Widodo is putting Indonesia’s business-friendly future on the line

Although far from perfect, 2016 was a productive year for Indonesian President Joko Widodo. His most notable reform, a tax amnesty plan, was a major success, surpassing its year-end collection target 3½ months early.

More significantly, however, the leader who some commentators derided as being too naive to effectively navigate a highly factional government, expanded his coalition to include nearly 70 per cent of parliament.

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With the new support of the second- and fifth-largest political parties, Widodo’s “Great Indonesia Coalition” begins 2017 with a legislative majority more than capable of passing a comprehensive slate of economic reforms. Ironically, the only impediment to that goal is the president himself, who seems to have forgotten his region’s history.

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Perhaps still caught up in the appeasement involved in coalition-building in a Muslim-majority country, Widodo has distanced himself from Purnama, and inched closer to the conservative factions calling for his conviction. On December 2, the president took to the stage in Jakarta’s Central Park in front of half a million protesters – alongside hardline clerics that he had up to then strenuously avoided – to join in prayer.

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Widodo has also explicitly clarified that he “will not protect Ahok”, in speeches before major Islamic organisations. In openly siding with the Islamists, Widodo risks sacrificing Indonesia’s long-term growth for his own short-term political gains, and jeopardising the unique legislative opportunity to finally recast his nation in a business-friendly light. He need only look to his northern neighbour to see the folly of his actions, and the misfortune that could result.