[Kabar-indonesia] Jakarta Stocks Climb 0.2 percent to 1, 274.74 [Rps 9, 369 = one dollar]

[Joyo at aol.com]

Indonesia stock index gains; Astra advances, Telkom declines

The currency fell 0.3 percent to 9,369 to a dollar at 4:04 p.m. local time. 

JAKARTA (Bloomberg, June 29): Indonesia's stock index rose, led by companies 
that rely on domestic demand such as PT Astra International and PT Indofood 
Sukses Makmur, after the central bank said an interest rate cut is closer.

"Lower interest rates will boost the economy and help stocks," said Eko 
Pratomo, president of PT Fortis Investments in Jakarta, which manages US$428 
million in assets.

PT Telekomunikasi Indonesia declined on concern the rupiah will weaken if the 
central banks cuts rates, raising the company's costs of paying its overseas 
debt.

The Jakarta Composite Index climbed 2.69, or 0.2 percent, to 1,274.74 at the 
4 p.m. local time close. More than two stocks rose for each one that fell.

Astra, Indonesia's biggest car retailer, rose Rp 150, or 1.6 percent, to Rp 
9,500. Most Indonesians borrow to buy vehicles.

Indofood, Indonesia's biggest instant-noodle maker, added Rp 20, or 2.4 
percent, to Rp 870.

PT Bank Central Asia, Indonesia's biggest lender by value, rose Rp 50, or 1.3 
percent, to Rp 4,000. Lower interest rates will ease costs at lenders and 
boost lo an demand.

Indonesia's economy grew 4.6 percent in the three months ended March 31, the 
slowest in almost two years, as higher interest rates curbed consumption. 
Consumer spending accounted for about than two-thirds of Indonesia's $278 billion 
economy.

A rate cut is very close "considering inflation in our perspective will be 
lower in June than in May," Bank Indonesia spokesman Budi Mulya told reporters 
in Jakarta Thursday. "We will also see other factors such as fuel price and 
also the moves by overseas central banks."

Indonesia's Central Statistics Bureau will announce the country's June 
inflation figures next week.

The rupiah, which earlier climbed 0.1 percent, pared its gain after the 
comment. The currency fell 0.3 percent to 9,369 to a dollar at 4:04 p.m. local 
time. 

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Joyo Indonesia News Service
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