Rupiah Rebounds From Three-Year Low on Intervention Speculation

Indonesia’s rupiah gained the most in two weeks, rebounding from a three-year low, on speculation the central bank intervened in the market to stabilize the currency.

Bank Indonesia will hold its benchmark rate at a record-low 5.75 percent for a 10th month tomorrow, according to all 18 economists surveyed by Bloomberg.

The monetary authority continues to reduce the local currency’s volatility in line with its fundamentals, it said in a Nov. 8 statement on its website.

Indonesia’s trade balance swung to a shortfall of $1.5 billion in October, indicating the current account will probably remain in deficit for a fifth straight quarter.

“The rupiah tends to approach new lows, but the central bank seeks to stabilize the exchange rate,” said Taufan Tito, a Jakarta-based foreign-exchange dealer at PT Bank Rakyat Indonesia, said on Monday. “Investors want the reference rate raised considering the current-account deficit but it will probably be steady this year.”

The rupiah strengthened 0.2 percent to 9,635 per dollar as of 3:28 p.m. in Jakarta on Monday, the biggest gain since Nov. 26, prices from local banks compiled by Bloomberg show. It reached 9,733 earlier, the weakest level since September 2009.

One-month implied volatility, a measure of expected moves in exchange rates used to price options, rose 13 basis points, or 0.13 percentage point, to 5.5 percent.

The yield on the government’s 7 percent bonds due in May 2022 climbed one basis point to 5.38 percent, prices from the Inter Dealer Market Association show.

Source: Bloomberg
Editor: DailyWeeks

Sinar Mas to Build Oleo chemical Plant in Dumai

Sinar Mas Group to build a renewable oleo chemical plant in Dumai, Riau with IDR2 trillion investment or US$245 million.

Managing Director of Sinar Group, Gandi Sulistiyanto confirmed oleo chemical plant construction plan in Dumai, Riau.

The plant construction is predicted to be completed on scheduled set by company. However, he was reluctant to mention the details of investment value and production capacity.

Based on information collected by Bisnis, the company will build oleo chemical plant in 24 hectare area.

Directorate General of Agro Industry Benny Wachyudi said the company is reviewing the incentive to the government both tax holiday and tax allowance.

The company to build a plant-based palm oil with an investment reached US$245 million and will absorb 1,000 workers.

Sources: Bisnis Indonesia
Editor: DailyWeeks

Puninar Team Up With Keppel for Strengthening Services

PT Puninar Jaya cooperated with Keppel Logistic Singapore-based company to strengthen logistic services in the country.

Puninar Logistic CEO Tjahjadi Lukiman said Indonesia’s logistic business development is growing rapidly. It is supported by the national economic growth which is predicted to reach 6% per year.

“To deal with economic growth and strengthen our position in domestic market competition, one of company policy established joint venture with international partnet,” said Tjahjadi after MOU signing with Keppel T&T CEO Pang Hee Hon, Jakarta, Tuesday (12/4).

The joint venture named PT Keppel Puninar Logistic, some 49% stocks are owned by Keppel Logistic and the rest 51% owned by Puninar Logistics.

Tjahjadi said joint-ventured will focus on retail product sector and healthcare products with full integrated services including customs clearance, transportation, warehousing and other value-added management.

To improve logistic services, the company will build new warehouse in Cakung, North Jakarta with area of 30,000 square meters and it needed IDR120 billion investments.

Sources: Bisnis Indonesia
Editor: DailyWeeks

US Breaks $1bn in Online Black Friday Shopping

US shoppers spent heavily online on the crucial Black Friday shopping day, for the first time topping a billion dollars in online sales in a single day, analysts and retailers said.

Consumer spending makes up more than two thirds of US economic activity. So the short but busiest consumer sales season has a huge importance to the US economy for the whole year.

This year, online shoppers spent a grand total of $1.042 billion on Friday, surpassing last year's Black Friday haul by 26 percent, according to the consulting firm Comscore.

Coming next is "CyberMonday," the day Americans go back to work and online retailers launch heavy promotions to reel in more shoppers.

"According to norms we've observed over the past three years," retail analyst ShopperTrak said, the Monday after Thanksgiving "should be the heaviest online shopping day of the season with sales approaching $1.5 billion or even higher."

American consumers spent an average of $423 this weekend, compared to $398 last year, the group reported.

However, the NRF did not revise its prediction for the US holiday shopping season as a whole, keeping it at a 4.1% increase year on year, arguing that consumers remain cautious about the economy.

The looming threat of the "fiscal cliff," which could send taxes soaring if Republicans and Democrats do not reach a compromise on reducing the deficit before the end of the year, also had the retailers worried.

And despite the good numbers overall, sales at brick-and-mortar locations were sluggish on "Black Friday:" in-store traffic increased by 3.5 percent on Friday with more than 307 million visitors, but total sales actually went down compared to the previous year by 1.8 percent, according to ShopperTrak.

Source: Agence France-Presse
Editor: DailyWeeks