After two years in office, the time is ripe now, to take a snapshot look at the government under the leadership of Joko Widodo Indonesia's seventh president.
Uncertainty about global economic growth and about the monetary policy of the central banks. Most particularly the US Federal Reserve, still has a big impact on Indonesia's financial markets. When weaker than estimated macroeconomic data from China is reported - Strengthening the case for a persistent economic slowdown of the world's second largest economy, and one of the key trading partners of Indonesia . Or Federal Reserve officials hint at higher US interest rates, then we will see capital out flows from Indonesia.
Compared to the day Jokowi was inaugurated. Indonesia's benchmark Jakarta Composite Index - IHSG - has climbed 6.7 percent from 5,073 points on 20 October 2014 to 5,413 points on 20 October 2016. The rupiah however, has weakened 7.4 percent againest the US dollar over the same time due to looming monetary tightening in the USA.
While many Indonesians were disappointed by Jokowi's performance in the first year, his approval ratings are now shifting to positive territory, primarly due to inflation that has cooled drastically from nearly 10 percent after fuel price reforms in late 2014 to around 3 percent currently.
It will be interesting to see if Jokowi can make it to a second office in 2019 as Indonesian citizens are also becoming more concerned about the threat of home grown terror spreading throughout the region. Overall it can be a very difficult region to govern with over 250 million people living throughout the vast archipelago of Indonesia and one of the most diverse cultures in the world. With many ethnic religious backgrounds to be found in Indonesia of Islam, Hindu and Buddhist faith.
Published by Julian Groom