Is Indonesia now the best bet in Asia?

Indonesia has bucked the trend of slowing Asian markets to record its fastest growth for 15 years. But can it last?

While the rest of Asia is slowing down, Indonesia's economy has posted its fastest growth for 15 years. In 2011 GDP grew by 6.49%, the best year since before the Asian crisis. That compares favourably to slowing rates in big regional neighbours such as China, India, the Philippines and Thailand.

Indonesia's success is homegrown, says Sarah Mishkin in the FT. "Domestic consumption and investment has enabled Indonesia to grow faster than its neighbours, such as Singapore, whose economies are more dependent on global trade flows and therefore more vulnerable to slowing export demand."

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