Indonesia inaugurated its new president on Monday, and analysts told CNBC Joko 'Jokowi' Widodo will have to act fast to turnaround conditions in the struggling economy.
The reforms-focused leader has a tough job ahead of him, as the country faces one of the worst income inequality gaps on record, growing concerns about corruption and a burgeoning current account deficit.
"They really need to get their act together at this point," said Medha Samant, investment director, Fidelity Worldwide Investment, adding that Jokowi needs to act fast on two objectives.
"Firstly, we need to see the formation of a strong cabinet – a good mixture of technocrats and professionals that would strengthen Jokowi's election manifesto," she said.
Secondly, Samant noted the pressing need for Jokowi to cut the fuel subsidy by around 45 percent, a move widely speculated could come within the first two weeks of his term.
Indonesia enjoys among the cheapest fuel in Southeast Asia, thanks to subsidies which cost the government around a fifth of its state budget. A cut in the subsidies could save Indonesia $13 billion next year, according to Reuters, which Jokowi hopes to redirect to other parts of the economy in desperate need for funds, like infrastructure, health care and education.