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Analysis | G20 Osaka: with US vs China on centre stage, an opportunity for Indonesia’s Widodo

  • While Vietnam has benefited from the trade war between the economic superpowers, Indonesia has been hurt
  • In Osaka, a newly emboldened Widodo has an opportunity to push his economic agenda

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An Indonesian worker cleans the door of a market closed due to protests over the Indonesian election result. Photo: AFP
The decision by Indonesia’s Constitutional Court this week to uphold the result of April’s presidential race comes at a perfect time for President Joko “Jokowi” Widodo.
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Its rejection of claims by losing candidate Prabowo Subianto that the vote was marred by “structured, systematic and massive” electoral fraud sends both a message that Indonesia remains committed to democracy and the rule of law and a positive signal to markets after a long and sometimes-controversial election process.
It also boosts Widodo’s legitimacy as leader of the world’s 15th-largest economy just as he meets other global leaders in Osaka for the G20 summit this weekend.

The meeting offers an opportunity for Widodo to pursue opportunities in trade, investment and infrastructure development, in line with the country’s aim of growing from being the 15th-largest economy in the world to the seventh by next year – in line with a 2012 McKinsey projection.

To meet this goal, the country must grow faster, which means attracting more international investment – not an easy task amid an unpredictable global economy and rising protectionism.

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