Some $870 million net foreign funds flowed into Indonesian equities this quarter. (Bloomberg)

OIC Economies

Booming Indonesia stock market seen trumping peers next year


Published 26 Nov,2021 via Bloomberg Markets - Rising commodity prices and easing border restrictions will probably fuel economic growth that helps Indonesia’s key stock index extend its record to lead regional gains next year, analysts predict.

“Indonesia is setting up for a strong 2022 because it is approaching vaccination thresholds that facilitate full re-opening and faster growth momentum,” said Alan Richardson, a fund manager at Samsung Asset Management in Hong Kong.

Easing restrictions as regional coronavirus infections abate along with high prices of the commodities Indonesia exports -- palm oil, crude oil and coal -- have attracted inflows into the nation’s stocks and bonds. That’s prompted upgrades of its equity market this month by the likes of Goldman Sachs Group Inc., while Morgan Stanley and BlackRock Inc. also rate it as overweight.

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Anuchit Nguyen and Ishika Mookerjee - Bloomberg