Indonesia may soon be another 'i' in BRIC: Report

JAKARTA: Indonesia's economic growth may accelerate to 7 percent starting in 2011, providing a case for its inclusion in the so-called BRIC economies along with Brazil, Russia, India and China, Morgan Stanley said.

Political stability and buoyant domestic demand will help boost expansion in the $433 billion economy, Morgan Stanley said in a report dated June 12 that compares Indonesia with India. President Susilo Bambang Yudhoyono is expected to win the July 8 elections, polls show.

"What this means for the investor community is that they need to look at this asset class more seriously," Chetan Ahya, a Singapore-based economist at Morgan Stanley, said in an interview. Political stability, improved government finances and "a natural advantage from demography and commodity resources are likely to unleash Indonesia's growth potential", he said.