Investors look to Indonesia as slowdown bottoms out

With inflation decreasing and a key interest rate cut expected next week, Asia’s strongest economic performer next to China and India may be a new hot spot for foreign investment, according to the Financial Times. This coming week the central bank is expected to cut the interest rate 25 basis points to seven percent and Indonesian GDP growth, less dependent on exports, is doing well next to neighboring countries like Singapore and Malaysia . Upcoming elections look set to keep President Susilo Bambang Yudhoyono in the leader’s spot, which is seen as a good thing by investors, because of his success with implementing stable economic reform. Some analysts speculate Indonesia’s economic slowdown may be bottoming out, and suggest high returns on investments in mineral and coal sectors.

Indonesia a hot spot for investors, Financial Times

Indonesia’s central bank sees scope for rate cuts, Alibaba News Channel

Guest Post: Indonesia - a must own emerging market, Forex Hound