Challenges ahead for new leader
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JAKARTA, Indonesia -- Indonesia's first popularly elected president, Susilo Bambang Yudhoyono, has be sworn in to office Wednesday, amid hopes he can kick-start the republic's ailing economy.
Yudhoyono won a sweeping mandate from Indonesia's 116 million voters by promising faster job growth, a war on the endemic corruption which wracks the nation and a tough stance on homegrown terrorism.
The former general and cabinet minister took the oath of office at the nation's parliament in Jakarta in front of his fellow lawmakers and international leaders, including the prime ministers of Australia, Malaysia and Singapore.
"In the name of God, I swear that as the president of the Republic of Indonesia I will uphold the law and the constitution ... and serve the nation," he told the country's parliament.
An Islamic leader held a copy of Islam's holy book, the Quran, over Yudhoyono's head as he made the oath.
Former President Megawati Sukarnoputri, whom Yudhoyono defeated in the September 20 poll, did not attend the ceremony.
Security forces meanwhile are on high alert following a warning that Islamic militants blamed for the 2002 Bali bombings and last month's suicide attack on the Australian Embassy may launch an attack to coincide with the ceremony.
More than 2,000 police patrolled the parliament building, and roads leading to it. Several armored vehicles were parked in the grounds of the sprawling complex.
The inauguration marks a major step in Indonesia's transition to democracy following the violent and messy six years following the 1998 downfall of the autocratic Suharto, a former general who ruled with an iron fist for 32 years.
After the inauguration, the 55-year-old Yudhoyono is expected to go to the national palace where he will announce his Cabinet.
Yudhoyono has said earlier his Cabinet would mostly comprise professionals, unlike previous governments that drew heavily from Indonesia's major political parties, hindering cohesion and sparking division.
Yudhoyono holds a doctorate in economics from the prestigious Bogor Institute of Agriculture, and it will be economic challenges that could prove his first major test after taking office.
Indonesia -- the world's most populous Muslin nation -- is Southeast Asia's largest economy, but it has struggled in recent years with chronic unemployment and underemployment, as high as 40 percent.
While the former general is seen as a strong, decisive and capable leader, his victory was also driven by the electorate's dissatisfaction with his predecessor Megawati's performance over the last three years.
While a lot had to be done, the new leader was sending the right type of messages about achieving economic growth and reform, Indonesia watcher Ray Jovanovich from Credit Agricole Asset Management told CNN Wednesday.
Changing the nation's atmosphere on corruption would be vital, Jovanovich said, adding that the strength of Yudhoyono's personal mandate should make an early impact on driving reform.
But Yudhoyono will face problems pushing through reforms against deeply entrenched vested interests in the business, government and legal elite.
Moreover, his tiny Democratic Party only holds 10 percent of the seats in parliament, and his opponents could easily block new legislation.
"I think he will probably try to do some bold decisions early in his tenure when he has his honeymoon period, but I think the half-life of his honeymoon is not going to be very long," Ken Conboy, a risk management consultant in Jakarta, told Reuters.
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Associated Press contributed to this report.
