Indonesian Stocks Rise After Elections

Indonesia, the world’s fifth largest country by population, is challenged with slowing growth, a weakening currency and widening budget and current account deficits. The Southeast Asian nation also needs to find a way to finance infrastructure upgrades.

Markets have surged this year on hopes that Widodo, a relative outsider, might be able to turn things around. Stocks have soared 20% since January, and the rupiah has gained 5.2%.

Widodo will have his work cut out for him. “The constraints of coalition politics, as well as a lack of experience on the national stage, could thwart his efforts to get the slowing economy back on track,” said Gareth Leather of Capital Economics.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza