<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)
J. Kevin Gao, 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, 2005 to June 30, 2005
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS.
<Page>
THE INDONESIA FUND, INC.
SEMI-ANNUAL REPORT
JUNE 30, 2005
(UNAUDITED)
[AMERICAN STOCK EXCHANGE(R) LISTED IF (TM) LOGO]
IF-SAR-0605
<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
Description of InvestLink(SM) Program 18
Proxy Voting and Portfolio Holdings Information 21
</Table>
<Page>
LETTER TO SHAREHOLDERS
July 29, 2005
DEAR SHAREHOLDER:
For the six months ended June 30, 2005, The Indonesia Fund, Inc. (the "Fund")
had a gain in its net asset value ("NAV") of 16.73%, vs. an increase of 10.20%
for the Morgan Stanley Capital International Indonesia Index.* Based on market
price, the Fund's shares rose 15.19% during this six month period. As a result,
the Fund's discount to its NAV stood at 1.52% on June 30, 2005, compared with a
discount of 0.20% at the beginning of the period.
THE MARKET: LEADING AN OUTPERFORMING ASSET CLASS
The period was a positive one for emerging stock markets as a group, both in
absolute terms and compared with developed stock markets, at least for
US-dollar-based investors. Emerging markets initially rallied, but then turned
sharply down in March on worries that rising US interest rates could threaten
global growth. These fears subsided in the latter part of the period, with
inflation appearing to be under control and as long-term US interest rates
remained fairly stable. Investors' appetite for risk in general returned, and
emerging markets ended the period on a solid note.
Indonesia outperformed the broad emerging stock market group, aided by an
accommodative monetary policy, high commodity prices and an increase of flows
into the market. Weakness in the country's rupiah currency eroded some of the
strong gains generated locally, but the market nonetheless outperformed in
dollar terms as well by a handy margin.
THE PORTFOLIO: AIDED BY STOCK SELECTION
The Fund's outperformance was attributable in part to good stock selection in
the food, beverages & tobacco sector. Most specifically, we had a large absolute
and relative weighting in longtime holding PT Hanjaya Mandala Sampoerna Tbk
("HM Sampoerna"), which rallied on Philip Morris' takeover bid. We accepted the
offer and sold the position in May.
Elsewhere, the Fund's investments in the materials and telecommunications
sectors aided its performance. The Fund's overweightings in the capital goods
and food, beverages & tobacco sectors also added value, as these areas of the
market outperformed in the period. The Fund's underweighting in the bank sector,
which struggled amid a rising cost of capital, proved beneficial as well. On the
negative side, relatively speaking, the Fund's energy and technology-related
stocks underperformed.
With regard to noteworthy recent portfolio activity, we sold HM Sampoerna late
in the period, as noted. This was an approximately 20% weighting in the Fund at
the time. We reinvested the proceeds by period-end, favoring telecom,
financials, industrial and consumer discretionary companies.
1
<Page>
A MIXED BAG
In the wake of a solid six months for Indonesia's stock market, which followed a
robust gain in 2004, there are a number of issues to consider as we look ahead:
- - Employment remains a concern, with not enough jobs created to satisfy the
roughly 40 million unemployed or underemployed
- - Ongoing fuel subsidies, a popular program, will likely continue to strain the
government's finances and jeopardize the country's foreign exchange reserves
- - The President's popularity has declined to its lowest point since last year's
October election victory
- - Core inflation has remained high, at about 8%. Indonesian authorities have
been edging interest rates higher with an 8.5% intermediate-term target
- - In continuing efforts to eradicate corruption, the Anti Corruption Committee
has cast its net far and wide, targeting government officials and departments
including the General Election Commission
- - On the positive side, Indonesia's economy appears to remain healthy, with
first-quarter GDP rising 6.4% on an annualized basis
- - The composition of GDP in Indonesia now appears to be more balanced, with
capital investment rising and consumption declining amid higher interest
rates
- - Excess liquidity in Indonesia and the region could continue to be a positive
market factor in our view
Given these issues, on balance we have chosen to adopt a more cautious stance.
Indonesian assets accounted for about 80% to 85% of the Fund as of the end of
the period, down from approximately 90% at the beginning of the year.
Sincerely,
/s/ Boon Hong Yeo
Boon Hong Yeo
Chief Investment Officer**
2
<Page>
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, the Fund's sub-adviser, 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, 2005 (UNAUDITED)
[CHART]
SECTOR ALLOCATION
AS A PERCENT OF NET ASSETS
<Table>
<Caption>
JUNE 30, 2005 DECEMBER 31, 2004
--------------- -------------------
Automotive 9.74% 9.51%
Banks 20.14% 21.44%
Building Products-Cement/Aggregate 2.70% 2.64%
Coal Mining & Steel 4.49% 0.00%
Gas-Distribution 2.06% 1.46%
Machinery-Construction & Mining 3.84% 4.75%
Medical-Drugs 2.44% 4.59%
Oil Field Machinery & Equipment 2.22% 0.00%
Real Estate Operations/Development 2.53% 0.51%
Retail-Major Department Stores 4.02% 1.41%
Rubber-Tires 2.98% 0.00%
Telecommunications 24.95% 23.69%
Tobacco 1.73% 18.14%
Other 10.96% 10.87%
Cash & Other Assets 5.20% 0.99%
</Table>
TOP 10 HOLDINGS, BY ISSUER
<Table>
<Caption>
PERCENT OF
HOLDING SECTOR NET ASSETS
- ---------------------------------------------------------------------------------------
1. PT Telekomunikasi Indonesia Telecommunications 18.8
2. PT Astra International Tbk Automotive 9.7
3. PT Bank Central Asia Tbk Banks 7.1
4. PT Indosat Tbk Telecommunications 6.1
5. PT Bank Rakyat Indonesia Banks 4.8
6. PT Bumi Resources Tbk Coal Mining & Steel 4.5
7. PT United Tractors Tbk Machinery-Construction & Mining 3.8
8. PT Gajah Tunggal Tbk Rubber-Tires 3.0
9. PT Bank Danamon Indonesia Tbk Banks 2.7
10. Scomi Group Barhad Oil Field Machinery & Equipment 2.2
</Table>
4
<Page>
THE INDONESIA FUND, INC.
SCHEDULE OF INVESTMENTS - JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------------------------
EQUITY OR EQUITY-LINKED SECURITIES-94.80%
INDONESIA-83.63%
AUTOMOTIVE-9.74%
PT Astra International Tbk 3,681,461 $ 4,775,405
------------
BANKS-16.97%
PT Bank Central Asia Tbk 9,437,500 3,469,851
PT Bank Danamon Indonesia Tbk 2,531,000 1,307,011
PT Bank Internasional Indonesia Tbk 42,733,000 765,166
PT Bank Pan Indonesia Tbk 8,819,000 423,391
PT Bank Rakyat Indonesia 7,965,000 2,360,014
------------
8,325,433
------------
BUILDING & CONSTRUCTION-MISCELLANEOUS-0.98%
PT Adhi Karya Tbk 5,657,000 479,476
------------
BUILDING PRODUCTS-CEMENT/AGGREGATE-2.70%
PT Indocement Tunggal Prakarsa Tbk+ 2,985,000 1,051,137
PT Semen Cibinong Tbk+ 4,690,000 272,881
------------
1,324,018
------------
COAL MINING & STEEL-4.49%
PT Bumi Resources Tbk 25,957,000 2,203,152
------------
FINANCE-CONSUMER LOANS-0.64%
PT Adira Dinamika Multi Finance Tbk+ 1,243,000 315,208
------------
FOOD & KINDRED PRODUCTS-1.43%
PT Indofood Sukses Makmur Tbk 6,207,000 699,063
------------
GAS-DISTRIBUTION-2.06%
PT Perusahaan Gas Negara 3,438,500 1,010,646
------------
MACHINERY-CONSTRUCTION & MINING-3.84%
PT United Tractors Tbk 4,944,200 1,882,029
------------
MEDICAL-DRUGS-2.44%
PT Kalbe Farma Tbk 9,690,800 870,775
PT Tempo Scan Pacific Tbk 448,500 325,584
------------
1,196,359
------------
<Caption>
NO. OF
DESCRIPTION SHARES/UNITS VALUE
- ------------------------------------------------------------------------------------------
OIL EXPLORATION & PRODUCTION-0.72%
PT Energi Mega Persada Tbk 4,085,000 $ 351,578
------------
REAL ESTATE OPERATIONS/DEVELOPMENT-2.53%
PT Ciputra Surya Tbk 4,697,500 657,452
PT Summarecon Agung Tbk 5,572,000 585,797
------------
1,243,249
------------
RETAIL-MAJOR DEPARTMENT STORES-4.02%
PT Matahari Putra Prima Tbk 11,668,000 702,507
PT Mitra Adiperkasa Tbk+ 5,728,000 651,443
PT Ramyana Lestari Sentosa Tbk 6,746,000 620,474
------------
1,974,424
------------
RUBBER-TIRES-2.98%
PT Gajah Tunggal Tbk 18,145,000 1,463,644
------------
SOAP & CLEANING PREPARATION-1.42%
PT Unilever Indonesia Tbk 1,678,000 698,993
------------
TELECOMMUNICATIONS-24.94%
PT Indosat Tbk 5,315,000 3,002,589
PT Telekomunikasi Indonesia 17,856,560 9,229,333
------------
12,231,922
------------
TOBACCO-1.73%
PT Gudang Garam Tbk 654,500 847,782
------------
TOTAL INDONESIA
(Cost $26,713,686) 41,022,381
------------
HONG KONG-0.54%
APPAREL MANUFACTURERS-0.54%
Ports Design Ltd.
(Cost $123,796) 362,000 262,029
------------
INDIA-1.73%
BANKS-1.73%
Reliance Industries (ABN AMRO), Regulation S, ELN,
warrants expiring 2/24/06+
(Cost $729,657) 57,400 847,247
------------
</Table>
See accompanying notes to financial statements.
5
<Page>
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- ------------------------------------------------------------------------------------------
MALAYSIA-2.22%
OIL FIELD MACHINERY & EQUIPMENT-2.22%
Scomi Group Berhad
(Cost $1,203,532) 2,778,000 $ 1,087,660
------------
SINGAPORE-1.76%
ENGINEERING/R&D Services-1.76%
SembCorp Industries Ltd.
(Cost $695,006) 547,520 864,162
------------
TAIWAN-2.13%
ELECTRONIC COMPONENTS-MISCELLANEOUS-2.13%
Chi Mei Optoelectronics Corp.
(Cost $1,009,344) 67,200 1,046,774
------------
THAILAND-2.79%
BANKS-1.44%
Siam City Bank Public Company Ltd. 1,119,000 707,638
------------
BUILDING-HEAVY CONSTRUCTION-1.35%
Italian-Thai Development Public Company Ltd. 2,855,000 663,311
------------
TOTAL THAILAND
(Cost $1,261,916) 1,370,949
------------
TOTAL EQUITY OR EQUITY-LINKED SECURITIES
(Cost $31,736,937) 46,501,202
------------
<Caption>
PRINCIPAL
DESCRIPTION AMOUNT (000'S) VALUE
- ------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS-5.29%
GRAND CAYMAN-3.55%
Wells Fargo Bank N.A., overnight deposit, 2.45%, 07/01/05*
(Cost $1,744,000) $ 1,744 $ 1,744,000
------------
INDONESIA-1.74%
Citibank N.A., Jakarta, overnight deposit, 1.38%, 07/01/05*
(Cost $851,463) 851 851,463
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $2,595,463) 2,595,463
------------
TOTAL INVESTMENTS-100.09%
(Cost $34,332,400) (Notes B,E,G) 49,096,665
------------
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS-(0.09)% (46,455)
------------
NET ASSETS-100.00% $ 49,050,210
============
</Table>
+ Non-income producing security.
* Variable rate account. Rate resets on a daily basis; amounts are available
on the same business day.
ELN Equity linked note.
See accompanying notes to financial statements.
6
<Page>
THE INDONESIA FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - JUNE 30, 2005 (UNAUDITED)
<Table>
ASSETS
Investments, at value (Cost $34,332,400) (Notes B,E,G) $ 49,096,665
Cash 583
Receivables:
Investments sold 1,407,183
Dividends 341,021
Prepaid expenses 9,916
---------------
Total Assets 50,855,368
---------------
LIABILITIES
Payables:
Investments purchased 1,566,135
Investment advisory fees (Note C) 117,121
Directors' fees 11,158
Administration fees (Note C) 3,991
Other accrued fees 106,753
---------------
Total Liabilities 1,805,158
---------------
NET ASSETS (applicable to 8,266,202 shares of common stock outstanding) (Note D) $ 49,050,210
===============
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 52,050,643
Undistributed net investment income 41,211
Accumulated net realized loss on investments and foreign currency related transactions (17,808,723)
Net unrealized appreciation in value of investments and translation of other assets
and liabilities denominated in foreign currencies 14,758,813
---------------
Net assets applicable to shares outstanding $ 49,050,210
===============
NET ASSET VALUE PER SHARE ($49,050,210 DIVIDED BY 8,266,202) $ 5.93
===============
MARKET PRICE PER SHARE $ 5.84
===============
</Table>
See accompanying notes to financial statements.
7
<Page>
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED JUNE 30, 2005 (UNAUDITED)
<Table>
INVESTMENT INCOME
Income (Note B):
Dividends $ 515,352
Interest 14,099
Less: Foreign taxes withheld (76,840)
---------------
Total Investment Income 452,611
---------------
Expenses:
Investment advisory fees (Note C) 229,413
Custodian fees 52,934
Administration fees (Note C) 24,514
Audit fees 22,316
Legal fees 22,283
Directors' fees 15,372
Printing (Note C) 15,372
Accounting fees 14,876
Transfer agent fees 9,521
Stock exchange listing fees 8,679
Insurance 2,344
Miscellaneous 6,576
---------------
Total Expenses 424,200
---------------
Net Investment Income 28,411
---------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY
RELATED TRANSACTIONS
Net realized gain/(loss) from:
Investments 10,365,648
Foreign currency related transactions (69,416)
Net change in unrealized appreciation in value of investments and translation
of other assets and liabilities denominated in foreign currencies (3,294,187)
---------------
Net realized and unrealized gain on investments and foreign currency
related transactions 7,002,045
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,030,456
===============
</Table>
See accompanying notes to financial statements.
8
<Page>
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE
SIX MONTHS
ENDED FOR THE
JUNE 30, 2005 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2004
--------------- -----------------
INCREASE IN NET ASSETS
Operations:
Net investment income $ 28,411 $ 781,992
Net realized gain on investments and foreign currency related transactions 10,296,232 3,188,176
Net change in unrealized appreciation in value of investments and translation
of other assets and liabilities denominated in foreign currencies (3,294,187) 6,531,330
--------------- ----------------
Net increase in net assets resulting from operations 7,030,456 10,501,498
--------------- ----------------
Dividends to shareholders:
Net investment income -- (785,289)
--------------- ----------------
Total increase in net assets 7,030,456 9,716,209
--------------- ----------------
NET ASSETS
Beginning of period 42,019,754 32,303,545
--------------- ----------------
End of period* $ 49,050,210 $ 42,019,754
=============== ================
</Table>
- ----------
* Includes undistributed net investment income of $41,211 and $12,800,
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, 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
ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 2005 ----------------------------------------
(UNAUDITED) 2004 2003 2002
------------- ---------- ---------- ----------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 5.08 $ 3.91 $ 2.09 $ 1.52
---------- ---------- ---------- ----------
Net investment income/(loss) -- 0.09 0.03 0.01
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions 0.85 1.17 1.81 0.56
---------- ---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations 0.85 1.26 1.84 0.57
---------- ---------- ---------- ----------
Dividends and distributions to shareholders:
Net investment income -- (0.09) (0.02) --
Net realized gain on investments and
foreign currency related transactions -- -- -- --
---------- ---------- ---------- ----------
Total dividends and distributions to shareholders -- (0.09) (0.02) --
---------- ---------- ---------- ----------
Net asset value, end of period $ 5.93 $ 5.08 $ 3.91 $ 2.09
========== ========== ========== ==========
Market value, end of period $ 5.84 $ 5.07 $ 4.83 $ 1.65
========== ========== ========== ==========
Total investment return (a) 15.19% 6.72% 194.19% 25.00%
========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 49,050 $ 42,020 $ 32,304 $ 17,317
Ratio of expenses to average net assets 1.85%(d) 2.03% 2.65% 2.69%
Ratio of net investment income/(loss) to average net assets 0.12%(d) 2.24% 1.23% 0.36%
Portfolio turnover rate 51.11% 43.59% 95.66% 29.15%
</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>
<Table>
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------
2001 2000 1999 1998
---------- ---------- ---------- ----------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 1.72 $ 4.48 $ 2.71 $ 3.58
---------- ---------- ---------- ----------
Net investment income/(loss) (0.13)* (0.13) (0.05) (0.04)
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions (0.07) (2.63) 1.87 (0.83)
---------- ---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations (0.20) (2.76) 1.82 (0.87)
---------- ---------- ---------- ----------
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 $ 1.52 $ 1.72 $ 4.48 $ 2.71
========== ========== ========== ==========
Market value, end of period $ 1.32 $ 1.563 $ 5.438 $ 3.438
========== ========== ========== ==========
Total investment return (a) (15.52)% (71.26)% 59.58% (25.68)%
========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 12,545 $ 7,935 $ 20,669 $ 12,491
Ratio of expenses to average net assets 8.89%(b) 7.23%(c) 3.18% 4.21%
Ratio of net investment income/(loss) to average net assets (5.63)% (4.85)% (1.43)% (1.37)%
Portfolio turnover rate 10.23% 16.48% 47.38% 36.58%
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------
1997 1996 1995
---------- ---------- ----------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 10.68 $ 9.34 $ 9.18
---------- ---------- ----------
Net investment income/(loss) 0.03 0.01 --
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions (7.13) 1.33 0.16
---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations (7.10) 1.34 0.16
---------- ---------- ----------
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 $ 3.58 $ 10.68 $ 9.34
========== ========== ==========
Market value, end of period $ 4.625 $ 9.750 $ 10.125
========== ========== ==========
Total investment return (a) (52.56)% (3.70)% (15.63)%
========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 16,486 $ 49,223 $ 43,060
Ratio of expenses to average net assets 1.89% 1.91% 1.96%
Ratio of net investment income/(loss) to average net assets 0.33% 0.10% 0.05%
Portfolio turnover rate 48.19% 34.67% 24.10%
</Table>
11
<Page>
THE INDONESIA FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE A. ORGANIZATION
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.
NOTE B. SIGNIFICANT ACCOUNTING POLICIES
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
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 it is determined that
this method would not represent fair 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 time deposit available through 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 sufficient to relieve it from
all or substantially all U.S. income and excise taxes.
12
<Page>
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.
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
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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 it 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 C. 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, 2005, CSAM earned $229,413 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, 2005, CSAM was reimbursed $2,777 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 calculated weekly based on the Fund's
average weekly net assets. For the six months ended June 30, 2005, BSFM earned
$21,737 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, 2005, Merrill was paid $12,295 for its services to the Fund.
NOTE D. 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, 2005, CSAM
owned 7,169 shares.
NOTE E. INVESTMENT IN SECURITIES
For the six months ended June 30, 2005, purchases and sales of securities, other
than short-term investments, were $22,554,225 and $24,726,386, respectively.
NOTE F. 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 ("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
14
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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, 2005, the Fund had no borrowings under the Credit
Facility.
NOTE G. 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 foreign currency transactions, post-October losses on foreign
currency transactions and losses deferred due to wash sales.
The tax character of the $785,289 dividends paid during the year ended December
31, 2004 was ordinary income.
At December 31, 2004, the Fund had a capital loss carryover for U.S. federal
income tax purposes of $26,646,783 of which $3,265,956 expires in 2005;
$13,254,308 expires in 2006; $1,782,694 expires in 2007; $5,937,713 expires in
2008 ($2,211,704 of capital loss carryforward expiring in 2008 is subject to
annual limitations of $292,278), $1,720,106 expires in 2009 and $686,006 expires
in 2010. For the year ended December 31, 2004, the Fund utilized capital loss
carryovers of $3,110,515. It is uncertain whether the Fund will be able to
realize the benefits before they expire.
At December 31, 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 $35,034,744, $14,431,126,
$(369,205), and $14,061,921, respectively.
15
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RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
On April 22, 2005, 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 two directors to the Board of Directors of the Fund.
<Table>
<Caption>
NAME OF DIRECTOR FOR WITHHELD
- ---------------- --------- --------
Lawrence J. Fox 5,557,384 53,573
Michael E. Kenneally 5,556,732 54,225
</Table>
In addition to the directors re-elected at the Meeting, Enrique R. Arzac and
Richard H. Francis continued as directors of the Fund.
Effective April 15, 2005, William W. Priest, Jr. resigned as director of the
Fund.
Effective May 16, 2005, Steven Rappaport was appointed as director of the Fund
by the Board of Directors.
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"), 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 16, 2005.
17
<Page>
DESCRIPTION OF INVESTLINK(SM) PROGRAM (UNAUDITED)
The InvestLink(SM) Program is sponsored and administered by EquiServe Trust
Company, N.A., not by The Indonesia Fund, Inc. (the "Fund"). EquiServe Trust
Company, N.A., 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
18
<Page>
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 Trust Company, N.A., as Program Administrator, administers the Program
for participants, keeps records, sends statements of account to participants and
performs other duties relating to the Program. Each participant in the Program
will receive a statement of his account following each purchase of Shares. The
statements will also show the amount of dividends credited to such participant's
account (if applicable), as 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>
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 Trust Company, N.A.
20
<Page>
PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)
Information regarding how The Indonesia Fund, Inc. (the "Fund") voted proxies
related to its portfolio securities during the 12-month period ended June 30 of
each year as well as the policies and procedures that 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
- On the website of the Securities and Exchange Commission,
http://www.sec.gov.
The Fund files a complete schedule of its portfolio holdings for the first and
third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms N-Q
are available on the SEC's website at http://www.sec.gov and may be reviewed and
copied at the SEC's Public Reference Room in Washington, DC. Information on the
operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330.
21
<Page>
OTHER FUNDS MANAGED BY CREDIT SUISSE ASSET MANAGEMENT, LLC
Credit Suisse Capital Appreciation Fund
Credit Suisse Cash Reserve Fund
Credit Suisse Commodity Return Strategy Fund
Credit Suisse Emerging Markets Fund
Credit Suisse Fixed Income Fund
Credit Suisse Global Fixed Income Fund
Credit Suisse Global Small Cap Fund
Credit Suisse High Income Fund
Credit Suisse International Focus Fund
Credit Suisse Japan Equity Fund
Credit Suisse Large Cap Blend Fund
Credit Suisse Large Cap Value Fund
Credit Suisse Mid-Cap Growth Fund
Credit Suisse New York Municipal Fund
Credit Suisse Short Duration Bond Fund
Credit Suisse Small Cap Growth Fund
Credit Suisse Small Cap Value 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, private equity, 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>
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<Page>
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<Page>
SUMMARY OF GENERAL INFORMATION (UNAUDITED)
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, 2005, CSAM managed over $24 billion in the U.S. and,
together with its global affiliates, managed assets of over $327 billion in 16
countries.
SHAREHOLDER INFORMATION
The market price is published in: THE NEW YORK TIMES (daily), 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 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
Steven Rappaport Director
Michael E. Kenneally Director and Chairman of the Board
Steven Plump Chief Executive Officer and President
Boon Hong Yeo Chief Investment Officer
J. Kevin Gao Senior Vice President
Ajay Mehra Chief Legal Officer
Emidio Morizio Chief Compliance Officer
Michael A. Pignataro Chief Financial Officer and Secretary
Karen Regan Assistant Secretary
Robert M. Rizza Treasurer
John Smith Assistant 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
EquiServe Trust Company, N.A.
P. O. Box 43010
Providence, RI 02940
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
Two Commerce Square
Philadelphia, PA 19103
LEGAL COUNSEL
Willkie Farr & Gallagher LLP
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 registered public accountants 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.
[AMERICAN STOCK EXCHANGE(R) LISTED IF(TM) LOGO]
IF-SAR-0605
<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.
Included as part of the report to shareholders filed under Item 1 of this Form.
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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
None.
ITEM 10. 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, 2005.
ITEM 11. 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 12. EXHIBITS.
<Page>
(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.
(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/Steven Plump
---------------
Name: Steven Plump
Title: Chief Executive Officer
Date: September 1, 2005
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/Steven Plump
---------------
Name: Steven Plump
Title: Chief Executive Officer
Date: September 1, 2005
/s/Michael A. Pignataro
-----------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: September 1, 2005