The Diplomat Country Snapshots provide a quick and easy resource for key economic, social and political data for the countries of the Asia-Pacific.
Indonesia’s approximately 240 million people make it the world’s fourth-largest most populous nation, and its island of Java the most populous island in the world. Indonesia also is home to the world’s largest Muslim population. Over the past few years, Indonesia has been struck by several serious natural disasters that have taken a heavy toll on its high concentrations of inhabitants. These, combined other factors including the separation of East Timor and the global economic crisis of 2008-09, have left Indonesia with some major challenges.
Indonesia’s approximately 240 million people make it the world’s fourth-largest most populous nation, and its island of Java the most populous island in the world. Indonesia also is home to the world’s largest Muslim population. Over the past few years, Indonesia has been struck by several serious natural disasters that have taken a heavy toll on its high concentrations of inhabitants. These, combined other factors including the separation of East Timor and the global economic crisis of 2008-09, have left Indonesia with some major challenges.
In 2004, a 9.1 to 9.3 magnitude earthquake in the Indian Ocean resulted in a tsunami that killed over 130,000 people in the Northern region of Sumatra and left more than 500,000 homeless. In 2005, an 8.7 magnitude earthquake struck the same area, killing 905 people and displacing tens of thousands. In May 2006, a 6.2 magnitude earthquake to the southwest killed more than 5000 people and left an estimated 200,000 people homeless in the Yogyakarta region. In 2009, 7.6 and 6.8 magnitude quakes hit the Sumatra region again resulting in over 1000 casualties.
In January 1999, the Indonesian Government agreed to a process, with UN involvement, under which the people of East Timor would be allowed to vote for an independent state through a direct ballot. On August 30 of that year approximately 98% of registered voters cast their ballots, and 78.5% of the voters chose independence over continued integration with Indonesia. Many people were killed by Indonesian military forces and military-backed militias in a wave of violence following the announcement of the pro-independence vote.
The government plays a significant role in Indonesia’s market-based economy. The state owns 139 enterprises, and regulates prices on basic goods including fuel, rice and electricity. Although Indonesia has advanced economically under the administration of President Yudhoyono, it now faces serious challenges stemming from the global financial crisis of 2008-2009. Indonesia has taken an active role in the G-20 coordinated response to the global economic crisis and is a member state. In 2008, Indonesia signed an Economic Partnership Agreement (EPA) with Japan, Indonesia’s biggest foreign investor, in its first bilateral free trade deal that sets exemptions from 90% of Japanese import duties.
Indonesia was a founding member of the Association of Southeast Asian Nations (ASEAN) and is a member of the Organization of the Islamic Conference (OIC). Indonesia maintains peaceful relations with its neighbors and its military is aimed to assuring internal security.
Other current issues for Indonesia include: alleviating poverty, improving education, preventing terrorism, implementing economic and financial reforms, addressing climate change, and controlling avian influenza.