Category: Business

Global stock markets closed mixed on Thursday (June 4), while investors digest prospects of a global economic recovery. In the United States (US), Wall Street swung between gains and losses on Thursday as investors digest the latest claims figures.

Petrochemical firm Chandra Asri Petrochemical (TPIA) suffered a loss of US$17.5 billion in the first quarter (Q1) of 2020, against a profit of US$17.6 million in the corresponding period of 2019. Revenue fell 13.6% to US$477 million as a result of lower average sales product prices, particularly for Olefins and Polyolefins, with relatively stable sales volume. Its cost of revenue rose 0.6% to US$493 million. The Company recorded a gross loss of US$16.6 million for the said period, against profit US$61.9 million in Q1 of 2019.

Cigarette maker Gudang Garam (GGRM), together with PT Suryaduta Investama, injected  Rp1 trillion to its unit PT Surya Dhoho Investama. With the injection, the capital of the Kediri Airport project operator increased to Rp4 trillion.

Global stock markets extended gains on Wednesday (June 3) as investors remain optimistic about the global economy and economic reopening. Wall Street rallied for the third straight session on Wednesday. Chicago will enter the next phase of its reopening plan on Wednesday. 

For the second time, the Indonesian Government revised the 2020 State Budget to support the economic recovery program and curb the economy. In the new revision, the Government widens the budget deficit from Rp852.9 trillion or 5.07% of gross domestic products (GDP) to Rp1,039 trillion or 6.34% of GDP.

The Financial Service Authority (FSA) postponed the implementation of Basel III for Indonesian Banks as part of the agency’s stimulus for the financial sectors. The policy, which includes calculation of weighted assets for credit valuation adjustment, operational, credit, and market risk, is postponed to January 1, 2023. Then, the minimum capital provisions will be defined by December 2022.

Rupiah appreciated further to Rp14,245 per US dollar Wednesday (June 3rd), gaining 13.8% from its recent bottom (March 23 at Rp16,524/USD). IDX composite index, meanwhile, advanced 1.93% to 4,941, gaining 25.5% from its low (March 24). Capital inflow might have contributed to the gains in rupiah and stock market.

Indonesia reported 22 additional deaths and 609 confirmed Covid-19 cases Tuesday (June 2nd), bringing down the fatality rate to 6%. Number of recovered patients, meanwhile, increased by 298 to 7,955 to make a recovery rate of 28.8%. It is still way below Malaysia (82%), but improved significantly in the past few weeks.

On Tuesday (June 2), foreign investors built up their buying in local stocks, as they booked a net buy of Rp872.23 billion, cutting the year-to-date net sell to Rp10.23 trillion. The composite index of the Indonesia Stock exchange (IDX) gained 1.98% to close at 4847 yesterday.

The Government of Indonesia sets the reference price of crude palm oil (CPO) for export duty at US$568.94 per metric ton (MT) of CPO in June. The reference price decreased by 10.42% from $535.15 in May 2020. As the CPO reference price is below $750/MT, the Government set zero export duty for June.