<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File No. 811-6024
-------------------------------------------------
THE INDONESIA FUND, INC.
------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Hal Liebes, Esq.
The Indonesia Fund, Inc.
466 Lexington Avenue
New York, New York 10017-3147
------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 875-3500
------------------
Date of fiscal year end: December 31, 2003
-------------------------
Date of reporting period: January 1 to June 30, 2003
----------------------------------
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS.
<Page>
THE INDONESIA FUND, INC.
SEMI-ANNUAL REPORT
JUNE 30, 2003
[BOSTON STOCK EXCHANGE(TM) LOGO]
3913-SA-03
<Page>
CONTENTS
<Table>
Letter to Shareholders 1
Portfolio Summary 4
Schedule of Investments 5
Statement of Assets and Liabilities 7
Statement of Operations 8
Statement of Changes in Net Assets 9
Financial Highlights 10
Notes to Financial Statements 12
Results of Annual Meeting of Shareholders 16
Privacy Policy Notice 17
</Table>
<Page>
LETTER TO SHAREHOLDERS
July 30, 2003
DEAR SHAREHOLDER:
We are writing to report on the activities of The Indonesia Fund, Inc. (the
"Fund") for the six months ended June 30, 2003.
At June 30, 2003, the Fund's net assets were $23.8 million. The Fund's net asset
value ("NAV") was $2.88 per share, as compared to $2.09 on December 31, 2002.
PERFORMANCE
Based on NAV, the Fund had a gain of 37.80% for the six months ended June 30,
2003, vs. a rise of 35.35% for the Morgan Stanley Capital International
Indonesia Index.* The Fund benefited from the upward surge in Indonesia's stock
market in the period and from good showings from certain holdings in particular.
Stocks that aided the Fund's absolute and relative return included its
telecommunications, financial services and healthcare holdings.
THE MARKET: WEAK START, STRONG FINISH
The dramatic rise and fall of geopolitical risk over the past six months
strongly influenced the performance of Indonesian equities, along with those in
most markets globally.
The first quarter saw Indonesia's equity market fall some 7%, as investors
became exceedingly risk-averse in the months leading up to the U.S.-led war with
Iraq. This occurred despite improving economic fundamentals and the highly
positive announcement that the country's parliament had approved the first
direct election of government representatives by popular vote.
A lessening of global tensions and notable improvements on the home front were
among the developments that allowed Indonesian equities to reverse course during
the second quarter. Among the highlights:
POLITICS. By Indonesian standards, the second quarter was unusually quiet. Fears
of widespread terrorist attacks following the end of the U.S.-led war in Iraq
have proven to be unfounded thus far. Working in concert with Australia,
authorities apprehended the planner of last year's Bali nightclub massacre. Thus
far, there has been relatively little political "noise" leading up to next
April's direct election of legislators. The main bumps in the road were a
resumption of tensions with a major separatist group in the province of Aceh,
and a couple of relatively minor events that, fortunately, did not result in any
fatalities. All in all, it was a welcome break for a country that has had more
than its share of politically inspired violence over the years.
THE ECONOMY. The Indonesian economy was a mixed bag of blessings and
disappointments during this period. The country posted an unexpected, and large,
first-quarter budget surplus, as the government successfully reined in spending.
At the end of June, the Consumer Price Index, a measure of inflation, rose 6.6%;
however, this was the slowest rate of increase since August 2000. Relatively
benign inflation and a strong Rupiah allowed short-term interest rates to fall
to 9.53% in June, from 10.44% at the end of May and 12.99% at the end of the
year 2002. On the other hand,
1
<Page>
subsidy cuts took a toll on the nation's GDP, which slowed to 3.4% at quarter's
end, from 3.8% during the fourth quarter of 2002. In line with this, non-oil
imports fell by 10%, a reflection of declining domestic demand, and exports rose
by only 4.2%, far lower than the consensus expectation of 6.7%.
THE STOCK MARKET. The stock market got an unexpected boost from an unlikely
source during the second quarter: SARS. The near epidemic of this respiratory
disease effectively closed many large Asian exchanges, sending international
investors in search of healthier climes. With the destabilizing war with Iraq at
an end, and with a mainly positive local news flow, their appetite for risk
increased, and they evidently found inviting fare in Indonesian equities.
In appreciation of weak consumer purchasing power and rising prices for non-food
goods and services, the Fund held little in the consumer staple and consumer
discretionary sectors, during much of the period. On the other hand, we were
overweight in the pharmaceutical, materials, energy and financial sectors, where
we felt demand was likely to be more resilient in the face of uncertainty.
During the second quarter, we had anticipated that the Indonesian stock market
might trade sideways, buffeted by political issues and a lackluster outlook for
companies, despite lower interest rates. As it turned out, the U.S. drive to
lower interest rates prompted investors to seek higher yields elsewhere,
including within emerging markets, and Indonesia was a beneficiary. In response,
stock prices rose sharply, but without a correspondingly sharp rise in earnings.
For our part, we are leery of the lasting effect of this flood of liquidity. We
are concerned as well by the generally slow, "incipient" recovery in consumption
and corporation profit growth.
As such, while the Indonesian market is still attractive to us in absolute
terms, the risks appear to be shifting to the downside. Given this view, the
Fund will continue with the strategy of seeking higher returns outside of
Indonesia (up to a maximum of 20% of the Fund's net assets) to complement and
enhance our core Indonesian portfolio.
OUTLOOK: BUMPY ROAD AHEAD?
Although the prospects for Indonesia's economy and equity market appear to us to
be healthy at the moment, we remain concerned about the longer-term
sustainability of direct investment and job creation. We have other concerns as
well.
For one, although politics was largely a non-event in the second quarter,
political parties are already gearing up for next year's elections, with a
respected Muslim scholar announcing his candidacy for president on the Golkar
party's ticket. Thus, we can not discount the very real potential for
politically inspired friction in this Muslim dominated country. There is also
the issue of what are essentially amateur politicians having to organize and
carry through the general election.
While lower interest rates, a restructured banking sector and a low
loan-to-deposit ratio are now encouraging both local and foreign investment,
financial assets have been the main target, rather than fixed assets (i.e.,
factory and machinery). Also less than encouraging is Indonesia's substantial
debt burden.
Still, an effective tax cut for the working poor, resulting in higher take-home
pay, appears to be boosting consumption and consumer confidence, albeit from a
low base. Interest rates also have further room to fall in our view, and may do
so shortly in order to temper the effects of a strengthening currency.
2
<Page>
In sum, we remain cautious on Indonesia's near-term prospects and expect to
focus on developments leading up to the general elections as a guide to the
future performance of Indonesian equities.
Sincerely,
/s/ Boon Hong Yeo
Boon Hong Yeo
Chief Investment Officer**
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING CURRENCY
FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND DIFFERENCES IN
ACCOUNTING METHODS. THERE ARE ALSO RISKS ASSOCIATED WITH INVESTING IN INDONESIA,
INCLUDING THE RISK OF INVESTING IN A SINGLE-COUNTRY FUND.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
- ----------
* The Morgan Stanley Capital International Indonesia Index is an unmanaged index
(with no defined investment objective) of Indonesian equities that includes
reinvestment of net dividends, and is the exclusive property of Morgan Stanley
Capital International Inc. Investors cannot invest directly in an index.
** Boon Hong Yeo, who is a Director of Credit Suisse Asset Management
(Australia) Limited, is primarily responsible for management of the Fund's
assets. He has served the Fund in such capacity since January 17, 2003. Mr. Yeo
joined Credit Suisse Asset Management (Australia) Limited in 2002 from AIB
Govett (Asia) Limited in Singapore, where he was Director of Private Equity and
managed Asian equity portfolios. Previously, he was founder and Managing
Director of Zenith Asset Management Singapore; and held various positions in
Asian equity portfolio management, investment banking and corporate banking in
Singapore.
3
<Page>
THE INDONESIA FUND, INC.
PORTFOLIO SUMMARY - AS OF JUNE 30, 2003 (UNAUDITED)
[CHART]
SECTOR ALLOCATION
AS A PERCENT OF NET ASSETS
<Table>
<Caption>
30-JUN-03 31-DEC-02
Agriculture 3.75% 3.05%
Automotive 7.90% 8.67%
Banks 10.76% 8.47%
Building Products - Cement/Aggregate 4.76% 2.87%
Diversified Operations 0.97% 6.47%
Food & Kindred Products 6.53% 2.78%
Medical-Drugs 7.92% 7.29%
Oil & Gas 1.34% 4.62%
Petrochemicals 2.38% 0.00%
Real Estate Operating/Development 2.22% 0.00%
Soap & Cleaning Preparation 2.66% 4.59%
Telecommunications 18.69% 27.77%
Tobacco 21.97% 15.61%
Other 8.03% 5.06%
Cash & Other Assets 0.12% 2.75%
</Table>
TOP 10 HOLDINGS, BY ISSUER
<Table>
<Caption>
PERCENT OF
HOLDING SECTOR NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------
1. PT Telekomunikasi Indonesia Telecommunications 18.7
- ----------------------------------------------------------------------------------------------------------------------
2. PT Hanjaya Mandala Sampoerna Tbk Tobacco 14.8
- ----------------------------------------------------------------------------------------------------------------------
3. PT Astra International Tbk Automotive 7.5
- ----------------------------------------------------------------------------------------------------------------------
4. PT Gudang Garam Tbk Tobacco 7.2
- ----------------------------------------------------------------------------------------------------------------------
5. PT Kalbe Farma Tbk Medical-Drugs 4.4
- ----------------------------------------------------------------------------------------------------------------------
6. PT Indofood Sukses Makmur Tbk Food & Kindred Products 4.1
- ----------------------------------------------------------------------------------------------------------------------
7. PT Bank Central Asia Tbk Banks 3.8
- ----------------------------------------------------------------------------------------------------------------------
8. PT Astra Agro Lestari Tbk Agriculture 3.8
- ----------------------------------------------------------------------------------------------------------------------
9. PT Tempo Scan Pacific Tbk Medical-Drugs 3.5
- ----------------------------------------------------------------------------------------------------------------------
10. PT Unilever Indonesia Tbk Soap & Cleaning Preparation 2.7
- ----------------------------------------------------------------------------------------------------------------------
</Table>
4
<Page>
THE INDONESIA FUND, INC.
SCHEDULE OF INVESTMENTS - JUNE 30, 2003 (UNAUDITED)
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
EQUITY SECURITIES-99.88%
INDONESIA-84.42%
AGRICULTURE-3.75%
PT Astra Agro Lestari Tbk 5,265,000 $ 893,455
PT Perusahaan Perkebunan
London Sumatra Indonesia
Tbk+ 100 6
------------
893,461
------------
AUTOMOTIVE-7.90%
PT Astra International Tbk+ 4,107,461 1,779,900
PT Astra Otoparts Tbk 666,000 104,945
------------
1,884,845
------------
BANKS-9.48%
PT Bank Central Asia Tbk 2,575,000 897,348
PT Bank Internasional Indonesia
Tbk+ 17,438,332 200,805
PT Bank Mandiri+ 4,700,000 384,545
PT Bank Pan Indonesia Tbk+ 11,414,000 428,890
PT Lippo Bank Tbk+ 5,803,824 348,230
------------
2,259,818
------------
BUILDING PRODUCTS-CEMENT/AGGREGATE-4.76%
PT Indocement Tunggal Prakarsa
Tbk+ 1,630,000 246,970
PT Semen Cibinong Tbk+ 9,990,000 314,836
PT Semen Gresik (Persero) Tbk 617,000 572,127
------------
1,133,933
------------
FOOD & KINDRED PRODUCTS-4.11%
PT Indofood Sukses Makmur
Tbk 9,502,000 978,994
------------
MACHINERY-CONSTRUCTION & MINING-1.84%
PT United Tractors Tbk+ 7,620,000 438,727
------------
MEDICAL-DRUGS-7.92%
PT Kalbe Farma Tbk+ 14,289,900 1,039,265
PT Tempo Scan Pacific Tbk 1,421,000 848,294
------------
1,887,559
------------
OIL & GAS-1.34%
PT Medco Energi Internasional
Tbk 2,200,000 $ 320,000
------------
SOAP & CLEANING PREPARATION-2.66%
PT Unilever Indonesia Tbk 196,000 634,327
------------
TELECOMMUNICATIONS-18.69%
PT Telekomunikasi Indonesia 7,951,280 4,457,536
------------
TOBACCO-21.97%
PT Gudang Garam Tbk 1,387,500 1,715,455
PT Hanjaya Mandala Sampoerna
Tbk 7,004,000 3,523,224
------------
5,238,679
------------
TOTAL INDONESIA
(Cost $16,016,627) 20,127,879
------------
CHINA-2.38%
PETROCHEMICALS-2.38%
Sinopec Beijing Yanhua
Petrochemical Company Ltd.
(Cost $514,860) 4,135,000 567,372
------------
INDIA-1.28%
BANKS-1.28%
HDFC Bank Ltd., ADR
(Cost $222,149) 16,300 305,625
------------
MALAYSIA-2.00%
CASINO HOTELS-2.00%
Genting Berhad
(Cost $395,378) 121,000 477,632
------------
SINGAPORE-2.22%
REAL ESTATE OPERATING/DEVELOPMENT-2.22%
City Developments Ltd.
(Cost $439,817) 210,000 529,547
------------
</Table>
See accompanying notes to financial statements.
5
<Page>
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------------
SOUTH KOREA-3.39%
DIVERSIFIED OPERATIONS-0.97%
LG Corp. 29,540 $ 229,742
------------
FOOD & KINDRED PRODUCTS-2.42%
Tong Yang Confectionary Corp. 9,350 577,673
------------
TOTAL SOUTH KOREA
(Cost $533,770) 807,415
------------
THAILAND-4.19%
ATHLETIC FOOTWEAR-1.23%
Pan Asia Footwear Public
Company Ltd. 1,910,100 292,849
------------
BUILDING-HEAVY CONSTRUCTION-1.98%
Italian-Thai Development Public
Company Ltd.+ 593,000 472,201
------------
CHEMICALS-PLASTICS-0.98%
Vinythai Public Company Ltd.+ 818,400 233,439
------------
TOTAL THAILAND
(Cost $728,097) 998,489
------------
TOTAL EQUITY SECURITIES
(Cost $18,850,698) 23,813,959
------------
<Caption>
PRINCIPAL
AMOUNT
DESCRIPTION (000's) VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS-3.46%
GRAND CAYMAN-3.46%
Brown Brothers Harriman & Co.,
overnight deposit, 0.36%,
07/01/03* (Cost $824,000) $ 824 $ 824,000
------------
INDONESIA-0.00%
Citibank N.A., Jakarta,
overnight deposit, 6.18%,
07/01/03* (Cost $29) 0 29
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $824,029) 824,029
------------
TOTAL INVESTMENTS-103.34%
(Cost $19,674,727) (Notes A,D,F) 24,637,988
------------
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS-(3.34)% (795,216)
------------
NET ASSETS-100.00% $ 23,842,772
============
</Table>
- ----------
+ Security is non-income producing.
* Variable rate account. Rate resets on a daily basis; amounts are available
on the same business day.
ADR American Depositary Receipts.
See accompanying notes to financial statements.
6
<Page>
THE INDONESIA FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - JUNE 30, 2003 (UNAUDITED)
<Table>
ASSETS
Investments, at value (Cost $19,674,727) (Notes A,D,F) $ 24,637,988
Cash 782
Receivables:
Investments sold 1,216,801
Dividends 49,594
Prepaid expenses 2,474
---------------
Total Assets 25,907,639
---------------
LIABILITIES
Payables:
Investments purchased 1,924,685
Investment advisory fees (Note B) 51,722
Directors' fees 14,377
Administration fees (Note B) 3,089
Other accrued expenses 70,994
---------------
Total Liabilities 2,064,867
---------------
NET ASSETS (applicable to 8,266,202 shares of common stock
outstanding) (Note C) $ 23,842,772
===============
NET ASSETS CONSISIT OF
Capital stock, $0.001 par value; 8,266,202 shares issued and
outstanding (100,000,000 shares authorized) $ 8,266
Paid-in capital 66,003,593
Undistributed net investment income 221,147
Accumulated net realized loss on investments and foreign currency
related transactions (47,354,495)
Net unrealized appreciation in value of investments and translation
of other assets and liabilities denominted in foreign currency 4,964,261
---------------
Net assets applicable to shares outstanding $ 23,842,772
===============
NET ASSET VALUE PER SHARE ($23,842,772 DIVIDED BY 8,266,202) $ 2.88
===============
MARKET PRICE PER SHARE $ 2.40
===============
</Table>
See accompanying notes to financial statements.
7
<Page>
THE INDONESIA FUND, INC.
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED)
<Table>
INVESTMENT INCOME
Income (Note A):
Dividends $ 562,815
Interest 3,178
Less: Foreign taxes withheld (84,682)
---------------
Total Investment Income 481,311
---------------
Expenses:
Investment advisory fees (Note B) 92,261
Legal fees 44,382
Custodian fees 30,793
Audit fees 23,606
Printing (Note B) 21,564
Accounting fees 14,877
Directors' fees 13,530
Transfer agent fees 11,589
Administration fees (Note B) 11,185
Insurance 4,663
Stock exchange listing fees 610
Miscellaneous 3,746
---------------
Total Expenses 272,806
---------------
Net Investment Income 208,505
---------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY RELATED TRANSACTIONS
Net realized gain/(loss) from:
Investments 898,924
Foreign currency related transactions (29,968)
Net change in unrealized depreciation in value of investments and
translation of other assets and liabilities denominated in
foreign currency 5,448,195
---------------
Net realized and unrealized gain on investments and foreign
currency related transactions 6,317,151
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,525,656
===============
</Table>
See accompanying notes to financial statements.
8
<Page>
THE INDONESIA FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE SIX MONTHS FOR THE YEAR
ENDED JUNE 30, 2003 ENDED
(UNAUDITED) DECEMBER 31, 2002
------------------- -----------------
INCREASE IN NET ASSETS
Operations:
Net investment income $ 208,505 $ 64,311
Net realized gain/(loss) on investments and foreign currency
related transactions 868,956 (3,179,345)
Net change in unrealized depreciation in value of investments and
translation of other assets and liabilities denominated in
foreign currency 5,448,195 7,887,517
--------------- ---------------
Net increase in net assets resulting from operations 6,525,656 4,772,483
--------------- ---------------
NET ASSETS
Beginning of period 17,317,116 12,544,633
--------------- ---------------
End of period* $ 23,842,772 $ 17,317,116
=============== ===============
</Table>
- ----------
* Includes undistibuted net investment income of $221,147 and $12,642,
respectively.
See accompanying notes to financial statements.
9
<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
SIX MONTHS
ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 2003 ----------------------------------------
(UNAUDITED) 2002 2001 2000
-------------- ---------- ------------- -------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 2.09 $ 1.52 $ 1.72 $ 4.48
--------- --------- --------- ---------
Net investment income/(loss) 0.03 0.01 (0.13)* (0.13)
Net realized and unrealized gain/(loss) on
investments and foreign currency related
transactions 0.76 0.56 (0.07) (2.63)
--------- --------- --------- ---------
Net increase/(decrease) in net assets
resulting from operations 0.79 0.57 (0.20) (2.76)
--------- --------- --------- ---------
Distributions to shareholders:
Net realized gain on investments and
foreign currency related transactions -- -- -- --
--------- --------- --------- ---------
Net asset value, end of period $ 2.88 $ 2.09 $ 1.52 $ 1.72
========= ========= ========= =========
Market value, end of period $ 2.40 $ 1.65 $ 1.32 $ 1.563
========= ========= ========= =========
Total investment return (a) 45.45% 25.00% (15.52)% (71.26)%
========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 23,843 $ 17,317 $ 12,545 $ 7,935
Ratio of expenses to average net assets 2.96%(d) 2.69% 8.89%(b) 7.23%(c)
Ratio of net investment income/(loss) to
average net assets 2.26%(d) 0.36% (5.63)% (4.85)%
Portfolio turnover rate 72.97% 29.15% 10.23% 16.48%
</Table>
- ----------
* Based on actual shares outstanding on June 8, 2001 (prior to the Agreement
and Plan of Reorganization effective June 11, 2001 between the Fund and
Jakarta Growth Fund) and December 31, 2001.
(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
distributions, if any, at actual prices pursuant to the Fund's dividend
reinvestment program.
(b) Excluding merger-related fees, the ratio of expenses to average net assets
would have been 4.31%.
(c) Excluding merger-related fees, the ratio of expenses to average net assets
would have been 4.13%.
(d) Annualized.
See accompanying notes to financial statements.
10
<Page>
<Table>
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994 1993
--------- --------- --------- --------- --------- --------- ---------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 2.71 $ 3.58 $ 10.68 $ 9.34 $ 9.18 $ 14.03 $ 7.63
--------- --------- --------- --------- --------- --------- ---------
Net investment income/(loss) (0.05) (0.04) 0.03 0.01 -- (0.03) (0.03)
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
--------- --------- --------- --------- --------- --------- ---------
Net increase/(decrease) in net assets
resulting from operations 1.82 (0.87) (7.10) 1.34 0.16 (4.85) 6.40
--------- --------- --------- --------- --------- --------- ---------
Distributions to shareholders:
Net realized gain on investments and
foreign currency related transactions (0.05) -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 4.48 $ 2.71 $ 3.58 $ 10.68 $ 9.34 $ 9.18 $ 14.03
========= ========= ========= ========= ========= ========= =========
Market value, end of period $ 5.438 $ 3.438 $ 4.625 $ 9.750 $ 10.125 $ 12.000 $ 20.750
========= ========= ========= ========= ========= ========= =========
Total investment return (a) 59.58% (25.68)% (52.56) % (3.70)% (15.63)% (42.17)% 130.56%
========= ========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 20,669 $ 12,491 $ 16,486 $ 49,223 $ 43,060 $ 42,297 $ 64,661
Ratio of expenses to average net assets 3.18% 4.21% 1.89% 1.91% 1.96% 1.83% 1.98%
Ratio of net investment income/(loss) to
average net assets (1.43)% (1.37)% 0.33% 0.10% 0.05% (0.25)% (0.30)%
Portfolio turnover rate 47.38% 36.58% 48.19% 34.67% 24.10% 31.56% 63.77%
</Table>
11
<Page>
THE INDONESIA FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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.
USE OF ESTIMATES: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
("GAAP") requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
SECURITY VALUATION: The net asset value of the Fund is determined daily as of
the close of regular trading on The New York Stock Exchange, Inc. (the
"Exchange") on each day the Exchange is open for business. The Fund's equity
investments are valued at market value, which is generally determined using the
closing price on the exchange or market on which the security is primarily
traded at the time of valuation (the "Valuation Time"). If no sales are
reported, equity investments are generally valued at the most recent bid
quotations as of the Valuation Time or at the lowest ask quotation in the case
of a short sale of securities. Debt securities with a remaining maturity greater
than 60 days are valued in accordance with the price supplied by a pricing
service which may use a matrix, formula or other objective method that takes
into consideration market indices, yield curves and other specific adjustments.
Debt obligations that will mature in 60 days or less are valued on the basis of
amortized cost, which approximates market value, unless the Board of Directors
determines that using this method would not reflect an investment's value.
Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by the Board of
Directors under procedures established by the Board of Directors in the absence
of readily ascertainable market values.
SHORT-TERM INVESTMENTS: The Fund sweeps available U.S. dollar cash into a
short-term deposit issued by Brown Brothers Harriman & Co., the Fund's
custodian. The Fund also sweeps available cash denominated in Indonesian rupiah
into a short-term deposit issued by Citibank N.A., Jakarta. These short-term
time deposits are variable rate accounts classified as short-term investments.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on a trade date basis. The cost of investments sold is determined
by use of the specific identification method for both financial reporting and
U.S. income tax purposes. Interest income is accrued as earned; dividend income
is recorded on the ex-dividend date.
TAXES: No provision is made for U.S. 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 be sufficient to
relieve it from all or substantially all U.S. income and excise taxes.
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
valuation date rate of exchange; and
12
<Page>
(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 transactions balances.
The Fund reports certain foreign currency related transactions and foreign taxes
withheld on security transactions as components of realized gains for financial
reporting purposes, whereas such foreign currency related transactions are
treated as ordinary income for U.S. income tax purposes.
Net unrealized currency gains or losses 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 investment
and translation of other assets and liabilities denominated in foreign
currencies.
Net realized foreign exchange gains or losses represent foreign exchange gains
and losses from sales and maturities of debt securities, 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.
income tax purposes due to U.S. generally accepted accounting principles/tax
differences in the character of income and expense recognition.
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 and other foreign 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 and other foreign securities, the purchase
and sale prices for such securities and the timing of purchases and sales.
The limited liquidity of the Indonesian and other foreign 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
13
<Page>
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"), serves as the Fund's investment
adviser with respect to all investments. CSAM receives as compensation for its
advisory services 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 six
months ended June 30, 2003, CSAM earned $92,261 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
six months ended June 30, 2003, CSAM was reimbursed $2,078 for administrative
services rendered to the Fund.
Credit Suisse Asset Management (Australia) Limited ("Sub-Adviser") serves as the
Fund's sub-investment adviser. CSAM currently pays the Sub-Adviser on a
quarterly basis a fee of 90% of the net quarterly amount received by CSAM as the
Fund's investment adviser.
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 six months ended June 30,
2003, BSFM earned $9,107 for administrative services.
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the
Fund to provide certain financial printing services. For the six months ended
June 30, 2003, Merrill was paid $20,263 for its services to the Fund.
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 8,266,202 shares outstanding at June 30, 2003, CSAM
owned 7,169 shares.
NOTE D. INVESTMENT IN SECURITIES
For the six months ended June 30, 2003, purchases and sales of securities, other
than short-term investments, were $14,087,790 and $13,459,996, respectively.
NOTE E. CREDIT FACILITY
The Fund, together with other funds/portfolios advised by CSAM (collectively,
the "Participating Funds"), participates in a $100 million committed, unsecured,
line of credit facility (the "Credit Facility") with Deutsche Bank, A.G. as
administrative agent and syndication agent and State Street Bank and Trust
Company as operations agent for temporary or emergency purposes. Under the terms
of the Credit Facility, the Participating Funds pay an aggregate commitment fee
at a rate of 0.10% per annum on the average unused amount of the Credit
Facility, which is allocated among the Participating Funds in such manner as is
determined by the governing Boards of the Participating Funds. In addition, the
Participating Funds pay interest on borrowings at the Federal Funds rate plus
0.50%. During the six months ended June 30, 2003, the Fund had no borrowings
under the Credit Facility.
NOTE F. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP. These differences are
primarily due to differing treatments of foreign currency transactions, losses
deferred due to wash
14
<Page>
sales and Post-October losses (as defined below), and excise tax regulations.
Under current tax law, certain capital losses realized after October 31 within a
taxable year may be deferred and treated as occurring on the first day of the
following tax year ("Post-October losses"). For the tax period ended December
31, 2002, the Fund incurred and elected to defer net realized losses of
$2,308,354.
At December 31, 2002, the Fund had a capital loss carryover for U.S. federal
income tax purposes of $44,180,558 (of which $8,437,172 is subject to Internal
Revenue Code Section limitations) of which $7,370,210 expires in 2003;
$5,731,003 expires in 2004; $4,600,826 expires in 2005; $14,881,456 expires in
2006; $3,253,238 expires in 2007; $5,937,713 expires in 2008; $1,720,106 expires
in 2009 and $686,006 expires in 2010.
At June 30, 2003, the identified cost for federal income tax purposes, the gross
unrealized appreciation from investments for those securities having an excess
of value over cost, gross unrealized depreciation from investments for those
securities having an excess of cost over value and the net unrealized
appreciation from investments were $21,240,082, $3,789,971, $(392,065) and
$3,397,906, respectively.
15
<Page>
RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
On April 24, 2003, the Annual Meeting of Shareholders of The Indonesia Fund,
Inc. (the "Fund") was held and the following matter was voted upon:
(1) To re-elect two directors to the Board of Directors of the Fund.
<Table>
<Caption>
NAME OF DIRECTOR FOR WITHHELD
---------------- --------- --------
Enrique R. Arzac 4,582,415 155,075
William W. Priest, Jr. 4,577,661 159,829
</Table>
In addition to the directors re-elected at the meeting, Lawrence J. Fox and
Richard H. Francis continued as directors of the Fund.
Effective May 19, 2003, Joseph D. Gallagher was appointed as Chairman of the
Board of Directors, Chief Executive Officer and President. Laurence R. Smith,
who previously held these positions, resigned from the Fund effective May 19,
2003.
16
<Page>
PRIVACY POLICY NOTICE (UNAUDITED)
We are committed to maintaining the privacy of every current and prospective
customer. We recognize that you entrust important personal information to us,
and we wish to assure you that we take seriously our responsibilities in
protecting and safeguarding this information.
In connection with making available investment products and services to current
and potential customers, we may obtain nonpublic personal information about you.
This information may include your name, address, e-mail address, social security
number, account number, assets, income, financial situation, transaction history
and other personal information.
We may collect nonpublic information about you from the following sources:
- - Information we receive on applications, forms, questionnaires, web sites,
agreements or in the course of establishing or maintaining a customer
relationship; and
- - Information about your transactions with us, our affiliates, or others.
We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except with your consent or as otherwise permitted
by law. In cases where we believe that additional products and services may be
of interest to you, we may share the information described above with our
affiliates. We may also disclose this information to firms that perform services
on our behalf. These agents and service providers are required to treat the
information confidentially and use it only for the purpose for which it is
provided.
We restrict access to nonpublic personal information about you to those
employees, agents or other parties who need to know that information to provide
products or services to you or in connection with your investments with or
through us. We maintain physical, electronic and procedural safeguards that
comply with federal standards to guard your nonpublic personal information.
NOTE: THIS NOTICE IS PROVIDED TO CLIENTS AND PROSPECTIVE CLIENTS OF CREDIT
SUISSE ASSET MANAGEMENT, LLC ("CSAM"), CSAM CAPITAL INC., AND CREDIT SUISSE
ASSET MANAGEMENT SECURITIES, INC., AND SHAREHOLDERS AND PROSPECTIVE SHAREHOLDERS
IN CSAM SPONSORED AND ADVISED INVESTMENT COMPANIES, INCLUDING CREDIT SUISSE
FUNDS, AND OTHER CONSUMERS AND CUSTOMERS, AS APPLICABLE. THIS NOTICE IS NOT
INTENDED TO BE INCORPORATED IN ANY OFFERING MATERIALS BUT IS MERELY A STATEMENT
OF OUR CURRENT PRIVACY POLICY, AND MAY BE AMENDED FROM TIME TO TIME UPON NOTICE
TO YOU. THIS NOTICE IS DATED AS OF MAY 31, 2003.
17
<Page>
OTHER FUNDS MANAGED BY CREDIT SUISSE ASSET MANAGEMENT, LLC
Credit Suisse Capital Appreciation Fund
Credit Suisse Cash Reserve Fund
Credit Suisse Emerging Growth Fund
Credit Suisse Emerging Markets Fund
Credit Suisse Fixed Income Fund
Credit Suisse Global Fixed Income Fund
Credit Suisse Global Post-Venture Capital Fund
Credit Suisse High Income Fund
Credit Suisse International Focus Fund
Credit Suisse Japan Equity Fund
Credit Suisse Large Cap Value Fund
Credit Suisse Municipal Money Fund
Credit Suisse New York Municipal Fund
Credit Suisse New York Tax Exempt Fund
Credit Suisse Select Equity Fund
Credit Suisse Short Duration Bond Fund
Credit Suisse Small Cap Growth Fund
Credit Suisse Small Cap Value Fund
Credit Suisse Strategic Small Cap Fund
Credit Suisse Tax Efficient Fund
Credit Suisse U.S. Government Money Fund
Fund shares are not deposits or other obligations of Credit Suisse Asset
Management, LLC or any affiliate, are not FDIC-insured and are not guaranteed by
Credit Suisse Asset Management, LLC or any affiliate. Fund investments are
subject to investment risks, including loss of your investment. There are
special risk considerations associated with international, global,
emerging-market, small-company, high-yield debt, single-industry, single-country
and other special, aggressive or concentrated investment strategies. Past
performance cannot guarantee future results.
More complete information about a fund, including charges and expenses, is
provided in the Prospectus, which should be read carefully before investing. You
may obtain copies by calling Credit Suisse Funds at 800-927-2874. For up-to-date
performance, please look in the mutual fund section of your newspaper under
Credit Suisse.
Credit Suisse Asset Management Securities, Inc., Distributor.
18
<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 Boston 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. Credit Suisse Asset Management, LLC (New York), the Fund's
investment adviser, is part of Credit Suisse Asset Management ("CSAM"), the
institutional and mutual-fund asset-management arm of Credit Suisse First
Boston. As of June 30, 2003, CSAM managed over $51 billion in the U.S. and,
together with its global affiliates, managed assets of over $312 billion in 14
countries.
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 "Indonesia". The Fund's Boston Stock Exchange
trading symbol is IF. The Fund also trades on the OTC Bulletin Board under the
trading symbol INDF. 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." Quotes can also
be obtained from the Internet at http://www.reuters.com and
http://www.pcquote.com.
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.csam-americas.com.
CLOSED-END FUNDS
SINGLE COUNTRY
The Chile Fund, Inc. (CH)
The First Israel Fund, Inc. (ISL)
MULTIPLE COUNTRY
The Emerging Markets Telecommunications Fund, Inc. (ETF)
The Latin America Equity Fund, Inc. (LAQ)
FIXED INCOME
Credit Suisse Asset Management Income Fund, Inc. (CIK)
Credit Suisse High Yield Bond Fund (DHY)
<Page>
DIRECTORS AND CORPORATE OFFICERS
Enrique R. Arzac Director
Lawrence J. Fox Director
Richard H. Francis Director
William W. Priest, Jr. Director
Joseph D. Gallagher Chairman of the Board of Directors, Chief Executive
Officer and President
Boon Hong Yeo Chief 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
466 Lexington Avenue
New York, NY 10017
INVESTMENT SUB-ADVISER
Credit Suisse Asset Management (Australia) Limited
Level 32, Gateway Building
1 Macquarie Place
Sydney NSW 2000
ADMINISTRATOR
Bear Stearns Funds Management Inc.
383 Madison Avenue
New York, NY 10179
CUSTODIAN
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
SHAREHOLDER SERVICING AGENT
Fleet National Bank
(c/o EquiServe, L.P.)
P.O. Box 43010
Providence, RI 02940
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
Two Commerce Square
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. The financial information
included herein is taken from the records of the Fund without examination by
independent auditors who do not express an opinion thereon. It is not 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.
[BOSTON STOCK EXCHANGE(TM) LOGO]
3913-SA-03
<Page>
ITEM 2. CODE OF ETHICS. Form N-CSR disclosure requirement not yet effective with
respect to the Registrant.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Form N-CSR disclosure requirement not
yet effective with respect to the Registrant.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Form N-CSR disclosure
requirement not yet effective with respect to the Registrant.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Form N-CSR disclosure requirement
not yet effective with respect to the Registrant.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES. Form N-CSR disclosure requirement not
yet effective with respect to the Registrant.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The Principal Executive Officer and Principal Financial Officer
concluded that the Registrant's Disclosure Controls and Procedures are
effective based on their evaluation of the Disclosure Controls and
Procedures as of a date within 90 days of the filing date of this
report.
(b) There were no significant changes in Registrant's internal controls
or in other factors that could significantly affect these controls
subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
(a)(1) Form N-CSR disclosure requirement not yet effective with respect
to the Registrant.
(a)(2) The certifications of the Registrant as required by Rule 30a-2(a)
under the Act are exhibits to this report.
(b) The certifications of the Registrant as required by Rule 30a-2(b)
under the Act are an exhibit to this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
The Indonesia Fund, Inc.
/s/ Joseph D. Gallagher
--------------------------------------------------------------
Name: Joseph D. Gallagher
Title: Chief Executive Officer
Date: September 2, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
/s/ Joseph D. Gallagher
--------------------------------------------------------------
Name: Joseph D. Gallagher
Title: Chief Executive Officer
Date: September 2, 2003
/s/ Michael A. Pignataro
--------------------------------------------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: September 2, 2003