The $36m Lyxor MSCI Indonesia UCITS ETF (INDO) was among the best performing strategies last week after Indonesian President Joko Widodo declared victory in a fiercely contested election before and after voters went to the polls.
The presidential elections took place on 17 April with “quick count” surveys predicting Widodo’s re-election by a 55% to 45% margin against his rival, populist challenger Prabowo Subianto.
Despite this, Prabowo has claimed to have won the election with a 62% margin and is expected to challenge the final results when released on 22 May.
Following his victory, Widodo told supporters to “be patient” and wait for the final results.
Widodo’s win is seen as a positive for financial markets as one of his key areas of focus is tackling the lack of foreign investment in the country while also increasing infrastructure spend.
According to data from Ultumus, INDO was among the best performing ETFs in the week to 19 April jumping 2.6% in response to the news of the president’s re-election. Despite this however, INDO suffered net outflows of $1.4m, a 1.5% drop in assets under management (AUM).