The Jakarta Composite index has risen 8 percent in 2010, pushing prices of the 399 companies in the benchmark measure to 32 times reported earnings, the highest in Asia after Taiwan and exceeding Shanghai Composite Index's 31.5 times.

On estimated earnings, Indonesia shares trade at a multiple of 14.5, lower than the Shanghai gauge's 17.6 times.

“Valuations based on historical earnings are quite high, slightly above China's, but if you look at forward earnings, they are actually quite reasonable,” Shane Oliver, Sydney-based head of investment strategy at AMP Capital, which manages US$90 billion, said Thursday in an interview.