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Indonesia's Still a Darling for Investors Ignoring Earnings

  • Jupiter Asset Management among those looking to boost holdings
  • Local investor worries over valuation, takes cautious stance
Traffic moves past buildings in the business district in Jakarta, Indonesia, on Monday, April 13, 2015. Indonesia's central bank is scheduled to announce its interest rate decision tomorrow.
Photographer: Rony Zakaria/Bloomberg
Updated on

Two thirds of Indonesia’s major companies missed earnings estimates in the first quarter, but that’s done little to stop investors from pouring into this enduring emerging-market darling. 

Overseas funds pumped the most money into the market in April for any month since mid-2014, even as Indonesia’s capital region saw its business-friendly governor lose a re-election campaign. The Jakarta Composite Index is little more than 1 percent from the record high reached last week, showing little evidence of concern about commodity-price declines or signs of a slowing in Chinese growth.