Joko Widodo inaugurated as Indonesian president

Joko Widodo waves ahead of his swearing in as Indonesia's seventh president at Parliament in Jakarta, Indonesia, Monday, Oct. 20, 2014. AP/Mark Baker

JAKARTA, Indonesia — Joko "Jokowi" Widodo was inaugurated as Indonesia's new president on Monday, facing the challenges of rebooting a slowing economy and working with a potentially hostile opposition that has already landed some blows against his administration.

Widodo, the first Indonesian president not to come from the ranks of the country's established political, business and military elite, took the oath of office in a ceremony at the parliament in the capital, Jakarta, attended by regional leaders and U.S. Secretary of State John Kerry.

A former furniture salesman, the 53-year-old Widodo rose from humble beginnings to become Jakarta's governor before winning July's election with 53 percent of the vote.

Outgoing President Susilo Bambang Yudhoyono's two terms in office saw democratic consolidation and a focused fight against Islamist militancy. But economic growth on the back of a commodities boom is now slowing, and a recovery is being hampered by weak infrastructure, rampant corruption and red tape.

Economists say Widodo must soon make a decision on how much to cut subsidies on fuel that unless trimmed will cost the government a budget-busting $30 billion-plus this year. The move will likely stoke protests from political opponents and could trigger street demonstrations.

He can also expect resistance from opposition parties still smarting from the defeat of their candidate, a wealthy general with close ties to the country's former dictator Suharto. The coalition against him has already captured most of the important positions in the parliament and last month voted to end direct regional elections, a key plank of the country's democratic transition since Suharto was ousted in 1998.

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