The Indonesian stock market has risen dramatically this year, and thanks to ETF provider Van Eck, US investors have been able to benefit. The Market Vectors Indonesia (IDX) is up 85% over the past three months, the most of any US traded ETF other than Van Eck’s Russian offering (RSX) and the Rydex 2x Financial (RFL).

The Indonesian economy was growing at a 5% clip as late as Q4 2008, and is only forecast to contract an average of 2% in 2009. Elections in July are likely to return the market friendly President Susilo Bambang Yudhoyono. The Rupiah has remained stable since the begining of the crisis, declining no more against the US dollar than other major currencies, and actually rising against the Australian, Canadian, and New Zealand dollars. The economy boasts a healthly trade surplus of nearly 8% of GDP, and goverment finances are sound with a gross debt at 30% of GDP and a forcast 2009 defict of only 2.9%.

With macroeconomic and political stability on the horizon, the market is free to reflect the strong growth potential of the Indonesian economy, the 4th most populous nation in the world and major producer of  oil, timber, and agricultural products.