Joko Widodo Sworn In as Indonesia's New President

The 53-year-old must make tough decisions to stand a chance of boosting economic growth in Indonesia, a sprawling nation of 250 million people.

Fears that any reforms he tries to enact could be blocked by a hostile opposition led by the Suharto-era general he defeated in July's election have seen the rupiah weaken and stock market fall in recent weeks.

But those thoughts were put aside momentarily Monday when Widodo and his deputy traveled from the parliament building to the presidential palace in an organized public party, the first in the country's history following an inauguration. After a few kilometers, he left his car and took a horse and cart, flashing victory signs and shaking countless hands, AP reported.

"To the fishermen, the workers, the farmers, the merchants, the meatball soup sellers, the hawkers, the drivers, the academics, the laborers, the soldiers, the police, the entrepreneurs and the professionals, I say let us all work hard, together, shoulder to shoulder, because this is a historic moment," Widodo said in his inauguration speech, witnessed by regional leaders and US Secretary of State John Kerry.

Widodo, better known by his nickname of Jokowi, was elected with 53 percent of the vote, with most of his support coming from poor, non-urban Indonesians attracted by his simple demeanor and record of hard work as Jakarta governor.

The son of a furniture maker, he grew up in a rented bamboo shack on the banks of the river Kalianyar in Solo, a town on Java Island, and is the first Indonesian leader not to come from the country's super rich, and often corrupt, political, business and military elite.

"I was moved by Jokowi's inauguration speech this morning, it was so beautiful," said Rukasih Wanti, standing under a blue umbrella with her two kids waiting for the president. "He deserves to get the people's respect and a celebration the likes of which has never happened in the past."

Police estimated that 50,000 people attended the street party. Many more were expected later in the day when Widodo, a heavy metal fan and guitarist, was to attend an open air rock concert headlined by some of the country's biggest bands.

Indonesia is the biggest economy in Southeast Asia, and about 90 percent of its 250 million people are Muslims, more than any other nation. After years of dictatorship, the country was convulsed by political, ethnic and religious unrest in the late 1990s and early 2000s. Since then, it has consolidated its democratic transition. While most of the country remains poor and inequality is rising, it is home to a rapidly expanding middle class.

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 has slowed, and a recovery is being hampered by weak infrastructure, rampant corruption and red tape.