Taking stock of the challenges ahead for Indonesia’s new President

Resumen

Indonesia’s new President, Joko Widodo will assume office on October 20 2014. His election caused a wave of positive sentiment among investors. Initial enthusiasm has since given way to skepticism, as a number of political bottlenecks threaten to hamper Jokowi’s ability to push for reform. Indonesia’s potential is huge, however the economy has lost its mojo over the past years, revealing underlying fragilities. In this Economic Watch, we examine the challenges ahead for Jokowi as well as what measures are needed in order to boost Indonesia’s alternative growth engines.

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