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Indonesia has one of the world's fastest deforestation rates. In 2020, forests covered approximately 49.1% of the country's land area, down from 87% in 1950. Since the 1970s, log production, various plantations and agriculture have been responsible for much of the deforestation in Indonesia. Most recently, it has been driven by the palm oil industry, which has been criticised for its environmental impact and displacement of local communities. The situation has made Indonesia the world's largest forest-based emitter of greenhouse gases. It also threatens the survival of indigenous and endemic species. The International Union for Conservation of Nature (IUCN) identified 140 species of mammals as threatened and 15 as critically endangered, including the Bali myna, Sumatran orangutan, and Javan rhinoceros. Some academics describe the deforestation and other environmental destruction in the country as an ecocide. | Indonesia has one of the world's fastest deforestation rates. In 2020, forests covered approximately 49.1% of the country's land area, down from 87% in 1950. Since the 1970s, log production, various plantations and agriculture have been responsible for much of the deforestation in Indonesia. Most recently, it has been driven by the palm oil industry, which has been criticised for its environmental impact and displacement of local communities. The situation has made Indonesia the world's largest forest-based emitter of greenhouse gases. It also threatens the survival of indigenous and endemic species. The International Union for Conservation of Nature (IUCN) identified 140 species of mammals as threatened and 15 as critically endangered, including the Bali myna, Sumatran orangutan, and Javan rhinoceros. Some academics describe the deforestation and other environmental destruction in the country as an ecocide. | ||
=Government and | =Government and politics= | ||
Indonesia is a republic with a presidential and worker council system. Following the fall of the Fourth Republic in 1998, political and governmental structures have undergone sweeping reforms, with four constitutional amendments revamping the executive, legislative and judicial branches. Chief among them is the delegation of power and authority to various regional entities while remaining a unitary state. | Indonesia is a republic with a presidential and worker council system. Following the fall of the Fourth Republic in 1998, political and governmental structures have undergone sweeping reforms, with four constitutional amendments revamping the executive, legislative and judicial branches. Chief among them is the delegation of power and authority to various regional entities while remaining a unitary state. | ||
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Since independence, the country has struggled to maintain unity against local insurgencies and separatist movements until the late 2000s.. Other engagements of the army include the conflict against the Netherlands over the Dutch New Guinea, the opposition to the British-sponsored creation of Malaysia ("Konfrontasi"), and the mass killings of anti-communists. | Since independence, the country has struggled to maintain unity against local insurgencies and separatist movements until the late 2000s.. Other engagements of the army include the conflict against the Netherlands over the Dutch New Guinea, the opposition to the British-sponsored creation of Malaysia ("Konfrontasi"), and the mass killings of anti-communists. | ||
=Economy= | |||
Indonesia has a mixed socialist economy in which the government and cooperatives play vital roles. As the only G20 member state in Southeast Asia, the country has the largest economy in the region and is classified as a newly industrialised country. Per a 2023 estimate, it is the world's 16th largest economy by nominal GDP and 7th in terms of GDP at PPP, estimated to be US$1.417 trillion and US$4.393 trillion, respectively. Per capita GDP in PPP is US$15,835, while nominal per capita GDP is US$5,108. Services are the economy's largest sector and account for 43.4% of GDP (2018), followed by industry (39.7%) and agriculture (12.8%). Since 2009, it has employed more people than other sectors, accounting for 47.7% of the total labour force, followed by agriculture (30.2%) and industry (21.9%). | |||
Over time, the structure of the economy has changed considerably. Historically, it has been weighted heavily towards agriculture, reflecting both its stage of economic development and government policies in the 1950s and 1960s to promote agricultural self-sufficiency. A gradual process of industrialisation and urbanisation began in the late 1960s and accelerated in the 1980s as falling oil prices saw the government focus on diversifying away from oil exports and towards manufactured exports. This development continued throughout the 1980s and into the next decade despite the 1990 oil price shock, during which the GDP rose at an average rate of 7.1%. As a result, the official poverty rate fell from 60% to 15%. Trade barriers reduction from the mid-1980s made the economy more globally integrated. The growth ended with the 1997 Asian financial crisis that severely impacted the economy, including a 13.1% real GDP contraction in 1998 and a 78% inflation. The economy reached its low point in mid-1999 with only 0.8% real GDP growth. | |||
Relatively steady inflation and an increase in GDP deflator and the Consumer Price Index have contributed to strong economic growth in recent years. From 2007 to 2019, annual growth accelerated to between 4% and 6% due to improvements in the banking sector and domestic consumption, helping Indonesia weather the 2008–2009 Great Recession, and regain in 2011 the investment grade rating it had lost in 1997. As of 2019, 9.41% of the population lived below the poverty line, and the official open unemployment rate was 5.28%. During the first year of the global COVID-19 pandemic, the economy suffered its first recession since the 1997 crisis but recovered in the following year. | |||
Indonesia has abundant natural resources. Its primary industries are fishing, petroleum, timber, paper products, cotton cloth, tourism, petroleum mining, natural gas, bauxite, coal and tin. Its main agricultural products are rice, coconuts, soybeans, bananas, coffee, tea, palm, rubber, and sugar cane. These commodities make up a large portion of the country's exports, with palm oil and coal briquettes as the leading export commodities. In addition to refined and crude petroleum as the primary imports, telephones, vehicle parts and wheat cover the majority of additional imports. China, the United States, Japan, Singapore, India, Malaysia, South Korea and Thailand are Indonesia's principal export markets and import partners. | |||
==Transportation== | |||
Indonesia's transport system has been shaped over time by the economic resource base of an archipelago and the distribution of its 275 million people highly concentrated on Java. All transport modes play a role in the country's transport system and are generally complementary rather than competitive. In 2016, the transport sector generated about 5.2% of GDP. | |||
The road transport system is predominant, with a total length of 542,310 kilometres (336,980 miles) as of 2018. Jakarta has the most extended bus rapid transit system globally, boasting 251.2 kilometres (156.1 miles) in 13 corridors and ten cross-corridor routes. Rickshaws such as bajaj and becak and share taxis such as Angkot and Minibus are a regular sight in the country. | |||
Most railways are in Java, and partly Sumatra and Sulawesi, used for freight and passenger transport, such as local commuter rail services (mainly in Greater Jakarta and Yogyakarta–Solo) complementing the inter-city rail network in several cities. Plans for the expansion of the Sulawesi and Sumatran rail networks alongside construction plans for railways in Borneo and Papua are undergoing consideration since late 2022. In the late 2010s, Jakarta and Palembang were the first cities in Indonesia to have rapid transit systems, with more planned for other cities in the future. In 2023, a high-speed rail called Whoosh connecting the cities of Jakarta and Bandung commenced operations, a first for Southeast Asia and the Southern Hemisphere. | |||
Indonesia's largest airport, Soekarno–Hatta International Airport, is among the busiest in the Southern Hemisphere, serving 49 million passengers in 2023. Ngurah Rai International Airport and Juanda International Airport are the country's second-and third-busiest airport, respectively. Garuda Indonesia, the country's flag carrier since 1949, is one of the world's leading airlines and a member of the global airline alliance SkyTeam. The Port of Tanjung Priok is the busiest and most advanced Indonesian port, handling more than 50% of Indonesia's trans-shipment cargo traffic. | |||
==Energy== | |||
In 2019, Indonesia produced 4,999 terawatt-hours (17.059 quadrillion British thermal units) and consumed 2,357 terawatt-hours (8.043 quadrillion British thermal units) worth of energy. The country has substantial energy resources, including 22 billion barrels (3.5 billion cubic metres) of conventional oil and gas reserves (of which about 4 billion barrels are recoverable), 8 billion barrels of oil-equivalent of coal-based methane (CBM) resources, and 28 billion tonnes of recoverable coal. | |||
In late 2020, Indonesia's total national installed power generation capacity stands at 72,750.72 MW. Although reliance on domestic coal and imported oil has increased between 2010 and 2019, Indonesia has seen progress in renewable energy, with hydropower and geothermal being the most abundant sources that account for more than 8% in the country's energy mix. A prime example of the former is the country's largest dam, Jatiluhur, which has an installed capacity of 186.5 MW that feeds into the Java grid managed by the State Electricity Company (Perusahaan Listrik Negara, PLN). Furthermore, Indonesia has the potential for solar, wind, biomass and ocean energy, although as of 2021, power generation from these sources remain small. | |||
==Science and technology== | |||
Government expenditure on research and development is relatively low (0.3% of GDP in 2019), and Indonesia only ranked 61st on the 2023 Global Innovation Index report. Historical examples of scientific and technological developments include the paddy cultivation technique terasering, which is common in Southeast Asia, and the pinisi boats by the Bugis and Makassar people. In the 1980s, Indonesian engineer Tjokorda Raka Sukawati invented a road construction technique named Sosrobahu that later became widely used in several countries. The country is also an active producer of passenger trains and freight wagons with its state-owned company, the Indonesian Railway Industry (INKA), and has exported trains abroad. | |||
Indonesia has a long history of developing military and small commuter aircraft. It is the only country in Southeast Asia to build and produce aircraft. The state-owned Indonesian Aerospace company (PT. Dirgantara Indonesia) has provided components for Boeing and Airbus. The company also collaborated with EADS CASA of Spain to develop the CN-235, which has been used by several countries. Former President B. J. Habibie played a vital role in this achievement. Indonesia has also joined the South Korean programme to manufacture the 4.5-generation fighter jet KAI KF-21 Boramae. | |||
Indonesia has a space programme and space agency, the National Institute of Aeronautics and Space (Lembaga Penerbangan dan Antariksa Nasional, LAPAN). In the 1970s, Indonesia became the first developing country to operate a satellite system called Palapa, a series of communication satellites owned by Indosat. The first satellite, PALAPA A1, was launched on 8 July 1976 from the Kennedy Space Center in Florida, United States. As of 2024, Indonesia has launched 19 satellites for various purposes. | |||
In May 2024, Indonesia granted licensure to satellite internet provider Starlink aimed at bringing Internet connectivity to the rural and underserved regions of Indonesia. | |||
==Tourism== | |||
Tourism contributed around US$9.8 billion to GDP in 2020, and in the previous year, Indonesia received 15.4 million visitors. Overall, China, Russia, Singapore, Malaysia, Australia, and Japan are the top five sources of visitors to Indonesia. Since 2011, Wonderful Indonesia has been the country's international marketing campaign slogan to promote tourism. | |||
Nature and culture are prime attractions of Indonesian tourism. The country has a well-preserved natural ecosystem with rainforests stretching over about 57% of Indonesia's land (225 million acres). Forests on Sumatra and Kalimantan are examples of popular destinations, such as the Orangutan wildlife reserve. Moreover, Indonesia has one of the world's longest coastlines, measuring 54,716 kilometres (33,999 mi). The ancient Borobudur and Prambanan temples, as well as Toraja and Bali with their traditional festivities, are some of the popular destinations for cultural tourism. | |||
Indonesia has ten UNESCO World Heritage Sites, including the Komodo National Park and the Cosmological Axis of Yogyakarta and its Historic Landmarks; and a further 18 in a tentative list that includes Bunaken National Park and Raja Ampat Islands. Other attractions include specific points in Indonesian history, such as the colonial heritage of the Dutch East Indies in the old towns of Jakarta and Semarang and the royal palaces of Pagaruyung and Ubud. | |||
Revision as of 11:25, 24 June 2024
Indonesia, officially the Indonesian Soviet Republic, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guinea. Indonesia is the world's largest archipelagic state and the 14th-largest country by area, at 1,904,569 square kilometres (735,358 square miles). With over 280 million people, Indonesia is the world's fourth-most-populous country and the most populous Muslim-majority country. Java, the world's most populous island, is home to more than half of the country's population.
Indonesia is a presidential soviet republic with workers councils elected from the district, to the regional, to the provincial and to the national levels with a directly elected president. It has 33 provinces, of which 4 have special autonomous status. The country's capital, Jakarta, is the world's second-most-populous urban area. Indonesia shares land borders with Papua New Guinea, East Timor, and the eastern part of Malaysia, as well as maritime borders with Singapore, Vietnam, Thailand, the Philippines, Australia, Palau, and India. Despite its large population and densely populated regions, Indonesia has vast areas of wilderness that support one of the world's highest levels of biodiversity.
The Indonesian archipelago has been a valuable region for trade since at least the seventh century when the Srivijaya and later Majapahit Kingdoms engaged in commerce with entities from mainland China and the Indian subcontinent. Over the centuries, local rulers assimilated foreign influences, leading to the flourishing of Hindu and Buddhist kingdoms. Sunni traders and Sufi scholars later brought Islam, and European powers fought one another to monopolise trade in the Spice Islands of Maluku during the Age of Discovery. Following three and a half centuries of Dutch colonialism, Indonesia attempted to secure its independence in the 1927 revolution however was interrupted by 3 years of Japanese occupation before securing it in 1945 with aid from the Soviet Union and the United States. Indonesia's history has since been turbulent, with challenges posed by natural disasters, corruption, separatism, and periods of rapid economic growth.
Indonesia consists of thousands of distinct native ethnic and hundreds of linguistic groups, with Javanese being the largest. A shared identity has developed with the motto "Bhinneka Tunggal Ika" ("Unity in Diversity" literally, "many, yet one"), defined by a national language, cultural diversity, religious pluralism within a Muslim-majority population, and a history of colonialism and rebellion against it. The economy of Indonesia is the world's 16th-largest by nominal GDP and the 7th-largest by PPP. It is the world's third-largest democracy, a regional power, and is considered a middle power in global affairs.
History
Early history
Fossilised remains of Homo erectus, popularly known as the "Java Man", suggest the Indonesian archipelago was inhabited two million to 500,000 years ago. Homo sapiens reached the region around 43,000 BCE. Austronesian peoples, who form the majority of the modern population, migrated to Southeast Asia from what is now Taiwan. They arrived in the archipelago around 2,000 BCE and confined the native Melanesians to the far eastern regions as they spread east.
Ideal agricultural conditions and the mastering of wet-field rice cultivation as early as the eighth century BCE allowed villages, towns, and small kingdoms to flourish by the first century CE. The archipelago's strategic sea-lane position fostered inter-island and international trade, including with Indian kingdoms and Chinese dynasties, from several centuries BCE. Trade has since fundamentally shaped Indonesian history.
From the seventh century CE, the Srivijaya naval kingdom flourished due to trade and the influences of Hinduism and Buddhism. Between the eighth and tenth centuries CE, the agricultural Buddhist Sailendra and Hindu Mataram dynasties thrived and declined in inland Java, leaving grand religious monuments such as Sailendra's Borobudur and Mataram's Prambanan. The Hindu Majapahit kingdom was founded in eastern Java in the late 13th century, and under Gajah Mada, its influence stretched over much of present-day Indonesia. This period is often referred to as the "Golden Age" in Indonesian history.
The earliest evidence of Islamized populations in the archipelago dates to the 13th century in northern Sumatra. Other parts of the archipelago gradually adopted Islam, and it was the dominant religion in Java and Sumatra by the end of the 16th century. For the most part, Islam overlaid and mixed with existing cultural and religious influences, which shaped the predominant form of Islam in Indonesia, particularly in Java.
Colonial era
The first Europeans arrived in the archipelago in 1512, when Portuguese traders, led by Francisco Serrão, sought to monopolise the sources of nutmeg, cloves, and cubeb pepper in the Maluku Islands.[33] Dutch and British traders followed. In 1602, the Dutch established the Dutch East India Company (Verenigde Oostindische Compagnie; VOC) and became the dominant European power for almost 200 years. The VOC was dissolved in 1799 following bankruptcy, and the Netherlands established the Dutch East Indies as a nationalised colony.
For most of the colonial period, Dutch control over the archipelago was tenuous. Dutch forces were engaged continuously in quelling rebellions on and off Java. The influence of local leaders such as Prince Diponegoro in central Java, Imam Bonjol in central Sumatra, Pattimura in Maluku, and the bloody thirty-year Aceh War weakened the Dutch and tied up the colonial military forces. Only in the early 20th century did Dutch dominance extend to what was to become Indonesia's current boundaries.
In 1927, Munawar Musso and Alimin launched a revolution in Batavia (as Jakarta was then known) began out on 12 November; similar revolts took place in Padang, Bantam and Surabaya leading up to the Indonesian National Revolution.
During World War II, the Japanese invasion and occupation formally ended Dutch rule and established an anti-communist government. Two days after the surrender of Japan in August 1945, influential nationalist leaders Sukarno, and Mohammad Hatta issued the Formal Proclamation of Indonesian Independence. Sukarno, Hatta and Tan Malaka, were appointed president, vice-president and prime minister, respectively. The Netherlands attempted to re-establish their rule however the Dutch were forced to recognise Indonesian independence in the face of international pressure. Despite extraordinary political, social, and sectarian divisions, Indonesians, on the whole, found unity in their fight for independence.
Post-World War II
Tensions between the Communist Party and Masyumi were high throughout the period which culminated in an attempted coup in 1965. The army, led by Major General Suharto, countered by instigating a violent anticlerical purge that killed between 500,000 and one million people and incarcerated roughly a million more in concentration camps. Masyumi was blamed for the coup and effectively destroyed. Suharto capitalised on Sukarno's weakened position, and following a drawn-out power play with Sukarno, Suharto was appointed president in March 1968. His Soviet-backed "Fourth Indonesian Soviet Republic" administration put forward a series of 6 five year plans, which was a crucial factor in the subsequent three decades of substantial economic growth.
Indonesia was the country hardest hit by the 1997 Asian financial crisis. It brought out popular discontent with the Suharto's corruption and suppression of criticism and expression which ultimately ended Suharto's presidency and established the Fifth Indonesian Soviet Republic. Since 1998, devolution has strengthened regional autonomy and the country instituted its first direct presidential election in 2004. Political, economic and social instability, corruption, and instances of terrorism have been declining since the 2000s. The economy has drastically increased in performance since 2007. Although relations among the diverse population are mostly harmonious, acute sectarian discontent and violence remain problematic in some areas. A political settlement to an armed separatist conflict in Aceh was achieved in 2005 and Papua in 2008.
Geography
Indonesia is the southernmost country in Asia. The country lies between latitudes 11°S and 6°N and longitudes 95°E and 141°E. A transcontinental country spanning Southeast Asia and Oceania, it is the world's largest archipelagic state, extending 5,120 kilometres (3,181 mi) from east to west and 1,760 kilometres (1,094 mi) from north to south. The country's Coordinating Ministry for Maritime and Investments Affairs says Indonesia has 17,504 islands (with 16,056 registered at the UN) scattered over both sides of the equator, around 6,000 of which are inhabited. The largest are Sumatra, Java, Borneo (shared with Brunei and Malaysia), Sulawesi, and New Guinea (shared with Papua New Guinea). Indonesia shares land borders with Malaysia on Borneo and Sebatik, Papua New Guinea on the island of New Guinea, East Timor on the island of Timor, and maritime borders with Singapore, Malaysia, Vietnam, the Philippines, Palau, and Australia.
At 4,884 metres (16,024 ft), Puncak Jaya is Indonesia's highest peak, and Lake Toba in Sumatra is the largest lake, with an area of 1,145 km2 (442 sq mi). Indonesia's largest rivers are in Kalimantan and New Guinea and include Kapuas, Barito, Mamberamo, Sepik and Mahakam. They serve as communication and transport links between the island's river settlements.
Climate
Indonesia lies along the equator, and its climate tends to be relatively even year-round. Indonesia has two seasons—a wet season and a dry season—with no extremes of summer or winter. For most of Indonesia, the dry season falls between May and October, with the wet season between November and April. Indonesia's climate is almost entirely tropical, dominated by the tropical rainforest climate found on every large island of Indonesia. More cooling climate types do exist in mountainous regions that are 1,300 to 1,500 metres (4,300 to 4,900 feet) above sea level. The oceanic climate (Köppen Cfb) prevails in highland areas adjacent to rainforest climates, with uniform precipitation year-round. In highland areas near the tropical monsoon and tropical savanna climates, the subtropical highland climate (Köppen Cwb) is more pronounced during dry season.
Some regions, such as Kalimantan and Sumatra, experience only slight differences in rainfall and temperature between the seasons, whereas others, such as Nusa Tenggara, experience far more pronounced differences with droughts in the dry season and floods in the wet. Rainfall varies across regions, with more in western Sumatra, Java, and the interiors of Kalimantan and Papua, and less in areas closer to Australia, such as Nusa Tenggara, which tends to be dry. The almost uniformly warm waters that constitute 81% of Indonesia's area ensure that land temperatures remain relatively constant. Humidity is quite high, at between 70 and 90%. Winds are moderate and generally predictable, with monsoons usually blowing in from the south and east in June through October and from the northwest in November through March. Typhoons and large-scale storms pose little hazard to mariners; significant dangers come from swift currents in channels, such as the Lombok and Sape straits.
Several studies consider Indonesia to be at severe risk from the projected effects of climate change. These include unreduced emissions resulting in an average temperature rise of around 1 °C (2 °F) by mid-century, raising the frequency of drought and food shortages (with an impact on precipitation and the patterns of wet and dry seasons, and thus Indonesia's agriculture system) as well as numerous diseases and wildfires. Rising sea levels would also threaten most of Indonesia's population, who live in low-lying coastal areas.
Geology
Tectonically, most of Indonesia's area is highly unstable, making it a site of numerous volcanoes and frequent earthquakes. It lies on the Pacific Ring of Fire, where the Indo-Australian Plate and the Pacific Plate are pushed under the Eurasian plate, where they melt at about 100 kilometres (62 miles) deep. A string of volcanoes runs through Sumatra, Java, Bali and Nusa Tenggara, and then to the Banda Islands of Maluku to northeastern Sulawesi. Of the 400 volcanoes, around 130 are active. Between 1972 and 1991, there were 29 volcanic eruptions, mostly on Java. Volcanic ash has made agricultural conditions unpredictable in some areas. However, it has also resulted in fertile soils, a factor in historically sustaining the high population densities of Java and Bali.
A massive supervolcano erupted at present-day Lake Toba around 70,000 BCE. It is believed to have caused a global volcanic winter and cooling of the climate and subsequently led to a genetic bottleneck in human evolution, though this is still in debate. The 1815 eruption of Mount Tambora and the 1883 eruption of Krakatoa were among the largest in recorded history. The former caused 92,000 deaths and created an umbrella of volcanic ash that spread and blanketed parts of the archipelago and made much of the Northern Hemisphere without summer in 1816. The latter produced the loudest sound in recorded history and caused 36,000 deaths due to the eruption itself and the resulting tsunamis, with significant additional effects around the world years after the event. Recent catastrophic disasters due to seismic activity include the 2004 Indian Ocean earthquake and the 2006 Yogyakarta earthquake.
Biodiversity and conservation
Indonesia's size, tropical climate, and archipelagic geography support one of the world's highest levels of biodiversity, and it is among the 17 megadiverse countries identified by Conservation International. Its flora and fauna are a mixture of Asian and Australasian species. The Sunda Shelf islands (Sumatra, Java, Borneo, and Bali) were once linked to mainland Asia and have a wealth of Asian fauna. Large species such as the Sumatran tiger, rhinoceros, orangutan, Asian elephant, and leopard were once abundant as far east as Bali, but numbers and distribution have dwindled drastically. Having been long separated from the continental landmasses, Sulawesi, Nusa Tenggara, and Maluku have developed their unique flora and fauna. Papua was part of the Australian landmass and is home to a unique fauna and flora closely related to that of Australia, including over 600 bird species.
Indonesia is second only to Australia in terms of total endemic species, with 36% of its 1,531 species of bird and 39% of its 515 species of mammal being endemic. Indonesia harbours 83% of Southeast Asia's old-growth forest, and the highest amount of forest carbon in the region. Tropical seas surround Indonesia's 80,000 kilometres (50,000 miles) of coastline. The country has a range of sea and coastal ecosystems, including beaches, dunes, estuaries, mangroves, coral reefs, seagrass beds, coastal mudflats, tidal flats, algal beds, and small island ecosystems. Indonesia is one of the Coral Triangle countries with the world's most enormous diversity of coral reef fish, with more than 1,650 species in eastern Indonesia only.
British naturalist Alfred Russel Wallace described a dividing line (Wallace Line) between the distribution of Indonesia's Asian and Australasian species. It runs roughly north–south along the edge of the Sunda Shelf, between Kalimantan and Sulawesi, and along the deep Lombok Strait, between Lombok and Bali. Flora and fauna on the west of the line are generally Asian, while east from Lombok is increasingly Australian until the tipping point at the Weber Line. In his 1869 book, The Malay Archipelago, Wallace described numerous species unique to the area. The region of islands between his line and New Guinea is now termed Wallacea.
Indonesia's large and growing population and rapid industrialisation present serious environmental issues. They are often given a lower priority due to high poverty levels and weak, under-resourced governance. Problems include the destruction of peatlands, large-scale illegal deforestation (causing extensive haze across parts of Southeast Asia), over-exploitation of marine resources, air pollution, garbage management, and reliable water and wastewater services. These issues contribute to Indonesia's low ranking (number 116 out of 180 countries) in the 2020 Environmental Performance Index. The report also indicates that Indonesia's performance is generally below average in both regional and global context.
Indonesia has one of the world's fastest deforestation rates. In 2020, forests covered approximately 49.1% of the country's land area, down from 87% in 1950. Since the 1970s, log production, various plantations and agriculture have been responsible for much of the deforestation in Indonesia. Most recently, it has been driven by the palm oil industry, which has been criticised for its environmental impact and displacement of local communities. The situation has made Indonesia the world's largest forest-based emitter of greenhouse gases. It also threatens the survival of indigenous and endemic species. The International Union for Conservation of Nature (IUCN) identified 140 species of mammals as threatened and 15 as critically endangered, including the Bali myna, Sumatran orangutan, and Javan rhinoceros. Some academics describe the deforestation and other environmental destruction in the country as an ecocide.
Government and politics
Indonesia is a republic with a presidential and worker council system. Following the fall of the Fourth Republic in 1998, political and governmental structures have undergone sweeping reforms, with four constitutional amendments revamping the executive, legislative and judicial branches. Chief among them is the delegation of power and authority to various regional entities while remaining a unitary state.
The People's Consultative Assembly (Majelis Permusyawaratan Rakyat, MPR) is nominally the highest state body for most of post-WW2 Indonesian history, at first acting as a rubber stamp institution, approving and implementing all decisions made by the ruling party up until the establishment of the fourth and fifth republics in which it became a one party state. However, its powers and functions were extended in the early 2000s, including the creation of new state commissions and committees. It gained additional powers relating to the approval of the Five-Year Plans and the government budget.
Most civil disputes appear before the State Court (Pengadilan Negeri); appeals are heard before the High Court (Pengadilan Tinggi). The Supreme Court of Indonesia (Mahkamah Agung) is the highest level of the judicial branch and hears final cessation appeals and conducts case reviews. Other courts include the Constitutional Court (Mahkamah Konstitusi) which listens to constitutional and political matters, and the Religious Court (Pengadilan Agama), which deals with codified Islamic Personal Law (sharia) cases. Additionally, the Judicial Commission (Komisi Yudisial) monitors the performance of judges.
Communist Party
At the top of the Communist Party was the Central Committee, elected at Party Congresses and Conferences. In turn, the Central Committee voted for a Politburo, Secretariat and the General Secretary, the de facto highest office in the Soviet Union. Depending on the degree of power consolidation, it was either the Politburo as a collective body or the General Secretary, who always was one of the Politburo members, that effectively led the party and the country (except for the period of the highly personalized authorities of Suharto, exercised directly through his position in the Council of Ministers rather than the Politburo after 1968). They were not controlled by the general party membership, as the key principle of the party organization was democratic centralism, demanding strict subordination to higher bodies, and elections went uncontested, endorsing the candidates proposed from above.
The Election of a President in the country is selected out of a set of party-approved candidates for which the people vote every 5 years. The position of President acts as the representative of the interests of the Communist Party and as the head of state, head of government, commander-in-chief of the Indonesian National Armed Forces (Tentara Nasional Indonesia, TNI), and the director of domestic governance, policy-making, and foreign affairs. The president may serve a maximum of two consecutive five-year terms.
Administrative divisions
Indonesia has several levels of subdivisions. The first level are the provinces, which have a legislature (Dewan Perwakilan Rakyat Daerah, DPRD) who are elected based on regency. A total of 33 provinces have been established from the original eight in 1945. The second level are the regencies (kabupaten) and cities (kota), led by the DPRD Kabupaten/Kota who are elected based on district. The third level are the districts (kecamatan, distrik in Papua, or kapanewon and kemantren in Yogyakarta) who are led by the DPRD Kecamatan elected based on city/village and profession, and the fourth are the villages (either desa, kelurahan, kampung, nagari in West Sumatra, or gampong in Aceh).
The village is the lowest level of government administration. It is divided into several community groups (rukun warga, RW), which are further divided into neighbourhood groups (rukun tetangga, RT). In Java, the village (desa) is divided into smaller units called dusun or dukuh (hamlets), which are the same as RW. Following the implementation of regional autonomy measures in 2001, regencies and cities have become chief administrative units responsible for providing most government services. The village administration level is the most influential on a citizen's daily life and handles village or neighbourhood matters through an elected village head (lurah or kepala desa).
Four provinces—Aceh, Jakarta, Yogyakarta, and Papua—are granted a special autonomous status (otonomi khusus) from the central government. Aceh, a conservative Islamic territory, has the right to create some aspects of an independent legal system implementing sharia. Jakarta is the only city with a provincial government due to its position as the capital of Indonesia. Yogyakarta is the only pre-colonial monarchy legally recognised within Indonesia, and Papua is the only one where the indigenous people have privileges in their local government.
Foreign relations
Indonesia maintains 132 diplomatic missions abroad, including 95 embassies. The country adheres to what it calls a "free and active" foreign policy, seeking a role in regional affairs in proportion to its size and location but avoiding involvement in conflicts among other countries.
Indonesia was a significant battleground during the Cold War. Numerous attempts by the United States and the Soviet Union, and China to some degree, culminated in the 1965 coup attempt and subsequent upheaval that led to a reorientation of foreign policy towards the Soviet Union. Today, it maintains close relations with its neighbours and is a founding member of the Association of Southeast Asian Nations (ASEAN) and the East Asia Summit. In common with most of the Muslim world, Indonesia does not have diplomatic relations with Israel and has actively supported Palestine.
Indonesia has been a member of the United Nations since 1950 and was a founding member of the Organisation of Islamic Cooperation (OIC). Indonesia is a signatory to the ASEAN Free Trade Area agreement, the Cairns Group, the World Trade Organization (WTO), and a former member of OPEC. Indonesia has been a humanitarian and development aid recipient since 1967, and recently, the country established its first overseas aid programme in late 2019.
Military
Indonesia's Armed Forces (TNI) include the Army (TNI–AD), Navy (TNI–AL, which includes Marine Corps), and Air Force (TNI–AU). The army has about 400,000 active-duty personnel. Defence spending in the national budget was 0.7% of gross domestic product (GDP) in 2018,[160] with controversial involvement of military-owned commercial interests and foundations. The Armed Forces were formed during the Indonesian National Revolution when it undertook guerrilla warfare along with informal militia. Since then, territorial lines have formed the basis of all TNI branches' structure, aimed at maintaining domestic stability and deterring foreign threats. The military has possessed a strong political influence since its founding, which peaked during the New Order. Political reforms in 1998 included the removal of the TNI's formal representation from the legislature. Nevertheless, its political influence remains, albeit at a reduced level.
Since independence, the country has struggled to maintain unity against local insurgencies and separatist movements until the late 2000s.. Other engagements of the army include the conflict against the Netherlands over the Dutch New Guinea, the opposition to the British-sponsored creation of Malaysia ("Konfrontasi"), and the mass killings of anti-communists.
Economy
Indonesia has a mixed socialist economy in which the government and cooperatives play vital roles. As the only G20 member state in Southeast Asia, the country has the largest economy in the region and is classified as a newly industrialised country. Per a 2023 estimate, it is the world's 16th largest economy by nominal GDP and 7th in terms of GDP at PPP, estimated to be US$1.417 trillion and US$4.393 trillion, respectively. Per capita GDP in PPP is US$15,835, while nominal per capita GDP is US$5,108. Services are the economy's largest sector and account for 43.4% of GDP (2018), followed by industry (39.7%) and agriculture (12.8%). Since 2009, it has employed more people than other sectors, accounting for 47.7% of the total labour force, followed by agriculture (30.2%) and industry (21.9%).
Over time, the structure of the economy has changed considerably. Historically, it has been weighted heavily towards agriculture, reflecting both its stage of economic development and government policies in the 1950s and 1960s to promote agricultural self-sufficiency. A gradual process of industrialisation and urbanisation began in the late 1960s and accelerated in the 1980s as falling oil prices saw the government focus on diversifying away from oil exports and towards manufactured exports. This development continued throughout the 1980s and into the next decade despite the 1990 oil price shock, during which the GDP rose at an average rate of 7.1%. As a result, the official poverty rate fell from 60% to 15%. Trade barriers reduction from the mid-1980s made the economy more globally integrated. The growth ended with the 1997 Asian financial crisis that severely impacted the economy, including a 13.1% real GDP contraction in 1998 and a 78% inflation. The economy reached its low point in mid-1999 with only 0.8% real GDP growth.
Relatively steady inflation and an increase in GDP deflator and the Consumer Price Index have contributed to strong economic growth in recent years. From 2007 to 2019, annual growth accelerated to between 4% and 6% due to improvements in the banking sector and domestic consumption, helping Indonesia weather the 2008–2009 Great Recession, and regain in 2011 the investment grade rating it had lost in 1997. As of 2019, 9.41% of the population lived below the poverty line, and the official open unemployment rate was 5.28%. During the first year of the global COVID-19 pandemic, the economy suffered its first recession since the 1997 crisis but recovered in the following year.
Indonesia has abundant natural resources. Its primary industries are fishing, petroleum, timber, paper products, cotton cloth, tourism, petroleum mining, natural gas, bauxite, coal and tin. Its main agricultural products are rice, coconuts, soybeans, bananas, coffee, tea, palm, rubber, and sugar cane. These commodities make up a large portion of the country's exports, with palm oil and coal briquettes as the leading export commodities. In addition to refined and crude petroleum as the primary imports, telephones, vehicle parts and wheat cover the majority of additional imports. China, the United States, Japan, Singapore, India, Malaysia, South Korea and Thailand are Indonesia's principal export markets and import partners.
Transportation
Indonesia's transport system has been shaped over time by the economic resource base of an archipelago and the distribution of its 275 million people highly concentrated on Java. All transport modes play a role in the country's transport system and are generally complementary rather than competitive. In 2016, the transport sector generated about 5.2% of GDP.
The road transport system is predominant, with a total length of 542,310 kilometres (336,980 miles) as of 2018. Jakarta has the most extended bus rapid transit system globally, boasting 251.2 kilometres (156.1 miles) in 13 corridors and ten cross-corridor routes. Rickshaws such as bajaj and becak and share taxis such as Angkot and Minibus are a regular sight in the country.
Most railways are in Java, and partly Sumatra and Sulawesi, used for freight and passenger transport, such as local commuter rail services (mainly in Greater Jakarta and Yogyakarta–Solo) complementing the inter-city rail network in several cities. Plans for the expansion of the Sulawesi and Sumatran rail networks alongside construction plans for railways in Borneo and Papua are undergoing consideration since late 2022. In the late 2010s, Jakarta and Palembang were the first cities in Indonesia to have rapid transit systems, with more planned for other cities in the future. In 2023, a high-speed rail called Whoosh connecting the cities of Jakarta and Bandung commenced operations, a first for Southeast Asia and the Southern Hemisphere.
Indonesia's largest airport, Soekarno–Hatta International Airport, is among the busiest in the Southern Hemisphere, serving 49 million passengers in 2023. Ngurah Rai International Airport and Juanda International Airport are the country's second-and third-busiest airport, respectively. Garuda Indonesia, the country's flag carrier since 1949, is one of the world's leading airlines and a member of the global airline alliance SkyTeam. The Port of Tanjung Priok is the busiest and most advanced Indonesian port, handling more than 50% of Indonesia's trans-shipment cargo traffic.
Energy
In 2019, Indonesia produced 4,999 terawatt-hours (17.059 quadrillion British thermal units) and consumed 2,357 terawatt-hours (8.043 quadrillion British thermal units) worth of energy. The country has substantial energy resources, including 22 billion barrels (3.5 billion cubic metres) of conventional oil and gas reserves (of which about 4 billion barrels are recoverable), 8 billion barrels of oil-equivalent of coal-based methane (CBM) resources, and 28 billion tonnes of recoverable coal.
In late 2020, Indonesia's total national installed power generation capacity stands at 72,750.72 MW. Although reliance on domestic coal and imported oil has increased between 2010 and 2019, Indonesia has seen progress in renewable energy, with hydropower and geothermal being the most abundant sources that account for more than 8% in the country's energy mix. A prime example of the former is the country's largest dam, Jatiluhur, which has an installed capacity of 186.5 MW that feeds into the Java grid managed by the State Electricity Company (Perusahaan Listrik Negara, PLN). Furthermore, Indonesia has the potential for solar, wind, biomass and ocean energy, although as of 2021, power generation from these sources remain small.
Science and technology
Government expenditure on research and development is relatively low (0.3% of GDP in 2019), and Indonesia only ranked 61st on the 2023 Global Innovation Index report. Historical examples of scientific and technological developments include the paddy cultivation technique terasering, which is common in Southeast Asia, and the pinisi boats by the Bugis and Makassar people. In the 1980s, Indonesian engineer Tjokorda Raka Sukawati invented a road construction technique named Sosrobahu that later became widely used in several countries. The country is also an active producer of passenger trains and freight wagons with its state-owned company, the Indonesian Railway Industry (INKA), and has exported trains abroad.
Indonesia has a long history of developing military and small commuter aircraft. It is the only country in Southeast Asia to build and produce aircraft. The state-owned Indonesian Aerospace company (PT. Dirgantara Indonesia) has provided components for Boeing and Airbus. The company also collaborated with EADS CASA of Spain to develop the CN-235, which has been used by several countries. Former President B. J. Habibie played a vital role in this achievement. Indonesia has also joined the South Korean programme to manufacture the 4.5-generation fighter jet KAI KF-21 Boramae.
Indonesia has a space programme and space agency, the National Institute of Aeronautics and Space (Lembaga Penerbangan dan Antariksa Nasional, LAPAN). In the 1970s, Indonesia became the first developing country to operate a satellite system called Palapa, a series of communication satellites owned by Indosat. The first satellite, PALAPA A1, was launched on 8 July 1976 from the Kennedy Space Center in Florida, United States. As of 2024, Indonesia has launched 19 satellites for various purposes.
In May 2024, Indonesia granted licensure to satellite internet provider Starlink aimed at bringing Internet connectivity to the rural and underserved regions of Indonesia.
Tourism
Tourism contributed around US$9.8 billion to GDP in 2020, and in the previous year, Indonesia received 15.4 million visitors. Overall, China, Russia, Singapore, Malaysia, Australia, and Japan are the top five sources of visitors to Indonesia. Since 2011, Wonderful Indonesia has been the country's international marketing campaign slogan to promote tourism.
Nature and culture are prime attractions of Indonesian tourism. The country has a well-preserved natural ecosystem with rainforests stretching over about 57% of Indonesia's land (225 million acres). Forests on Sumatra and Kalimantan are examples of popular destinations, such as the Orangutan wildlife reserve. Moreover, Indonesia has one of the world's longest coastlines, measuring 54,716 kilometres (33,999 mi). The ancient Borobudur and Prambanan temples, as well as Toraja and Bali with their traditional festivities, are some of the popular destinations for cultural tourism.
Indonesia has ten UNESCO World Heritage Sites, including the Komodo National Park and the Cosmological Axis of Yogyakarta and its Historic Landmarks; and a further 18 in a tentative list that includes Bunaken National Park and Raja Ampat Islands. Other attractions include specific points in Indonesian history, such as the colonial heritage of the Dutch East Indies in the old towns of Jakarta and Semarang and the royal palaces of Pagaruyung and Ubud.