INDONESIA - FINANCE - Indonesian market reflects a growing economy

www.emergingmoney.com - With GDP of $1.1 trillion, Indonesia is the 15th-largest economy in the world. This growth is tracked by the Jakarta Composite Index, the benchmark equity index for the Indonesian market.

The Indonesia Stock Exchange was created in 2007, when the Jakarta Stock Exchange merged with the Surabaya Stock Exchange. The Jakarta Composite Index tracks all listed companies on the exchange relative to a base value of 100 that was set on August 10, 1982. In addition to sector-based indices, the exchange has created the Jakarta Islamic Index of 30 stocks in compliance with Islamic law.  (source)


Among the world’s economies, the Indonesian market is ranked just above its emerging markets peer, Turkey, and just below the developed market of Canada. The “I” in CIVETS, Indonesia has a young, growing middle class that is fueling growth in the airline and automotive sectors. Increasing capital investment and exports are also key to the country’s economic growth. The Jakarta Composite Index is up 7.27% so far this year.
Although most Indonesian companies are not widely traded on American exchanges, two telecommunications businesses, PT Telekomunikasi Indonesia (TLK, quote) and PT Indosat (IIT, quote), are listed on the New York Stock Exchange and accessible to U.S. investors.
Investors can also gain entry to the Indonesian market through ETFs. The iShares MSCI Indonesia Investable Market Index Fund (EIDO, quote) and Market Vectors Indonesia Index ETF (IDX, quote) can give a portfolio exposure to the overall market, while the Market Vectors Indonesia Small-Cap ETF (IDXJ, quote) provides access to Indonesia’s less famous names.




Source: http://emergingmoney.com/stocks/indonesian-market-tlk-iit-eido-idx-idxj/ - Aug 5, 2012