Bubble troubles again in Indonesia

William Pesek Jr

The flow of currency into the country is in danger of outpacing economic reforms

In a world in which many believe markets are always right, it is often thankless to point out when they are getting things wrong. That may be the case with Indonesia, site of one of the world's biggest stock rallies. This year's 44% rise in the Jakarta Composite Index is silencing sceptics on Southeast Asia's biggest economy. Dazzled by such returns, foreigners are flowing back into a country that five years ago was coughing and wheezing amid Asia's financial crisis. Indonesia's stock boom has everything to do with political stability. President Megawati Soekarnoputri's two-year-old governm...