Population: 241,973,879 (July 2005 est.)
Capital: Jakarta
Languages: Bahasa Indonesia (official, modified form of Malay), English, Dutch, local dialects, the most widely spoken of which is
Javanese
Religions: Muslim 88%, Protestant 5%, Roman Catholic 3%, Hindu 2%, Buddhist 1%, other 1% (1998)
Government: republic
Climate: tropical; hot, humid; more moderate in highlands
Terrain: mostly coastal lowlands;
larger islands have interior mountains
Geography: archipelago of 17,508 islands (6,000 inhabited); straddles equator; strategic location astride or along major
sea lanes from Indian Ocean to Pacific Ocean
Ethnic groups: Javanese 45%, Sundanese 14%, Madurese 7.5%,
coastal Malays 7.5%, other 26%
Economy: Indonesia, a vast polyglot nation, has struggled to overcome the Asian financial crisis, and still grapples with
high unemployment, a fragile banking sector, endemic corruption, inadequate infrastructure, a poor investment climate, and
unequal resource distribution among regions. Indonesia became a net oil importer in 2004 because of declining production and
lack of new exploration investment. The cost of subsidizing domestic fuel placed increasing strain on the budget in 2005, and
combined with indecisive monetary policy, contributed to a run on the currency in August, prompting the government to enact a
126% average fuel price hike in October. The resulting inflation and interest rate hikes will dampen growth prospects in 2006.
Keys to future growth remain internal reform, building up the confidence of international and domestic investors, and strong
global economic growth. In late December 2004, the Indian Ocean tsunami took 131,000 lives with another 37,000 missing, left
some 570,000 displaced persons, and caused an estimated $4.5 billion in damages and losses. Terrorist incidents in 2005 have
slowed tourist arrivals. Indonesia experienced several human cases of avian influenza in late 2005, sparking concerns of a
pandemic.
GDP per capita: purchasing power parity - $3,700 (2005 est.)
GDP real growth: 5.3% (2005 est.)
Unemployment rate: 10% (2005 est.)
Internet country code: .id
Dial code: +62
The Dutch began to colonize Indonesia in the early 17th century; the islands
were occupied by Japan from 1942 to 1945. Indonesia declared its independence after Japan's surrender, but it required four
years of intermittent negotiations, recurring hostilities, and UN mediation before the Netherlands agreed to relinquish its
colony. Indonesia is the world's largest archipelagic state. Current issues include: alleviating widespread poverty,
preventing terrorism, continuing the transition to popularly-elected governments after four decades of authoritarianism,
implementing reforms of the banking sector, addressing charges of cronyism and corruption, and holding the military and police
accountable for human rights violations. Indonesia has been dealing with armed separatist movements in Aceh and in Papua.