Indonesia's Yudhoyono seeks new term to push reforms
07 Jul 2009 20:25:23 GMT Source: Reuters
(For more stories on the election click on [ID:nIDELECT]) * Yudhoyono clear favourite in most opinion polls * Election could dictate pace of reform By Ed Davies JAKARTA, July 8 (Reuters) - Indonesians go to the polls on Wednesday in a presidential election that could dictate the pace of further reform in Southeast Asia's biggest economy and its ability to attract badly needed investment and create jobs. President Susilo Bambang Yudhoyono, a clear favourite in most opinion polls, has sought to leverage off his record of bringing stability to a nation that looked in danger of falling apart after the political and economic turmoil of the late 1990s. He faces a challenge from former president Megawati Sukarnoputri and Vice President Jusuf Kalla, who have adopted a more nationalist tone in their campaigns, with promises to squeeze more from the country's rich resources in order to pay for pro-poor policies. [ID:nIDPRESPOL] "We hope to be able to see the continuation of the reforms that we have already started," Trade Minister Mari Pangestu said in an interview with Reuters on the eve of voting. Yudhoyono had 63 percent support in a recent Indonesian Survey Institute poll, and most polls have put him above 50 percent, which would dispense with a need for a run-off in September. Voting kicks off in Papua in the easternmost part of the sprawling archipelago, and an indication of the result could come from quick counts a few hours after polls close at 0500 GMT. Quick counts have, in the past, proved highly reliable. It is Indonesia's second direct presidential vote since former president Suharto stepped down in 1998 and paved the way for greater democracy. Stocks, bonds and the rupiah have rallied this year on the prospect of a Yudhoyono win, and analysts see them rising further on hopes of a more robust reform drive in his next five-year term, particularly if he wins in one round. "It will make him more confident in forming his own cabinet, he will not be yielding too easily to pressure from coalition parties," said Purbaya Yudhi Sadewa, an economist at the Danareksa Institute. But if there is a surprise and Yudhoyono loses or it goes to a run-off, there is likely to be strong market sell-off. [ID:nJAK463002] Yudhoyono's government has brought political stability, peace, and the best economic performance in a decade. Growth has slowed from 6.1 percent in 2008 and is expected to cool to between 3 and 4 percent this year, but that is still a much better performance than export-dependent neighbours such as Singapore or Thailand. (For an election graphic, click on http://graphics.thomsonreuters.com/RNGS/JUL/INDON.jpg ) The campaign teams of rivals Megawati and Kalla have both aired concerns over widespread irregularities such as duplicate and fictitious names in the electoral roll of 176.3 million voters, but on Tuesday they appeared to back away from earlier suggestions that they could ask for the poll to be delayed. The Constitutional Court also agreed to a call from Kalla and Megawati to allow people to use identity cards to vote. "The candidates almost always allege conspiracies and irregularities, but in fact it's almost always poor management which affects all candidates equally," said Ed Aspinall, an Indonesian expert at the Australian National University. Goldman Sachs said in a report this week that the formation of a credible cabinet was a key factor to watch for after the vote. Former General Yudhoyono, 59, has been criticised in the past for giving key cabinet posts to politicians from coalition parties to ensure their support in parliament, even though these allies had little zeal for reform. Some religious and ethnic minorities in predominantly Muslim Indonesia were also worried that Yudhoyono moved too far to appease Islamic parties in his coalition by pushing an anti-pornography bill and cracking down on a small Islamic sect. But this time around his Democrat Party has about a quarter of the seats after April's parliamentary election, against only 7.5 percent of the vote in 2004. (Additional reporting by Olivia Rondonuwu, Sunanda Creagh, Sara Webb and John Chalmers) (Editing by Jeremy Laurence)
A man rides a bicycle in the haze-shrouded city of Pekanbaru town in Indonesia's Riau province July 5, 2009. Indonesia may experience more severe forest fires this year because of an ...
