Nevertheless, some analysts are cautious, citing the country’s low quality in education and poor infrastructure as a major impediments to growth. Specifically, Alex Pollack, president of Honeywell International in Indonesia, points to the growing gap between skills required by the industry and the education system. Shinta Widjaja Kamdani, managing director of Sintesa Group, also warned that the country requires improvements in its airports, seaports and roads.

“With the government failing to cut the subsidy, how will they spend on infrastructure?” Shinta asked.

Other Indonesia country-specific ETFs include the Market Vectors Indonesia Small-Cap ETF (NYSEArca: IDXJ), which rose 10.2% over the last month, and iShares MSCI Indonesia Investable Market Index Fund (NYSEArca: EIDO), which gained 10.8%.

Market Vectors Indonesia ETF

For more information on Indonesia, visit our Indonesia category.

Max Chen contributed to this article.

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