$250 Billion on Infrastructure (IDX, PXR)

According to Morgan Stanley, Indonesia will spend about $250 billion on infrastructure investments over the next five years. That's a huge amount. The resulting public and private spending on infrastructure will be equivalent to 5.9% of the nation's gross domestic product in 2015. The country aims to build nearly 20,000 kilometers of roads and add 15,000 megawatts of generation capacity by 2014. Investors from across the globe have pledged about $39 billion of investment to fund projects ranging from mass rapid transit systems and power plants to steel factories and ports in the ASEAN nation. According to Morgan Stanley, the nation's improved finances will enable the government to take on a “more active” role in financing infrastructure investment compared with just six years ago. Indonesia's debt rating was just recently raised to BB+ last month. President Susilo Bambang Yudhoyono has an aggressive GDP growth target of 6.6% through the remainder of his term, which ends in 2014. Morgan Stanley analysts estimate that the biggest beneficiaries of the stimulus will be banks, toll road operators, cement and steel companies. For stateside investors, that means adding the Market Vectors Indonesia Index ETF IDX and PowerShares Emerging Markets Infrastructure Portfolio ETF PXR. Both ETFs provide exposure to the domestic Indonesian market as well as the companies involved in construction and materials.