JAKARTA - Foreign investors desperate for more access to Indonesia’s huge market can take comfort from the re-election of Joko Widodo as president for a second and final term on Wednesday: according to government insiders he is poised for a splurge of reform.
Widodo - popularly known as Jokowi - looked set to hit that ‘sweet spot’ as early election results came in, showing he was set to win the popular vote and come at least eight percentage points ahead of challenger Prabowo Subianto, who investors feared would be a champion of economic nationalism. While the contest between Widodo and his challenger, former special forces general Prabowo was characterized by nationalist posturing on both sides, government officials and advisers say Widodo recognizes the need for more foreign investment to boost growth and raise productivity in Southeast Asia’s largest economy.
Fealy said Indonesia’s recently negotiated free trade deal with Australia, which includes zero-tariff access on many goods and services and provisions for Australian universities to set up campuses in Indonesia, reflected the free market instincts of Widodo, a former furniture entrepreneur and big exporter.
The market reacts positively to the news of jokowi re-election. Investors are also relieved that Mr. Widodo's mega projects will proceed as planned. Optimism is in the air now for Indonesia to achieve its goal of becoming the world 4th largest economy by 2030. IndonesiaVotes
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