Indonesia at crossroads

“INDONESIA is at a crossroads,” was a cliché often heard in 2017. In a year filled with high-octane drama, from the trial of Jakarta’s former governor, Basuki “Ahok” Tjahaja Purnama, to the high-profile e-KTP corruption case involving House of Representatives Speaker Setya Novanto and other officials, the Indonesian people are left wondering what is in store for their country.

Such socio-political concerns, while understandable, are fortunately counteracted by strong and improving economic fundamentals that should propel Indonesia forward. In 2017, President Joko “Jokowi” Widodo’s administration achieved stable 5.1 percent GDP growth. While this number in and of itself is not stunning, other figures are.

Indonesia jumped 19 places on the World Bank’s Ease of Doing Business Index for 2018 to 72 from 91. For the first time since the Asian financial crisis in the late 1990s, Indonesia’s sovereign bonds attained investment grade ratings from all three major credit rating agencies. These statistics and others, including a stable current account deficit of below 2 percent of GDP and a strengthening balance of payments, portray Indonesia’s stable economy.

Elections over the next two years will test Indonesia’s mettle as a pluralistic, tolerant and open democracy. Expectations abound that race and religion will be wielded as political tools, as in this year’s Jakarta gubernatorial election.

Indonesia is indeed at a crossroads. Time will tell if Jokowi’s investment in long-term economic growth will pay off. Time will also tell if Indonesia as a nation will maintain its constitutional adherence to tolerance and remain loyal to the principle of Bhinneka Tunggal Ika, or Unity in Diversity.