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Jokowi sworn in as Indonesia’s 7th President

JAKARTA — Mr Joko Widodo completed a journey from riverside shack to presidential palace today (Oct 20), cheered through the streets following his inauguration by tens of thousands of ordinary Indonesians in a reminder to the opposition-controlled parliament of the strong grass-roots support that swept him to power.

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JAKARTA — Mr Joko Widodo completed a journey from riverside shack to presidential palace today (Oct 20), cheered through the streets following his inauguration by tens of thousands of ordinary Indonesians in a reminder to the opposition-controlled parliament of the strong grass-roots support that swept him to power.

The 53-year-old must make tough decisions to stand a chance of boosting economic growth in Indonesia, a sprawling nation of 250 million people. Fears that any reforms he tries to enact could be blocked by a hostile opposition led by the Suharto-era general he defeated in July’s election have seen the rupiah weaken and stock market fall in recent weeks.

But those thoughts were put aside momentarily today when Mr Widodo and his deputy traveled from the parliament building to the presidential palace in an organised public party, the first in the country’s history following an inauguration. After a few kilometres, he left his car and took a horse and cart, flashing victory signs and shaking countless hands.

“To the fishermen, the workers, the farmers, the merchants, the meatball soup sellers, the hawkers, the drivers, the academics, the labourers, the soldiers, the police, the entrepreneurs and the professionals, I say let us all work hard, together, shoulder to shoulder, because this is a historic moment,” Mr Widodo said in his inauguration speech, witnessed by regional leaders and US Secretary of State John Kerry.

Mr Widodo, better known by his nickname of Jokowi, was elected with 53 per cent of the vote, with most of his support coming from poor, non-urban Indonesians attracted by his simple demeanour and record of hard work as Jakarta governor.

The son of a furniture maker, he grew up in a rented bamboo shack on the banks of the river Kalianyar in Solo, a town on Java Island, and is the first Indonesian leader not to come from the country’s super rich, and often corrupt, political, business and military elite.

“I was moved by Jokowi’s inauguration speech this morning, it was so beautiful,” said Ms Rukasih Wanti, standing under a blue umbrella with her two kids waiting for the president. “He deserves to get the people’s respect and a celebration the likes of which has never happened in the past.”

Mr Widodo takes over leadership of the world’s third-largest democracy from Mr Susilo Bambang Yudhoyono, who leaves after serving his second five-year term.

President Yudhoyono’s two terms in office saw democratic consolidation and a focused fight against Islamist militancy. But economic growth on the back of a commodities boom has slowed, and recovery is being hampered by weak infrastructure, rampant corruption and red tape.

Indonesia is the biggest economy in South-east Asia, and about 90 per cent of its 250 million people are Muslims, more than any other nation. After years of dictatorship, the country was convulsed by political, ethnic and religious unrest in the late 1990s and early 2000s. Since then, it has consolidated its democratic transition. While most of the country remains poor and inequality is rising, it is home to a rapidly expanding middle class.

At the top of Mr Widodo’s list is to tackle corruption within government. He also needs to boost the nation’s infrastructure development, and money taken from fuel subsidies can help finance construction of projects such as roads, sea ports and railroads. But it won’t be easy with many Indonesians accustomed to subsidised prices of gasoline and diesel.

In a nation of about 250 million people — the world’s fourth largest by population — and abundant in natural resources like copper, gold and timber, Mr Widodo needs to contend with a commodities boom that has now faded and a trade deficit that threatens to further undermine economic growth.

Economists say Mr Widodo must soon make a decision on how much to cut subsidies on fuel that unless trimmed will cost the government a budget-busting $30 billion-plus (S$38.2 billion) this year. The move will likely stoke protests from political opponents and could trigger street demonstrations.

He also can expect resistance from opposition parties still smarting from the election defeat of their candidate, Mr Prabowo Subianto. The coalition against Mr Widodo already has captured most of the important positions in parliament and last month voted to end direct regional elections, a key plank of the country’s democratic transition since Suharto was ousted in 1998.

Mr Subianto attended today’s inauguration ceremony and met with Mr Widodo last week to offer qualified support for his administration.

Much uncertainty remains over how effective Mr Widodo will be in negotiating with the opposition, and how much of a disruptive role it will play. Mr Subianto’s initial refusal to accept the election results and the comments of some of his supporters led to speculation among analysts that he would seek to topple Mr Widodo midterm.

In his inauguration speech, Mr Widodo pledged to maintain the country’s “free and active” foreign policy, a stance that has seen it slowly taking up more of a leadership role in South-east Asia. Working to stop the flow of foreign fighters to Iraq and Syria, managing relations with China and keeping often testy ties with Australia on an even keel will be key tasks.

“I’m very encouraged by everything that President Jokowi has said up until now. He’s obviously a charismatic and inspirational figure,” said Australian Prime Minister Tony Abbott, who flew to Jakarta for the ceremony. “I think there’s a wave of confidence and renewal sweeping Indonesia right now.”

Police estimated that 50,000 people attended the street party. Many more were expected later in the day when Mr Widodo, a heavy metal fan and guitarist, was to attend an open air rock concert headlined by some of the country’s biggest bands.

Mr Widodo is targeting 7 per cent growth in the coming years. To get close to that, he will need bold reforms to attract foreign investment, as well as favourable external conditions. A looming problem is expected hikes next year in what are record-low US interest rates, which could suck funds from the country, pressurizing the rupiah and spooking the markets. AP, JAKARTA GLOBE

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