The trouble-free elections gave a boost to the economic outlook

ndonesia’s first democratically-elected president is more than a politician with a strong popular mandate. He is a scholar and a former soldier.

Popularly known by his initials, SBY, Susilo Bambang Yudhoyono is a 55-year-old former four-star general. As Coordinating Minister for Political, Security and Social Affairs at the time of the 2002 Bali bombing, he won popularity for his determination in fighting the war on terror and tracking down the culprits. Yet he also earned his PhD in Economics just a few days before taking office.

The son of a retired army lieutenant, he graduated from the Indonesian military academy in 1973. His military career took him to East Timor but he also served as an observer in Bosnia and held important territorial commands in Sumatra and Jakarta. As Chief of the Armed Forces in 1997, he won the epithet “the thinking general” from the media, yet Mr. Yudhoyono was never part of the inner circle of military and political power.

He was awarded four-star rank only on retiring from the army in 2000. President Abdurrahman Wahid appointed him Coordinating Minister for Political, Security and Social Affairs, and in that capacity he presided over reforms of the military including its withdrawal from politics.

As a Minister he took some brave positions, admitting that Indonesia had home-grown terrorists when many of his colleagues denied it, and arguing for talks with the separatists in Aceh province at a time when most politicians were agitating for war.

President Wahid, facing the threat of impeachment in April 2001, requested Mr. Yudhoyono to declare a state of emergency and dismissed him from government when he refused. This crisis may have lost the former general his job, but it confirmed him as a man of principle in the eyes of the people. When President Megawati Soekarnoputri took office in September that year, she immediately reappointed him as Coordinating Minister for Political, Security and Social Affairs.

The powerful speech he gave on the first anniversary of the Bali terrorist attack proved he was capable both of decisive action and of showing consideration.
In 1980, he studied at Webster University in St. Louis where he received an MA in Management. Recently, he defended his dissertation in agricultural economics at Bogor Institute and was awarded his PhD on October 3, two days before his presidential victory was announced.

He won the October elections with 60.8% of the popular vote. 100 million Indonesians voted in elections, which confirmed the country’s transition from authoritarian state to lively democracy in just six years.

His victory was interpreted as strengthening democracy in the country and has raised hopes among the public for action on issues ranging from terrorism and corruption to the economy. On becoming Indonesia’s sixth president but its first directly-elected leader, Mr. Yudhoyono promised to uphold democratic principles, but at the same time he pledged to use firm measures to confront instability, insurrection, and international terrorism.

His election-winning manifesto, published in a “blue book” during the campaign, was built on four pillars: prosperity, peace, justice and democracy. Top of his agenda was a plan for increasing economic prosperity, targeting economic growth of at least 7% and a revival of small and medium-sized enterprises. He also put forward policies to offer better credit lines, to cut red tape, improve labor laws and to root out corruption from the top down.

Susilo Bambang Yudhoyono President of Indonesia

He also proposed a vision for improving the political stability of Indonesia, with a promise to end armed separatist movements in Aceh and Papua. “We need to balance liberty with security. What is the point of having democracy if there is no stability?” asked the new president.

After taking his oath of office, President Yudhoyono told the people: “We have to remember that we will have to weather a difficult period and face heavy challenges. All these complex and difficult problems of our nation cannot possibly be overcome in 100 days, with a flick of the wrist.”

Mr. Yudhoyono later spoke to a gathering of business leaders in Jakarta. He promised stronger economic growth and said he would take measures to increase the level of legal certainty. This is one of the main demands of foreign investors.

“I am convinced that the next five years will be a beautiful period if we can work together,” he said. “We have to think big if we want to become a big nation.”
The new President swore in his cabinet, who are mostly established professionals and business-sector friendly officials, on October 21 at the State Palace. In his first cabinet meeting he urged his ministers to prepare more rigorous anti-graft programs. He then met with the country’s 33 provincial governors in the Presidential Palace and asked them to try to live up to people’s expectations and to regularly communicate with their constituents.

Mr. Yudhoyono has set out to represent the whole of his country. He has said he will meet laborers, farmers and fishermen and find out the real problems within the country. He also promised to meet people in conflict areas.

He described the period after the election as “a time of conciliation,” and said, “We have to be more united to face our national challenge to build a better Indonesia. I ask all political elites to continue our reforms to secure our democracy.”

One of the biggest challenges facing the new president will be meeting people’s expectations, while achieving essential reforms. One of his most powerful messages to the electorate was that he understood what people felt. He also reminded them: “Change is necessary because if we continue like this, Indonesia will descend into decay.”