A look ahead to Indonesia’s election

With Joko Widodo around 20%-points ahead of Prabowo Subianto in the latest opinion polls, the result of Wednesday’s presidential election in Indonesia looks like a foregone conclusion. Mainly because he is so far ahead in the polls, a Jokowi victory is presumably already largely priced into markets. As a result, even though investors would probably prefer a second term for Jokowi, we don’t think his re-election will provide much of a boost to financial markets.