<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. 811-06024
---------------------------------------------------
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 10017-3140
Registrant's telephone number, including area code: (212) 875-3500
Date of fiscal year end: December 31
Date of reporting period: January 1, 2004 to June 30, 2004
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS.
<Page>
THE INDONESIA
FUND, INC.
SEMI-ANNUAL REPORT
JUNE 30, 2004
[AMERICAN
STOCK EXCHANGE(R)
LOGO]
LISTED
IF(TM)
3913-SA-04
<Page>
CONTENTS
<Table>
Letter to Shareholders 1
Portfolio Summary 3
Schedule of Investments 4
Statement of Assets and Liabilities 6
Statement of Operations 7
Statement of Changes in Net Assets 8
Financial Highlights 10
Notes to Financial Statements 12
Results of Annual Meeting of Shareholders 16
Privacy Policy Notice 17
Description of InvestLink(SM) Program 18
Proxy Voting 21
</Table>
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<Page>
LETTER TO SHAREHOLDERS
August 17, 2004
DEAR SHAREHOLDER:
For the six-month period ended June 30, 2004, The Indonesia Fund, Inc. (the
"Fund") had a decline in its net asset value of 5.12%, vs. an increase of 0.92%
for the Morgan Stanley Capital International Indonesia Index.* Stocks that
detracted from the Fund's relative performance included its food, software,
pharmaceutical and diversified financial-services holdings. On the positive
side, the Fund's bank and machinery companies aided its return.
THE MARKET: UP LOCALLY, BUT DOWN IN DOLLARS
The world's stock markets performed well over the first half of the period, but
then tumbled on worries that interest rates would begin to rise. In addition,
investor sentiment was dampened by concerns that China's strong economy would
weaken and by heightened geopolitical risk factors in general. Acting in high
beta fashion, as they often do, emerging stock markets outpaced developed
markets during the initial rally, and underperformed when markets turned down in
April and May. In the end many emerging markets had positive results for the
period, though the best performers were mostly small markets and the group as a
whole posted a slight loss.
Indonesian equities rose more than 10% for the period in local currency terms.
However, weakness in the rupiah vs. the U.S. dollar translated into a loss for
dollar-based investors. The highlights:
POLITICS. This year, the posts of President, Vice President and members of
Parliament are to be decided by popular vote for the first time in Indonesia's
history. The run-up to the first round of the election (which occurred on July
5--a runoff of the two top vote-getters is scheduled for September) went
peacefully. This was noteworthy, given that Indonesia has had three presidents
in six years, amid sectarian and separatist violence and terror attacks by
Islamic militants.
THE ECONOMY. Indonesia's GDP grew by 4.5% on an annualized basis in the first
quarter, with growth driven primarily by the consumer. Investment spending
remained lackluster. The Bank of Indonesia kept short-term interest rates at a
relatively low level (about 7.3%), announcing that it intended to maintain low
rates as long as possible, despite rupiah volatility. Inflation was reported as
higher than expected, at 6.8% on a year-over-year basis through June.
THE PORTFOLIO AND OUTLOOK
With the first round of the presidential election behind us, September's runoff
could bring policy inertia and important changes. The first round's victor,
Bambang Yudhoyono, now has an unexpected challenger in incumbent Megawati (who
was all but ruled out before the first round began). The market appears to us to
have priced in a Yudhoyono victory and could be negatively surprised if Megawati
is reelected. Major criticisms have been her administration's inability to do
more for the economy, create jobs, tackle corruption and undertake legal
reforms.
The lack of investments in job-creating areas is likely to continue in our view,
without a clear political party in place and without legal reforms to ensure
investors a stable and fair system. With an estimated more than 40 million
unemployed, and about two to three million persons entering the workforce every
year, whoever takes over will inherit a country that has huge potential in terms
of resources, but which has been unable to take advantage of a period of record
high prices for commodities.
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1
<Page>
LETTER TO SHAREHOLDERS
Regarding the consumer, we believe that the "binge" by the economically better
off can continue for a while as long as interest rates remain low. However, with
inflation pressures building (due to a weaker currency as well), our feeling is
that interest rates are more likely to trend up.
We believe that the recent weakness in Indonesia's currency reflects in part
uncertainty surrounding the elections, and we expect that uncertainty to persist
for a while. Ultimately, even if the frontrunner is elected president,
Indonesia's parliament is fragmented and will probably be difficult to control,
and concessions will likely happen regardless of who wins the final round.
Overall, our portfolio positioning was largely unchanged, although we did raise
our exposure to banks, which are well represented in the Fund as a play on the
Indonesian economy. We intend to retain the Fund's larger position in what we
view as the more resilient sectors--telecommunications and consumer staples
(most specifically, tobacco companies). We are also maintaining selected
positions in non-Indonesia stocks, based on our favorable view on their
risk/reward characteristics and diversification benefits.
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.
- --------------------------------------------------------------------------------
2
<Page>
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THE INDONESIA FUND, INC.
PORTFOLIO SUMMARY - AS OF JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
[CHART]
SECTOR ALLOCATION
AS A PERCENT OF NET ASSESTS
<Table>
<Caption>
6/30/2004 12/31/2003
Automotive 4.95% 7.55%
Banks 17.63% 14.11%
Building Products-Cement/Aggregate 0.52% 3.86%
Finance-Consumer Loans 3.21% 0.00%
Food & Kindred Products 2.01% 5.45%
Internet Application Software 1.80% 2.32%
Machinery-Construction & Mining 3.18% 2.08%
Medical-Drugs 4.48% 5.74%
Metal Products-Fasteners 1.72% 2.28%
Publishing-Newspapers 2.05% 0.00%
Soap & Cleaning Preparation 2.29% 2.61%
Telecommunications 24.22% 19.73%
Tobacco 22.00% 21.92%
Other 7.73% 11.63%
Cash & Other Assets 2.21% 0.72%
</Table>
TOP 10 HOLDINGS, BY ISSUER
<Table>
<Caption>
PERCENT OF
HOLDING SECTOR NET ASSETS
- --------------------------------------------------------------------------------------
1. PT Telekomunikasi Indonesia Telecommunications 20.4
2. PT Hanjaya Mandala Sampoerna Tbk Tobacco 14.8
3. PT Gudang Garam Tbk Tobacco 7.2
4. PT Bank Central Asia Tbk Banks 5.0
5. PT Astra International Tbk Automotive 5.0
6. PT Bank Rakyat Indonesia Banks 4.9
7. PT Indonesian Satellite Corp. Tbk Telecommunications 3.8
8. PT Adira Dinamika Multi Finance Tbk Finance-Consumer Loans 3.2
9. PT United Tractors Tbk Machinery-Construction & Mining 3.2
10. PT Kalbe Farma Tbk Medical-Drugs 2.8
</Table>
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3
<Page>
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THE INDONESIA FUND, INC.
SCHEDULE OF INVESTMENTS - JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- -------------------------------------------------------------------------------------------
EQUITY SECURITIES-97.79%
INDONESIA-85.89%
AGRICULTURE-0.00%
PT Perusahaan
Perkebunan London Sumatra
Indonesia Tbk+ 100 $ 10
---------------
AUTOMOTIVE-4.95%
PT Astra International Tbk 2,592,461 1,516,462
---------------
BANKS-15.59%
PT Bank Central Asia Tbk 7,728,000 1,541,079
PT Bank Danamon
Indonesia Tbk 2,864,000 860,495
PT Bank Mandiri 6,914,000 864,020
PT Bank Rakyat Indonesia+ 8,483,000 1,511,196
---------------
4,776,790
---------------
BUILDING & CONSTRUCTION-MISCELLANEOUS-0.94%
PT Adhi Karya Tbk+ 8,617,000 288,684
---------------
BUILDING PRODUCTS-CEMENT/AGGREGATE-0.52%
PT Indocement Tunggal
Prakarsa Tbk+ 1,055,000 159,891
---------------
FINANCE-CONSUMER LOANS-3.21%
PT Adira Dinamika Multi
Finance Tbk+ 3,700,000 983,781
---------------
FOOD & KINDRED PRODUCTS-2.01%
PT Indofood Sukses
Makmur Tbk 8,289,000 617,102
---------------
MACHINERY-CONSTRUCTION & MINING-3.18%
PT United Tractors Tbk+ 8,134,200 973,249
---------------
MEDICAL-DRUGS-4.48%
PT Kalbe Farma Tbk 23,249,800 865,454
PT Tempo Scan Pacific Tbk 680,000 506,248
---------------
1,371,702
---------------
RETAIL-MAJOR DEPARTMENT STORE-2.50%
PT Matahari Putra Prima Tbk 5,372,000 $ 299,952
PT Ramayana Lestari
Sentosa Tbk 988,500 467,836
---------------
767,788
---------------
SOAP & CLEANING PREPARATION-2.29%
PT Unilever Indonesia Tbk 1,678,000 700,468
---------------
TELECOMMUNICATIONS-24.22%
PT Indonesian Satellite
Corp. Tbk+ 2,723,000 1,165,655
PT Telekomunikasi Indonesia 7,951,280 6,257,854
---------------
7,423,509
---------------
TOBACCO-22.00%
PT Gudang Garam Tbk 1,512,500 2,203,802
PT Hanjaya Mandala
Sampoerna Tbk 8,369,500 4,539,692
---------------
6,743,494
---------------
TOTAL INDONESIA
(Cost $19,348,313) 26,322,930
---------------
HONG KONG-3.91%
APPAREL MANUFACTURERS-1.65%
Ports Design Ltd. 259,000 504,731
---------------
AUDIO/VIDEO PRODUCTS-1.33%
Ngai Lik Industrial
Holding Ltd. 1,073,000 409,264
---------------
REAL ESTATE OPERATING/DEVELOPMENT-0.93%
Sino Land Company Ltd. 509,000 283,873
---------------
TOTAL HONG KONG
(Cost $870,778) 1,197,868
---------------
MALAYSIA-0.37%
FINANCE-INVESTMENT BANKER/BROKER-0.37%
ECM Libra Berhad
(Cost $152,430) 275,000 115,066
---------------
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
4
<Page>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------------------------
SINGAPORE-5.57%
INTERNET APPLICATION SOFTWARE-1.80%
Horizon Education and
Technologies Ltd.+ 7,320,000 $ 552,469
---------------
METAL PRODUCTS-FASTENERS-1.72%
Unisteel Technology Ltd. 683,000 527,383
---------------
PUBLISHING-NEWSPAPERS-2.05%
Singapore Press Holdings Ltd. 259,250 626,131
---------------
TOTAL SINGAPORE
(Cost $1,479,074) 1,705,983
---------------
THAILAND-2.05%
BANKS-2.05%
Siam City Bank Public
Company Ltd.
(Cost $511,851) 1,034,000 627,203
---------------
TOTAL EQUITY SECURITIES
(Cost $22,362,446) 29,969,050
---------------
</Table>
<Table>
<Caption>
PRINCIPAL
DESCRIPTION AMOUNT (000'S) VALUE
- -------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS-2.34%
GRAND CAYMAN-2.34%
Brown Brothers Harriman & Co.,
overnight deposit,
0.51%, 07/01/04*
(Cost $718,000) $ 718 $ 718,000
---------------
INDONESIA-0.00%
Citibank N.A., Jakarta, overnight
deposit, 4.30%, 07/01/04*
(Cost $7) 0 7
---------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $718,007) 718,007
---------------
TOTAL INVESTMENTS-100.13%
(Cost $23,080,453) (Notes A,D,F) 30,687,057
---------------
LIABILITIES IN EXCESS OF CASH
AND OTHER ASSETS-(0.13)% (38,855)
---------------
NET ASSETS-100.00% $ 30,648,202
===============
</Table>
- --------------------------------------------------------------------------------
+ Security is non-income producing.
* Variable rate account. Rate resets on a daily basis; amounts are available
on the same business day.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
5
<Page>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
ASSETS
Investments, at value (Cost $23,080,453) (Notes A,D,F) $ 30,687,057
Cash 365
Receivables:
Dividends 93,974
Investments sold 45,791
Prepaid expenses 12,418
---------------
Total Assets 30,839,605
---------------
LIABILITIES
Payables:
Investment advisory fees (Note B) 80,308
Directors' fees 12,168
Administration fees (Note B) 3,361
Other accrued expenses 95,566
---------------
Total Liabilities 191,403
---------------
NET ASSETS (applicable to 8,266,202 shares of common stock outstanding) (Note C) $ 30,648,202
===============
NET ASSETS CONSIST OF
Capital stock, $0.001 par value; 8,266,202 shares issued and outstanding
(100,000,000 shares authorized) $ 8,266
Paid-in capital 59,103,693
Accumulated net investment loss (36,129)
Accumulated net realized loss on investments and foreign currency related
transactions (36,034,154)
Net unrealized appreciation in value of investments and translation of other
assets and liabilities denominated in foreign currency 7,606,526
---------------
Net assets applicable to shares outstanding $ 30,648,202
===============
NET ASSET VALUE PER SHARE ($30,648,202 DIVIDED BY 8,266,202) $ 3.71
===============
MARKET PRICE PER SHARE $ 3.72
===============
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
6
<Page>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
INVESTMENT LOSS
Income (Note A):
Dividends $ 337,104
Interest 1,989
Less: Foreign taxes withheld (48,915)
---------------
Total Investment Income 290,178
---------------
Expenses:
Investment advisory fees (Note B) 166,607
Custodian fees 39,825
Legal fees 32,809
Printing (Note B) 27,349
Audit fees 19,851
Administration fees (Note B) 18,848
Accounting fees 14,918
Directors' fees 14,420
Transfer agent fees 10,829
Stock exchange listing fees 8,702
Insurance 7,295
Miscellaneous 3,956
---------------
Total Expenses 365,409
---------------
Net Investment Loss (75,231)
---------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS AND
FOREIGN CURRENCY RELATED TRANSACTIONS
Net realized gain/(loss) from:
Investments 2,336,663
Foreign currency related transactions (1,631)
Net change in unrealized appreciation in value of investments and translation
of other assets and liabilities denominated in foreign currency (3,915,144)
---------------
Net realized and unrealized loss on investments and foreign currency related
transactions (1,580,112)
---------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (1,655,343)
===============
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
7
<Page>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOR THE SIX MONTHS FOR THE YEAR
ENDED JUNE 30, 2004 ENDED
(UNAUDITED) DECEMBER 31, 2003
------------------- -----------------
INCREASE/(DECREASE) IN NET ASSETS
Operations:
Net investment income/(loss) $ (75,231) $ 284,627
Net realized gain on investments and foreign currency related transactions 2,335,032 2,899,547
Net change in unrealized appreciation/depreciation in value of
investments and translation of other assets and liabilities
denominated in foreign currency (3,915,144) 12,005,604
------------------- -----------------
Net increase/(decrease) in net assets resulting from operations (1,655,343) 15,189,778
------------------- -----------------
Dividends to shareholders:
Net investment income -- (203,349)
------------------- -----------------
Total increase/(decrease) in net assets (1,655,343) 14,986,429
------------------- -----------------
NET ASSETS
Beginning of period 32,303,545 17,317,116
------------------- -----------------
End of period $ 30,648,202 $ 32,303,545*
=================== =================
</Table>
- ----------
* Includes undistributed net investment income of $39,102.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
8
<Page>
This page intentionally left blank.
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9
<Page>
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THE INDONESIA FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratio 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 FOR THE YEARS ENDED DECEMBER 31,
ENDED JUNE 30, 2004 ---------------------------------
(UNAUDITED) 2003 2002 2001
------------------- -------- -------- --------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 3.91 $ 2.09 $ 1.52 $ 1.72
------------------- -------- -------- --------
Net investment income/(loss) (0.01) 0.03 0.01 (0.13)*
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions (0.19) 1.81 0.56 (0.07)
------------------- -------- -------- --------
Net increase/(decrease) in net assets resulting from operations (0.20) 1.84 0.57 (0.20)
------------------- -------- -------- --------
Dividends and distributions to shareholders:
Net investment income -- (0.02) -- --
Net realized gain on investments and
foreign currency related transactions -- -- -- --
------------------- -------- -------- --------
Total dividends and distributions to shareholders -- (0.02) -- --
------------------- -------- -------- --------
Net asset value, end of period $ 3.71 $ 3.91 $ 2.09 $ 1.52
=================== ======== ======== ========
Market value, end of period $ 3.72 $ 4.83 $ 1.65 $ 1.32
=================== ======== ======== ========
Total investment return (a) (22.98)% 194.19% 25.00% (15.52)%
=================== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 30,648 $ 32,304 $ 17,317 $ 12,545
Ratio of expenses to average net assets 2.19%(d) 2.65% 2.69% 8.89%(b)
Ratio of net investment income/(loss) to average net assets (0.45)%(d) 1.23% 0.36% (5.63)%
Portfolio turnover rate 26.58% 95.66% 29.15% 10.23%
</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 dividends
and 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>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------
2000 1999 1998 1997
-------- -------- -------- --------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 4.48 $ 2.71 $ 3.58 $ 10.68
-------- -------- -------- --------
Net investment income/(loss) (0.13) (0.05) (0.04) 0.03
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions (2.63) 1.87 (0.83) (7.13)
-------- -------- -------- --------
Net increase/(decrease) in net assets resulting from operations (2.76) 1.82 (0.87) (7.10)
-------- -------- -------- --------
Dividends and distributions to shareholders:
Net investment income -- -- -- --
Net realized gain on investments and
foreign currency related transactions -- (0.05) -- --
-------- -------- -------- --------
Total dividends and distributions to shareholders -- (0.05) -- --
-------- -------- -------- --------
Net asset value, end of period $ 1.72 $ 4.48 $ 2.71 $ 3.58
======== ======== ======== ========
Market value, end of period $ 1.563 $ 5.438 $ 3.438 $ 4.625
======== ======== ======== ========
Total investment return (a) (71.26)% 59.58% (25.68)% (52.56)%
======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 7,935 $ 20,669 $ 12,491 $ 16,486
Ratio of expenses to average net assets 7.23%(c) 3.18% 4.21% 1.89%
Ratio of net investment income/(loss) to average net assets (4.85)% (1.43)% (1.37)% 0.33%
Portfolio turnover rate 16.48% 47.38% 36.58% 48.19%
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
----------------------------------
1996 1995 1994
-------- -------- --------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 9.34 $ 9.18 $ 14.03
-------- -------- --------
Net investment income/(loss) 0.01 -- (0.03)
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions 1.33 0.16 (4.82)
-------- -------- --------
Net increase/(decrease) in net assets resulting from operations 1.34 0.16 (4.85)
-------- -------- --------
Dividends and distributions to shareholders:
Net investment income -- -- --
Net realized gain on investments and
foreign currency related transactions -- -- --
-------- -------- --------
Total dividends and distributions to shareholders -- -- --
-------- -------- --------
Net asset value, end of period $ 10.68 $ 9.34 $ 9.18
======== ======== ========
Market value, end of period $ 9.750 $ 10.125 $ 12.000
======== ======== ========
Total investment return (a) (3.70)% (15.63)% (42.17)%
======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 49,223 $ 43,060 $ 42,297
Ratio of expenses to average net assets 1.91% 1.96% 1.83%
Ratio of net investment income/(loss) to average net assets 0.10% 0.05% (0.25)%
Portfolio turnover rate 34.67% 24.10% 31.56%
</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 reported 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
quotation 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 or whose values have been materially affected by events occurring
before the Fund's Valuation Time, but after the close of the securities primary
market, are valued at fair value as determined in good faith by, or under the
direction of, the Board of Directors under procedures established by the Board
of Directors. The Fund may utilize a service provided by an independent third
party which has been approved by the Board of Directors to fair value certain
securities. The Fund's estimate of fair value assumes a willing buyer and a
willing seller neither acting under a compulsion to buy or sell.
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
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 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 foreign
countries may be subject to withholding and other taxes imposed by such
countries.
- --------------------------------------------------------------------------------
12
<Page>
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THE INDONESIA FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
- --------------------------------------------------------------------------------
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
(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 on 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 investments,
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 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: The Fund may invest in securities of foreign countries and governments
which involve certain risks in addition to those inherent in domestic
investments. Such risks generally include, among others currency risks
(fluctuations in currency exchange rates), information risk (key information may
be inaccurate or unavailable) and political risk (expropriation, nationalization
or the imposition of capital or currency controls or punitive taxes). Other
risks of investing in foreign securities include liquidity and valuation risks.
Securities denominated in currencies other than U.S. dollars are subject to
changes in value due to fluctuations in exchange rates.
- --------------------------------------------------------------------------------
13
<Page>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
- --------------------------------------------------------------------------------
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 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, 2004, CSAM earned $166,607 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, 2004, CSAM was reimbursed $2,187 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. The Fund does not pay the Sub-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,
2004, BSFM earned $16,661 for administrative services.
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the
Fund to provide certain financial printing services. For six months ended June
30, 2004, Merrill was paid $23,776 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, 2004, CSAM
owned 7,169 shares.
NOTE D. INVESTMENT IN SECURITIES
For the six months ended June 30, 2004, purchases and sales of securities, other
than short-term investments, were $8,649,035 and $9,173,063, respectively.
NOTE E. CREDIT FACILITY
The Fund, together with other funds/portfolios advised by CSAM (collectively,
the "Participating Funds"), participates in a $75 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
- --------------------------------------------------------------------------------
14
<Page>
- --------------------------------------------------------------------------------
THE INDONESIA FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONCLUDED)
- --------------------------------------------------------------------------------
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, 2004, 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 sales and Post-October losses (as later defined), and
excise tax regulations.
The tax character of dividends paid during the year ended December 31, 2003 for
the Fund were ordinary income of $203,349.
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, 2003, the Fund incurred but elected not to defer net realized foreign
currency losses of $4,595.
At December 31, 2003, the Fund had a capital loss carryover for U.S. federal
income tax purposes of $36,810,348 (of which $7,686,858 is subject to Internal
Revenue Code Section limitations) of which $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. It is uncertain whether the Fund will be able to realize the
benefits before they expire.
At June 30, 2004, the identified cost for federal income tax purposes, as well
as 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 $24,538,625, $6,876,052,
$(727,620), and $6,148,432, respectively.
NOTE G. CONTINGENCIES
In the normal course of business, the Fund may provide general indemnifications
pursuant to certain contracts and organizational documents. The Fund's maximum
exposure under these arrangements is dependent on future claims that may be made
against the Fund and, therefore, cannot be estimated; however, based on
experience, the risk of loss from such claims is considered remote.
- --------------------------------------------------------------------------------
15
<Page>
RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
On April 22, 2004, the Annual Meeting of Shareholders of The Indonesia Fund,
Inc. (the "Fund") (the "Meeting") was held and the following matter was voted
upon:
(1) To re-elect a director of the Board of Directors of the Fund:
<Table>
<Caption>
NAME OF DIRECTOR FOR WITHHELD
- ---------------- ---------- ----------
Richard H. Francis 4,922,632 147,490
</Table>
In addition to the director re-elected at the Meeting, Enrique R. Arzac,
Lawrence J. Fox and William W. Priest, Jr. continue as directors of the Fund.
Effective August 10, 2004, Michael E. Kenneally was appointed as Director,
Chairman of the Board, Chief Executive Officer and President. Joseph D.
Gallagher, who previously held these positions, resigned from the Fund effective
the same day.
- --------------------------------------------------------------------------------
16
<Page>
IMPORTANT PRIVACY CHOICES FOR CONSUMERS (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.
RESTRICT INFORMATION SHARING WITH AFFILIATES: 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 unless you say "No."
/ / No, please do not share personal and financial information with your
affiliated companies. [If you check this box, you must send this notice
back to us with your name, address and account number to The Indonesia
Fund, Inc., c/o Credit Suisse Asset Management, LLC, 466 Lexington Avenue,
New York, New York 10017.]
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 19, 2004.
- --------------------------------------------------------------------------------
17
<Page>
DESCRIPTION OF INVESTLINK(SM) PROGRAM (UNAUDITED)
The InvestLink(SM) Program is sponsored and administered by EquiServe, L.P., not
by The Indonesia Fund, Inc. (the "Fund"). EquiServe, L.P., will act as program
administrator (the "Program Administrator") of the InvestLink(SM) Program (the
"Program"). The purpose of the Program is to provide existing shareholders with
a simple and convenient way to invest additional funds and reinvest dividends in
shares of the Fund's common stock ("Shares") at prevailing prices, with reduced
brokerage commissions and fees.
In order to participate in the Program, you must be a registered holder of at
least one Share of stock of the Fund. 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. All cash payments must be drawn on a U.S. bank
and payable in U.S. dollars. Checks must be made payable to EquiServe. 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. 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
investment date for cash payments is the 25th day of each month (or the next
trading day if the 25th is not a trading day). The investment date for dividend
reinvestment is the dividend payment date. The Program Administrator uses
dividends and funds of participants to purchase Shares of the Fund 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 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. All sale requests
having an
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18
<Page>
DESCRIPTION OF INVESTLINK(SM) PROGRAM (UNAUDITED) (CONTINUED)
anticipated market value of $100,000.00 or more are expected to be submitted in
written form. In addition, all sale requests received by the Program
Administrator within thirty (30) days of an address change are expected to be
submitted in written form.
EquiServe L.P., 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 well as the fees paid by the participant. In
addition, each participant will receive copies of the Fund's annual and
semi-annual reports 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.
- --------------------------------------------------------------------------------
19
<Page>
DESCRIPTION OF INVESTLINK(SM) PROGRAM (UNAUDITED) (CONCLUDED)
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 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 shareholder may participate in the Program. 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 shareholder 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:
(800) 730-6001 (U.S. and Canada) or (781) 575-3100 (outside U.S. and Canada).
All correspondence regarding the Program should be directed to: EquiServe Trust
Company N.A., InvestLink(SM) Program, P.O. Box 43010, Providence, RI 02940-3010.
InvestLink is a service mark of EquiServe, L.P.
- --------------------------------------------------------------------------------
20
<Page>
PROXY VOTING (UNAUDITED)
The policies and procedures that The Indonesia Fund, Inc. (the "Fund") uses to
determine how to vote proxies relating to its portfolio securities are
available:
- by calling 1-800-293-1232;
- on the Fund's website, www.csam.com/us; or
- on the website of the Securities and Exchange Commission,
http://www.sec.gov.
- --------------------------------------------------------------------------------
21
<Page>
OTHER FUNDS MANAGED BY CREDIT SUISSE ASSET MANAGEMENT, LLC
Credit Suisse Capital Appreciation Fund
Credit Suisse Cash Reserve 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 Mid-Cap Growth 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 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.
- --------------------------------------------------------------------------------
22
<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 American Stock Exchange, LLC. 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
("CSFB"). As of June 30, 2004, CSAM managed assets of over $335 billion in 14
countries, $12 billion of which is managed in the U.S. by CSFB's Alternative
Capital Division, an affiliate of CSAM.
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 American Stock Exchange,
LLC 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.csam.com/us.
CLOSED-END FUNDS
SINGLE COUNTRY
The Brazilian Equity Fund, Inc. (BZL)
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>
<Table>
DIRECTORS AND CORPORATE OFFICERS ADMINISTRATOR
Enrique R. Arzac Director Bear Stearns Funds Management Inc.
383 Madison Avenue
Lawrence J. Fox Director New York, NY 10179
Richard H. Francis Director CUSTODIAN
William W. Priest, Jr. Director Brown Brothers Harriman & Co.
40 Water Street
Michael E. Kenneally Director, Chairman of Boston, MA 02109
the Board, Chief Executive
Officer and President SHAREHOLDER SERVICING AGENT
Boon Hong Yeo Chief Investment Officer Fleet National Bank
(c/o EquiServe, L.P.)
Hal Liebes Senior Vice President P. O. Box 43010
Providence, RI 02940
Michael A. Pignataro Chief Financial Officer and
Secretary INDEPENDENT AUDITORS
Robert M. Rizza Treasurer PricewaterhouseCoopers LLP
Two Commerce Square
INVESTMENT ADVISER Philadelphia, PA 19103
Credit Suisse Asset Management, LLC LEGAL COUNSEL
466 Lexington Avenue
New York, NY 10017 Willkie Farr & Gallagher LLP
787 Seventh Avenue
INVESTMENT SUB-ADVISER New York, NY 10019
Credit Suisse Asset Management (Australia) Limited
Level 32, Gateway Building
1 Macquarie Place
Sydney NSW 2000
This report, including the financial statements herein, is sent to the
shareholders of the Fund for their information. The financial information [AMERICAN
included herein is taken from the records of the Fund without examination by STOCK EXCHANGE(R)
independent accountants who do not express an opinion thereon. It is not a LOGO]
prospectus, circular or representation intended for use in the purchase or sale LISTED
of shares of the Fund or of any securities mentioned in this report. IF(TM)
- -----------------------------------------------------------------------------------------------------------------
3913-SA-04
</Table>
<Page>
ITEM 2. CODE OF ETHICS.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 6. SCHEDULE OF INVESTMENTS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors since the registrant
last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(g)
of Schedule 14A in its definitive proxy statement dated March 1, 2004.
ITEM 10. CONTROLS AND PROCEDURES.
(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")) were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934.
(b) There were no changes in registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the
registrant's second fiscal half-year that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Not applicable.
(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
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(a)(3) Not applicable.
(b) The certifications of the registrant as required by Rule 30a-2(b) under
the Act are an exhibit to this report.
<Page>
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/ Michael E. Kenneally
-----------------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: September 1, 2004
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/ Michael E. Kenneally
-----------------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: September 1, 2004
/s/ Michael A. Pignataro
-----------------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: September 1, 2004