Tens of thousands braved Jakarta's sun-scorched streets on Monday to mark the inauguration of Indonesia's seventh president, Joko Widodo, a businessman-turned-politician.
"Jokowi," as the new president is known, is the first leader from outside Indonesia's old military and political elite and the fifth since the archipelago nation – the world's 10th largest economy – dispensed with a military dictatorship in 1998.
In his inaugural address at Indonesia's parliament, with Secretary of State John Kerry in attendance along with the heads of government from Australia, Malaysia and Singapore – Widodo, 53, called for national unity after a bruising election and exhorted his 250 million compatriots "to move together, to work, work and work."
A decade ago Widodo was selling furniture in Solo, his hometown in the center of Indonesia's most populous island, Java. But his election as mayor of Solo and later as governor of Jakarta, the capital region, paved the way for a 6% win over former general Prabowo Subianto in July's presidential election.
Rizka Sherlyta, one of tens of thousands of volunteers who campaigned for Widodo, said he came from outside the connected elites that have dominated the country's politics.
"Jokowi is trying to bring a new kind of democracy to Indonesia, to change how the system works," Rizka said, weaving among volunteers who were wearing cardboard Widodo masks and handing out roses in central Jakarta.
Hoping to apply small-town policymaking tools to the national stage, Widodo said he wants to modernize Indonesia's infrastructure, attract investment in the manufacturing sector and reduce Indonesia's reliance on selling raw materials.
The World Bank reported earlier this year that although Indonesia has half the population of the entire 10-nation Association of Southeast Asian Nations bloc, or ASEAN, it supplies only 15% of its manufacturing exports, far behind countries such as Thailand. Indonesia has not recovered as well as neighboring countries from the Asian economic crisis of the late 1990s, said Gundy Cahyadi, an economist with DBS Bank in Singapore.
A leading source of rubber, palm oil, metals and coal, Indonesia's growth has slipped to around 5% annually in recent years as commodity prices dropped. Widodo believes that 7% growth is needed if Indonesia is develop its economy beyond resource extraction and create enough jobs for its young population.
But Widodo's reform efforts – including plans to reduce a popular fuel subsidy that eats up around one-fifth of the national budget – are likely to face opposition in a hostile parliament where the opposition, led by his election rival Subianto, holds 63% of seats. Prabowo refused to accept his election defeat and has threatened to block Widodo's agenda.
"While he has attracted plenty of plaudits for his clean style of government, he is untested at the national level and could struggle to push through critical reforms," reported Capital Economic, a London research group.
Last month Subianto won a vote to end Indonesia's system of direct elections for local officials, which helped Widodo get his start in politics in Solo nine years ago. The change has raised concerns about the future of democracy in a country usually lauded as a successful example of transition from dictatorship.
Analysts say Widodo may have to cut deals with the opposition and possibly offer cabinet positions to members of Subianto's coalition. That could disappoint some supporters but also weaken resistance to his reforms, said Professor Tim Lindsey, who directs the Center for Indonesian Law, Islam and Society at the University of Melbourne in Australia.
"Jokowi is a canny operator, and has shown the ability to broker deals while leading minority governments as mayor of Solo and as governor of Jakarta," Lindsey said.
Widodo visited Subianto last week, the first meeting between them since the election, and mentioned him by name during the inauguration. Subianto stood and gave Widodo a military salute – a sign, according to experts, that he was offering his rival at least temporary support.
Roughneen is a Times special correspondent.
Copyright © 2014, Los Angeles TimesOct. 20, 2014, 2:06 a.m.: Updates with Indonesia's economy background, quotes from analysts and reporting from Jakarta.
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