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Bangkok Post, Thailand, Global Insights column.
Jul. 5--BROADENING INDONESIA'S REFORM AGENDA: Investors are returning to the country, but will they stay there for long?
Evidence of rekindled enthusiasm for Indonesia's economy is abundant. In 2003 the Jakarta Stock Exchange index rose by 63 percent, the second-best performance among East Asian markets.
Earlier this year, a US$1-billion sovereign-bond offering -- Indonesia's first foray into international capital markets since the 1997-98 financial crisis -- attracted strong demand at a lower-than-expected yield.
The government also sold 10 percent of Bank Mandiri, the country's largest bank in terms of assets, for $333 million more than it got a year earlier from the sale of a stake twice as big.
Indonesia's leaders and investors would be wise not to be dazzled by such successes, however. Instead they should stay focused on resolving the persistent problems threatening the economy.
Indonesia ...
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