Capital: Jakarta
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Introduction Indonesia is a vast, resource-rich archipelago of thousands of islands. The country is ethnically diverse, with more than 300 languages spoken, and has the world's largest Muslim population. After decades of dictatorship Indonesia is embracing democratic and economic reform. However, it faces challenges to national unity from separatist movements in a number of provinces, and has been the target of a number of attacks by Islamic extremist groups.
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History Indonesia was controlled by a number of different empires before coming under official Dutch rule in 1799. By 1910, the entire country was under Dutch control. The Japanese invaded the archipelago at the height of World War II in 1942. In August 1945 - three days after the Japanese surrender - Indonesia declared independence, with Sukarno as its president. Indonesia was declared a sovereign state in 1949. Though the country was formally unified, Indonesian society remained deeply divided along ethnic, religious, class and regional lines. The economy was in disarray, industries had been destroyed during the war, the population was expanding and food was in short supply. Attempts at Western-style parliamentary democracy failed, and in 1957 Sukarno dissolved the legislature and gave himself broad presidential authority. The following year, he initiated "Guided Democracy", declaring martial law. The military became deeply involved in politics. After an attempted coup in 1965 General Suharto, the commander of the army's Strategic Reserve, took control of the army. Suharto imposed authoritarian rule and allowed the military to become involved in all levels of government. He also began moving large numbers of landless farmers from the densely populated main island of Java to other parts of the country, which led to ethnic conflict. In March 1968 Suharto became president and his Golkar party ruled until he stepped down in May 1998 following widespread student protests and violence sparked by the 1997 Asian economic crisis. After decades of dictatorship, efforts to bring him to justice have so far failed. General elections were held in June 1999 and Abdurrahman Wahid was elected Indonesia's fourth president in October 1999. However, he was impeached in 2001 for his alleged role in two financial scandals. Sukarno's daughter, Megawati Sukarnoputri, became president in July 2001. She inherited a host of competing political and economic challenges, including reform of the judiciary, bureaucracy and military; and the problem of institutionalised corruption. National security is also proving a challenge for the Indonesian government, following a series of attacks by Muslim extremist groups. The Jemaah Islamiah terror network is believed to be based in Indonesia. The group, which has been linked to the al Qaeda network, has been blamed for a string of attacks in the region, including the October 2002 Bali bombings. Indonesia's first direct presidential elections were held in 2004, with Susilo Bambang Yudhoyono replacing Megawati Sukarnoputri as Indonesia's president. Communities in Aceh province on Sumatra island were devastated on December 26, 2004 when an earthquake off the coast of Indonesia sparked tsunamis across the Indian Ocean. Tens of thousands of people were killed in Aceh and thousands of others were made homeless. Spurred by the tsunami disaster, Indonesia and rebels from the Free Aceh Movement (GAM) signed an historic peace pact in Helsinki on August 15, 2005, agreeing to end hostilities after a 29-year conflict, which left around 15,000 dead. Under the accord, GAM dropped its long-held demand for independence for a form of self-government and agreed to disarm and demobilise its 3,000 fighters. Indonesia promised to withdraw its non-local security forces, offer amnesties to rebels, and allow the creation of political parties in the province. Government Indonesia is a republic and its highest office is that of president. The nation's first direct presidential elections were held in 2004, with Susilo Bambang Yudhoyono replacing Megawati Sukarnoputri as Indonesia's president. The judicial system is based on Roman-Dutch and French codes, with indigenous concepts. The Supreme Court is the highest court. Up until former president Suharto's resignation in 1998, the ruling Golkar party and the military exerted immense political control. There was no effective opposition until Suharto's departure. Indonesia's parliament has since 2001 resumed its constitutional role as the principal legislative body. The parliamentary (DPR) committees have regularly summoned politicians to appear before them and account for their decisions. The August 2002 session of the People's Consultative Assembly (MPR) approved a package of constitutional amendments. One key amendment was the direct election of the president. A new Upper House of regional representatives (DPD) has also been created. In line with the principle that all members of the MPR/DPR should be democratically elected representatives, since parliamentary elections in April 2004 neither the military nor the functional groups faction have automatic represention in the DPR. Economy Agriculture is the most important sector in Indonesia's economy. More than half the population is employed in producing agriculture. Rice is the main crop, and others include maize, cassava and sugar cane. Indonesia has a large fishing industry and the largest forest resources in Asia. It is also a major producer of crude petroleum and is a member of OPEC. Its main exports include textiles, handicrafts, gas and oil, timber, coffee, rubber, tin and copper. Several of Indonesia's islands are popular tourist destinations, including Bali. The Asian currency crisis in 1997 had a severe impact on Indonesia, throwing the country into social and economic chaos. Indonesia now faces economic development problems caused by separatist movements and the low level of security in the regions; corruption; weaknesses in the banking system; and strained relations with the International Monetary Fund (IMF). Having agreed with the IMF to make a number of financial reforms, Indonesia withdrew from the program in late 2003. However, Indonesia issued a 'White Paper' commiting the government to maintaining macroeconomic policies established under the IMF program. |
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