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Indonesia’s stock market is on a bull run. The rupiah is at its highest level since August 2008 and investors and local businesspeople are increasingly optimistic about the country’s economic outlook.

This virtuous cycle presents a golden opportunity for the government to push ahead aggressively with the reforms needed to take the economy forward. As Finance Minister Sri Mulyani Indrawati noted, 2010 must be the year of removing bottlenecks and roadblocks, and accelerating growth.

The finance minister said the challenge for the government would be to push through reforms, especially in some of the most important institutions such as the police, the Attorney General’s Office and the Supreme Court. This is critical not just for investors and the business community, but also for the nation as a whole.

Removing bottlenecks and roadblocks in sectors such as logistics, licensing and power generation will be crucial for accelerating growth this year. The economy is expected to grow at 6 percent in 2010, but if these crucial reforms are pushed through, growth could be even higher.

Improvements in both market sentiment and business confidence also reflect the easing political tension in the country. Now that the Bank Century bailout investigation is hopefully behind us, it is an opportune moment to refocus on the economy and on creating jobs. We should all now concentrate on working to accelerate growth.

Improving the nation’s infrastructure — vital to support growth — and overhauling the legal system are serious challenges for the government. Both tasks will require careful planning, focus and execution. These tasks cannot be left in the hands of junior government servants, and it is heartening to hear the finance minister say she is back on the job.

If these challenges are overcome, Indonesia also will be better placed to capitalize on growth in other regional markets by participating fully in the Asean-China Free Trade Agreement. If its industries are competitive once again, Indonesia can become a major exporter of both natural resources and manufactured goods, and local industries will not need to fear competition from outside.

The wind is now clearly blowing in Indonesia’s sails. The momentum that is now with the country must be maximized and utilized. The confluence of factors that created this virtuous cycle took nearly a decade to come together. Indonesia now has a great opportunity to reap the dividends of the business-friendly government policies that have been put in place.

The investment community is ready to invest. The stock market is signaling that better times lie ahead as equity markets always move ahead of actual trends. Indonesia is in a sweet spot and it would be criminal if we let this opportunity slip from our grasp. Now is the time to make a real difference for a better tomorrow.