Today's Major Market Move - Indonesian Stock Market Up 17% for the Year

For this edition of our Major Market Move feature we're going to be looking at the Indonesian equity market which has posted a strong gain so far this year. Both major Indonesian equity indexes, the Jakarta LQ-45 Index and the Jakarta Composite Index, are up over 17% this year. That performance has made the Indonesia stock market the second best globally after Venezuela.


The Jakarta Composite Index has been on a steady climb since the beginning of the year.


Indonesia's full year forecasted gdp growth is 11.8% so the equity markets are outpacing that by roughly 3X (17% equity market growth vs 6% midyear gdp growth). The 11.8% annual target puts Indonesia towards the upper end for the south pacific region.


Often times these days a growing economy is partly the result of currency devaluation. That isn't the case with Indonesia who's currency has strengthened over 6% vs the US dollar this year. This also means that US based investors in Indonesia have done particularly well.



(Click on the images for a larger view.
Click here for the current table of global equity indexes.
Click here for the current chart of the Jakarta Composite Index.
Click here for the motion chart of global gdp estimates (requires flash).
Click here for the current chart of the USDIDR (indonesian rupiah) cross.)