Why investors are flooding back into INDONESIA
There's been a lot of talk about how emerging markets are now safer than the developedworld. And for the most part, this is just talk.You can point as much as you like to stronger growth prospects and better balance sheets. Itdoesn't make much difference yet. When a crisis comes, foreign investors still flee back tothe familiar. Look at the way the dollar soared during the panic over Europe and is nowcollapsing as fears recede.But while emerging markets aren't the new safe havens, attitudes are shifting. There's beena reassessment of risk. And few places demonstrate this better than Indonesia...
The only reason is... A very strong recovery
Indonesia has come out of the crisis well. Last week's statistics showed that GDP growth inthe second quarter had picked up to 6.2% year-on-year.