THE GEOGRAPHY (Foreign Office UK)
Full Country Name: Republic of
Indonesia
Area: 1,919,443 square kilometres
(741,098 square miles)
Population: 206.26 million (2000 Census
figure, but estimated now at 216.1
million making it the 4th largest in the
world)
Capital City: Jakarta (population: 13.23
million)
People: Javanese 45%, Sundanese 14%,
Madurese 7.5%, coastal Malays 7.5%,
others 26%
Languages: Official language Bahasa
Indonesia. There are about 583
languages and dialects, but only 13 of
these have more than 1m speakers.
Religions: Muslim 87% (the country with
the worldÆs largest Muslim population,
Protestant 6%, Catholic 3%, Hindu 2%,
Buddhist 1%, other 1%
Currency: Rupiah
Major Political Parties: Indonesian
Democratic Party of Struggle (PDIP),
Party of the Functional Groups
(Golkar), United Development Party
(PPP), National Awakening Party
(PKB), National Mandate Party (PAN),
Crescent Star Party (PBB) û several
other parties hold a small number of
seats in parliament.
Government: Republic
GEOGRAPHY
Indonesia is an equatorial archipelago of
some 17,508 islands (6,000 inhabited)
extending about 3,200 miles (5,150
kilometres) east to west and 1,250
miles (2,012 kilometres) north to
south. It is divided into 32 provinces.
The largest islands are Sumatra, Java,
Kalimantan (Indonesian Borneo),
Sulawesi (Celebes) and Papua (the
Indonesian half of New Guinea, also
known as West Papua, and formerly
Irian Jaya). Most of the smaller islands
except Madura and Bali belong to
larger groups. The largest of these are
the Moluccas (Spice Islands) and Nusa
Tenggara (Lesser Sundas).
THE HISTORY (Foreign Office UK)
Under President Soeharto the economy
opened to foreign investment and
Indonesia saw an increase in
prosperity, though the government
was flawed in many respects. The
Armed Forces (ABRI) played a key role
in government and increased their
socio-political importance through the
doctrine of Dwifungsi (dual-function).
Since Soeharto fell in 1998 Indonesia
has changed dramatically. In June 1999
Indonesia conducted its first
democratic elections since 1955.
Abdurrahman Wahid (Gus Dur) was
selected as President in October 1999,
though his party was only the fourth
largest in Parliament. Megawati
Soekarnoputri, whose party won the
largest share (34%) of the vote for the
DPR was elected Vice President. High
hopes were placed in the new
democratic administration of Gus Dur.
He inherited a legacy of corruption,
collusion and nepotism (KKN), a poor
human rights record, long standing
separatist tension in the provinces of
Aceh and Papua and economic
stagnation resulting from the Asian
Financial Crisis. Inter-communal
violence also flared in the Moluccas,
Kalimantan and Sulawesi causing
widespread loss of life and
displacement of people.
Gus Dur's early achievements included
containing the power of the military,
consolidating freedom of expression,
association and religion, strengthening
the legal and institutional framework of
human rights protection, promoting the
growth of civil society, and improving
relations with East Timor. However,
the much-needed reform of
governance has slowed, and the
economy remains weak. Violence
continues in the provinces which
security forces have had mixed
fortunes in quelling. Rampant
corruption acts as a constant barrier
to systemic reform.
In the first half of 2001, President
Wahid was impeached for alleged
involvement in financial scandals.
Despite concerns in some corners over
the legitimacy of the political
manoeuvres, the transfer of power
from Wahid to Megawati Soekarnoputri
(daughter of Indonesia's first
President, Soekarno) on 23 July 2001
was surprisingly peaceful. This is a
promising sign that Indonesia is coming
to terms with its new democratic
system and the relationship between
President and Parliament. Megawati's
administration had an encouraging start
and she seemed committed to
addressing the country's various
problems. However, the scale of the
problems that she inherited, ongoing
political manoeuvring, and suspicion of
Muslim anger at the post September 11
war on terror have hindered progress
in areas that need the most urgent
attention.
On 12 October 2002 bombs on the
tourist island of Bali led to the deaths
of 202 people, including 26 British
nationals. President Megawati said
immediately after the bombings that
she was determined to deal with the
terrorist threat. In October 2002 she
issued emergency counter-terrorism
decrees, which have since been
adopted as legislation by the Indonesian
Parliament. The Indonesian police, with
the help of Australian and British
police, have made significant progress
in their investigation into the Bali
attacks and have arrested over
30people.. The trials of the key
suspectshave opened in Bali and are
on-going. The first three verdicts (all
guilty) have already been delivered. A
number of countries, including the UK,
Australia and the US, have offered
Indonesia assistance with counter
terrorism training. But Indonesia's size,
geography and traditions coupled with
religious/political tensions complicate
effective action.
On 9 December 2002 a Cessation of
Hostilities Agreement (COHA) was
signed in Geneva between the
Indonesian Government and the Free
Aceh Movement (GAM), raising hopes
that the 26 year cycle of violence in
Aceh between the two sides would
finally end. Despite initial optimism and
an improvement in the situation on the
ground, it became clear by March 2003
that the COHA was in danger of failing
as violence increased. The EU, US, and
Japan urged both sides to end the
violence and to meet to discuss
progress on the COHA. A meeting
scheduled for April was cancelled but
after renewed pressure from the
international community both sides
finally met in Tokyo on 17-18 May.
Unfortunately, the Tokyo talks broke
down on 18 May after both sides failed
to reach agreement on the key issues
of independence versus Special
Autonomy and disarming of weapons.
The EU, US, Japan and World Bank
issued a statement deeply regretting
the failure of both sides to solve the
issue peacefully. On 19 May President
Megawati declared a state of martial
law in Aceh, and military action against
GAM resumed. The policy of martial
law will be reviewed in November
2003.
We and our EU partners continue to
urge both sides to return to the
negotiating table as we believe that a
long-term solution to Aceh's problems
can only be achieved through peaceful
political negotiation and consultation.
Complete implementation of the Special
Autonomy Law, which was passed on 1
January 2002, is crucial to resolving
the situation in Aceh.
In the Moluccas (Spice Islands/Maluku)
serious sectarian violence has left
thousands dead since 1999. Reports of
forced conversion of Christians to
Islam in the islands of Kasiui and Tior
added worrying new dimensions to the
unrest, but the United Nations and
NGOs working in the Moluccas found
concrete evidence of only a small
number of forced conversions. Many
of the Christians evacuated from the
province in January 2001 are now
reported to have voluntarily returned
to their homes, and large numbers of
Moslems and Christians who fled their
villages to escape the violence have
returned.
On 12 February 2002 the Indonesian
Government brokered an agreement
(the Malino II Accord) between
Christian and Muslim factions in
Maluku. Despite some attempts to incite
unrest, there has been significant
progress on the ground in Ambon and
the Peace Accord seems to have been
accepted by the local community. On
15th September 2003 the Indonesian
Government lifted the state of civil
emergency in the Province.
Inter-religious activities, such as
church and mosque rebuilding, and the
expansion of economic activity and
extension of neutral zones have
proceeded well. The commander of the
Laskar Jihad, Jafar Umar Thalib, was
arrested in April 2002 and charged
with inciting violence between Muslims
and Christians, but was acquitted on 30
January 2003.
Shortly after the Bali bombing, Laskar
Jihad announced their disbandment and
members left their positions in the
Moluccas and Sulawesi. There have
been reports that several hundred
decommissioned members have
returned to their homes in Java.
However, there is a risk that some
members of Laskar Jihad might be
recruited by other extremist Islamic
groups to continue their violent
activities.
The Indonesian Government brokered
an agreement (the Malino I Accord) to
end fighting between Christian and
Muslim factions in Central Sulawesi,
which was signed on 20 December
2001. This has brought an end to the
large-scale inter communal violence
but violence clashes still occur. .
Muslim and Christian community
leaders believe that there is still a
great deal of distrust on both sides and
that local people are not ready for any
reduction in the number of security
personnel in the area. In August 2002,
a prominent Christian leader in Central
Sulawesi, Reverend Damanik, was
arrested for possession of illegal
firearms. On 23 June he was found
guilty and sentenced to two years and
three months. He is in the process of
appealing his sentence. There have
been reports that Reverend Damanik
had been poisoned and was in hospital.
However, his lawyers have confirmed
that although he is ill, there are no
serious problems and he has not been
hospitalised.
In Papua (formerly Irian Jaya), calls
for independence grew in 2000.
Following the departure of the Dutch
in1962, and a brief period of UN
administration, Indonesia took over the
administration of the province in 1963.
Irian Jaya became a province of
Indonesia following a UN-supervised
Act of Free Choice in 1969, the
legitimacy of which is much debated. A
report on the Act of Free Choice
commissioned by the Dutch
government is expected in late 2003.
However, the Dutch government has
made clear that the study will not
affect its support for Indonesia's
territorial integrity.
As in Aceh, a special autonomy package
for Papua came into effect on 1
January 2002, which also had a mixed
reception. On 27 January 2003,
President Megawati issued a
Presidential Instruction to split Papua
into three provinces. Many Papuan
leaders and communities are
concerned that the Presidential
Instruction will contradict the Special
Autonomy Law, and would make its
implementation impossible. The
Indonesian government Minister for
Home Affairs, Hari Sabarno, said in
February 2003 that Special Autonomy
would be implemented in all three
provinces, and that the revenue from
PapuaÆs natural resources would be
fairly distributed among them. On 27
August 2003, the Coordinating Minister
for Politics and Security, Susilo
Bambang Yudhoyono, announced that
for political and administrative reasons
President Megawati had postponed the
division of Papua. The Coordinating
Minister said that the Government will
now review the laws relating to Special
Autonomy and the division to determine
how these can be best implemented.
In Papua there are occasional
small-scale skirmishes with the
security forces. The most serious
recent incident was the killing of the
prominent Papuan independence leader,
Theys Eluay, on 11 November 2001.
KOPASSUS (Indonesian Special Forces)
officers have been convicted of
involvement in the murder of Theys
Eluay and sentenced to 3 years
imprisonment. In an unprovoked attack
at the Freeport Copper Mine on 31
August 2002, two Americans and one
Indonesian were killed and many others
were injured. The Indonesian
Government condemned the attack, but
although there have been allegations of
TNI involvement, investigations remain
inconclusive. Two American Federal
Bureau of Investigation officers joined
the investigation team in January 2003.
In April 2003 an unknown group
attacked an army weapons store in
Wamena, and removed a number of
weapons. Although some of the
weapons were later recovered from
the grounds of the weapons store, it is
believed a number of weapons were
stolen. There are reports that the
Indonesian military have been
conducting security steps
(ôsweepingö) within the province of
Papua in search of the perpetrators.
NGOs are concerned at the way in
which the military are conducting these
operations.
Longer historical perspective
Why 'Indonesia'?
In the former Dutch East Indies on 17
August 1945, three days after the
Japanese surrender, a group of
nationalists proclaimed independence.
The declaration was not recognised by
the Netherlands, but after four years
of conflict agreement was reached on
a formal transfer of power. On 27
December 1949 the United States of
Indonesia became legally independent.
The independence agreement excluded
West New Guinea (Papua/Irian Jaya)
which remained under Dutch control
until October 1962. Initially the country
had a federal structure but this was
dissolved in 1950 and the country
became the unitary Republic of
Indonesia.
POLITICS
Institutions and Government
The highest authority of the State is
the People's Consultative Assembly
(MPR - Majelis Permusyawaratan
Rakyat) with 700 members who serve
for 5 years. The MPR includes 500
members of the House of
Representatives (DPR - Dewan
Perwakilan Rakyat), the country's
legislature. Of the 500 members of the
DPR, 38 seats are reserved for
non-elected members of the Indonesian
Armed Forces (TNI - Tentara Nasional
Indonesia). This representation will
cease in 2004 and the TNI will keep
their representation in the MPR until
2009. The remaining 200 seats in the
MPR are allocated to regional
representatives and delegates of
respected organisations, such as NGOs,
religious and professional bodies.
Executive power rests with the
President, who is elected for a
five-year term by the MPR, governing
with the assistance of an appointed
cabinet responsible to him. The
President can serve a maximum of two
presidential terms. At the meeting of
the MPR in August 2002 it was agreed
that the President would be directly
elected and the military would be
excluded from holding reserved seats
in Parliament from 2004 onwards. .
Elections will take place in 2004 for
the Presidency, the DPR, the new
upper house (DPD), for the Provincial
Assemblies (DPRD Is), and the Rural
and District Councils (DPRD IIs).
The Supreme Court is the judicial
organ of the state along with the
courts of law; these are independent
of the Executive in exercising their
judicial powers. Local government is
through a three-tier system of
provincial, district and village
assemblies. Provinces are headed by
Governors, elected for a five-year
term by the Provincial Assembly.
THE ECONOMY (Foreign Office UK)
GDP: $187.1bn (2002, Economist
Intelligence Unit (EIU))
GDP per head: $823 (2002, EIU,)
Annual Growth: Has varied greatly
every year since 1996, with 3 to 3.5%
forecast for 2002. Average growth
since 1970 of 6%.
Inflation: 12.9 % in June 2002 (EIU)
Major Industries: Oil, gas, mining (coal,
minerals, metals), forestry, fishery,
rubber, agriculture (especially coffee
and rice)
Major Trading Partners: Japan, US,
Singapore, Germany, South Korea
Exchange rate: ú1 = approx.
13528Rupiah (as at 17 September 2003)
Trade Partners UK Country Profile:
Indonesia
Indonesia is still recovering from the
Asian Crisis and the political instability
that followed it. The economy has been
growing at 3-5% since 2000, but
average income levels have yet to
return to 1997 levels, and the financial
sector remains moribund. Poverty and
unemployment remain major problems.
Under Megawati, progress on the IMF
programme has been much better than
under former President Wahid. The
economy has stabilised over the past
year (inflation and interest rates have
both declined) and IMF targets have
generally been met. The IMF is
however concerned over delays in
implementing structural reforms.
But adherence to the IMF programme
is a pre-condition for more donor
money (essential for financing the
budget deficit), and for rescheduling
the large portion of public debt held by
Paris Club creditors (donor
governments). Indonesia benefited
from Paris Club rescheduling in 1998
and 2000 and most recently in April
2002. Even with all this concessionary
funding, the government devotes about
one third of its revenue to debt
servicing (both domestic and external).
Its public debt is equivalent to almost
100% of GDP.
The Bali bombing clearly increases the
risks facing the Indonesian economy
and could undermine the hard-won
macroeconomic stability achieved over
the past 2 years. The tourism sector
has obviously been badly affected, and
the economy of Bali devastated. But the
national economic impact has been
relatively modest û both the stock
market and currency have recovered
from their initial falls.
Potentially more significant is the
impact on much-needed foreign
investment. Under the current IMF
programme, foreign investment is
assumed to increase moderately in
2002 and 2003 (albeit from a low
base). Without inflows of foreign
investment, Indonesia's balance of
payments will come under increasing
strain there could be a further
financing gap in 2003 and beyond. A
lack of foreign investment will also
further delay Indonesia's privatisation
programme. This is a key component
of the IMF programme, but has been
delayed by nationalist opposition to
selling national assets to foreigners,
and has also suffered from a lack of
transparency.
The UK is actively encouraging the
Government of Indonesia (with other
donors) to stay on track with its IMF
programme. Britain has contributed
$7.6m to the ASEM (Asia-Europe
Meeting) Trust Fund which aims at
underpinning the efforts of Asian
governments to combat the social
effects of the economic crisis and
reform in financial sectors.
INTERNATIONAL RELATIONS
Indonesia's relations with neighbours
As a founding member of ASEAN
Indonesia subscribes to the principle of
non-interference in internal affairs.
Traditionally, seen as a lynchpin of
ASEAN it has latterly been too
pre-occupied with its internal
problems. There is good co-operation
particularly on trade, and regional
issues such as piracy and smuggling. In
the first weeks of her Presidency
Megawati made an extensive tour of
neighbouring ASEAN countries.
Indonesia has made efforts to improve
its relations with East Timor after the
violence that followed the popular
consultation in East Timor in 1999 and
Indonesia's withdrawal. The relationship
was boosted by President Megawati's
decision to attend East Timor's
Independence Day celebrations in Dili on
20 May 2002 despite significant
opposition from members of
parliament. It is hoped that a land
border between East and West Timor
will be agreed by the end of 2003. But
progress is slow in resolving issues
such as the resettlement of the
25,000-28,000 East Timorese who
remain in West Timor near the border.
The issue of justice for human rights
abuses committed during Indonesia's
occupation of East Timor is a
complicating factor in the two
countries' bilateral relations.
Relations with Australia deteriorated in
1999 following Indonesia's involvement
in events in East Timor and the
Australian decision to provide troops
for the UN force in East Timor. A
landmark visit to Australia by former
President Wahid in his last days as
President, and a visit to Jakarta by
Prime Minister Howard in the first
days of Megawati's Presidency, have
gone a long way towards rebuilding the
relationship. Co-operation between the
two countries' security forces has
increased since the Bali bombings in
which a large number of Australians
were killed.
Indonesia's relations with the
international community
The focus of Indonesian foreign policy
today is maintaining international
acceptance of its territorial integrity.
That is, in accepting the right of the
Indonesian Government to deal with
separatist tensions in Aceh and Papua
as it sees fit. The international
community has supported Indonesia's
efforts at democratic and economic
reform and supports Indonesia's
territorial integrity. The international
community continues to urge Indonesia
to investigate and bring to account
those responsible for past human
rights abuses. The international
community also continues to monitor
closely Indonesia's methods of handling
internal conflict, and stresses the
importance of finding peaceful
solutions through negotiation.
Flags Of The World: Republik Indonesia
privacy policy
disclaimer
credits
