BMI Research: Emerging Markets Monitor: Indonesian Financial Markets: Priced For Perfection.

The article explains that inspite of Indonesia's strong economic performance, its financial markets are overbought and overvalued. It notes the short-term nature of much of Indonesia's external financing. It says that an abrupt outflow of portfolio inflows and external commercial borrowings are real risks. It expresses fear the high level of foreign ownership in marketable securities makes Indonesian equities vulnerable to a rapid reversal if foreign investors encounter problems domestically.