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Author: TMFCogitarius Big gold star, 5000 posts Old School Fool Home Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1636  
Subject: Re: Indonesia racks up 30% FDI growth Date: 4/26/2012 4:49 PM
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If you're asking about FDI-driven growth, then EIDO obviously captures it with its strong coverage of financial and infrastructure companies.

Bank Danamon, for instance, is being bought out by Singapore's DBS group to capture Indonesian growth. Indonesian banks are also being welcomed back to global bond markets with reasonable coupons - thus signaling foreign investors' rising confidence in them.

Its infrastructure components (telecom, gas, cement, coal, copper) are well positioned for domestic growth as well as international investment, of which there's no dearth from the likes of China, India, Japan etc.

More importantly, it has some of the country's most powerful consumer-facing stalwarts, e.g. Astra (autos), Telekom (wireless), Gudang Garam (cigarettes), Unilever, Indofood (noodles, cooking oil), Kalbe Farma (pharma). Indonesia's success is driven by domestic consumption - these are some of the companies fueling it.

Also, domestic banks are critical to any developing nation's early stage growth. According to a Singapore research firm, Indonesia’s loans-to-GDP and deposits-to-GDP ratios are at 30% and 37% respectively, compared to 89% and 71% in Thailand and 115% and 148% in Malaysia. Lots of room to grow.
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