Joko Widodo completed a journey from riverside slum to presidential palace yesterday, cheered through the streets following his inauguration by tens of thousands of Indonesians in a reminder to the opposition-controlled parliament of the strong grassroots support that swept him to power.
The 53-year-old must make tough decisions to stand a chance of boosting economic growth in Indonesia. Fears that any reforms he tries to enact could be blocked by a hostile opposition led by Prabowo Subianto, who he defeated in July’s election, have seen the Indonesian rupiah weaken and the stock market fall in recent weeks.
However, those thoughts were put aside yesterday when Widodo and his deputy traveled from the parliament building to the presidential palace in an organized public party. After a few kilometers, he left his car and took a horse and cart, flashing victory signs.
Photo: Reuters
“To the fishermen, the workers, the farmers, the merchants, the meatball soup sellers, the hawkers, the drivers, the academics, the laborers, 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,” Widodo said in his inauguration speech, witnessed by regional leaders and US Secretary of State John Kerry.
Widodo, better known by his nickname Jokowi, was elected with 53 percent of the vote, with most support coming from poor Indonesians won over by his simple demeanor and record of hard work as Jakarta governor. A former furniture businessman, he 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,” Rukasih Wanti said, standing under a blue umbrella with her two children 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.”
Police estimated that 50,000 people attended a street party to celebrate his inauguration.
Former Indonesian president Susilo Bambang Yudhoyono’s two terms in office saw democratic consolidation and a focused fight against Islamist militancy. However, economic growth on the back of a commodities boom has slowed, and a recovery is being hampered by weak infrastructure, rampant corruption and red tape.
Widodo is targeting 7 percent growth in the coming years. To get close to that, he would need bold reforms to attract foreign investment, as well as favorable external conditions.
A problem on the horizon is the expected hikes next year in US interest rates, which could suck funds from the country, pressurizing the rupiah and spooking markets.
He can also expect resistance from opposition parties still smarting from the election defeat of their candidate, Prabowo. The coalition against Widodo has already captured most of the important positions in parliament and last month voted to end direct regional elections, a key tenet of the country’s democratic transition since former Indonesian president Suharto was ousted in 1998.
Prabowo attended yesterday’s inauguration ceremony and met with Widodo last week to offer qualified support for his administration. Prabowo’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 Widodo midterm.
In his inauguration speech, 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 Southeast 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.”
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