Thin trading, net sell
Composite index of IDX (IHSG/JCI) dropped 3.56% Wednesday (Jun 24) following MSCI’s persistent threat of downgrading status of Indonesian stock market from emerging to frontier and further correction of rupiah.
Oil & Gas Journal: Pertamina’s BOD Bonus
Shareholder/Danantara opted to maintain the current board of state oil and gas company Pertamina. Tuesday’s shareholder meeting only replaced Heru Pambudi, former secretary general of ministry of finance, with Robert Leonard Marbun (new) as commissioner.
Those continue to expand: Nickel Industries
Shares of Nickel Industries Ltd, which operates mines, RKEF, and HPAL nickel smelters in Indonesia, advanced 0.75% to A$0.94 on the Australia Stock Exchange (ASX) this morning as investors responded positively the company’s framework agreement for a long-term nickel ore mining and HPAL processing.
Miiltary training for KDMP and KNMP managers
The Red-White Village Cooperative (KDMP) and the Red-White Fishermen’s Village (KNMP) are being promoted as instruments to strengthen economic independence in rural communities. Curiously, their managers are also required to undergo basic military training in addition to managerial training. It makes one wonder. What is the government trying to produce? Capable managers, or program implementers trained to obey orders?
A tragic cost of policy militarization
The deaths of two candidates for the Merah Putih Village Cooperative (Kopdes) management program during military-style training should force Indonesia to ask an uncomfortable question: why are future cooperative managers being trained like soldiers in the first place?
The politics of a phone call
In politics, symbolism often matters as much as substance. That is why Deputy Speaker of the House Sufmi Dasco Ahmad’s decision to publicly call Pertamina’s leadership during a national labor gathering deserves closer attention.
The politics of 8 percent rule
The most interesting aspect of 8 percent cap on ride-hailing platform commissions is not the number (Prabowo’s magic number) itself. It is the political process behind it.
Legalizing money laundering
Indonesia has basically legalized money laundering with the amendment of P2SK (Financial Sector Development and Strengthening) Law. Corruption money from free meal (MBG), village cooperatives (KDMP), or illicit money from illegal mining, logging, fishing, money from online gambling and narcotics are all welcomed in the so-called Patriot Bonds and Merah Putih Bonds to be issued by Danantara.
Rupiah & Prabowo’s statements
Rupiah moved closer to psychological level Rp18,000 per USD Tuesday (Jun 23) as DXY (US Dollar Index) gained to 101.4. President Prabowo Subianto’s statements regarding the currency on Tuesday didn’t help at all in the context of outlook.
Five more months of uncertainty
MSCI gives Indonesian authorities till November to address concerns from global institutional investors on transparency of share ownership structure and the coordinated trading practices in the stock market. For now, Indonesia is kept in the emerging market category, but without improvements it can be downgraded to frontier market after the November review.