<PAGE>
--------------------------------
The Indonesia
Fund, Inc.
..............................
ANNUAL REPORT
DECEMBER 31, 1999
--------------------------------
[PHOTO]
<PAGE>
CONTENTS
Letter to Shareholders .......................................................1
Portfolio Summary ............................................................6
Schedule of Investments ......................................................7
Statement of Assets and Liabilities ..........................................8
Statement of Operations ......................................................9
Statement of Changes in Net Assets ..........................................10
Financial Highlights ........................................................11
Notes to Financial Statements ...............................................12
Report of Independent Accountants ...........................................16
Results of Annual Meeting of Shareholders ...................................17
Tax Information .............................................................17
Description of InvestLink-SM- Program .......................................18
Recent Developments .........................................................20
PICTURED ON THE COVER IS THE COURT HALL--KERTHA GOSA LOCATED IN KLUNGKUNG, BALI.
- --------------------------------------------------------------------------------
<PAGE>
LETTER TO SHAREHOLDERS
January 31, 2000
DEAR SHAREHOLDER:
We are writing to report on the activities of The Indonesia Fund, Inc. (the
"Fund") for the year ended December 31, 1999.
At December 31, 1999, the Fund's net assets were $20.7 million. The Fund's net
asset value ("NAV") was $4.48 per share, as compared to $2.71 at December 31,
1998.
PERFORMANCE: HURT BY TELECOMMUNICATIONS, AUTOS AND FOREST PRODUCTS
For the year ended December 31, 1999, the Fund's total return, based on NAV and
assuming reinvestment of dividends, was 66.8%. By comparison, the total return
of the Morgan Stanley Capital International Indonesia Index (the "Index")* was
92.0%.
From the commencement of investment operations on March 9, 1990 through December
31, 1999, the Fund's annualized total return, based on NAV and assuming
reinvestment of distributions, fell 10.1%. The Index's annualized return was
- -12.0% during this same period.
We attribute the Fund's underperformance of the Index in 1999 to a combination
of stock selection and industry sector weightings. This was most apparent in the
telecommunications, automobile and forest products sectors:
- - In telecommunications, legal diversification requirements compelled us to
underweight the Fund's largest position, PT Telekomunikasi Indonesia ("PT
Telkom"), compared to the Index. Unfortunately for overall performance, PT
Telkom participated in a global rally in telecom stocks and outperformed the
Index in the process. (See next section for further comments.)
- - In automobiles, we underweighted the nation's largest car manufacturer (and
the Fund's sixth-largest position), PT Astra International ("Astra"), in line
with our generally low allocation of assets to highly leveraged companies.
Astra performed especially well in the year's second quarter.
- - In forest products, we held names in the sector that underperformed the
sector as a whole.
The portfolio fared much better in other industries. These included retailing,
in which we benefited both from good stock selection and a sector overweight;
and beverages/tobacco and food, in which we held names that enjoyed robust
returns as investors became more optimistic about improving Indonesian demand
for consumer goods.
THE MARKET: A YEAR OF SURPRISES AND ADVANCES
As is so often the case, Indonesia was a country of many surprises during 1999.
A summary of the year's major events, for example, would include the vote for
independence by the now-former province of East Timor and a prominent financial
scandal involving the previously dominant Golkar political party.
These and other notable events, however, took a back seat to what transpired on
the nation's political front. In early June, for example, parliamentary
elections took place without much of the social unrest that has typified past
elections.
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1
<PAGE>
LETTER TO SHAREHOLDERS
This was very welcome news for international investors, who took it as a clear
signal that the country was finally getting itself back on the right track.
But by far the biggest story to come out of the Indonesian political scene
occurred during the fourth quarter, as the nation's parliament met in October to
elect a new president to succeed the deposed Suharto. Acting president B.J.
Habibie, Suharto's handpicked successor and a symbol of the Suharto regime, saw
his hopes of retaining power dashed by an unlikely coalition whose candidate won
a surprising victory.
Parliament instead chose as the new president Abdurrahman Wahid, a Muslim cleric
with little government experience. Opposition leader Megawati Sukarnoputri, the
daughter of Suharto's predecessor and considered a front runner to succeed
Habibie, accepted the vice presidency, thus helping to ensure a voice for her
constituency and a peaceful transition to new leadership.
As for the Indonesian economy, it continued to make progress along its road to
recovery:
- - The rupiah, which had danced around the 8,300 level relative to the U.S.
dollar at the beginning of the fourth quarter, appreciated to 7,100, mostly
in response to the election's favorable outcome. For the year, it gained a
modest-yet-impressive 3.75%, despite some wild gyrations along the way.
- - Exports rode the stout back of firmer oil prices to rise 12% in December (the
last month for which such figures are available) compared to December 1998.
This was much better than earlier in 1999, when exports recorded negative
growth.
- - Corporate earnings continued to improve, with most large corporations
reporting positive results for the first half and third quarter
(comprehensive fourth-quarter numbers are not yet available).
- - Third-quarter GDP growth (last quarter available) weighed in at 0.5% which,
while not hugely positive, was far better than anticipated.
- - And inflation, which had hovered in the 50-60% range during the first
quarter, fell precipitously by January 2000 to an annualized rate of 0.3%.
For its part, the Indonesian equity market rose not simply on news about the
election, but also on renewed interest in the telecommunications sector.
Indonesia's large-capitalization telecom stocks rallied in line with exploding
interest in telecom names globally and spurred by the government's reiteration
of its intention to speed up the privatization process.
PORTFOLIO STRUCTURE AND STRATEGY: LESS DEFENSIVE POSITIONING OF SECTORS
We are generally positive on the prospects for certain sectors of the Indonesian
equity market during the coming year. As a result, we have positioned the
portfolio less defensively than in recent months. Stock selection remains
focused on large, blue-chip companies with strong management and underlying
fundamentals that should serve them well as Indonesia's economy continues to
recover.
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2
<PAGE>
LETTER TO SHAREHOLDERS
In particular, we continue to overweight the consumer staples sector relative to
the Index benchmark and have increased our overweights in consumer discretionary
and health care companies. All of these stand to benefit from increased consumer
spending.
After underweighting telecommunications during much of 1999, we are raising the
Fund's telecom allocation due to our more favorable long-term sector outlook. We
are also in the process of restructuring our exposure to banks to emphasize
companies offering better loan quality and capitalization, and have initiated a
position in the property sector based on our expectations of continuing economic
recovery.
The sector to which we have most reduced exposure is the more defensive and
export-intensive natural resource group (I.E., palm oil, pulp & paper, mining),
which tends to do poorly when the rupiah appreciates.
OUTLOOK: CAUTIOUS IN NEAR-TERM, MORE POSITIVE THEREAFTER
Despite our positive views on specific Indonesian sectors, we believe that
caution is appropriate when assessing the overall market's near-term prospects.
Political unrest in the provinces of Aceh, Maluku and Lombok persists and has
left a low-hanging cloud of uncertainty on investor perceptions. The country
also is vulnerable to potential external developments, such as a meaningful
correction in U.S. equities and rising global interest rates, that would likely
have a negative impact on emerging markets more generally.
Looking ahead, we do not expect a repeat of 1999's buoyant equity returns in
2000. Nonetheless, we do see a reasonably high probability of good performance
based on generally declining political risk; continued strengthening in the
rupiah, which will help companies that derive substantial revenues from local
currency transactions and possess significant dollar-denominated debt; greater
corporate pricing flexibility, which should boost profit margins; ongoing
improvement in corporate earnings; and attractive valuations relative to those
elsewhere in Asia.
If our positive outlook proves accurate, we would expect to see a number of
companies issue equity. While this new supply might put a natural and temporary
dampener on market performance, its overall effect should be positive, as these
better-capitalized companies grow and become more competitive.
We additionally note that the International Monetary Fund is set to release some
$10 billion in much-needed financial aid that was cut off during a mid-1999
banking scandal. While Indonesia's external debt problem will continue to hurt
market sentiment to some degree, this capital infusion should help the country
meet its near-term obligations.
- --------------------------------------------------------------------------------
3
<PAGE>
LETTERS TO SHAREHOLDERS
And, in a nation of many surprises, one might be the eventual repatriation of
investment capital sent overseas for safekeeping by Indonesia's ethnic Chinese,
great amounts of which left the country in 1998 following a prolonged period of
social violence. It is helpful to keep in mind in this context that, while
ethnic Chinese account for no more than 5% of Indonesia's population, they
control a disproportionately large share of the country's commerce. Should they
again focus their attention on the local market, therefore, it would undoubtedly
provide a major stimulus for the Indonesian economy.
Sincerely,
/s/Robert B. Hrabchak
Robert B. Hrabchak **
Chief Investment Officer
/s/Raoul H. Rayos
Raoul H. Rayos ***
Investment Officer
- --------------------------------------------------------------------------------
4
<PAGE>
LETTERS TO SHAREHOLDERS
FROM CREDIT SUISSE ASSET MANAGEMENT, LLC:
I. It is with deep regret that we inform you of the recent passing of Peter
Kaplan. Peter served with distinction as a member of the Board of Directors
since the Fund's inception, and he will be greatly missed.
II. Effective January 12, 1999, the Fund's investment adviser, BEA Associates,
changed its name to Credit Suisse Asset Management, LLC ("CSAM"). In making
the announcement, the firm said that it expected the new name to enhance
its recognition as a global asset manager. CSAM is the investment division
of Credit Suisse Group, one of the world's largest financial organizations,
with $600 billion in assets under management.
III. All business units of Credit Suisse Group have successfully completed their
year-end processing and reported ready for business without incident. In
addition, our systems have been incident-free with no material Y2K issues.
IV. We wish to remind shareholders whose shares are registered in their own
name that they automatically participate in the Fund's dividend
reinvestment program which is known as the InvestLink-SM- Program ( the
"Program"). The Program can be of value to shareholders in maintaining
their proportional ownership interest in the Fund in an easy and convenient
way. A shareholder whose shares are held in the name of a broker/dealer or
nominee should contact the Fund's Transfer Agent for details about
participating in the Program. The Program also provides for additional
share repurchases. The Program is described on pages 18 through 20 of this
report.
- --------------------------------------------------------------------------------
* The Morgan Stanley Capital International Indonesia Index is an unmanaged index
(with no defined investment objective) of Indonesian equities that includes
reinvestment of dividends, and is the exclusive property of Morgan Stanley
Capital International Inc.
** Robert B. Hrabchak is responsible for management of the Fund's assets and has
served the Fund in such capacity since November 17, 1998. Mr. Hrabchak is a
Director of Credit Suisse Asset Management, LLC ("CSAM"), where he is chief
investment officer for Asian equities. He joined CSAM in 1997 from Merrill Lynch
Asset Management in Hong Kong, where he was a senior portfolio manager.
Previously, he worked in corporate finance and equity capital markets for
Salomon Brothers in New York and Hong Kong; specialized in private equity
investments in Taiwan, Hong Kong and China for ChinaVest Limited; and was an
Asian portfolio manager at Chase Manhattan Bank in Hong Kong.
*** Raoul H. Rayos assists Mr. Hrabchak in management of the Fund's assets and
has served the Fund in such capacity since November 17, 1999. Mr. Rayos is a
Vice President of CSAM, where he is a portfolio manager specializing in Asian
equities. He joined CSAM in 1999 from Merrill Lynch Asset Management, where he
was a senior Asian equity analyst. Previously, he was an Asian equity analyst
for W.I. Carr in Hong Kong and worked in corporate finance for All Asia Capital
and Trust in Manila.
- --------------------------------------------------------------------------------
5
<PAGE>
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THE INDONESIA FUND, INC.
PORTFOLIO SUMMARY - AS OF DECEMBER 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
SECTOR ALLOCATION
[BAR GRAPH]
<TABLE>
<CAPTION>
AS A PERCENT OF NET ASSETS
December 31, 1999 December 31, 1998
<S> <C> <C>
Agriculture 0.76 4.91
Automotive 5.87 2.62
Beer, Beverages, Liquors & Tobacco 20.29 17.72
Financial Services 5.10 0.00
Fishery 0.71 2.90
Food & Kindred Products 6.35 4.27
Manufacturing 5.43 0.78
Medical-Drugs 10.27 0.00
Metal-Diversified 0.00 2.52
Oil Exploration & Production 0.00 4.20
Paper Products 11.73 15.76
Quarrying 1.86 3.60
Retailing 12.51 0.00
Telecommunications 16.81 24.71
Textiles 1.65 2.10
Other 0.00 2.77
Cash & Other Assets 0.66 11.14
</TABLE>
TOP 10 HOLDINGS, BY ISSUER
<TABLE>
<CAPTION>
Percent of
Holding Sector Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1. PT Telekomunikasi Indonesia Telecommunications 16.8
- ---------------------------------------------------------------------------------------------------------------------------
2. PT Gudang Garam Beer, Beverages, Liquors & Tobacco 10.5
- ---------------------------------------------------------------------------------------------------------------------------
3. PT HM Sampoerna Beer, Beverages, Liquors & Tobacco 9.8
- ---------------------------------------------------------------------------------------------------------------------------
4. PT Matahari Putra Prima Retailing 7.2
- ---------------------------------------------------------------------------------------------------------------------------
5. PT Indofood Sukses Makmur Food & Kindred Products 6.4
- ---------------------------------------------------------------------------------------------------------------------------
6. PT Astra International Automotive 5.9
- ---------------------------------------------------------------------------------------------------------------------------
7. PT Ramayana Lestari Sentosa Retailing 5.3
- ---------------------------------------------------------------------------------------------------------------------------
8. PT Bank Internasional Indonesia Financial Services 5.1
- ---------------------------------------------------------------------------------------------------------------------------
9. PT Tempo Scan Pacific Medical - Drugs 5.0
- ---------------------------------------------------------------------------------------------------------------------------
10. PT Indah Kiat Pulp & Paper Corp. Paper Products 4.8
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
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6
<PAGE>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares/Units (Note A)
- -------------------------------------------------------
<S> <C> <C>
EQUITY OR EQUITY-LINKED SECURITIES-99.34%
AGRICULTURE-0.77%
PT London Sumatra
Indonesia+ ................. 1,235,600 $ 158,297
------------
AUTOMOTIVE-5.86%
PT Astra International+ ..... 2,271,000 1,212,278
------------
BEER, BEVERAGES, LIQUORS & TOBACCO-20.29%
PT Gudang Garam ............. 809,500 2,166,349
PT HM Sampoerna+ ............ 801,500 2,027,995
------------
4,194,344
------------
FINANCIAL SERVICES-5.10%
PT Bank Internasional
Indonesia++ ................ 41,452,600 885,109
PT Bank Internasional
Indonesia, Warrants
(expiring 04/16/02)+ ....... 15,787,200 168,547
------------
1,053,656
------------
FISHERY-0.71%
PT Daya Guna Samudera ....... 518,000 147,473
------------
FOOD & KINDRED PRODUCTS-6.35%
PT Indofood Sukses
Makmur+ .................... 1,054,000 1,312,812
------------
MANUFACTURING-5.43%
PT Semen Gresik ............. 442,500 697,607
PT Unilever Indonesia ....... 26,000 425,623
------------
1,123,230
------------
MEDICAL-DRUGS-10.27%
PT Dankos Laboratories+ ..... 4,300,000 795,730
PT Kalbe Farma+ ............. 1,850,000 296,263
PT Tempo Scan Pacific ....... 1,227,000 1,030,505
------------
2,122,498
------------
PAPER PRODUCTS-11.73%
Asia Pulp & Paper
Company Ltd. ADR+ .......... 90,900 715,837
<CAPTION>
No. of Value
Description Shares (Note A)
- -------------------------------------------------------
<S> <C> <C>
PAPER PRODUCTS (CONTINUED)
PT Indah Kiat Pulp & Paper
Corp.+,+++ ................. 2,510,500 $ 982,759
PT Pabrik Kertas Tjiwi
Kimia+ ..................... 2,241,811 725,996
------------
2,424,592
------------
QUARRYING-1.86%
PT Tambang Timah Tbk ........ 555,000 385,143
------------
RETAILING-12.51%
PT Matahari Putra Prima+ .... 8,920,000 1,491,957
PT Ramayana Lestari
Sentosa .................... 1,301,500 1,093,075
------------
2,585,032
------------
TELECOMMUNICATIONS-16.81%
PT Telekomunikasi
Indonesia .................. 2,534,220 1,433,954
PT Telekomunikasi
Indonesia ADR .............. 185,442 2,039,862
------------
3,473,816
------------
TEXTILES-1.65%
PT Indorama Synthetics+ ..... 1,470,000 340,036
------------
TOTAL INVESTMENTS-99.34%
(Cost $18,407,093) (Notes A,D) .......... 20,533,207
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES-0.66% ....................... 136,174
------------
NET ASSETS-100.00% ....................... $20,669,381
------------
------------
- -------------------------------------------------------
</TABLE>
+ Security is non-income producing.
++ Includes 397,837,440 call options, expiring 05/28/02, and 126,297,600
certificates of entitlement, with no market value.
+++ Includes 5 warrants, expiring 07/11/02, with a market value of $1.00.
ADR American Depositary Receipts.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 7
<PAGE>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at value (Cost $18,407,093) (Note A) .................................. $ 20,533,207
Cash (including $166,983 of foreign currency with a cost of $166,739) (Note A) ..... 246,107
Dividend receivable ................................................................ 8,279
Prepaid expenses ................................................................... 4,362
------------
Total Assets ....................................................................... 20,791,955
------------
LIABILITIES
Payables:
Investment advisory fee (Note B) ................................................ 46,813
Administration fees (Note B) .................................................... 3,049
Other accrued expenses .......................................................... 72,712
------------
Total Liabilities .................................................................. 122,574
------------
NET ASSETS (applicable to 4,608,989 shares of common stock outstanding) (Note C) ... $ 20,669,381
------------
------------
NET ASSET VALUE PER SHARE ($20,669,381 DIVIDED BY 4,608,989) ....................... $4.48
------------
------------
NET ASSETS CONSIST OF
Capital stock, $0.001 par value; 4,608,989 shares issued and outstanding
(100,000,000 shares authorized) ................................................... $ 4,609
Paid-in capital .................................................................... 60,557,698
Accumulated net realized loss on investments and foreign currency related
transactions ...................................................................... (42,019,836)
Net unrealized appreciation in value of investments and translation
of other assets and liabilities denominated in foreign currency ................... 2,126,910
------------
Net assets applicable to shares outstanding ........................................ $ 20,669,381
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
8 See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
STATEMENT OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Income (Note A):
Dividends .................................................................... $ 208,820
Interest ..................................................................... 118,783
Less: Foreign taxes withheld ................................................. (31,323)
------------
Total Investment Income ...................................................... 296,280
------------
Expenses:
Investment advisory fees (Note B) ............................................ 169,382
Audit and legal fees ......................................................... 73,620
Custodian fees ............................................................... 70,080
Printing ..................................................................... 69,825
Accounting fees .............................................................. 44,205
Transfer agent fees .......................................................... 26,300
Directors' fees .............................................................. 20,998
Administration fees (Note B) ................................................. 19,815
NYSE listing fees ............................................................ 16,170
Insurance .................................................................... 9,157
Other ........................................................................ 18,331
------------
Total Expenses ............................................................... 537,883
------------
Net Investment Loss .......................................................... (241,603)
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY
RELATED TRANSACTIONS
Net realized loss from:
Investments .................................................................. (1,921,407)
Foreign currency related transactions ........................................ (683)
Net change in unrealized depreciation in value of investments and translation
of other assets and liabilities denominated in foreign currency ............... 10,549,373
------------
Net realized and unrealized gain on investments and foreign currency
related transactions .......................................................... 8,627,283
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........................... $ 8,385,680
------------
------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 9
<PAGE>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended December 31,
--------------------------------
1999 1998
----------- -----------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS
Operations:
Net investment loss ............................................................ $ (241,603) $ (154,711)
Net realized loss on investments and foreign currency related transactions ..... (1,922,090) (9,563,944)
Net change in unrealized depreciation in value of investments and
translation of other assets and liabilities denominated in foreign currency ... 10,549,373 5,724,030
----------- -----------
Net increase/(decrease) in net assets resulting from operations ............. 8,385,680 (3,994,625)
----------- -----------
Distributions to shareholders (Note A):
Net realized gain on investments and foreign currency related transactions ..... (207,405) --
----------- -----------
Total increase/(decrease) in net assets ...................................... 8,178,275 (3,994,625)
----------- -----------
NET ASSETS
Beginning of year ................................................................ 12,491,106 16,485,731
----------- -----------
End of year ...................................................................... $20,669,381 $12,491,106
----------- -----------
----------- -----------
</TABLE>
- --------------------------------------------------------------------------------
10 See accompanying notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from information provided in the financial statements and market price
data for the Fund's shares.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
For the Years Ended December 31, March 9, 1990*
------------------------------------------------------------------------------- through
1999 1998 1997 1996 1995 1994 1993 1992 1991 December 31, 1990
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE
OPERATING
PERFORMANCE
Net asset value, beginning
of period.................. $ 2.71 $ 3.58 $10.68 $ 9.34 $ 9.18 $14.03 $ 7.63 $ 7.72 $10.38 $13.78**
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net investment income/
(loss)..................... (0.05) (0.04) 0.03 0.01 -- (0.03) (0.03) 0.01 0.04 0.22
Net realized and unrealized
gain/(loss) on investments
and foreign currency
related transactions....... 1.87 (0.83) (7.13) 1.33 0.16 (4.82) 6.43 (0.10) (2.65) (2.90)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net increase/(decrease) in
net assets resulting from
operations................. 1.82 (0.87) (7.10) 1.34 0.16 (4.85) 6.40 (0.09) (2.61) (2.68)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Dividends and distributions
to shareholders:
Net investment income..... -- -- -- -- -- -- -- -- (0.05) (0.19)
Net realized gain on
investments and foreign
currency related
transactions............. (0.05) -- -- -- -- -- -- -- -- (0.53)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total dividends and
distributions to
shareholders............... (0.05) -- -- -- -- -- -- -- (0.05) (0.72)
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of
period..................... $ 4.48 $ 2.71 $ 3.58 $10.68 $ 9.34 $ 9.18 $14.03 $ 7.63 $ 7.72 $10.38
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Market value, end of period. $5.438 $3.438 $4.625 $9.750 $10.125 $12.000 $20.750 $9.000 $8.375 $9.875
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total investment return(a).. 59.58% (25.68)% (52.56)% (3.70)% (15.63)% (42.17)% 130.56% 7.46% (14.71)% (24.15)%
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
RATIOS/
SUPPLEMENTAL
DATA
Net assets, end of period
(000 omitted).............. $20,669 $12,491 $16,486 $49,223 $43,060 $42,297 $64,661 $35,186 $35,590 $47,817
Ratio of expenses to average
net assets................. 3.18% 4.21% 1.89% 1.91% 1.96% 1.83% 1.98% 2.04% 2.00% 2.15%(b)
Ratio of net investment
income/(loss) to average
net assets................. (1.43)% (1.37)% 0.33% 0.10% 0.05% (0.25)% (0.30)% 0.09% 0.49% 2.05%(b)
Portfolio turnover rate..... 47.38% 36.58% 48.19% 34.67% 24.10% 31.56% 63.77% 22.39% 32.27% 17.68%
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of investment operations.
** Initial public offering price of $15.00 per share less underwriting
discount of $1.05 per share and offering expenses of $0.17 per share.
(a) Total investment return at market value is based on the changes in market
price of a share during the period and assumes reinvestment of dividends
and distributions, if any, at actual prices pursuant to the Fund's dividend
reinvestment program. Total investment return does not reflect brokerage
commissions or initial underwriting discounts and has not been annualized.
(b) Annualized.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 11
<PAGE>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE A. SIGNIFICANT ACCOUNTING POLICIES
The Indonesia Fund, Inc. (the "Fund") was incorporated in Maryland on January 8,
1990 and commenced investment operations on March 9, 1990. The Fund is
registered under the Investment Company Act of 1940, as amended, as a
closed-end, non-diversified management investment company. Significant
accounting policies are as follows:
MANAGEMENT ESTIMATES: The preparation of financial statements in accordance with
generally accepted accounting principles requires management to make certain
estimates and assumptions that may affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.
PORTFOLIO VALUATION: Investments are stated at value in the accompanying
financial statements. All equity securities for which market quotations are
readily available are valued at the last sales price prior to the time of
determination, or, if no sales price is available at that time, at the closing
price quoted for the securities (but if bid and asked quotations are available,
at the mean between the current bid and asked prices). Securities that are
traded over-the-counter are valued at the mean between the current bid and the
asked prices, if available. Ministry of Finance Decree 467 (1997) stated that
foreign investors were allowed to purchase up to 100% of the shares of
Indonesian companies offered to the public in the primary market, except for
shares in the banking sector. Prior to May 21, 1999, foreign investors were
allowed to purchase up to 49% of the shares in the banking sector offered to the
public in the primary market. When foreign investors owned 49% of such shares
and a foreign market quotation was available, the foreign quotation was used. If
less than 49% of these shares offered to the public were owned by foreign
investors, there was no foreign market quotation available, therefore the local
market quotation was used. Local banking shares generally traded at a discount
to foreign banking shares when 49% of the shares offered to the public were
owned by foreign investors. Effective May 21, 1999, Bank Indonesia, the
Indonesian central bank, announced that the foreign ownership limit in
Indonesian banks had been raised from 49 percent to 99 percent. Local investors
must retain at least 1 percent ownership in banks. Banking is the only sector in
Indonesia which has a foreign ownership limit. A local market quotation is used
for the banking sector. All other securities and assets are valued at the fair
value as determined in good faith by the Board of Directors. Short-term
investments having a maturity of 60 days or less are valued on the basis of
amortized cost. The net asset value per share of the Fund is calculated on each
business day, with the exception of those days on which the New York Stock
Exchange is closed.
CASH: Deposits held at Brown Brothers Harriman & Co., the Fund's custodian, in
variable rate accounts are classified as cash. At December 31, 1999, the
interest rates were 3.50% and 7.03% for the U.S. dollar denominated cash account
and the Indonesia rupiah account, respectively, which resets on a daily basis.
Amounts on deposit are generally available on the same business day.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on an accrual basis; dividend
income is recorded on the ex-dividend date.
TAXES: No provision is made for U.S. federal income or excise taxes as it is the
Fund's intention to continue to qualify as a regulated investment company and to
make the requisite distributions to its shareholders which will
- --------------------------------------------------------------------------------
12
<PAGE>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
be sufficient to relieve it from all or substantially all U.S. federal income
and excise taxes.
At December 31, 1999, the Fund had a capital loss carryover for U.S. federal
income tax purposes of $40,578,633 of which $1,666,081 expires in 2000; $683,625
expires in 2001; $8,617,662 expires in 2002; $6,619,896 expires in 2003;
$4,688,411 expires in 2004; $3,265,956 expires in 2005; $13,254,308 expires in
2006 and $1,782,694 expires in 2007.
For U.S. federal income tax purposes, realized capital losses and foreign
exchange losses incurred after October 31, 1999, within the fiscal year, are
deemed to arise on the first day of the following fiscal year. The Fund incurred
and elected to defer such losses of $433,733 and $6,751, respectively.
Income received by the Fund from sources within Indonesia and other countries
may be subject to withholding and other taxes imposed by such countries.
FOREIGN CURRENCY TRANSLATIONS: The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(I) market value of investment securities, assets and liabilities at the
current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.
The Fund does not isolate that portion of gains and losses in investments in
equity securities which is due to changes in the foreign exchange rates from
that which is due to changes in market prices of equity securities. Accordingly,
realized and unrealized foreign currency gains and losses with respect to such
securities are included in the reported net realized and unrealized gains and
losses on investment transaction balances.
Net currency gains from valuing foreign currency denominated assets and
liabilities at period end exchange rates are reflected as a component of net
unrealized appreciation/depreciation in value of investments and translation of
other assets and liabilities denominated in foreign currency.
Net realized foreign exchange losses represent foreign exchange gains and losses
from transactions in foreign currencies and forward foreign currency contracts,
exchange gains or losses realized between the trade date and settlement date on
security transactions, and the difference between the amounts of interest and
dividends recorded on the Fund's books and the U.S. dollar equivalent of the
amounts actually received.
DISTRIBUTIONS OF INCOME AND GAINS: The Fund distributes at least annually to
shareholders, substantially all of its net investment income and net realized
short-term capital gains, if any. The Fund determines annually whether to
distribute any net realized long-term capital gains in excess of net realized
short-term capital losses, including capital loss carryovers, if any. An
additional distribution may be made to the extent necessary to avoid the payment
of a 4% U.S. federal excise tax. Dividends and distributions to shareholders are
recorded by the Fund on the ex-dividend date.
The character of distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for U.S.
- --------------------------------------------------------------------------------
13
<PAGE>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
federal income tax purposes due to U.S. generally accepted accounting
principles/tax differences in the character of income and expense recognition.
At December 31, 1999, the Fund reclassified within the composition of net assets
permanent book/tax differences from accumulated net investment loss of $238,267
to paid-in capital and realized foreign currency gains of $3,336 to accumulated
net investment loss. In addition, the Fund reclassified $2,239,330 of capital
loss carryover for U.S. federal income tax purposes which expired in 1999 to
paid-in capital.
OTHER: Securities denominated in currencies other than U.S. dollars are subject
to changes in value due to fluctuations in exchange rates.
Investment in Indonesian securities requires consideration of certain factors
that are not normally involved in investments in U.S. securities. The Indonesian
securities market is an emerging market characterized by a small number of
company listings, high price volatility and a relatively illiquid secondary
trading environment. These factors, coupled with restrictions on investment by
foreigners and other factors, limit the supply of securities available for
investment by the Fund. This will affect the rate at which the Fund is able to
invest in Indonesian securities, the purchase and sale prices for such
securities and the timing of purchases and sales.
The limited liquidity of the Indonesian securities markets may also affect the
Fund's ability to acquire or dispose of securities at a price and time that it
wishes to do so. Accordingly, in periods of rising market prices, the Fund may
be unable to participate in such price increases fully to the extent that is
unable to acquire desired portfolio positions quickly; conversely the Fund's
inability to dispose fully and promptly of positions in declining markets will
cause its net asset value to decline as the value of unsold positions is marked
to lower prices.
NOTE B. AGREEMENTS
Credit Suisse Asset Management, LLC ("CSAM"), formerly known as BEA Associates,
serves as the Fund's investment adviser with respect to all investments. As
compensation for its advisory services, CSAM receives from the Fund an annual
fee, calculated weekly and paid quarterly, equal to 1.00% of the Fund's average
weekly net assets. For the year ended December 31, 1999, CSAM earned $169,382
for advisory services. CSAM also provides certain administrative services to the
Fund and is reimbursed by the Fund for costs incurred on behalf of the Fund (up
to $20,000 per annum). For the year ended December 31, 1999, CSAM was reimbursed
$2,871 for administrative services rendered to the Fund.
Bear Stearns Funds Management Inc. ("BSFM") serves as the Fund's administrator.
The Fund pays BSFM a monthly fee that is computed weekly at an annual rate of
0.10% of the first $100 million of the Fund's average weekly net assets and
0.08% of amounts in excess of $100 million. For the year ended December 31,
1999, BSFM earned $16,944 for administrative services.
NOTE C. CAPITAL STOCK
The authorized capital stock of the Fund is 100,000,000 shares of common stock,
$0.001, par value. Of the 4,608,989 shares outstanding at December 31, 1999,
CSAM owned 7,169 shares.
NOTE D. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the cost of securities owned at December
31, 1999 was $19,407,812. Accordingly, the net unrealized appreciation of
investments (including investments denominated in foreign currency) of
$1,125,395, was
- --------------------------------------------------------------------------------
14
<PAGE>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
composed of gross appreciation of $4,411,893 for those investments having an
excess of value over cost and gross depreciation of $3,286,498 for those
investments having an excess of cost over value.
For the year ended December 31, 1999, purchases and sales of securities, other
than short-term obligations, were $8,710,365 and $7,511,316, respectively.
NOTE E. CREDIT AGREEMENTS
The Fund, along with 10 other U.S. regulated investment companies for which CSAM
serves as investment adviser, had a credit agreement with BankBoston, N.A.. The
agreement provided that each fund was permitted to borrow an amount equal to the
lesser of $25,000,000 or 25% of the net assets of the fund. However, at no time
was the aggregate outstanding principal amount of all loans to any of the 11
funds to exceed $25,000,000. The line of credit bore interest at (i) the greater
of the bank's prime rate or the Federal Funds Effective Rate plus 0.50% or (ii)
the Adjusted Eurodollar Rate plus 1.50%. The above credit agreement was
terminated as of June 30, 1999.
Effective December 15, 1999, the Fund, together with other funds advised by
CSAM, established a $250 million committed, unsecured, line of credit facility
("Credit Facility") with Deutsche Bank AG as administrative agent, State Street
Bank and Trust Company as operations agent, Bank of Nova Scotia as syndication
agent as well as certain other lenders, for temporary or emergency purposes.
Under the terms of the Credit Facility, the funds with access to the Credit
Facility pay an aggregate commitment fee at a rate of 0.075% per annum on the
average daily balance of the Credit Facility that is undisbursed and uncanceled
during the preceding quarter allocated among the participating funds in such
manner as is determined by the governing Boards of the various funds. In
addition, the participating funds will pay interest on borrowings at the Federal
Funds rate plus 0.50%. At December 31, 1999 and during the year ended December
31, 1999, the Fund had no borrowings under the credit agreements.
- --------------------------------------------------------------------------------
15
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders
of The Indonesia Fund, Inc.:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Indonesia Fund, Inc. (the
"Fund") at December 31, 1999, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the periods presented, in
conformity with accounting principles generally accepted in the United States.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at December 31, 1999 by correspondence with the custodian, provide
a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, PA
February 15, 2000
- --------------------------------------------------------------------------------
16
<PAGE>
RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
On May 11, 1999, the annual meeting of shareholders of The Indonesia Fund, Inc.
(the "Fund") was held and the following matters were voted upon:
(1) To re-elect one director to the Board of Directors of the Fund.
<TABLE>
<CAPTION>
NAME OF DIRECTOR FOR WITHHELD NON-VOTES
- ---------------- --------- -------- ---------
<S> <C> <C> <C>
Peter J. Kaplan 2,734,121 52,780 1,822,088
</TABLE>
In addition to the director re-elected at the meeting, C. Oscar Morong, Jr.*,
William W. Priest, Jr. and Richard H. Francis continue to serve as directors of
the Fund.
* Effective August 12, 1999, C. Oscar Morong, Jr. resigned as a director to the
Fund.
(2) To ratify the selection of PricewaterhouseCoopers LLP as independent public
accountants for the year ending December 31, 1999.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN NON-VOTES
--------- ------- ------- ---------
<S> <C> <C> <C> <C>
2,770,835 10,150 5,917 1,822,087
</TABLE>
TAX INFORMATION (UNAUDITED)
The Fund is required by Subchapter M of the Internal Revenue Code of 1986, as
amended, to advise its shareholders within 60 days of the Fund's year end
(December 31, 1999) as to the U.S. federal tax status of dividends and
distributions received by the Fund's shareholders in respect of such year. The
$0.045 per share dividend paid in respect of such year was derived from ordinary
income. There were no distributions which qualified for the dividend received
deduction available to corporate shareholders.
The Fund does not intend to make an election under Section 853 to pass through
foreign taxes paid by the Fund to its shareholders. This information is given to
meet certain requirements of the Internal Revenue Code of 1986, as amended.
Shareholders should refer to their Form 1099-DIV to determine the amount
includable on their respective tax returns for 1999.
Notification for calendar year 1999 was mailed in January 2000. The notification
along with Form 1099-DIV reflects the amount to be used by calendar year
taxpayers on their U.S. federal income tax returns.
Foreign shareholders will generally be subject to U.S. withholding tax on the
amount of their distribution. They will generally not be entitled to a foreign
tax credit or deduction for the withholding taxes paid by the Fund.
In general, distributions received by tax-exempt recipients (e.g., IRAs and
Keoghs) need not be reported as taxable income for U.S. federal income tax
purposes. However, some retirement trusts (e.g., corporate, Keogh and 403(b)(7)
plans) may need this information for their annual information reporting.
Shareholders are advised to consult their own tax advisers with respect to the
tax consequences of their investments in the Fund.
- --------------------------------------------------------------------------------
17
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM
The InvestLink-SM- Program is sponsored and administered by BankBoston, N.A.,
not by The Indonesia Fund, Inc. (the "Fund"). BankBoston, N.A. will act as
program administrator (the "Program Administrator") of the InvestLink Program
(the "Program"). The purpose of the Program is to provide interested investors
with a simple and convenient way to invest funds and reinvest dividends in
Shares of the Fund's common stock ("Shares") at prevailing prices, with reduced
brokerage commissions and fees.
An interested investor may join the Program at any time. Purchases of Shares
with funds from a participant's cash payment or automatic account deduction will
begin on the next day on which funds are invested. If a participant selects the
dividend reinvestment option, automatic investment of dividends generally will
begin with the next dividend payable after the Program Administrator receives
his enrollment form. Once in the Program, a person will remain a participant
until he terminates his participation or sells all Shares held in his Program
account, or his account is terminated by the Program Administrator. A
participant may change his investment options at any time by requesting a new
enrollment form and returning it to the Program Administrator.
A participant will be assessed certain charges in connection with his
participation in the Program. First-time investors will be subject to an initial
service charge which will be deducted from their initial cash deposit. All
optional cash deposit investments will be subject to a service charge. Sales
processed through the Program will have a service fee deducted from the net
proceeds, after brokerage commissions. In addition to the transaction charges
outlined above, participants will be assessed per share processing fees (which
include brokerage commissions.) Participants will not be charged any fee for
reinvesting dividends.
The number of Shares to be purchased for a participant depends on the amount of
his dividends, cash payments or bank account or payroll deductions, less
applicable fees and commissions, and the purchase price of the Shares. The
Program Administrator uses dividends and funds of participants to purchase
Shares of Company Common Stock in the open market. Such purchases will be made
by participating brokers as agent for the participants using normal cash
settlement practices. All Shares purchased through the Program will be allocated
to participants as of the settlement date, which is usually three business days
from the the purchase date. In all cases, transaction processing will occur
within 30 days of the receipt of funds, except where temporary curtailment or
suspension of purchases is necessary to comply with applicable provisions of the
Federal Securities laws or when unusual market conditions make prudent
investment impracticable. In the event the Program Administrator is unable to
purchase Shares within 30 days of the receipt of funds, such funds will be
returned to the participants.
The average price of all Shares purchased by the Program Administrator with all
funds received during the time period from two business days preceding any
investment date up to the second business day preceding the next investment date
shall be the price per share allocable to a participant in connection with the
Shares purchased for his account with his funds or dividends received by the
Program Administrator during such time period. The average price of all Shares
sold by the Program Administrator pursuant to sell orders received during such
time period shall be the price per share allocable to a participant in
connection with the Shares sold for his account pursuant to his sell orders
received by the Program Administrator during such time period.
BankBoston, N.A., as Program Administrator, administers the Program for
participants, keeps records, sends statements of account to participants and
performs other duties relating to the Program. Each participant in the Program
will receive a statement of his account following each purchase of Shares. The
statements will also show the amount of dividends credited to such participant's
account (if applicable), as
- --------------------------------------------------------------------------------
18
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM (CONTINUED)
well as the fees paid by the participant. In addition, each participant will
receive copies of the Fund's Annual Report to shareholders, proxy statements
and, if applicable, dividend income information for tax reporting purposes.
If the Fund is paying dividends on the Shares, a participant will receive
dividends through the Program for all Shares held on the dividend record date on
the basis of full and fractional Shares held in his account, and for all other
Shares of the Fund registered in his name. The Program Administrator will send
checks to the participants for the amounts of their dividends that are not to be
automatically reinvested at no cost to the participants.
Shares of the Fund purchased under the Program will be registered in the name of
the accounts of the respective participants. Unless requested, the Fund will not
issue to participants certificates for Shares of the Fund purchased under the
Program. The Program Administrator will hold the Shares in book-entry form until
a Program participant chooses to withdraw his Shares or terminate his
participation in the Program. The number of Shares purchased for a participant's
account under the Program will be shown on his statement of account. This
feature protects against loss, theft or destruction of stock certificates.
A participant may withdraw all or a portion of the Shares from his Program
account by notifying the Program Administrator. After receipt of a participant's
request, the Program Administrator will issue to such participant certificates
for the whole Shares of the Fund so withdrawn or, if requested by the
participant, sell the Shares for him and send him the proceeds, less applicable
brokerage commissions, fees, and transfer taxes, if any. If a participant
withdraws all full and fractional Shares in his Program account, his
participation in the Program will be terminated by the Program Administrator. In
no case will certificates for fractional Shares be issued. The Program
Administrator will convert any fractional Shares held by a participant at the
time of his withdrawal to cash.
Participation in any rights offering, dividend distribution or stock split will
be based upon both the Shares of the Fund registered in participants' names and
the Shares (including fractional Shares) credited to participants' Program
accounts. Any stock dividend or Shares resulting from stock splits with respect
to Shares of the Fund, both full and fractional, which participants hold in
their Program accounts and with respect to all Shares registered in their names
will be automatically credited to their accounts.
All Shares of the Fund (including any fractional share) credited to his account
under the Program will be voted as the participant directs. The participants
will be sent the proxy materials for the annual meetings of shareholders. When a
participant returns an executed proxy, all of such Shares will be voted as
indicated. A participant may also elect to vote his Shares in person at the
Shareholders' meeting.
A participant will receive tax information annually for his personal records and
to help him prepare his U.S. federal income tax return. The automatic
reinvestment of dividends does not relieve him of any income tax which may be
payable on dividends. For further information as to tax consequences of
participation in the Program, participants should consult with their own tax
advisors.
The Program Administrator in administering the Program will not be liable for
any act done in good faith or for any good faith omission to act. However, the
Program Administrator will be liable for loss or damage due to error caused by
its negligence, bad faith or willful misconduct. Shares held in custody by the
Program Administrator are not subject to protection under the Securities
Investors Protection Act of 1970.
The participant should recognize that neither the Fund nor the Program
Administrator can provide any assurance of a profit or protection against loss
on any Shares purchased under the Program. A participant's
- --------------------------------------------------------------------------------
19
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM (CONTINUED)
investment in Shares held in his Program account is no different than his
investment in directly held Shares in this regard. The participant bears the
risk of loss and the benefits of gain from market price changes with respect to
all of his Shares. Neither the Fund nor the Program Administrator can guarantee
that Shares purchased under the Program will, at any particular time, be worth
more or less than their purchase price. Each participant must make an
independent investment decision based on his own judgment and research.
While the Program Administrator hopes to continue the Program indefinitely, the
Program Administrator reserves the right to suspend or terminate the Program at
any time. It also reserves the right to make modifications to the Program.
Participants will be notified of any such suspension, termination or
modification in accordance with the terms and conditions of the Program. The
Program Administrator also reserves the right to terminate any participant's
participation in the Program at any time. Any question of interpretation arising
under the Program will be determined in good faith by the Program Administrator
and any such good faith determination will be final.
Any interested investor may participate in the Program. To participate in the
Program, an investor who is not already a registered owner of the Shares must
make an initial investment of at least $250.00. All other cash payments or bank
account deductions must be at least $100.00, up to a maximum of $100,000.00
annually. An interested investor may join the Program by reading the Program
description, completing and signing the enrollment form and returning it to the
Program Administrator. The enrollment form and information relating to the
Program (including the terms and conditions) may be obtained by calling the
Program Administrator at one of the following telephone numbers: First Time
Investors--(800)969-3294; Current Shareholders--(800) 730-6001. All
correspondence regarding the Program should be directed to: BankBoston, N.A.,
InvestLink-SM- Program, P.O. Box 8040, Boston, MA 02266-8040.
- --------------------------------------------------------------------------------
*InvestLink is a service mark of Boston EquiServe Limited Partnership
RECENT DEVELOPMENTS (UNAUDITED)
Recently, the Securities and Exchange Commission (the "SEC") amended Rule
14a-4(c) under the Securities Exchange Act of 1934 (the "1934 Act"), which
governs the Fund's use of discretionary proxy voting authority with respect to
shareholder proposals that are not being included in the Fund's proxy
solicitation material pursuant to Rule 14a-8 of the 1934 Act. In light of these
amendments, the Fund's Board of Directors reviewed the By-laws of the Fund and
made the following material changes: 1) the percentage of ownership needed for
stockholders to request a special meeting has been increased from 25% to a
majority of the outstanding capital stock of the Fund entitled to vote at such
meeting; 2) the advance notice requirements applicable to stockholder proposals
at annual meetings and for nominations by stockholders for election to the Board
of Directors have been revised to reflect changes in Rule 14a-4(c); 3) the
Board's ultimate authority concerning reimbursement of expenses in soliciting
proxies for the election of Directors has been clarified; and 4) the power to
amend the By-laws is reserved to the Board of Directors. The Fund's By-laws are
on file with the SEC and are accessible through the SEC web site (www.sec.gov)
or may be obtained from the Secretary of the Fund upon request.
- --------------------------------------------------------------------------------
20
<PAGE>
SUMMARY OF GENERAL INFORMATION
The Fund--The Indonesia Fund, Inc.--is a closed-end, non-diversified management
investment company whose shares trade on the New York Stock Exchange. Its
principal investment objective is long-term capital appreciation with income as
a secondary objective through investments primarily in Indonesian equity and
debt securities. The Fund is managed and advised by Credit Suisse Asset
Management, LLC ("CSAM"), formerly known as BEA Associates. CSAM is a
diversified asset manager, handling equity, balanced, fixed income,
international and derivative based accounts. Portfolios include international
and emerging market investments, common stocks, taxable and non-taxable bonds,
options, futures and venture capital. CSAM manages money for corporate pension
and profit-sharing funds, public pension funds, union funds, endowments and
other charitable institutions and private individuals. As of December 31, 1999,
CSAM-Americas managed approximately $72.0 billion in assets.
SHAREHOLDER INFORMATION
The market price is published in: THE NEW YORK TIMES (daily) under the
designation "Indones" and THE WALL STREET JOURNAL (daily), and BARRON'S (each
Monday) under the designation "IndonesiaFd". The Fund's New York Stock Exchange
trading symbol is IF. Weekly comparative net asset value (NAV) and market price
information about The Indonesia Fund, Inc.'s shares are published each Sunday in
THE NEW YORK TIMES and each Monday in THE WALL STREET JOURNAL and BARRON'S, as
well as other newspapers, in a table called "Closed-End Funds."
THE CSAM GROUP OF FUNDS
LITERATURE REQUEST--Call today for free descriptive information on the
closed-end funds listed below at 1-800-293-1232 or visit our website on the
Internet: http//www.cefsource.com.
CLOSED-END FUNDS
SINGLE COUNTRY
The Brazilian Equity Fund, Inc. (BZL)
The Chile Fund, Inc. (CH)
The First Israel Fund, Inc. (ISL)
The Portugal Fund, Inc. (PGF)
MULTIPLE COUNTRY
The Emerging Markets Infrastructure Fund, Inc. (EMG)
The Emerging Markets Telecommunications Fund, Inc. (ETF)
The Latin America Equity Fund, Inc. (LAQ)
The Latin America Investment Fund, Inc. (LAM)
FIXED INCOME
Credit Suisse Asset Management Income Fund, Inc. (CIK)
Credit Suisse Asset Management Strategic Global Income Fund, Inc. (CGF)
- --------------------------------------------------------------------------------
<PAGE>
DIRECTORS AND CORPORATE OFFICERS
Richard H. Francis Director
William W. Priest, Jr. Director and President
Robert B. Hrabchak Chief Investment Officer
Raoul Rayos Investment Officer
Hal Liebes Senior Vice President
Michael A. Pignataro Chief Financial Officer and
Secretary
Rocco A. Del Guercio Vice President
Robert M. Rizza Treasurer
INVESTMENT ADVISER
Credit Suisse Asset Management, LLC
One Citicorp Center
153 East 53rd Street
New York, NY 10022
ADMINISTRATOR
Bear Stearns Funds Management Inc.
575 Lexington Avenue
New York, NY 10022
CUSTODIAN
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
SHAREHOLDER SERVICING AGENT
BankBoston, N.A.
P.O. Box 1865
Mail Stop 45-02-62
Boston, MA 02105
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, PA 19103
LEGAL COUNSEL
Willkie Farr & Gallagher
787 Seventh Avenue
New York, NY 10019
This report, including the financial statements herein, is sent
to the shareholders of the Fund for their information. It is not [NYSE LOGO]
a prospectus, circular or representation intended for use in the
purchase or sale of shares of the Fund or of any securities
mentioned in this report.
- --------------------------------------------------------------------------------
3913-AR-99
