There is little doubt that Indonesia, with one of the world's largest populations and abundant natural resources, is poised for dramatic growth and represents one of the newest frontiers for development. This is especially true for Indonesia's capital market.

Indonesia's fledging stock market, has seen the number of listed companies grow from 24 in 1985 to over 270 in 1997. Similarly, trading values on the Jakarta Stock exchange have increased from Rp 5.8 trillion in 1991 to Rp 75.7 trillion in 1996. In terms of size, the JSE with a market capitalisation of US $107 billion, has already exceeded that of the Thai Stock Exchange.

Compared to the stock exchanges of smaller countries such as Malaysia and Singapore, which have a respective capitalisation of US $287 billion and US $174 billion, the Jakarta Stock Exchange has room for significant and continued growth.

Growth, like change, is inevitable for Indonesia's capital market.

To achieve the stated aim of raising the standard of living of Indonesians, high levels of investment are needed.

While domestic savings will fund most of the investment, the need for foreign capital will remain substantial for many years to come. In recent years, the Government of Indonesia had taken an active approach to creating a more favourable investment climate through deregulation, raising the enthusiasm of world investors.

All of this means that a great deal of opportunity exists for both institutional investors as well as retail investors. As the leading financial advisor in Indonesia, Makindo is well placed to help realise and share in these opportunities.