GOODBYE MEGA

The coalition of crooks, fools and Islamists have failed to secure Megawati Sukarnoputri's re-election as president. According to early vote counts and exit-vote projections, Susilo Bambang Yudhoyono (SBY) has captured about 60% of the vote in a run-off election.

SBY is a bit of an unknown quantity, but it is believed that he will be tougher on security and generally more competent than Megawati (a pretty easy task). As Bloomberg's William Pesek argued:

Megawati's government simply hasn't gotten far enough below the surface and confronted the myriad problems undermining progress. She has failed to establish a long-term development blueprint that includes a strategy to achieve more even and equitable growth....

Unless Indonesia builds on its current stability, it risks further impoverishment and rural antipathy - the dynamics that create space for the Ali Imrons (Bali Bomber) of the world to create mischief. Police blame the Bali bombing on Jemaah Islamiyah, a Southeast Asian group linked to Al Qaeda.

Political stability is important, but good corporate governance, legal certainty and strong homeland security are what keep investors engaged in an economy.

Indonesia has a way to go on all these fronts and Megawati needs to answer for that. While no one knows if Yudhoyono will be an effective leader, it is clear that Megawati is not.

Mega did nothing to impress me during her time in office. The best that could be said about her administration was that it replaced the unbelievably incompetent and erratic administration of Abdurrahman Wahid. While Mega's administration made little progress in tackling Indonesia's problems, it did bring relative stability. I'm hoping that SBY can do much better.

But even if SBY can't deliver, Indonesia's first peaceful, free and fair presidential election remains something to be praised. It's still the most lax nation in the region on security issues and it is still one of the most corrupt countries on the planet. However this is a country that was under the boot of Suharto less than eight years ago, so the speed in which it has made the transition to democracy is truly impressive.

If a country as totally screwed up as Indonesia can make a successful and peaceful transition to representative government in such a rapid fashion, there are few excuses for wealthier and more stable nations not to follow suit.

This is a very good day for Asia.