INDONESIA HASN’T HAD it this good for a long time. Investors can’t seem to get enough of the country, with portfolio capital as well as foreign direct investment rising rapidly, drawn in by the promise of rapidly developing domestic demand in the world’s fourth most populous country. The economy has been more resilient than many expected in the face of the global financial crisis, Indonesian equities are performing strongly and the rupiah has been appreciating. The key question for investors used to the ups and downs of Indonesia’s past is: How sustainable are the good times?

IT’S NOT VERY often that China’s super-charged growth pales in comparison with that of another country but that is what has happened in the light of Singapore’s economic performance in 1H2010. With the economy expanding at its fastest pace in nearly 40 years — at around 17% — the first six months of this year have been the best of times for the Singapore economy in a generation. Clearly, this is not likely to be sustained, so the question is how much will the economy slow in the next year or two?