The Dutch began to colonize Indonesia in the early 17th century; Japan occupied the islands from 1942 to 1945. Indonesia declared its independence after Japan's surrender, but it required four years of intermittent negotiations, recurring hostilities, and UN mediation before the Netherlands agreed to transfer sovereignty in 1949. Free and fair legislative elections took place in 1999 after decades of repressive rule. Indonesia is now the world's third most populous democracy, the world's largest archipelagic state, and home to the world's largest Muslim population. Current issues include: alleviating poverty, improving education, preventing terrorism, consolidating democracy after four decades of authoritarianism, implementing economic and financial reforms, stemming corruption, holding the military and police accountable for human rights violations, addressing climate change, and controlling infectious diseases, particularly those of global and regional importance. In 2005, Indonesia reached a historic peace agreement with armed separatists in Aceh, which led to democratic elections in Aceh in December 2006. Indonesia continues to face low intensity armed resistance by the separatist Free Papua Movement.

Southeastern Asia, archipelago between the Indian Ocean and the Pacific Ocean

5 00 S, 120 00 E

Southeast Asia

slightly less than three times the size of Texas

54,716 km

measured from claimed archipelagic straight baselines

tropical; hot, humid; more moderate in highlands

mostly coastal lowlands; larger islands have interior mountains

petroleum, tin, natural gas, nickel, timber, bauxite, copper, fertile soils, coal, gold, silver

67,220 sq km (2008)

2,838 cu km (1999)

occasional floods; severe droughts; tsunamis; earthquakes; volcanoes; forest fires

deforestation; water pollution from industrial wastes, sewage; air pollution in urban areas; smoke and haze from forest fires

archipelago of 17,508 islands (6,000 inhabited); straddles equator; strategic location astride or along major sea lanes from Indian Ocean to Pacific Ocean

245,613,043 (July 2011 est.)

1.069% (2011 est.)

18.1 births/1,000 population (2011 est.)

6.26 deaths/1,000 population (July 2011 est.)

-1.15 migrant(s)/1,000 population (2011 est.)

JAKARTA (capital) 9.121 million; Surabaya 2.509 million; Bandung 2.412 million; Medan 2.131 million; Semarang 1.296 million (2009)

2.25 children born/woman (2011 est.)

0.2% (2009 est.)

310,000 (2009 est.)

8,300 (2009 est.)

urban: 89% of population

rural: 71% of population

total: 80% of population

urban: 11% of population

rural: 29% of population

total: 20% of population (2008)

urban: 67% of population

rural: 36% of population

total: 52% of population

urban: 33% of population

rural: 64% of population

total: 48% of population (2008)

Javanese 40.6%, Sundanese 15%, Madurese 3.3%, Minangkabau 2.7%, Betawi 2.4%, Bugis 2.4%, Banten 2%, Banjar 1.7%, other or unspecified 29.9% (2000 census)

Muslim 86.1%, Protestant 5.7%, Roman Catholic 3%, Hindu 1.8%, other or unspecified 3.4% (2000 census)

Bahasa Indonesia (official, modified form of Malay), English, Dutch, local dialects (of which the most widely spoken is Javanese)

2.8% of GDP (2008)

republic

30 provinces (provinsi-provinsi, singular - provinsi), 2 special regions* (daerah-daerah istimewa, singular - daerah istimewa), and 1 special capital city district** (daerah khusus ibukota); Aceh*, Bali, Banten, Bengkulu, Gorontalo, Jakarta Raya**, Jambi, Jawa Barat (West Java), Jawa Tengah (Central Java), Jawa Timur (East Java), Kalimantan Barat (West Kalimantan), Kalimantan Selatan (South Kalimantan), Kalimantan Tengah (Central Kalimantan), Kalimantan Timur (East Kalimantan), Kepulauan Bangka Belitung (Bangka Belitung Islands), Kepulauan Riau (Riau Islands), Lampung, Maluku, Maluku Utara (North Maluku), Nusa Tenggara Barat (West Nusa Tenggara), Nusa Tenggara Timur (East Nusa Tenggara), Papua, Papua Barat (West Papua), Riau, Sulawesi Barat (West Sulawesi), Sulawesi Selatan (South Sulawesi), Sulawesi Tengah (Central Sulawesi), Sulawesi Tenggara (Southeast Sulawesi), Sulawesi Utara (North Sulawesi), Sumatera Barat (West Sumatra), Sumatera Selatan (South Sumatra), Sumatera Utara (North Sumatra), Yogyakarta*

17 August 1945 (declared); 27 December 1949 (recognized by the Netherlands); note - in August 2005 the Netherlands announced that it had recognized de facto Indonesian independence on 17 August 1945

Independence Day, 17 August (1945)

August 1945; abrogated by Federal Constitution of 1949 and Provisional Constitution of 1950, restored 5 July 1959; series of amendments concluded in 2002

civil law system based on the Roman-Dutch model and influenced by customary law

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

17 years of age; universal and married persons regardless of age

People's Consultative Assembly (Majelis Permusyawaratan Rakyat or MPR) is the upper house; it consists of members of the DPR and DPD and has role in inaugurating and impeaching the president and in amending the constitution but does not formulate national policy; House of Representatives or Dewan Perwakilan Rakyat (DPR) (560 seats, members elected to serve five-year terms), formulates and passes legislation at the national level; House of Regional Representatives (Dewan Perwakilan Daerah or DPD), constitutionally mandated role includes providing legislative input to DPR on issues affecting regions (132 members, four from each of Indonesia's 30 provinces, two special regions, and one special capital city district)

Supreme Court or Mahkamah Agung is the final court of appeal but does not have the power of judicial review (justices are appointed by the president from a list of candidates selected by the legislature); in March 2004 the Supreme Court assumed administrative and financial responsibility for the lower court system from the Ministry of Justice and Human Rights; Constitutional Court or Mahkamah Konstitusi (invested by the president on 16 August 2003) has the power of judicial review, jurisdiction over the results of a general election, and reviews actions to dismiss a president from office; Labor Court under supervision of Supreme Court began functioning in January 2006; the Anti-Corruption Court has jurisdiction over corruption cases brought by the independent Corruption Eradication Commission

Democrat Party or PD [Anas URANINGRUM]; Functional Groups Party or GOLKAR [Aburizal BAKRIE]; Great Indonesia Movement Party or GERINDRA [SUHARDI]; Indonesia Democratic Party-Struggle or PDI-P [MEGAWATI Sukarnoputri]; National Awakening Party or PKB [Muhaiman ISKANDAR]; National Mandate Party or PAN [Hatta RAJASA]; People's Conscience Party or HANURA [WIRANTO]; Prosperous Justice Party or PKS [Luthfi Hasan ISHAQ]; United Development Party or PPP [Suryadharma ALI]

Commission for the "Disappeared" and Victims of Violence or KontraS; Indonesia Corruption Watch or ICW; Indonesian Forum for the Environment or WALHI; Islamic Defenders Front or FPI; People's Democracy Fortress or Bendera

ADB, APEC, ARF, ASEAN, BIS, CICA (observer), CP, D-8, EAS, FAO, G-11, G-15, G-20, G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM (observer), IPU, ISO, ITSO, ITU, ITUC, MIGA, MONUSCO, NAM, OIC, OPCW, PIF (partner), UN, UNAMID, UNCTAD, UNESCO, UNIDO, UNIFIL, UNMIL, UNMIS, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO

two equal horizontal bands of red (top) and white; the colors derive from the banner of the Majapahit Empire of the 13th-15th centuries; red symbolizes courage, white represents purity

Indonesia, a vast polyglot nation, has weathered the global financial crisis relatively smoothly because of its heavy reliance on domestic consumption as the driver of economic growth. Increasing investment by both local and foreign investors is also supporting solid growth. Although the economy slowed to 4.5% growth in 2009 from the 6%-plus growth rate recorded in 2007 and 2008, by 2010 growth returned to a 6% rate. During the recession, Indonesia outperformed most of its regional neighbors. The government made economic advances under the first administration of President YUDHOYONO, introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. Indonesia's debt-to-GDP ratio in recent years has declined steadily because of increasingly robust GDP growth and sound fiscal stewardship, leading two of the three leading credit agencies to upgrade credit ratings for Indonesia's sovereign debt to one notch below investment grade. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. YUDHOYONO and his vice president, respected economist BOEDIONO, have maintained broad continuity of economic policy, although the economic reform agenda has been slowed during the first year of their term by corruption scandals and the departure of an internationally respected finance minister. In late 2010, increasing inflation, driven by higher and volatile food prices, posed an increasing challenge to economic policymakers and threatened to push millions of the near-poor below the poverty line. The government in 2011 faces the ongoing challenge of improving Indonesia's infrastructure to remove impediments to growth, while addressing climate change concerns, particularly with regard to conserving Indonesia's forests and peatlands, the focus of a potentially trailblazing $1 billion REDD+ pilot project.

$1.03 trillion (2010 est.)

$970.6 billion (2009 est.)

$928.2 billion (2008 est.)

$706.7 billion (2010 est.)

6.1% (2010 est.)

4.6% (2009 est.)

6% (2008 est.)

$4,200 (2010 est.)

$4,000 (2009 est.)

$3,900 (2008 est.)

116.5 million (2010 est.)

7.1% (2010 est.)

7.9% (2009 est.)

13.33% (2010)

37 (2009)

39.4 (2005)

32.5% of GDP (2010 est.)

26.4% of GDP (2010 est.)

27.4% of GDP (2009 est.)

5.1% (2010 est.)

4.8% (2009 est.)

6.37% (31 December 2010)

6.46% (31 December 2009)

13.29% (30 November 2010 est.)

14.5% (31 December 2009 est.)

$62.27 billion (31 December 2010 est.)

$49.63 billion (31 December 2009 est.)

$243.1 billion (31 December 2010 est.)

$205.8 billion (31 December 2009 est.)

$253.1 billion (31 December 2010 est.)

$192.3 billion (31 December 2009 est.)

$361.2 billion (31 December 2010)

$178.2 billion (31 December 2009)

$98.76 billion (31 December 2008)

rice, cassava (tapioca), peanuts, rubber, cocoa, coffee, palm oil, copra; poultry, beef, pork, eggs

petroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical fertilizers, plywood, rubber, food, tourism

3.6% (2010 est.)

129 billion kWh (2008 est.)

119.3 billion kWh (2007 est.)

0 kWh (2009 est.)

0 kWh (2009 est.)

1.023 million bbl/day (2009 est.)

1.115 million bbl/day (2009 est.)

322,000 bbl/day (2009 est.)

456,700 bbl/day (2009 est.)

4.05 billion bbl (1 January 2010 est.)

85.7 billion cu m (2009 est.)

45.2 billion cu m (2008)

33.5 billion cu m (2008 est.)

0 cu m (2008 est.)

3.001 trillion cu m (1 January 2010 est.)

$8.532 billion (2010 est.)

$10.75 billion (2009 est.)

$146.3 billion (2010 est.)

$119.5 billion (2009 est.)

oil and gas, electrical appliances, plywood, textiles, rubber

Japan 17.28%, Singapore 11.29%, US 10.81%, China 7.62%, South Korea 5.53%, India 4.35%, Taiwan 4.11%, Malaysia 4.07% (2009)

$111.1 billion (2010 est.)

$84.35 billion (2009 est.)

machinery and equipment, chemicals, fuels, foodstuffs

Singapore 24.96%, China 12.52%, Japan 8.92%, Malaysia 5.88%, South Korea 5.64%, US 4.88%, Thailand 4.45% (2009)

$96.21 billion (31 December 2010 est.)

$66.12 billion (31 December 2009 est.)

$196.1 billion (31 December 2010 est.)

$172.9 billion (31 December 2009 est.)

$81.21 billion (31 December 2010 est.)

$72.84 billion (31 December 2009 est.)

$33.71 billion (31 December 2010 est.)

$30.18 billion (31 December 2009 est.)

Indonesian rupiah (IDR) per US dollar -

9,169.5 (2010)

10,389.9 (2009)

9,698.9 (2008)

9,143 (2007)

9,159.3 (2006)

33.958 million (2009)

159.248 million (2009)

mixture of about a dozen national television networks - 2 public broadcasters, the remainder private broadcasters - each with multiple transmitters; more than 100 local TV stations operating; widespread use of satellite and cable TV systems; public radio broadcaster operates 6 national networks as well as regional and local stations; overall, more than 700 radio stations operating with more than 650 privately-operated (2008)

.id

1.269 million (2010)

20 million (2009)

684 (2010)

64 (2010)

condensate 812 km; condensate/gas 73 km; gas 7,165 km; oil 5,984 km; oil/gas/water 12 km; refined products 617 km; water 44 km (2010)

21,579 km (2011)

Banjarmasin, Belawan, Kotabaru, Krueg Geukueh, Palembang, Panjang, Sungai Pakning, Tanjung Perak, Tanjung Priok

the International Maritime Bureau reports the territorial and offshore waters in the Strait of Malacca and South China Sea as high risk for piracy and armed robbery against ships; 2010 saw the highest levels of armed robbery against ships since 2007; 40 commercial vessels were attacked, boarded, or hijacked both at anchor or while underway; hijacked vessels are often disguised and cargo diverted to ports in East Asia; crews have been murdered or cast adrift

Indonesian Armed Forces (Tentara Nasional Indonesia, TNI): Army (TNI-Angkatan Darat (TNI-AD)), Navy (TNI-Angkatan Laut (TNI-AL); includes marines (Korps Marinir, KorMar), naval air arm), Air Force (TNI-Angkatan Udara (TNI-AU)), National Air Defense Command (Kommando Pertahanan Udara Nasional (Kohanudnas)) (2011)

18 years of age for selective compulsory and voluntary military service; 2-year conscript service obligation, with reserve obligation to age 45 (officers); Indonesian citizens only (2008)

3% of GDP (2005 est.)

Indonesia has a stated foreign policy objective of establishing stable fixed land and maritime boundaries with all of its neighbors; some sections of border along Timor-Leste's Oecussi exclave and maritime boundaries with Timor-Leste remain unresolved; many refugees from Timor-Leste who left in 2003 still reside in Indonesia and refuse repatriation; a 1997 treaty between Indonesia and Australia settled some parts of their maritime boundary but outstanding issues remain; ICJ's award of Sipadan and Ligitan islands to Malaysia in 2002 left the sovereignty of Unarang rock and the maritime boundary in the Ambalat oil block in the Celebes Sea in dispute; the ICJ decision has prompted Indonesia to assert claims to and to establish a presence on its smaller outer islands; Indonesia and Singapore continue to work on finalization of their 1973 maritime boundary agreement by defining unresolved areas north of Indonesia's Batam Island; Indonesian secessionists, squatters, and illegal migrants create repatriation problems for Papua New Guinea; maritime delimitation talks continue with Palau; Indonesian groups challenge Australia's claim to Ashmore Reef; Australia has closed parts of the Ashmore and Cartier Reserve to Indonesian traditional fishing and placed restrictions on certain catches

illicit producer of cannabis largely for domestic use; producer of methamphetamine and ecstasy