T

he inauguration was beautiful. Beyonce sang the national anthem and Michelle Obama showed off her new bangs. Obama did not mess up his oath like he did in 2009 and the struggle for reelection — a struggle lasting about two years, ended in a 32-second swearing in, which took place in the Blue Room of the White House.

Most of us watched with different emotions, views and concerns. As the new leader of the free world was being inaugurated, the most important question we should have been asking ourselves was this: What was in it for us Indonesians?

Indonesians should refrain from only focusing on the emotional connection Obama has with us and should start realizing that Obama’s policies have been very beneficial for Indonesians.

We must utilize his second term to the full. The US is a very important partner for Indonesia.

It is Indonesia’s third-biggest market for non-oil and gas exports, after Japan and China.

Indonesia shipped US$11.08 billion of such products globally in the January-September period. In terms of foreign investment, the US is the fifth biggest in Indonesia, with actual investment recorded at $700 million in the January-September 2012 period.

The US is also Indonesia’s fourth-biggest trading partner after Japan, China and Singapore.

The Indonesian market reacted positively on the day Barack Obama was declared winner of last year’s presidential election. The Jakarta Composite Index (JCI) rose 0.65 percent to 4,341 points.

However, it is also important to note that Obama’s unfavorable policies toward the coal industry — through heavy handed Environmental Protection Agency regulations — may have negative spillover effects. We also need to remember that the US is facing a budget deficit of almost 9 percent, which might cause a decrease in the rates of Indonesian exports.

Obama is also predicted to increase tax for the high earners, including investors, to spur economic growth. Experts say that this will further slow the US economy and that it could very well negatively affect our trade with the US.

It is also possible that Obama might reduce state expenditure by putting pressure on import demands from other countries, especially China. This could also slow down China’s economy and ultimately affect us.

However, it will be interesting to see the continuation of the much talked about “pivot” from the Middle East to Asia, which the Obama administration has been conducting for the past few years, and also to see what it truly delivers to the region and especially to Indonesia.

We must applaud our Indonesian diplomats in achieving the milestone in diplomatic relations between the two countries in the form of the signing of the Global Comprehensive Partnership in 2009.

Through this framework, we have signed many agreements including a science and technology cooperation agreement, an Overseas Investment Corporation agreement, a defense cooperation framework agreement, the return of the Peace Corps to Indonesia, and renewed contact with Indonesia’s special forces. However, it is important to closely observe these increased bilateral relations because we need to determine whether they bring real progress to the sectors being developed for cooperation.

Some observers say that these bilateral relations are mostly front-loaded, so the end results must be watched closely.

Obama is the first US president since Dwight D. Eisenhower to be reelected for his second term with more than 51 percent of the vote in two consecutive elections. This will reflect on how he governs.

As he has shown through his speeches on gun control, the fiscal cliff and the debt ceiling, he has indicated that he will seize his second term and govern boldly. This includes his continued engagement with the Asia-Pacific region, especially Indonesia, and it is up to us to accept this invitation and utilize it to our benefit.

The writer is a lecturer at the faculty of law at the University of Indonesia and is also a Jakarta-based lawyer.