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Indonesia's economy has been able to show its resilience against the impact of terrorism. Ten days after the terrorist bombing at the JW Marriott Hotel in Jakarta, the Jakarta Stocks Composite Index rose 5.7% or 3.4% higher compared to a day before the attack, while the rupiah is stabilizing at its favorable level.

It is a pleasure for me to update Asiamoney readers on the Indonesian economy – it is particularly positive to report that throughout the year the economy has been showing encouraging signals, reaching growth of 3.5% to 4% in 2003. During the first half of this year, overall economic conditions continued to be positive. Inflation remains controlled at the remarkably low level of 1.26 % (year to date). Annual inflation of between 5% to 6% is expected, a rate much lower than the 2002 figure of 10.03%. Meanwhile, the rupiah exchange rate continues to stabilize, providing leeway for Bank Indonesia to lower the SBI and the overnight policy rates. The low SBI rates, around 9%, have been transmitted to the credit interest rates, allowing banks to increase their credit extension and improve intermediary function.

Without an improvement in Indonesia's investment environment, the country's mining industry will hugely contract – with foreign investors taking their business to other emerging markets.

Indonesia's economy has been able to show its resilience against the impact of terrorism. Ten days after the terrorist bombing at the JW Marriott Hotel in Jakarta, the Jakarta Stocks Composite Index rose 5.7% or 3.4% higher compared to a day before the attack, while the rupiah is stabilizing at its favorable level. Gross domestic product (GDP) in the second quarter of 2003 grew 3.76%, against an average analyst forecast of 3.4%, and is very well positioned to achieve its 4% annual growth target for this year, and 5% for 2004. The higher than expected growth happened at the same time as the war in Iraq, the Sars outbreak in many neighboring Asian countries, the global economic slowdown and deflation.

For two years, private equity has been off the radar screens of most battle-scarred private investors in Asia. But with stock markets and bonds offering limited upside, is private equity set for a comeback? By Ben Davies.

Bank Mandiri's "go publik" campaign, reminiscent of Indonesia's Asian tiger days, proves that that the country is back on the radar screen of international investors.

Persistence and integrity have paid off for AAA Securities, the first Indonesian securities firm to specialize in fixed income during the 1990s.

Persistence and integrity have paid off for AAA Securities, the first Indonesian securities firm to specialize in fixed income during the 1990s.

Performance at the stroke of a pen

Pressure is mounting for direct currency conversion between the renminbi and the new Taiwanese dollar. Mainland bankers explain to Pauline Loong the feasibility and technical impediments to such a step.

Just as Indonesia seemed to be recovering from its last setback – the Bali bombing of 2002 – another terrorist incident has shaken confidence in the country. But this time the fundamentals are stronger, says Maggie Ford.

Unilever takes this year's crown, while Telkom pulls off an impressive volte face in investor relations.