Saturday, October 12, 2013

Strategic Economic Developments in Indonesia Portend Substantial Long-Term Investment Returns for Equity investors

South Korea and Indonesia have agreed to finalize a free-trade agreement by years end. Indonesia is already one of the largest and fastest growing economies in Asia. Leveraging comparative advantages and the existing positive economic relationship between the two will create wealth in both countries. Recently, Indonesia also negotiated with India to increase cooperation in agriculture, transportation, defense and security, which will also create wealth for both countries. Additionally, Indonesia is planning on investing US$ 160 Billion in infrastructure projects over the next five years through Public / Private Partnerships. All told, Equity investors in Indonesia could reasonably expect to triple their investment over the next five years with the current low valuations of Indonesian stocks. ETF’s remain one of the lowest risk ways to invest in Emerging or Frontier Markets.

    

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