(Jan 16): Indonesia, Southeast Asia’s largest economy, is finally poised to take the title of the biggest equity market in the region.
Its market value of US$529 billion ($712 billion) has nearly matched that of slumping Thailand, which snatched the top spot from Singapore in May, buoyed by a strengthening baht. With its currency giving back some gains and economic growth trailing forecasts, the SET Index is the region’s only benchmark to decline in the past three months.
In contrast, Indonesia’s Jakarta Composite Index has gained 5.5% in US dollar terms during that period. President Joko Widodo is embarking on a new round of infrastructure projects and pursuing reforms to stimulate the fourth-most populous country in the world.