Indonesian markets are no different than those in the U.S. or any part of the world when it comes to uncertainty. They do not like it as highlighted by the 2.4% drop for the Jakarta Stock Exchange during Tuesday’s Asian session.
A poll by Indikator Politik Indonesia indicates the Widodo-Kalla team would is preferred by 44% of voters, but the duo need to land at least 50% of the vote in July to avoid a September run-off, according to Bloomberg.
That run-off could unleash more market uncertainty, but there may be a silver lining for investors considering EIDO and IDX. The aforementioned poll shows Widodo-Kalla are comfortably ahead of their nearest rivals, indicating Tuesday’s slide could have created a buying opportunity in Indonesia ETFs.
EIDO and IDX have $803.3 million in assets under management combined. Indonesia is the world’s third-largest democracy behind India and the U.S.
Market Vectors Indonesia Index ETF