The Indonesian stock market plays only a minor role in emerging market indices. Surprisingly, however, in terms of purchasing power parity (PPP), the country ranks 7th globally, ahead of Great Britain and France1.
Source: IMF Report for Selected Countries and Subjects, January 2018
At 29% of GDP, the government debt ratio is low2 and the population of 266 million people is comparatively young - good starting conditions for long-term growth. The IMF forecasts real growth of over 5 percent for 2018.
The stock market is dominated by financial stocks and former state-owned companies, which can be associated with high volatility. The current downward trend contrasts with expectations for economic growth.
One-Year Performance MVIS Indonesia
Source: MV Index Solutions
Get the latest news & insights from MarketVector
Get the newsletterRelated:
