Improving domestic consumption, government capital spending and further structural reforms, along with potentially loose monetary policies, could help support the Indonesian market.
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Analysts point out that Widodo is adding jobs in major construction projects for unskilled labor, which could stimulate demand for basic consumer goods. Slowing inflationary pressures and speculation of additional interest rate cuts are enticing investors. Bank Indonesia has reduced benchmark rates to 7% from 7.5% earlier this year.
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VanEck Vectors Indonesia Index ETF
