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JAKARTA: President Susilo Bambang Yudhoyono took his oath of office for the second time at the National Assembly Hall in Jakarta on Tuesday.
The 60-year-old former army general is Indonesia's first democratically elected president to return to office.
President Yudhoyono has a new Vice President - economics professor Dr Boediono - who will be replacing businessman Jusuf Kalla. The choice demonstrates his administration's focus over the next five years.
"The people's prosperity will be the top priority. We intend to improve the people's prosperity through economic development based on our competitive edge, management of natural resources and uplifting of the human resources," said Mr Yudhoyono.
"Our economy should have high growth but it should be an inclusive growth, fair and evenly distributed," he added.
President Yudhoyono said the country has made good progress on reforms in the last 10 years, but called on Indonesians not to be complacent.
He said: "The effort to develop good governance and fight corruption has begun to bear fruits, but still needs to be intensified. Poverty has been significantly reduced, but efforts to improve the people's prosperity must be continued."
Among the 1,000 lawmakers and guests who attended the inauguration ceremony were a number of regional leaders from Indonesia's closest neighbours - Singapore, Malaysia and Brunei Darussalam.
To the international community, President Yudhoyono gave a glimpse of what to expect from Indonesia's foreign policy.
"Indonesia is now confronted with a new strategic environment. No country considers Indonesia as enemy. And Indonesia considers no country as enemy. This allows Indonesia to execute an all-direction foreign policy where we have a million friends and zero enemies," said Mr Yudhoyono.
He also added that his administration has prepared plans for its first 100 days, its first year and for the next five years, promising to bring prosperity, democracy and justice to the world's most populated Muslim nation.
Indonesia has seen four presidents since the fall of Suharto in 1998. However, all of them were either forced to step down or did not complete the full five-year term, with the exception of President Yudhoyono.
And now, he is given another five years to lead the country, demonstrating the trust and hope Indonesians have in him.
- CNA/sc
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