Indonesia is the only country with which Papua New Guinea has a land border. This week, it elected a new President. So, just who is Joko Widodo, and what kind of neighbour will Indonesia be under his leadership? Business Advantage PNG‘s Jakarta correspondent reports.

Indonesia’s President-elect, Joko Widodo

Much optimism has greeted the election of Indonesia’s new president, Joko Widodo.

Financial markets boosted the value of Indonesian stocks and its currency the rupiah, because he is seen as free of the corruption which acts as a handbrake on Indonesia’s economy.

And a number of foreign embassies, including that of the United States, breathed a sigh of relief that they would not need to deal with his rival, Prabowo Subianto,  who is persona non grata in the United States due to historical human rights violations.

Lowly beginnings

Joko Widodo, known as ‘Jokowi’, was raised in a riverbank squat by his poor parents but, through hard work at school, won a place at the respected Gadjah Mada University in Yogyakarta.

He made his career as a furniture manufacturer and exporter. His personal wealth is valued at US$2.5 million (K6 million).

What we know little about yet is how Jokowi might run the country and its relations with neighbours.

Experience

Until now, his political experience has been confined to local government, firstly as the mayor of Solo (from 2005 to 2012) and then as governor of Jakarta (2012 to the present). In those jobs, he was elected to make Indonesia’s tangled business regulations simpler, and to boost infrastructure. He made strides in both.

In style, he was famous for spending more time out of the office than inside it, talking to ordinary people about their problems and how to solve them; inspecting public works; and harassing or sacking indolent or corrupt public officials.

How this will translate to the national and international stage, we do not know.

He is also likely to try to strengthen the quality of the courts, whose corruption often makes it difficult for international companies arguing for fairness in contract disputes with Indonesian partners.

During the campaign he repeated fairly mainstream (for Indonesia) protectionist positions on international issues such as the desire for territorial integrity, resource sovereignty and food self-sufficiency.

Restrictions

However, Jokowi, an international trader himself, could be expected to ease some of the restrictions, regulations and corruption that make trading with Indonesia complex, and which have helped transform it from a hot international investment destination to a lukewarm one in the past two years.

He is also likely to try to strengthen the quality of the courts, whose corruption often makes it difficult for international companies arguing for fairness in contract disputes with Indonesian partners.

During the campaign, Jokowi went twice to the separatist provinces of Papua and West Papua (formerly known as Irian Jaya), which share a land border with Papua New Guinea, and was well greeted. He won those provinces convincingly.

He made his career as a furniture manufacturer and exporter. His personal wealth is valued at US$2.5 million (K6 million).

Indonesia’s relations with PNG have recently improved: Air Niugini re-commenced flights there last year, and at the border, cooperation has improved as the Indonesian government under outgoing president Susilo Bambang Yudhoyono’s ‘special autonomy plus’ policy seeking greater economic development in the region.

There is no reason to believe Jokowi will have a radically different economic policy for West Papua, particularly since his vice-president, Jusuf Kalla, helped design it as SBY’s deputy between 2004 and 2009.

‘Indonesia’s relations with PNG have recently improved: Air Niugini re-commenced flights there last year, and at the border, cooperation has improved’

However, activists in Jayapura and the troubled highlands hope Jokowi may give more ground on political issues—particularly the freedom of political expression.

About 60 Papuans are currently imprisoned for offences such as illegally hoisting the Morning Star flag.

Freeport deal to be renegotiated

The other big economic issue in West Papua is the gigantic Freeport McMoran gold and copper mine near Timika.

The mine’s Contract of Works—the law governing it—is up for renegotiation, and Indonesia can expect to try to extract concessions, including some domestic processing of ore from the mine, which is a sore point in the country’s body politic.

Freeport is already the country’s biggest taxpayer, underlining the importance of that renegotiation for Indonesia’s future.