Indonesia Fund (IF) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Indonesia Fund (IF)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Microcap Analyst	6/19/2007 9:06:41 PM
	of 9

The government completed its maiden Treasury bill issuance yesterday. The auction drew strong demand with a lower than expected 6.8% yield. Importantly, monetary and fiscal policy are both turning stimulative. Market participants expect the Bank Indonesia (BI) to allow a stronger currency, which should help lower inflation (around 6%) and thus permit lower policy rates (currently 8.0%) and perhaps boost the stock market. Fiscal policy will likely be eased to spur demand. That widening will come from lower taxes and higher expenditures. Real GDP growth is forecast to be 6.2% in 2007, up from 5.4% in 2006. The country has come a long way in the past few years. Comparing 2005 and 2007 estimates, the following improvements are significant: 1. Consumer price inflation down from 10.5% to 6.0%. 2. Trade surplus up from $22bn to $37bn. 3. External debt as a % of GDP down to 30% from 47%. This should lead to lower interest rates, appreciating currency, and higher credit rating - all of which are positive for international investors.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next