Low Oil Price, American Customers Go for SUVs

Big cars like SUVs and pickups becoming Americans favourite as fuel prices remaining low. The trend has started in the early 2015 until this month. Because of gasoline price drop about third from a year before, sales of large and luxury sport vehicle rose about 31 percent in the first quarter. Meanwhile, the family sedan and energy recovery technology has lost the customer interest. It seems like the American customers believe that the low price gasoline will be there forever. Even the president words to consider fuel-efficient was not been heard.

How long will the low price gasoline remain? With over-excited market, it seems like not last in long time. Over supply, decrease the price. While the price goes low, little by little the demands arise. Then it is not impossible to go over demand and increase the price.

Moreover, the low price of crude oil may last soon enough. If the supply of gasoline diminish and oil price increase, then the fuel price will be higher.

IDR, USD, and Living Cost

Can Indonesian Rupiah withstand US dollar?

The Indonesian Rupiah has weakened from August 2014. Grew a bit fluctuated until it dropped in December 2014 and got it lowest peak at March 2015. After that, it tried to strengthen its position and got almost stable. However, there is a prediction that the IDR would fall again and quite deeply if the now stabilities cannot be held until two or three months again at least.

What will Indonesia’s Central Bank do to withstand the crisis? Moreover, the crude oil seems to climb and there is a problem with the country’s vital trading partner that may affected the economic growth. Can Indonesia government solve the problem or will the living cost expand? We need to wait for further development. 

Execution and Indonesia Dropping

The execution of Australia’s citizen may cause a drop in Indonesia economic growth. Australia is a vital trading partner for Indonesia and it can be seen that Jakarta Composite Index slopped about 4.3 percent in the middle of the execution day. It rebounded afterward but still 2.6 percent lower than before. Two of the biggest companies such as PT Bank Central Asia and PT Unilever Indonesia got their incline 3.9 and 5.1 percent each.

Some may think that the drop was not influenced by the execution. However, can’t the timing be more accurate for a reason? Plan of boycotting goods and holidays have been heard, how many losses will Indonesia earn? The Prime Minister Tony Abbot followed the mood and said that he would withdraw Australia’s Ambassador to Indonesia.

If we think about death penalty, doesn’t it clear that the country – same as Malaysia, Singapore, and Thailand – have announced that a death penalty will be fallen on drugs offence crime? Another issue arose here. The president influenced. He wanted to enforce the country laws and that is okay. However, for that kind influenced, the process must be followed and the questioned citizen has been there for 10 years and still in the process of appeal. The president stepped in can be seen as an unhealthy for the country system. 

Nikkei 225 Climbed

Nikkei 225 rose 0.38 percent to 20,058.95 points until this article was written. After opened in 20,068.65 it climbed high and got fluctuation before incline a bit at 11 AM ET. From that point the rising and falling was almost at insignificant number and stop at 20,058.95 until the article was written.

The highest incline was contributed by Fanuc Corp. After that, in 5.00 deviation Fast Retailing Co LTD following. In much different scale are Central Japan Railway Co, Denso Corp, and JTEKT Corp with more than 200 increasing point change.

About 150 companies point change has increased. While 8 has no progress this day and 68 decreasing.