“Jokowi’s victory is potentially as important as Modi’s was for India,” says Jim O'Neill, formerly of Goldman Sachs and "BRIC" coinage fame.
Indonesia, says O'Neill has massive potential and Jokowi could be the man to unleash it, but he's got plenty of vested interests to take on first. Then there's expectations - they're perhaps higher in Indonesia than they are in India, meaning there's a particularly large amount of room for disappointment.
The Jakarta Composite is up 21.1% YTD, and 9.1% over the past year, and stocks trade at a pricey 16x forward earnings, notes Macquarie's Sam Le Cornu. It's a 20% premium to the 10-year historical average and not far from their 2008 peak valuations.