According to the press release, Indonesia has brought in significant foreign direct investment as the country undergoes fiscal and monetary reforms to improve its financial status. Both Fitch Ratings and Moody’s Investor Services have recently upgraded Indonesia’s sovereign debt to investment grade.
“Indonesia has grown rapidly over the past several years and we believe that it is well positioned to continue to prosper, with an economy supported by rising domestic consumption and higher levels of disposable income,” Ed Lopez, Marketing Director at Market Vectors ETFs, said in the press release. “In our view, smaller cap companies that generate the majority of their revenues in the local market provide the best way for investors to gain exposure to the domestic growth story. In that regard, IDXJ provides a complement to our broader-based Indonesian ETF, IDX.”
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Max Chen contributed to this article.