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The Economic Challenges Facing Indonesia as Voters Head to Polls
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What Jokowi's Second Term in Indonesia Means for the Economy
With Indonesian President Joko Widodo on course to win a second term as leader, the political uncertainty that’s weighed on the economy this year will be lifted. Unofficial counts from Wednesday’s election shows Jokowi -- as the president is known -- defeating Prabowo Subianto for a second time by a comfortable margin. If that’s confirmed by the official results due in May, it gives Jokowi another five years to build on his solid performance: the economy is set to grow more than 5 percent this year, inflation is under control and the currency has stabilized after last year’s sell-off.
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The Economic Challenges Facing Indonesia as Voters Head to Polls
The eventual winner -- the incumbent President Joko Widodo or former general Prabowo Subianto -- will face significant challenges in steering Southeast Asia’s biggest economy. Widodo is making a big infrastructure push and raising social welfare spending, while his challenger is promising tax cuts and import curbs to spur domestic industries. Economic growth has averaged about 5 percent a year since Jokowi, as the president is known, took office in 2014, well short of the 7 percent he targeted in his first term.
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