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Foreign investors drive rebound in Indonesian construction stocks

Sector recovery provides fresh tail wind for Widodo's infrastructure program

Indonesian President Joko Widodo speaks after inspecting the construction of a toll road in Cileunyi, West Java Province, in March 2016. (Reuters / Antara Foto)

JAKARTA -- Shares in Indonesia's state-owned construction groups are rebounding sharply after a poor performance in 2017, providing a fresh tailwind for President Joko Widodo's ambitious infrastructure program.

The four main construction stocks -- Wijaya Karya, Waskita Karya, Pembangunan Perumahan and Adhi Karya -- are all up more than 20% from the beginning of the year, outperforming the benchmark Jakarta Composite Index, which has gained 4.1%. Last year, the price of all four stocks declined while JCI rose 20%.

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