Jakarta Governor Joko Widodo has been declared as Indonesia’s next President, sweeping up 53.15% of over 133 million ballots with his running mate, former Vice-President Jusuf Kalla. This presidential election, the third since Indonesia’s transition to democracy, has been hard fought. Peace has prevailed but so has uncertainty. Mr Joko’s opponent, former army general Prabowo Subianto, has said he will challenge the poll outcome. There is little expectation that the election result will be overturned but it is still unclear how the new President will fare when he takes office on October 20, 2014. Mr Joko, who inherits an economy with falling exports, a current account deficit and slowing growth, will have to install crucial infrastructure and cut budget-busting fuel subsidies. He will need to build a stronger base in Parliament if he wants to push through any reforms. What can regional business leaders expect from Indonesia’s new leader and what are the prospects for reform in light of a complex legislative picture? Which developments could hamper the effectiveness of the next government?
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