Some religious and ethnic minorities in predominantly Muslim Indonesia fear Dr Yudhoyono's alliance with the Islamist Prosperous Justice Party (PKS) could undermine a tradition of tolerance. However, analysts say the PKS, which takes a tough line on graft, could be an important ally in pushing reform more aggressively.
'He will be a much more decisive leader because he's got a lot more confidence,' said Mr Gita Wirjawan, a Jakarta-based banker who now runs an energy-focused investment fund and who previously served on committees advising Yudhoyono.
'He's likely to have a much more technocratic cabinet. He will make sure his cabinet is filled up with people who know what to do, and you will see him really wanting to leave a very good legacy,' Mr Wirjawan said.
His team of reformers include Finance Minister Sri Mulyani Indrawati, nominated to head the central bank, and other relatively young technocrats, bankers, and academics.
Indonesia, which a decade ago was the sick man of Asia and appeared on the verge of disintegrating, has achieved relative political stability, domestic security, and strong economic growth in the past five years. GDP growth is expected to hit 3-4 per cent this year, from 6.1 per cent in 2008.
Today, some analysts see Indonesia as on the brink of realising its economic potential, even one day joining the elite, or BRIC economies of Brazil, Russia, India and China.
'The 2009 election results suggest continued stability in this democratic political framework and is a critical factor in unleashingIndonesia's growth potential, in our view,' said investment bank Morgan Stanley in a report in June subtitled 'Indonesia, adding another I to the BRIC story?'
Indonesia's powerful anti-corruption agency, or KPK, has already made some progress in tackling the endemic graft which plagues many national institutions, deterring foreign investment and curbing economic growth and development.
'That's one of the main reasons for his (Dr Yudhoyono's) popularity, and I don't see any reason why he couldn't hammer corruption harder,' in a second term, said Mr Richard Robison, emeritus professor at Murdoch University, in Perth, Australia.
That means ensuring the work of the KPK and corruption court continues and big fish - including politicians and tycoons who have so far proved untouchable - do not escape prosecution.
The clean-up also also has to target tainted institutions such as the police, bureaucracy, parliament, and the courts.
Foreign investors cite stringent labour laws and red tape as deterrents, especially in the manufacturing sector.
Legal uncertainty and shrill nationalism over the mining and energy sectors must be addressed, especially after Indonesia missed out on the commodity boom driven by Chinese and Indian demand for resources such as copper, gold, tin, coal and gas.
The failure to attract billions of dollars of investment has taken a serious toll on the country. Infrastructure in many parts is in a dire state, from potholed roads to dilapidated ferries and inefficient power networks.
Ordinary Indonesians berate their public health and education services. Those who can afford to get medical treatment or an education overseas do so: those who can't are increasingly resentful of a social contract where they receive such poor services in return for their taxes.
'This is his last term. He can clean up the bureaucracy and put in good governance,' said Mr Robison.
'But what he has to do is identify someone to take over from him and bring them forward' to ensure his legacy lasts. -- REUTERS