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Foreign portfolio investors are flocking to Indonesia's stock exchanges despite the uncertainty of key parliamentary and presidential elections later this year. Meanwhile, the locals stay on the sidelines. the sidelines
Murray Vigden is not your typical risk-averse investor. During last July's rioting in Jakarta and elsewhere that left hundreds dead and injured, Vigden was unfazed. As others bailed out of the stock market that day, he actually doubled his holdings in three bluechip companies.
It was the right decision. While there was a two-day sell-off immediately after the disturbances, the index quickly recovered. Vigden bought his stocks at a 10% discount and is now reaping a 20% premium. His friends say Vigden is actually looking forward to the next riot.
"Indonesia has got to be one of my favorite markets. It's resilient," says Vigden, an American who has found investing in Southeast Asia lucrative.
When he allocates funds...