Publications

- September 1, 2012: Vol. 4, Number 8

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Perspective on Indonesia: Investors Willing to Take On More Risk for Greater Appreciation Should Consider Indonesia

by Mard Naman

If asked to name the fourth most populous country in the world, probably few would pick Indonesia. But with more than 248 million people, it comes behind only China, India and the United States in population. This is even more surprising considering the relative lack of attention that the country gets from institutional investors, even compared with other emerging Southeast Asian countries such as Thailand and Vietnam. But that may be changing.

Many investors are looking to emerging markets to capture growth, and lately Indonesia has turned up on a lot of their radar screens due to its rapid growth. In its most recent Asia Pacific Property Digest from first quarter 2012, Jones Lang LaSalle enthuses that Indonesia is “one of the region’s brightest spots currently,” noting that Indonesia recorded growth of 6.3 percent year-over-year in first quarter 2012, similar to fourth quarter 2011.

Like elsewhere in Asia Pacific, external demand is s

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