Luring Back The Hot Money To Indonesia

Indonesia's President pulls out all the stops on a bank IPO

Indonesia's stock market seems to have crammed five years' worth of sickening plunges into just a few months. This summer alone, investors had several bad scares: The death of President Suharto's wife fueled rumors that the 75-year-old leader himself was dying, a military attack on the opposition party headquarters triggered riots and bomb threats in the capital city, and money from the Jakarta-listed Lippo conglomerate smeared the reelection campaign of U.S. President Bill Clinton. From June 14 to Sept. 12, the Jakarta stock index dropped about 10%, as foreign investors, who account for most of the activity on the exchange, bailed out.

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