JAKARTA (Yosefardi) – Composite index of the Indonesia Stock Exchange (IDX) opened lower 0.9% at 4300 this morning following regional markets.
This morning (Wednesday), markets in Asia fell as investors look to upcoming manufacturing data from China, due later Wednesday, which could add to worries about the spillover effects of China’s slowing economy, Wsj.com reported.
Nymex’s crude oil rose 0.43% to US$46.56 per barrel in Asian trading this morning while gold declined 0.26% to US$1,121.90 per ounce.
Astra International fell 1.7%, Adaro Energy declined 1.68%, Bank Rakyat Indonesia dropped 2.1%, Bank Danamon shed 1.4%, Bank Mandiri slashed 1.74%, and Bumi Serpogn Damai lost 2.36%.
Other losers were Charoen Pokphand (-1.24%), Indofood CBP (-1.43%), Indofood (-1.89%), Indocement (-2.66%), Indo Tambangraya (-1.3%), Jababeka (-1.1%), Kalbe Farma (-2.3%), Lippo Karawaci (-1.3%), Semen Indonesia (-1.06%), Timah (-1.63%), and Unilever (-1.1%).
The government and the Commission XI of the Lower Houses of Represntatives (DPR) has on Tuesday (Sept. 22) agreed on the some macro assumptions on 2016 budget and spending draft.
The economic growth is set at 5.3%, revised from 5.5% set earlier and the rupiah is set at Rp13,900 per US dollar, revised from Rp13,400 set earlier. While the inflation is set at 4.7%, interest rate (3 month period) 5.5%, unemployment rate 5.2-5.5%, and poor ratio at 9-10%.
Asian Development Bank (ADB), on its report released Tuesday, expects Indonesia’s economic growth to pick up next year, buoyed by rising public investment and continued economic reforms.
ADB forecasts Indonesia’s gross domestic product (GDP) 2016 growth of 5.4%, trimmed from 6.0% in March but an improvement on the 4.9% growth expected this year. In March, ADB forecast 2015 growth of 5.5%. A key driver of the expected growth is stronger public spending, which has been delayed largely by slow fund disbursement.