Indonesia faces tough bond market

Last week, Indonesia took some hits from analysts across the region. UBS and Credit Suisse First Boston cut their Indonesian rupiah forecasts, ING told investors to steer clear of the nation's financial assets and JPMorgan told investors to expect more near-term volatility. Indonesia 2005 bears uncomfortably close parallels to the Asian financial crisis of 1997 and 1998, wrote Tim Condon, a Singapore-based ING economist in a research reporter. He added We believe the challenges to rupiah stability posed by rising oil and a strong US dollar are more than mere short-term blips. UBS predicts the Indonesian rupiah will drop to 10,400 to the dollar within a month. However, Ashley Davies, a UBS analyst, cautions...