Based on the usage, raw materials / intermediary goods became the main laggards as its import slumped.
Government consumption growth should also be higher at around 7.5% YoY due to election preparation. However, downside risk in investment growth.
Late harvest in several places as mentioned by coordinating minister of economic, mainly due to distributional problems. It made supply of shallot, chili, vegetables and some other food products were limited, hence boost the price.
If a trade deal to lift up previous tariff sanction is reached, it may give a boost to US and China economic.
Bank Indonesia (BI) will start its two-day board of governor meeting in Feb 20 and announced the result in Feb 21.
Initially, we expect that airlines baggage fee will push transportation inflation higher in January.
President Trump has promised to raise the tariff rate on USD 200 bn in Chinese imports to 25% from 10%.
Bank Indonesia (BI) is expected to release 4Q18 balance of payment data (BoP), including the current account deficit (CAD) data, on Feb 8.