The results of the Indonesian legislative election were released on April 9, 2014. Following the quick count results, there is a possibility of a fragmented government. However, the current situation did not suppress the fears of investors who are hoping for an effective, as well as united government.

Australia's PM Rudd holds a joint news conference with Indonesia's President Yudhoyono in Canberra

If there is no solid coalition, rival parties at the House of Representatives in the country are likely to be distracted by in-house quarrels. The Citigroup Country Manager, Tigor Siahaan said during a seminar on April 16, 2014, “If the composition of the House is as fragmented as the quick count results predict, this might cause problems”.

The manager went on to say that a strong government is needed in the country in order to fix problems of the nation to avoid the ‘middle income trap’. It is important for the new administration to cooperate with business people as well as political parties. The preliminary elections have hinted that about ten political parties will be able to secure seats at the House.

Tigor also said that the government is likely to take more time in order to find a solution for the nation’s problems. The Citigroup Asia Pacific Managing Director Johanna Chua also attended the seminar and said that the market is anxious as they are expecting the election result to produce a solid government.

Photo Credits: Lowy interpreter