting to $1.7 billion, followed by India with $1.08 billion.

jakartaglobe.id

 

[Indos]

Indonesia parliamentary body approves higher spending for incoming govt​

Updated

Sep 17, 2024, 07:06 PM


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JAKARTA - Indonesia's key parliamentary budget committee approved on Tuesday increased spending for the incoming government of President-elect Prabowo Subianto, who is set to take office next month.

The committee approved a 6% rise in spending to 3,621.31 trillion rupiah ($236.2 billion), versus an estimate of 3,412.2 trillion rupiah in 2024, its chair said.

The budget accommodates key programmes of the new government, including a free meal policy for kids which will cost 71 trillion rupiah, free health check-ups, building hospitals and renovating schools, and food security initiatives.

Prabowo sees these programmes as necessary to help meet his target of lifting economic growth to 8% from 5%.

"The 2025 budget was designed to support an effective government transition," Said Abdullah told a parliamentary meeting.

A wider parliamentary vote scheduled for Thursday, Sept. 19 to approve the committee's decision is still needed, though it usually endorses the decision.

The country's 2025 fiscal deficit was maintained at 2.53% of GDP, smaller than this year's outlook at 2.70%, as revenues are expected to rise by 7.2% to 3,005.1 trillion rupiah next year.

Prabowo aims to increase Indonesia's tax to GDP ratio to 18% from around 10% through the establishment of a specialised body, or state revenue agency.

In his maiden budget, the revenue target from taxes, customs and excises, was set at 2,490.91 trillion rupiah in 2025, 12.3% more than the 2,218.4 trillion rupiah expected to be raised this year.

The revenue target does not factor in a potential value-added tax rate increase to 12% from the current year at 11%, the committee chair said, adding the hike will be discussed again between the state and parliament next year.

BMI, a unit of Fitch Solutions, said in its Sept. 5 report that Prabowo's fiscal targets are too ambitious, saying the deficit forecast might widen to 2.8% or near the legal ceiling at 3% due to potentially higher spending.

The approved budget assumes the economy will grow 5.2% next year, just above 5.1% in the current year's outlook, while inflation is expected to be maintained at 2.5% for 2025.

Prabowo will start his five-year term on Oct. 20. REUTERS

Indonesia parliamentary body approves higher spending for incoming govt

JAKARTA - Indonesia's key parliamentary budget committee approved on Tuesday increased spending for the incoming government of President-elect Prabowo Subianto, who is set to take office next month. Read more at straitstimes.com.

www.straitstimes.com

 

[Indos]

Our Finance Minister cried during last meeting with parliament. New administration will be started in 20 October inshaAllah.

Thank you bu Sri for the service

 

[Indos]

Indonesia's parliament passes Prabowo's maiden budget​

By Reuters
September 19, 2024
11:08 AM GMT+7
Updated 19 min ago

JAKARTA, Sept 19 (Reuters) - Indonesia's parliament on Thursday passed President-elect Prabowo Subianto's maiden budget for 2025, with spending set at 3,621.3 trillion rupiah ($237 billion) and the fiscal deficit projected to be 2.53% of gross domestic product.

The budget assumes economic growth of 5.2%, a small increase from 2024's forecast of 5.1%, and a revenue target of 3,005.1 trillion rupiah.

The budget accommodates key programmes of Prabowo's incoming government, including a free meal policy for children which will cost 71 trillion rupiah, free health check-ups, the building of hospitals and renovating schools, and food security initiatives.

Prabowo will start his five-year term on Oct. 20.
($1 = 15,272 rupiah)

https://www.reuters.com/world/asia-pacific/indonesias-parliament-passes-prabowos-maiden-budget-2024-09-19/