Changes

*Religions: Muslim 88%, Protestant 5%, Catholic 3%, Hindu 2%, Buddhist and other 1%.

*Religions: Muslim 88%, Protestant 5%, Catholic 3%, Hindu 2%, Buddhist and other 1%.

*Languages: Indonesian (official), local languages, the most prevalent of which is Javanese.  

*Languages: Indonesian (official), local languages, the most prevalent of which is Javanese.  

*Education: Years compulsory--9. Enrollment--94% of eligible primary school-age children. Literacy--90% (2005).  

*Education: Years compulsory—9. Enrollment—94% of eligible primary school-age children. Literacy—90% (2005).  

*Health: Infant mortality rate--28/1,000 (2005). Life expectancy at birth--68 years (2005).

*Health: Infant mortality rate—28/1,000 (2005). Life expectancy at birth—68 years (2005).

*Work force: 94.2 million (2005 est.). Agriculture--46.5%, industry--11.8%, services--41.7%.  

*Work force: 94.2 million (2005 est.). Agriculture—46.5%, industry—11.8%, services—41.7%.  

===Religion===

===Religion===

As a reaction to Soeharto's centralization of power and reflecting historically independent sentiment, Hasan di Tiro established the Free Aceh Movement (Gerakan Aceh Merdeka, GAM) in December 1976 to seek independence for Aceh. Some 15,000 died in military conflict in Aceh over the following three decades. Through peace talks led by former Finnish president Martti Ahtisaari, a peace agreement between GAM and the Indonesian Government that provided wide-ranging autonomy for Aceh was signed on August 15, 2005. By December 2005, GAM declared that they had disbanded the military wing of their organization, and the Indonesian Government had withdrawn the bulk of its security forces down to agreed levels. On December 11, 2006, Aceh held gubernatorial and district administrative elections, the first democratic elections in over half a century in Aceh.  

As a reaction to Soeharto's centralization of power and reflecting historically independent sentiment, Hasan di Tiro established the Free Aceh Movement (Gerakan Aceh Merdeka, GAM) in December 1976 to seek independence for Aceh. Some 15,000 died in military conflict in Aceh over the following three decades. Through peace talks led by former Finnish president Martti Ahtisaari, a peace agreement between GAM and the Indonesian Government that provided wide-ranging autonomy for Aceh was signed on August 15, 2005. By December 2005, GAM declared that they had disbanded the military wing of their organization, and the Indonesian Government had withdrawn the bulk of its security forces down to agreed levels. On December 11, 2006, Aceh held gubernatorial and district administrative elections, the first democratic elections in over half a century in Aceh.  

===Principal Government Officials===  

===Principal Government Officials===

*President-- Joko Widodo

*President—Joko Widodo

*Vice President--Boediono

*Vice President—Boediono

*Minister of Foreign Affairs--Noer Hassan Wirajuda

*Minister of Foreign Affairs—Noer Hassan Wirajuda

*Ambassador to the United States--Sudjadnan Parnohadiningrat

*Ambassador to the United States—Sudjadnan Parnohadiningrat

*Ambassador to the United Nations--Rezlan Izhar Jeni

*Ambassador to the United Nations—Rezlan Izhar Jeni

===Foreign Relations===

===Foreign Relations===

Indonesia has a market-based economy in which the government plays a significant role. There are 158 state-owned enterprises and the government administers prices on several basic goods, including fuel, rice, and electricity.  

Indonesia has a market-based economy in which the government plays a significant role. There are 158 state-owned enterprises and the government administers prices on several basic goods, including fuel, rice, and electricity.  

In the mid-1980s, the government began eliminating regulatory obstacles to economic activity. The steps were aimed primarily at the external and financial sectors and were designed to stimulate employment and growth in the non-oil export sector. Annual real gross domestic product (GDP) growth averaged nearly 7% from 1987-97 and most analysts recognized Indonesia as a newly industrializing economy and emerging major market. The Asian financial crisis of 1997 altered the region's economic landscape. With the depreciation of the Thai currency, the foreign investment community quickly re-evaluated its investments in Asia. Foreign investors dumped assets and investments in Asia, leaving Indonesia the most affected in the region. In 1998, Indonesia experienced a negative GDP growth of 13.1% and unemployment rose to 15-20%. In the aftermath of the 1997-98 financial crisis, the government took custody of a significant portion of private sector assets via debt restructuring, but subsequently sold most of these assets, averaging a 29% return. Indonesia has since recovered, albeit slower than some of its neighbors, by recapitalizing its banking sector, improving oversight of capital markets, and taking steps to stimulate growth and investment, particularly in infrastructure. GDP growth was 4.5% in 2003, 5.1% in 2004, and 5.6% in 2005. Estimates for real GDP growth in 2006 are 5.5%.  

In the mid-1980s, the government began eliminating regulatory obstacles to economic activity. The steps were aimed primarily at the external and financial sectors and were designed to stimulate employment and growth in the non-oil export sector. Annual real gross domestic product (GDP) growth averaged nearly 7% from 1987–97 and most analysts recognized Indonesia as a newly industrializing economy and emerging major market. The Asian financial crisis of 1997 altered the region's economic landscape. With the depreciation of the Thai currency, the foreign investment community quickly re-evaluated its investments in Asia. Foreign investors dumped assets and investments in Asia, leaving Indonesia the most affected in the region. In 1998, Indonesia experienced a negative GDP growth of 13.1% and unemployment rose to 15-20%. In the aftermath of the 1997-98 financial crisis, the government took custody of a significant portion of private sector assets via debt restructuring, but subsequently sold most of these assets, averaging a 29% return. Indonesia has since recovered, albeit slower than some of its neighbors, by recapitalizing its banking sector, improving oversight of capital markets, and taking steps to stimulate growth and investment, particularly in infrastructure. GDP growth was 4.5% in 2003, 5.1% in 2004, and 5.6% in 2005. Estimates for real GDP growth in 2006 are 5.5%.  

*GDP (2005): $281.3 billion; (2006 est.): $351.9 billion.

*GDP (2005): $281.3 billion; (2006 est.): $351.9 billion.

*Annual growth rate (2005): 5.6%; (2006 est.): 5.5%.

*Annual growth rate (2005): 5.6%; (2006 est.): 5.5%.

*Per capita income (2005): $3,600 (est., PPP).  

*Per capita income (2005): $3,600 (est., PPP).  

*Natural resources (10.4% of GDP): Oil and gas, bauxite, silver, tin, copper, gold, coal.  

*Natural resources (10.4% of GDP): Oil and gas, bauxite, silver, tin, copper, gold, coal.  

*Agriculture (13.4% of GDP): Products--timber, rubber, rice, palm oil, coffee. Land--17% cultivated.  

*Agriculture (13.4% of GDP): Products—timber, rubber, rice, palm oil, coffee. Land—17% cultivated.  

*Manufacturing (28.1% of GDP): Garments, footwear, electronic goods, furniture, paper products.  

*Manufacturing (28.1% of GDP): Garments, footwear, electronic goods, furniture, paper products.  

*Trade: Exports (2005)--$86.2 billion including oil, natural gas, appliances, textiles. Major exporters--Japan, U.S., China, Singapore. Imports (2005)--$63.9 billion including food, chemicals, capital goods, consumer goods. Major importers--Japan, China, Singapore, and Thailand.  

*Trade: Exports (2005)--$86.2 billion including oil, natural gas, appliances, textiles. Major exporters—Japan, U.S., China, Singapore. Imports (2005)--$63.9 billion including food, chemicals, capital goods, consumer goods. Major importers—Japan, China, Singapore, and Thailand.  

====Economic Policy====

====Economic Policy====

Beginning in 1602, the Dutch slowly established themselves as rulers of present-day Indonesia, exploiting the weakness of the small kingdoms that had replaced that of Majapahit. The only exception was East Timor, which remained under Portugal's control until 1975. During 300 years of rule, the Dutch developed the Netherlands East Indies into one of the world's richest colonial possessions.  

Beginning in 1602, the Dutch slowly established themselves as rulers of present-day Indonesia, exploiting the weakness of the small kingdoms that had replaced that of Majapahit. The only exception was East Timor, which remained under Portugal's control until 1975. During 300 years of rule, the Dutch developed the Netherlands East Indies into one of the world's richest colonial possessions.  

During the first decade of the 20th century, an Indonesian independence movement began and expanded rapidly, particularly between the two World Wars. Its leaders came from a small group of young professionals and students, some of whom had been educated in the Netherlands. Many, including Indonesia's first president, Soekarno (1945-67), were imprisoned for political activities.  

During the first decade of the 20th century, an Indonesian independence movement began and expanded rapidly, particularly between the two World Wars. Its leaders came from a small group of young professionals and students, some of whom had been educated in the Netherlands. Many, including Indonesia's first president, Soekarno (1945–67), were imprisoned for political activities.  

The Japanese occupied Indonesia for three years during World War II (1942-1945). On August 17, 1945, three days after the Japanese surrender to the Allies, a small group of Indonesians, led by Soekarno and Mohammad Hatta, proclaimed independence and established the Republic of Indonesia. They set up a provisional government and adopted a constitution to govern the republic until elections could be held and a new constitution written. Dutch efforts to reestablish complete control met strong resistance. After four years of warfare and negotiations, the Dutch transferred sovereignty to a federal Indonesian Government. In 1950, Indonesia became the 60th member of the United Nations.  

The Japanese occupied Indonesia for three years during World War II (1942-1945). On August 17, 1945, three days after the Japanese surrender to the Allies, a small group of Indonesians, led by Soekarno and Mohammad Hatta, proclaimed independence and established the Republic of Indonesia. They set up a provisional government and adopted a constitution to govern the republic until elections could be held and a new constitution written. Dutch efforts to reestablish complete control met strong resistance. After four years of warfare and negotiations, the Dutch transferred sovereignty to a federal Indonesian Government. In 1950, Indonesia became the 60th member of the United Nations.  

[[File:Goenawan Muhamma Javanese people.jpg|thumb|left|270px|Author Goenawan Muhamma.]]

[[File:Goenawan Muhamma Javanese people.jpg|thumb|left|270px|Author Goenawan Muhamma.]]

Shortly after hostilities with the Dutch ended in 1949, Indonesia adopted a new constitution, providing for a parliamentary system of government in which the executive was chosen by and accountable to parliament. Parliament was divided among many political parties before and after the country's first nationwide election in 1955, and stable governmental coalitions were difficult to achieve. The role of Islam in Indonesia became a divisive issue. Soekarno defended a secular state based on Pancasila, five principles of the state philosophy--monotheism, humanitarianism, national unity, representative democracy by consensus, and social justice--codified in the 1945 constitution, while some Muslim groups preferred either an Islamic state or a constitution which included a preambular provision requiring adherents of Islam to be subject to Islamic law. At the time of independence, the Dutch retained control over the western half of New Guinea (known as Irian Jaya in the Soekarno and Soeharto eras and as Papua since 2000) and permitted steps toward self-government and independence.  

Shortly after hostilities with the Dutch ended in 1949, Indonesia adopted a new constitution, providing for a parliamentary system of government in which the executive was chosen by and accountable to parliament. Parliament was divided among many political parties before and after the country's first nationwide election in 1955, and stable governmental coalitions were difficult to achieve. The role of Islam in Indonesia became a divisive issue. Soekarno defended a secular state based on Pancasila, five principles of the state philosophy—monotheism, humanitarianism, national unity, representative democracy by consensus, and social justice—codified in the 1945 constitution, while some Muslim groups preferred either an Islamic state or a constitution which included a preambular provision requiring adherents of Islam to be subject to Islamic law. At the time of independence, the Dutch retained control over the western half of New Guinea (known as Irian Jaya in the Soekarno and Soeharto eras and as Papua since 2000) and permitted steps toward self-government and independence.  

Negotiations with the Dutch on the incorporation of Irian Jaya into Indonesia failed and armed clashes broke out between Indonesian and Dutch troops in 1961. In August 1962, the two sides reached an agreement and Indonesia assumed administrative responsibility for Irian Jaya on May 1, 1963. The Indonesian Government conducted an "Act of Free Choice" in Irian Jaya under UN supervision in 1969 in which 1,025 Papuan representatives of local councils agreed by consensus to remain a part of Indonesia. A subsequent UN General Assembly resolution confirmed the transfer of sovereignty to Indonesia. Opposition to Indonesian administration of Papua gave rise to small-scale guerrilla activity in the years following Jakarta's assumption of control. In the more open atmosphere since 1998, there have been more explicit expressions within Papua calling for independence from Indonesia.  

Negotiations with the Dutch on the incorporation of Irian Jaya into Indonesia failed and armed clashes broke out between Indonesian and Dutch troops in 1961. In August 1962, the two sides reached an agreement and Indonesia assumed administrative responsibility for Irian Jaya on May 1, 1963. The Indonesian Government conducted an "Act of Free Choice" in Irian Jaya under UN supervision in 1969 in which 1,025 Papuan representatives of local councils agreed by consensus to remain a part of Indonesia. A subsequent UN General Assembly resolution confirmed the transfer of sovereignty to Indonesia. Opposition to Indonesian administration of Papua gave rise to small-scale guerrilla activity in the years following Jakarta's assumption of control. In the more open atmosphere since 1998, there have been more explicit expressions within Papua calling for independence from Indonesia.  

[[Category:Archipelagos]]

[[Category:Archipelagos]]

[[Category:Muslim-Majority Countries]]

[[Category:Muslim-Majority Countries]]

[[category:Asia]]

[[Category:Asia]]

[[Category:Southeast Asia]]

[[Category:Southeast Asia]]