Tommaso, the Japanese lenders to Indonesia are refusing to take on the exchange risks (the old deal was pegged at 5000 Rupiah to the dollar and it is closer to 10,000 now). If a deal is not struck, the Rupiah could go into another tailspin, then even if the Indonesian stock market does not go down, the value in terms of Dollars would be declining. I think that until the currencies there stabilize, investments there would be at best, risky. I must say, however, that some people think that the Rupiah is undervalued, I for one do not see the basis for such an assumption.
Zeev |
