Indonesia's economy will eventually return to an annual growth of 7-8%, the rate it has managed before the onset of the Asian financial crisis, Tim Condon, head of research, Asia at ING Financial Markets, told CNBC.
“I think investors would really take to the Indonesian story in more of a determined way than just seeing it as just a good trading market," he added.
Liberal ex-general Susilo Bambang Yudhoyono was sworn in as Indonesia's president on Tuesday after winning a second five-year term with promises of economic growth and political reform.
“I don't think there is going to be a great deal of a market reaction to today's news (Yudhoyono’s inauguration),” said Condon.
“President Yudhoyono has kept politics off of the investor radar screens…(during) his first administration. I think in great hope that he will do that in his second administration and I think that's been reflected in the market.”