JAKARTA: Indonesia opened a new, opposition-dominated parliament yesterday, one that is expected to obstruct incoming president Joko Widodo’s ambitious reforms for Southeast Asia’s biggest economy.
Widodo, the popular former governor of the capital, Jakarta, narrowly won an election in July, becoming the first businessman to become president of the world’s third-largest democracy, a post previously held by members of the military or political elite.
Widodo’s direct approach and success in cutting red tape appealed to ordinary voters and investors who welcomed his victory by pushing the stock market to a record high.
But with the convening of the new parliament, where Widodo can only count on a minority coalition, as well as with pressures within his own camp, the honeymoon looks to be over.
“Indonesia’s new president Joko Widodo is expected to prove himself a transformational leader, with a massive positive impact on the economy and hence equity values,” local brokerage Mandiri Sekuritas said in a report.
“However he needs parliamentary support, and the risks of his not getting that are rising significantly now.”
Reuters
