The WSJ reports,"the splintered parliament and the coalition government likely to result from Indonesia's legislative elections this week dim chances for quick and sweeping reforms of Southeast Asia's largest economy.
Several key actions are at risk: the opening up industries to foreign investment, instituting labor reforms and rolling back budget-breaking subsidies that have long made Indonesian fuel prices some of the cheapest in the region.
"The next government of Indonesia will be another weak coalition like the existing" one, Bill Sullivan, a legal adviser for major mining companies, said Friday. It "is bad news for the mining sector in general and for foreign investors in the mining sector, in particular."
Investors have been critical of President Susilo Bambang Yudhoyono, who steps down this year after having reached his statutory two-term limit, and his unwieldy coalition of six parties as well as his placement of political figures rather than technocrats in important posts.
The new legislative picture is no less complex. According to early counts of a sampling of ballots, 10 parties earned seats in parliament in Wednesday's election, up from the present nine. Official results won't be available until May, but preliminary tallies in the past have proven to be reliable indicators.
