Indonesia isn’t exactly a hub for stock trading. According to the International Monetary Fund, no other Southeast Asian country has a smaller market for equities relative to the size of its economy. Therefore, it was surprising when Indonesia emerged this year as one of the world’s strongest markets for IPOs.
During a 20-week span, companies raised $2.4 billion from first-time stock sales. That’s nearly as much as Singapore and Hong Kong combined. Year to date, Indonesia ranks No. 4 globally, trailing only China, the US, and the United Arab Emirates.
Part of the reasons is the intensive rush to transition from fossil fuels and into green energy. Indonesia is the largest miner of nickel in the world, a key material in the production of batteries needed to power electric vehicles, forklifts, and lawnmowers. The country also has vast reserves of copper, golad, tina and cobalt.
