Indonesia president's party leads vote, eyes coalition
09 Apr 2009 15:48:13 GMT Source: Reuters
(For full coverage of the elections click on [ID:nIDELECT]) * President says will seek coalition partners soon * Quick count puts Democrat Party in lead, but not by much * 170 million people eligible to vote * Economy, jobs and corruption were key issues * Five people die in election-related violence in Papua By Muklis Ali and Sunanda Creagh JAKARTA, April 9 (Reuters) - Indonesia's president said he would seek coalition partners after early results from elections on Thursday showed his party ahead but not by as much as expected, jeopardising the chance of sweeping reform. A quick count of votes gave the Democrat Party of President Susilo Bambang Yudhoyono, a reform-minded former general who has won praise for his solid leadership of Indonesia, about one fifth of the parliamentary vote. That means his party will have to rely on coalition partners in parliament, reducing the prospects for major economic reforms in Southeast Asia's biggest economy, analysts said. [ID:nJAK497271] [ID:nJAK478708] "We offer a partnership in the next government and of course a healthy, more healthy, relationship between the government and parliament," Yudhoyono told a news conference at his home in Bogor, near the capital Jakarta. "A lot more can be achieved in the next five years." The Democrats, which have led in most opinion polls, were ahead of PDI-P with about 15 percent and Golkar with 14 percent, based on about 90 percent of the quick count vote sample by the widely followed polling agency LSI. Official results are not expected for days, but they are not likely to differ much. Yudhoyono, 59, is expected to win a second term in the more important presidential election on July 8. But political parties will now start talking to possible coalition partners for parliament -- where reforms can be stifled -- and Yudhoyono's choice of ally or allies will determine the extent to which he can improve the judiciary and the civil service as well as clamp down on endemic corruption. "DISAPPOINTING PERFORMANCE" Yudhoyono could either continue with his current coalition partner Golkar, the long-time political vehicle for Suharto, the country's late autocratic ruler, or turn to one or two of the small Islamic parties instead. He has pushed reform in a bid to attract much-needed foreign investment, whereas analysts say parties such as the PDI-P of former President Megawati Sukarnoputri and Golkar have shown less appetite for attacking vested interests. "It's a very disappointing performance for the Democrat Party at this stage," said Kevin O'Rourke, a political risk analyst, noting earlier expectations it would win close to 30 percent. "Yudhoyono is going to have to rely on other parties as allies and this could mean another slow five years for institutional reform," he said. "Yudhoyono is probably most likely to make practical alliances in the next parliament, allying with Golkar on market-oriented issues, but allowing the Islamic-oriented parties to influence institutional reform issues." The Democrat Party won only 7.5 percent of the votes in the last parliamentary election in 2004, the first time it competed. A party or coalition needs to get 25 percent of the national votes or a fifth of the total seats in parliament in order to field a candidate for the July 8 presidential vote. ELECTIONS A LOGISTICAL CHALLENGE The elections, a massive exercise in democracy with more than 170 million eligible voters, were marred by overnight violence in which five people died in the eastern province of Papua. The ballot has faced logistical problems ranging from incorrect voter rolls to confusion over new voting procedures, but the economy, jobs and corruption were among the top issues. Yudhoyono said voting had gone well overall in the world's third-biggest democracy. "From what we observed and what was reported to me, this election proceeded relatively smoothly. There were some security problems, especially in Papua, but those things can be overcome," he said. Local financial markets were closed, but Indonesia's five-year CDS spread was quoted steady at 510 basis points <IDGV5YUSAC=MP>, although markets were very quiet ahead of a holiday weekend. Investors were awaiting the full results, but the CDS spread is at its tightest in five months, reflecting a general improvement in credit markets and risk appetite as well as reduced worries about Jakarta's ability to raise funds this year. "Hopefully all this can bring better times for Indonesia, no more corruption," said Muhammad Zakaria, 18, a first-time voter in Jakarta. Thirty-eight parties contested the elections, but opinion polls had suggested only three would end up with major blocs of votes -- the Democrats, PDI-P and Golkar. Smaller parties, including many Islamic ones, could end up as kingmakers to form coalitions ahead of the presidential poll. Yudhoyono, who has an approval rating of 45-52 percent, according to recent opinion polls, was Indonesia's first directly elected president and the first to serve a full five-year term since Suharto was forced to step down in 1998. His administration has delivered stronger economic growth and brought relative peace and stability to the world's most populous Muslim nation, which also has sizeable religious minorities. But tackling endemic graft in one of the world's most corrupt nations has proved far tougher. (Additional reporting by Dwi Oblo in YOGYKARTA, Reza Munawir in BANDA ACEH, Oka Barta Daud in JAYAPURA, Olivia Rondonuwu and Telly Nathalia in JAKARTA, and Rafael Nam in HONG KONG; Writing by Ed Davies and Sara Webb; Editing by Dean Yates)
Plainclothes police examine the body of a man who died in an attack on a police post in Jayapura, Indonesia's Papua province April 9, 2009. Indonesia's Papua province was hit by ...
