FORMER Jakarta Governor Joko Widodo was sworn in as Indonesia’s seventh president at a ceremony in parliament yesterday, becoming the country’s first leader not from the political or military elite.

    Widodo, better known by his nickname of Jokowi, was elected with 53 percent of the vote, with most of his support coming from poor, non-urban Indonesians attracted by his simple demeanor and record of hard work as Jakarta governor.

    The son of a furniture maker, he grew up in a rented bamboo shack on the banks of the river Kalianyar in Solo, a town on Java Island, and is the first Indonesian leader not to come from the country’s super rich.

    Outgoing President Susilo Bambang Yudhoyono’s two terms in office saw democratic consolidation and a focused fight against Islamist militancy. But economic growth on the back of a commodities boom has slowed, and a recovery is being hampered by weak infrastructure, rampant corruption and red tape.

    Widodo is targeting 7 percent growth in the coming years. To get close to that, he will need bold reforms to attract foreign investment, as well as favorable external conditions. A looming problem is expected hikes next year in what are record-low U.S. interest rates, which could suck funds from the country, pressurizing the rupiah and spooking the markets.

    Economists say Widodo must soon make a decision on how much to cut subsidies on fuel that unless trimmed will cost the government a budget-busting US$30 billion-plus this year. The move will likely stoke protests from political opponents and could trigger street demonstrations

    (SD-Agencies)