Forex - Indonesia Flows: USD/IDR; Pres. Widodo plans to raise fuel prices on 01 Nov; Eyes on the announcement of the cabinet ministers

Published at 06:08 (GMT) 24 Oct

 

Citing an unnamed source, Kontan reported that Pres. Joko Widodo plans to raise subsidized fuel prices by IDR3000/lt on 01 Nov. Furthermore, the plan is expected to be announced on 31 Oct. Meanwhile, eyes are still on the announcement of the cabinet ministers after the cabinet structure was revealed. One of the most important changes will be the creation of a coordinating minister's post for maritime affairs, as part of the new president's previously announced focus on the seas connecting and surrounding the archipelago. The coordinating minister for maritime affairs, whose name has not been revealed, will concentrate on such issues as culture and tourism, fisheries, transportation infrastructure and defense. Another detail confirmed on Thursday was that the new cabinet will not include incumbent Minister of Manpower and Transmigration Muhaimin Iskandar, chairman of the second-biggest party in Joko's coalition, the National Awakening Party (PKB) (Jakarta Globe).

On FX, USD/IDR trading in a thin range between 12050 - 12100 lvls so far this morning. Unlikely to see major swing in prices given the focus on the pending announcement of the cabinet ministers and fuel subsidy policy. JKSE touched above 5100 shortly after the open; equities shed more than 0.5% into post noon trading on profit taking above 5100. 10Y yields under pressure as they continued to decline towards 8.00%. BB