By Carl Delfeld of the Chartwell ETF Advisor
Even as the largest Muslim country in the world with over 300 million people, Indonesia is often off the radar screen of most global investors.
This is unfortunate since the Indonesian closed-ended ETF (IF) was supercharged in 2006 with the ETF share price up 104%. Since the beginning of the year it has pulled back from its 52 week high of $12.77 to settle today at $11.11. (IF) trades at a 19% premium to its net asset value and its largest holding is Indonesia Telecom which accounts for 23% of the ETF’s holdings.
Rich in natural resources, Indonesia has evolved from an authoritarian, centralized regime to a democratic government with elaborate checks and balances. An article in the Economist discusses the sore feelings of military leaders who have lost some power and perks but Indonesians though disappointed with President Yudhoyono’s over-cautious style but believe him to be an honest man who is trying his best. The President’s personal approval rating was 67%, which is higher than the share of the vote that won him the presidency three years ago. Mr. Yudhoyono’s term is not up until 2009 and his likely successor is his vice-president, Jusuf Kalla.