BANK INDONESIA TARGETS CAPITAL GOODS IMPORTS TO TACKLE

DEFICIT

Indonesia plans to review the import of capital goods for big government projects to help
manage its current account deficit as part of a series of coordinated policy measures to bolster its
financial markets, Reuters reports, quoting Finance Minister Sri Mulyani Indrawati.

The country's rupiah currency, stocks and bonds have been sold off as investors flee
emerging markets amid rising US interest rates, higher oil prices and the threat of a full blown
US-China trade war.

The vulnerability of South-east Asia's biggest economy has been increased by worries
about its current account deficit.

Bank Indonesia previously projected that the country’s current account deficit would
reach 2.3 percent in 2018, higher compared to consensus estimates of 2.0 percent, as
imports continue to rise against exports. The current account deficit is a measurement of a
country’s trade where the value of the goods and services it imports exceeds the value of the
goods and services it exports. The central bank hiked its benchmark interest rate three times over
the past six weeks – by a total of 1.00 percent to take the benchmark to the level of 5.25 percent
– in order to defend the rupiah.

[Source: https://asiaviews.net/indonesia-targets-capital-goods-imports-to-tackle-deficit/]

Name : Nabila Nur Aisyah

NIM : 180810301031

Class : English Business (E)

The price of Salt People Down, Now Turn the Salt Grower in Sumenep
Scream

PALMERAH – The price of salt at the salt farmer level in Sumenep Regency, East Java, began
to decline gradually over the past few days from Rp3,500 per kilogram (kg) to Rp2,100. The salt
growers screamed.

“Currently the price of salt is Rp2.100 per kilo,” said Ubaidillah, a salt farmer in Pinggirpapas,
Kalianget Subdistrict, Sumenep, Madura, on Tuesday. He said, initially the price of peasant salt
at the farm level fell from Rp3.500 per kilogram to Rp3.000. After that, it dropped again to
Rp2,600; then Rp2.400, and now Rp2.100 per kg.

“We expect that the price of salt will continue to fall due to imported salt, which is less
encouraging for farmers,” he said. Ubaidillah also pointed out, since a few days ago, the weather
has returned to normal and supports the production of people’s salt.

Previously, it still frequently rains, which does not support salt production in Sumenep and
surrounding areas to make people’s salt production disturbed. Inadequate production of salt that
makes the supply of salt commodities at the farm level is limited. This condition makes the price
of salt to be expensive because it had reached Rp3.500 per kg.

At the end of last week, 27,500 tons of imported salt from Australia arrived at the Port of
Tanjung Perak Surabaya. This imported salt is distributed to a number of Small and Medium
Industry (IKM) players in three regions, namely East Java, Central Java and West Kalimantan.
BANK INDONESIA TARGET MODAL BARANG IMPOR UNTUK MENANGANI DEFISIT

Indonesia berencana untuk meninjau impor barang modal untuk proyek-proyek pemerintah besar
untuk membantu mengelola defisit neraca berjalannya sebagai bagian dari serangkaian langkah-
langkah kebijakan yang terkoordinasi untuk meningkatkan pasar keuangan, menurut laporan
Reuters, mengutip Menteri Keuangan Sri Mulyani Indrawati.

Mata uang rupiah, saham dan obligasi negara itu telah dijual karena para investor keluar dari
pasar negara berkembang di tengah meningkatnya suku bunga AS, harga minyak yang lebih
tinggi dan ancaman perang perdagangan AS-China yang penuh.

Kerentanan ekonomi terbesar di Asia Tenggara telah meningkat karena kekhawatiran tentang
defisit neraca berjalannya.

Bank Indonesia sebelumnya memproyeksikan bahwa defisit transaksi berjalan negara akan
mencapai 2,3 persen pada 2018, lebih tinggi dibandingkan dengan perkiraan konsensus 2,0
persen, karena impor terus meningkat terhadap ekspor. Defisit akun saat ini adalah ukuran
perdagangan suatu negara di mana nilai barang dan jasa yang diimpornya melebihi nilai barang
dan jasa yang diekspornya. Bank sentral menaikkan suku bunga acuan tiga kali selama enam
minggu terakhir - dengan total 1,00 persen untuk mengambil patokan ke level 5,25 persen -
untuk mempertahankan rupiah.

Bolster = mendukung

stocks and bonds = saham dan obligasi

flee =

amid = tengah

consensus estimates = perkiraan konsesus

hiked = naik

benchmark = patokan