| In the beginning of the year, all eyes
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| | on Indonesian politics and the election
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| were on Japan but the Nikkei 225 has been
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| | cycle. While fuel subsidies were cut back
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| a major disappointment down 6% so far
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| | sharply reducing pressure on the
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| this year. Meanwhile China has done well
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| | country's budget and currency, other
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| and Indonesia is the Asia-Pacific
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| | reforms have been pulled back. The reason
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| region's stock best market this year up
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| | is that President Yudhoyono party has
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| 27% this year. This is despite another
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| | only a 10% of parliamentary seats and
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| punishing tsunami and concerns about bird
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| | needs to have the cooperation of other
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| flu.
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| | coalition partners to maintain power even
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| Americans, in particular, seem to miss
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| | though the next presidential election is
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| the story of this 3,200 mile archipelago
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| | scheduled for 2009. Indonesia has taken
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| and third largest democracy in the world
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| | the brave step of opening its financial
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| Indonesia's President Yudhoyono, a
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| | services sector to majority investment by
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| combination of General, intellectual and
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| | international investors but it also needs
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| bureaucrat, has made real progress in
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| | to open up other areas such as
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| fostering market reforms. Many would
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| | infrastructure and power. The most
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| categorize Indonesia as a relatively poor
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| | important reform to make Indonesia more
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| country but I beg to differ. I have
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| | attractive to international capital is to
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| toured Indonesia from tip to tip and it
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| | set up a transparent and clear approval
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| is a country with many assets and great
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| | process to cut out red tape and
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| promise. Rich in natural resources, a
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| | corruption. Then reinvigorate a
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| talented and young population,
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| | previously announced plan to privatize
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| strategically positioned to benefit from
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| | some of Indonesia's 145 largest
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| Asian growth, a size three times the that
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| | state-owned companies to increase their
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| of Texas and the world's fourth largest
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| | profitability and raise more government
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| population. As a relatively young
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| | revenue. Finally, why not follow ten
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| democracy and developing economy it lacks
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| | other countries by putting in place a
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| an important ingredient for economic
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| | flat tax to rein in bureaucracy, stymie
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| growth: capital and a financial system to
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| | corruption and stimulate growth and
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| allocate it efficiently.
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| | productivity.
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| Lower interest rates and strong consumer
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| | Standard & Poor's Ratings Services
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| spending has led to a real economic
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| | recently raised Indonesia's long-term
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| growth rate of 6%. The realization that
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| | foreign-currency credit rating by one
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| Indonesia is taking steps to better mange
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| | notch to double-B-minus. S&P said the
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| its natural resources has also caught the
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| | upgrades reflect Indonesia's improving
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| eyes of global investors. Indonesia has
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| | fiscal and external performance, which
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| 10 billion barrels of proven and
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| | has led to a declining debt burden. It
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| potential oil reserves and 180 trillion
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| | also said the size of the government debt
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| cubic feet of proven and potential
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| | and high external debt continue to
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| reserves. After five years of tough
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| | constrain the ratings.
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| negotiations, Exxon Mobil and Pertamina
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| | The Indonesian stock market has been one
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| finally inked an agreement earlier this
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| | of Asia's best this year up 27%.
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| year. This should help Indonesia, a
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| | Investors should take a look at the
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| member of OPEC, to ramp up production and
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| | closed-end Indonesian Fund (IF) as the
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| move towards being a net exporter of
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| | best vehicle to invest in Indonesia. It
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| energy.
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| | is managed by Credit Suisse Asset
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| Exxon Mobil has operated in Indonesia for
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| | Management and trades at a premium of 5%
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| a century and invested $17 billion in the
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| | to net asset value with a price of $7.81.
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| country, agreed to explore the dormant
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| | The key to a stronger Indonesian economy
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| Cepu area years ago and by using advanced
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| | is more trade and investment. American
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| technology, found proven oil reserves of
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| | companies and investors can play a key
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| 600 million barrels and 1.7 trillion
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| | role in maintaining America's influence
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| cubic feet of gas. At peak production,
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| | in Indonesia which is being undercut by
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| Cepu would provide the GOI about $2
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| | powerful Chinese economic diplomacy. In
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| million per day in revenues, add 180,000
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| | fact, we need to pay more attention to
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| barrels a day in daily production and
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| | this key Muslim nation with a secular
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| eliminate gas shortages in East Java.
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| | democracy than the Chinese do.
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| Investors have to also keep a close eye
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