Indonesia’s Democratic Discontent

Businesses willing to align their commercial interests with the development goals of incumbent Indonesian President Joko Widodo, who is poised to win a second term, and that are perceived to be sensitive to local issues, particularly Islamic ones, are likely to receive better support for their operations and mitigate a range of political, security and operational risks.

Achmad Sukarsono, senior analyst and Control Risks’ lead analyst for Indonesia noted that Mr Widodo will have to placate some pro-Prabowo Muslims and likely concede to soft demands from the Islamic community, as he attempts to reunite the nation and heal the wounds from the most divisive election in Indonesia's democratic history. 

Specifically, businesses can expect more policies that promote wealth distribution, provide welfare and create jobs for Muslims in the coming years. Mr Widodo is also likely to prioritise infrastructure projects that visibly benefit Muslims, many of whom have expressed discontent with construction projects that involved the flattening of Muslim-inhabited slums. 

Lastly, Mr Widodo is expected to increase his efforts to align the country’s economy with Muslim principles, such as through the advancement of sharia finance, enforcement of Halal labelling on consumable products and restrictions on the sale of alcohol.

Source : https://www.businesstimes.com.sg/asean-business/indonesia-elections-widodo-will-need-to-reunite-the-country-after-its-most-divisive

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