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Indonesian stocks fluctuate at record high

On Thursday, Indonesian shares were on a roll, with 18% revenues this year and a spur from President Joko Widodo's economic reforms. Traders are concerned with purchasing more of a market hitting historic highs.

The Jakarta Composite Index has turned to be Asia's second-best performer this year in dollar terms, though its winning streak has made share valuations uncomfortably rich.

The ratio of the average price to 12-month forward earnings for Indonesian MSCI index accounts for 16.44 – higher than its historical average of 12.4 as well as its highest value since 1999.

The growth has come at a time when policymakers appear to be more conservative regarding surge projections for Southeast Asia's number one economy even although the economy surprised on the upside in the second quarter backed by solid consumption.

Lower fiscal spending, poor corporate earnings as well as uncertainties over the success of the government's tax amnesty program aimed at improving state profits are currently clouding Indonesia's growth prospects.

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