Indonesia (IF): Long term winner

"Indonesa could be a long-term winner," says Daniel Frishberg. TheBizRadio host and editor of The MoneyMan.com Market Newsletter selects a closed-end fund set to benefit.

"Just eleven years ago, Indonesia threw off a military dictatorship and is now a peaceful democracy with a totally free press; in fact, they are the world's third largest democracy by population.

"They just had another election last week and the current president was elected for another five-year term with 60% of the vote. Given that per capita personal income doubled during his first five-year term, a strong victory was expected.

"The country has taken a business-friendly approach and intends to encourage foreign investment by reducing corruption, providing new safeguards, and decreasing regulation. 

"They have sold off state-owned enterprises and reduced government debt while we are doing the exact opposite.

"Now that they have a firm mandate from the people to continue, they will embark on a major infrastructure build-out program that will improve their ports, roads, and communications systems.

"These will all help provide an even better environment for stable economic growth. They will post GDP growth of 4% for this year, one of the best rates in the world after China and India.

"They are exporters of copper, gold, coal, and nickel, but 60% of their GDP is internal consumer consumption from a growing middle class.

"To benefit from these trends, wWe have invested in Indonesia via a closed end fund, the Indonesia Fund (NYSE: IF).

"International investors have noticed this economic performance and rewarded it. Their stock market is up 58% this year, and it looks like the future is bright because their government is moving in the right direction."

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