International investors breathed a sigh of relief when early results suggested that Indonesian President Joko Widodo had won the April 17 presidential election. Although final results will not be released until late May, few are convinced by claims of electoral fraud made by Prabowo Subianto, his hot-tempered rival.
For investors, a win for Prabowo would have meant more protectionism and less predictability, while another five years of Widodo looked more like business as usual, with steady if unspectacular growth seemingly set to continue. Such complacency could prove misplaced, however. The economic risks facing Indonesia are high, and with political polarization rising, Widodo's second term will be crucial to shaping Indonesia's future.
