Sign up | Log in



Home  >>   Daily News  >>   Asean News  >>   Investment   >>   Indonesia maybe the new 'I' in Bric
NEWS UPDATES Asean Affairs    16 May 2012

Indonesia maybe the new 'I' in Bric

May 15, 2012

South-east Asian nations are swallowing an outflow of money from India, as foreign investors lose patience with its policy paralysis and slowing growth, and aim instead for more-promising emerging markets such as Indonesia.

Corruption scandals and high inflation have added to the woes of India, which has seen growth slow to a three-year low while the fiscal deficit widened to 5.9 per cent of gross domestic product in the last financial year.

"India was sold on the promise of high growth, which simply hasn't panned out over the past four years," said Mr Gautam Prakash, founder of United States-based hedge fund Monsoon Capital.

Foreign investors pulled a net US$540 million (S$678.5 million) out from India in March and April, compared with US$13 billion in inflows from January to February.

Foreign portfolio flows into Indian stocks have dropped 99 per cent to just 5.17 billion rupees (S$120.8 million) since a March budget that largely disappointed investors, compared with 427.4 billion rupees this year before the budget.

Among the most significant developments from the shift has been the direction in which money is headed - with a big chunk flowing to Jakarta and other South-east Asian capitals.

Two provisions put forward in the budget to tax indirect investments and combat tax evasion were the last straw for some global mutual funds, prompting an acceleration of money leaving India.

While the provisions were later put on ice, the fact that such a tax could be proposed in India was enough for some investors to send their Asia-allocated money further east.

"You're seeing a situation where the 'I' in Bric is being replaced by Indonesia," said Mr Tim Condon, head of research and strategy for Asia at ING.
An emerging-market brochure distributed by Franklin Templeton last month had data on India missing from a world map.

From a global leader in emerging-market investing, led by omnipresent guru Mark Mobius, that omission was telling.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    16 May 2012  Subsribe Now !
• Indonesia maybe the new 'I' in Bric    
Subcribe: Asean Affairs Global Magazine
• Myanmar opens for business, India Inc...  Asean Affairs Premium

• McCain calls for suspension of Myanmar... 

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Scorching hot weather affects Thai emotions
• Malaysia plans to reduce foreign labour... 
• Flood of Chinese products prompts review...
• UNESCAP: Vietnam to grow at 5.8% in 2012

• The joke of the Nobel Peace Prize: After ...


Asean Analysis              11 May 2012

Advertise Your Brand
• Asean Weekly ending May 11, 2012  
• Asean Analysis- May 11, 2012 Sponsor Our Events

Asean Stock Watch     15 May   2012 

• Asean Stock Watch-May 15, 2012 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand