Indonesia

All Sources -
Updated Media sources (1) About encyclopedia.com content Print Topic Share Topic
views updated

INDONESIA

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS INDONESIANS
DEPENDENCIES
BIBLIOGRAPHY

Republic of Indonesia

Republik Indonesia

CAPITAL: Jakarta

FLAG: The national flag, adopted in 1949, consists of a red horizontal stripe above a white stripe.

ANTHEM: Indonesia Raya (Great Indonesia).

MONETARY UNIT: The rupiah (Rp) consists of 100 sen. There are coins of 1, 2, 5, 10, 25, 50, and 100 rupiahs, and notes of 100, 500, 1,000, 5,000, and 10,000 rupiahs. Rp1 = $0.00010 (or $1 = Rp9,739.35) as of 2005.

WEIGHTS AND MEASURES: The metric system is standard.

HOLIDAYS: New Year's Day, 1 January; Independence Day, 17 August; Christmas, 25 December. Movable religious holidays include the Prophet's Birthday, Ascension of Muhammad, Good Friday, Ascension Day of Jesus Christ, the end of Ramadan, 'Id al-Fitr, 'Id al-'Adha', and the 1st of Muharram (Muslim New Year).

TIME: Western, 7 pm = noon GMT; Central, 8 pm = noon GMT; Eastern, 9 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

The Republic of Indonesia consists of five large islands and 13,677 smaller islands (about 6,000 of which are inhabited) forming an arc between Asia and Australia. With a total area of 1,919,440 sq km (741,100 sq mi), Indonesia is the fourth-largest Asian country, after China, India, and Saudi Arabia. Comparatively, the area occupied by Indonesia is slightly less than three times the size of the state of Texas. It extends 5,271 km (3,275 mi) ew and 2,210 km (1,373 mi) ns. The five principal islands are Sumatra; Java; Borneo, of which the 72% belonging to Indonesia is known as Kalimantan; Sulawesi, formerly called Celebes; and Irian Jaya (West Irian), the western portion of the island of New Guinea. Indonesia has land boundaries with Malaysia (on Borneo), Papua New Guinea (on New Guinea), and East Timor (on Timor). It is bounded on the n by the South China Sea, on the n and e by the Pacific Ocean, and on the s and w by the Indian Ocean. Indonesia's total land boundary length is 2,830 km (1,758 mi). Its coastline is 54, 716 km (33,999 mi).

Indonesia's capital city, Jakarta, is located on the island of Java.

TOPOGRAPHY

The Indonesian archipelago consists of three main regions. One of the regions consists of Sumatra, Java, Kalimantan, and the islands that lie between them, which stand on the Sunda shelf, where the ocean depths are never more than 210 m (700 ft). Another region consists of Irian Jaya and the Aru Isles, which stand on the Sahul shelf, projecting northward from the north coast of Australia at similar depths. Between these two shelves are the Lesser Sunda Islands, the Maluku Islands (Moluccas), and Sulawesi, which are surrounded by seas with depths that reach 4,570 m (15,000 ft). The large islands have central mountain ranges rising from more or less extensive lowlands and coastal plains. Many inactive and scores of active volcanoes dot the islands, accounting for the predominantly rich volcanic soil that is carried down by the rivers to the plains and lowlands; there are over 100 volcanoes. Peaks rise to 3,650 m (12,000 ft) in Java and Sumatra. Java, Bali, and Lombok have extensive lowland plains and gently sloping cultivable mountainsides. Extensive swamp forests and not very fertile hill country are found in Kalimantan. Sumatra's eastern coastline is bordered by morasses, floodplains, and alluvial terraces suitable for cultivation farther inland. Mountainous areas predominate in Sulawesi.

Earthquakes and tsunamis often devastate Indonesia. In 1992, an earthquake off the island of Flores caused more than 2,500 deaths. More than 200 people died in 1994 from an earthquake and tsunami in eastern Java. An earthquake in Sumatra with a magnitude of 7.9 on the Richter Scale killed more than 100 people in 2000.

A disastrous tsunami struck Indonesia and its neighboring Asian countries on 26 December 2004. Stemming from an underwater earthquake about 324 km (180 mi) south off the coast of Sumatra, the city of Banda Aceh witnessed a 10-minute earthquake, the longest ever recorded as of 2005. The tsunami rolled waves onto the mainland at an estimated 800 km/h (500 mi/h), leaving about 131,000 dead and another 38,000 missing. The devastation of the disaster crushed entire villages and most of the country's coastal region.

On 19 February 2005, an earthquake measuring a 6.5 magnitude on the Richter Scale occurred at Sulawesi. Simeulue experienced a 6.8 magnitude tremor on 26 February 2005. On 28 March 2005, an earthquake measuring 8.7 struck both of the small islands of Nias and Simeulue. One of the most powerful in a century, the disaster caused hundreds of deaths and severe damage to many homes. Nias felt additional quakes on 14 May (at 6.8 magnitude) and 5 July (6.7 magnitude). Simeulue felt another quake of 6.7 magnitude on 19 May.

CLIMATE

Straddling the equator, Indonesia has a tropical climate characterized by heavy rainfall, high humidity, high temperature, and low winds. The wet season is from November to March, the dry season from April to October. Rainfall in lowland areas averages 180320 cm (70125 in) annually, increasing with elevation to an average of 610 cm (240 in) in some mountain areas. In the lowlands of Sumatra and Kalimantan, the rainfall range is 305370 cm (120145 in); the amount diminishes southward, closer to the northwest Australian desert. Average humidity is 82%.

Altitude rather than season affects the temperature in Indonesia. At sea level, the mean annual temperature is about 2527°c (7781°f). There is slight daily variation in temperature, with the greatest variation at inland points and at higher levels. The mean annual temperature at Jakarta is 26°c (79°f); average annual rainfall is about 200 cm (79 in).

FLORA AND FAUNA

The plant life of the archipelago reflects a mingling of Asiatic and Australian forms with endemic ones. Vegetation ranges from that of the tropical rain forest of the northern lowlands and the seasonal forests of the southern lowlands, through vegetation of the less luxuriant hill forests and mountain forests, to subalpine shrub vegetation.

The bridge between Asia and Australia formed by the archipelago is reflected in the varieties of animal life. The fauna of Sumatra, Kalimantan, and Java is similar to that of peninsular Malaysia, but each island has its peculiar types. The orangutan is found in Sumatra and Kalimantan but not in Java, the siamang only in Sumatra, the proboscis monkey only in Kalimantan, the elephant and tapir only in Sumatra, and the wild ox in Java and Kalimantan but not in Sumatra. In Sulawesi, the Maluku Islands, and Timor, Australian types begin to occurthe bandicoot, a marsupial, is found in Timor. All the islands, especially the Malukus, abound in great varieties of bird life, reptiles, and amphibians. The abundant marine life of Indonesia's extensive territorial waters includes a rich variety of corals.

As of 2002, there were at least 515 species of mammals, 929 species of birds, and over 29,300 species of plants throughout the country.

ENVIRONMENT

An extensive "regreening" and reforestation of barren land, initiated under the 197579 national economic development plan, was greatly expanded and integrated with flood control and irrigation programs under the national plans for 197984 and 198489. From the mid-1980s to the mid-1990s, Indonesia's forests and woodland areas increased by 1.4%. However, in 19902000, the deforestation rate was about 1.2% per year. Indonesia also has the world's most extensive mangrove area, which covered over 4 million hectares (9.9 million acres) in 1994. In 2000, about 58% of the total land area was forested.

Flood-control programs involve river dredging, dike strengthening, construction of new dams, and sandbagging of river banks at critical points. The burning of oil and coal along with the abuse of fertilizers and pesticides results in significant damage to the environment. The nation used 3.1 million tons of fertilizer per year at last estimate. Indonesia has 2,838 cu km of renewable water resources with 93% used in farming activity and 1% used for industrial purposes. About 89% of all city dwellers and 69% of rural dwellers have access to pure drinking water. Legislation introduced in 1982 endorsed the establishment of penalties for environmental pollution.

Protection of indigenous wildlife is entrusted to the Directorate of Nature Conservation and Wildlife Management. In 1984/85, the government set up three new national parks (of nineteen included in the 198489 plan) and four new natural reserves. By 2001 the government's goal to allocate 10% of the nation's land area to reserves had been metprotected lands totaled 10.1% of Indonesia's total land area. In 2003, about 20.6% of the total land area was protected, including five natural UNESCO World Heritage Sites and two Ramsar wetland sites.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 146 types of mammals, 121 species of birds, 28 types of reptiles, 33 species of amphibians, 91 species of fish, 3 types of mollusks, 28 species of other invertebrates, and 383 species of plants. Endangered species in Indonesia include the pig-tailed langur, Javan gibbon, orangutan, tiger, Asian elephant, Malayan tapir, Javan rhinoceros, Sumatran rhinoceros, Sumatran serow, Rothschild's starling, lowland anoa, mountain anoa, Siamese crocodile, false gavial, river terrapin, and four species of turtle (green sea, hawksbill, olive ridley, and leatherback). The Kalimantan mango, Buhler's rat, and the Javanese lapwing have become extinct.

POPULATION

The population of Indonesia in 2005 was estimated by the United Nations (UN) at 221,932,000, which placed it at number 4 in population among the 193 nations of the world. In 2005, approximately 5% of the population was over 65 years of age, with another 30% of the population under 15 years of age. There were 100 males for every 100 females in the country. According to the UN, the annual population rate of change for 200510 was expected to be 1.6%, a rate the government viewed as too high. The government was continuing efforts to curb population growth by reducing the fertility rate, which stood at 2.7 births per woman in 2005, half of what it was in the 1970s. The government's goal was to reach a fertility rate of 2.2 births per woman by 2010. The projected population for the year 2025 was 275,406,000. The population density was 117 per sq km (302 per sq mi); population distribution is uneven, with 60% of the population living in just 7% of the nation's land. Some urban areas have density equivalent to 44,030 per sq km (17,000 per sq mi).

The UN estimated that 42% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 3.22%. The capital city, Jakarta, had a population of 12,296,000 in that year. Other large cities and their estimated populations include Bandung, 4,020,000; Surabaya, 2,735,000; Medan, 2,109,000; Palembang, 1,675,000; Ujungpandang, 1,205,000; and Semarang, 816,000.

MIGRATION

Historically, there has been considerable migration from and to China. Following a decree banning foreigners from participating in retail trade in rural Indonesia, some 120,000 Chinese left Indonesia in 196061. After the attempted coup of 1965 and the resultant deterioration in relations with China, many more Chinese left Indonesia. Migration between the Netherlands and Indonesia has been greatly reduced since independence; at the time of independence, 250,000 Netherlands nationalsnearly all of whom have since returned homelived in Indonesia.

Resettlement of people from crowded areas to the less populous outer islands is official government policy. The 197984 National Economic Plan had as a target the "transmigration" of 500,000 families from Java, Bali, and Madura to Sumatra, Kalimantan, Sulawesi, Maluku Province, and Irian Jaya. Participation was voluntary, and the actual number of families that resettled was about 366,000, containing about 1.5 million people. Since the annual population increase of Java is more than two million, the costly transmigration scheme did little to relieve that island's human congestion, but it had a considerable impact in developing sparsely settled areas. Each family was entitled to two ha (five acres) and was provided with housing, food, seedlings, fertilizers, pesticides, and other supplies that it could use to become productive. Under the 198791 plan, 338,433 families were resettled.

First asylum was granted to over 145,000 Indochinese refugees between 1975 and 1993. Of these refugees, 121,708 were from Vietnam. Of the Vietnam asylum seekers, 112,000 had left for resettlement in the West by 1996, with the remaining group of Vietnamese expected to return home eventually. In 2004 there were 535,000 internally displaced persons in Indonesia.

In 2004 Indonesia had 169 refugees and 59 asylum seekers, with 16,390 persons of concern to the United Nations High Commissioner for Refugees (UNHCR). Populations of concern to UNHCR in 2004 were some 16,000 from East Timor and Afghanistan. In that same year over 7,000 Indonesians applied for asylum in Malaysia, the United States, and Australia. Another 15,181 were refugees in Malaysia, and 7,626 in Papua New Guinea.

In 2005 the net migration rate for Indonesia was zero.

ETHNIC GROUPS

The indigenous peoples, ethnologically referred to as Malays or Indonesians, also are found on the neighboring islands of the Philippines, in peninsular Malaysia, and even as far away as Taiwan and Madagascar. Indonesians are characterized by smallness of stature, light to dark-brown pigmentation, thick, sleek black hair, broad formation of the head, a wide nose, and thick lips. The inhabitants of eastern Indonesia have Negroid features, the result of intermarriage with the Papuans of New Guinea.

The population is officially classified into four main ethnic groups: Melanesians, who constitute the majority; Proto-Austronesians, including the Wajaks and the Irianese on Irian Jaya; Polynesians, including the Ambonese on the Maluku Islands; and Micronesians, found on the tiny islets of Indonesia's eastern borders. The Melanesians are subdivided into the Acehnese of north Sumatra; the Bataks of northeastern Sumatra; the Minangkabaus of west Sumatra; the Sundanese of west Java; the Javanese in central and east Java; the Madurese on the island of Madura; the Balinese on Bali; the Sasaks on the island of Lombok; the Timorese on Timor; the Dayaks in Kalimantan; and the Minahasa, Torajas, Makassarese, and Buginese on Sulawesi. About 45% of the population is Javanese, 14% Sundanese, 7.5% Madurese, 7.5% coastal Malays, and 26% other.

Ethnic Chinese, the principal minority, were the target of riots in 1974, 1980, and 1998. Active mainly in business in the major cities, they are relatively prosperous and widely resented by ethnic Indonesians.

LANGUAGES

Bahasa Indonesia, a product of the nationalist movement, is the official language, serving as a common vehicle of communication for the various language groups. Based primarily on Malay and similar to the official language of Malaysia, it also contains many words from other Indonesian languages and dialects, as well as from Dutch, English, Arabic, Sanskrit, and other languages. In 1973, Indonesia and Malaysia adopted similar systems of spelling. Outside of Jakarta, only 1015% of the population speaks the language in the home, but more than half the population uses it as a secondary language. Use of some 669 local languages persists, including Sundanese, Malay, and the most widely used, Javanese. English and Dutch are widely used in industry and commerce.

RELIGIONS

According to a 2000 census, about 88.22% of the inhabitants were adherents of Islam, 5.87% were Protestant, 3.05% were Roman Catholic, 1.81% were Hindu, 0.84% were Buddhist, and 0.2% followed tribal and other religions.

Most Muslims are Sunni, but the Shia, Amadhiyah, and Sufi branches are also represented. There are also small groups of messianic Islam groups including Darul Argam, Jamaah Salamulla, and Negara Islam Indonesia. The mainstream Muslim community is divided into modernists (who embrace modern learning but adhere to scriptural orthodox theology) and traditionalists (who are generally followers of charismatic religious scholars). Many modernists belong to a social organization known as Muhammadiyah; traditionalists belong to Nahdlatul. The Muslim majorities are found in Java, Sumatra, Kalimantan, West Nusa Tenggara, Sulawesi, and North Maluku.

Hinduism was the religion of Java for several centuries, but when Islam swept over Indonesia in the 15th century, Hinduism retreated somewhat to Bali. Hindu authorities estimate that there are about 18 million Hindus in the country; government estimates, however, indicate that there are only about 3.6 million. The Naurus on Seram Island practice a combination of Hindu and animist beliefs. Of the Buddhists, about 60% ascribe to the Mahayana school and 30% adhere to the Theravada school. Tantrayana, Tridharma, Kasogatan, Nichiren, and Maitreya schools are all represented as well. The religious faith of the Chinese in Indonesia may be characterized as Christian, Buddhist-Confucians, or even a combination of the two. The chief Christian communities are found in the eastern part of the country. In central Kalimantan and Irian Jaya, as well as a few other areas, substantial numbers of Indonesians follow animist tribal religions.

The constitution provides for freedom of worship but there have been some restrictions on religious practice. Only five religions are officially recognized by the Ministry of Religious Affairs: Islam, Catholicism, Protestantism, Buddhism, and Hinduism. Other religious groups may register as social organizations, but this status comes with certain restrictions. Proselytizing is prohibited. The government actively supports Islamic religious schools and pays for a number of annual pilgrimages to Mecca. Certain Hindu, Muslim, Christian, and Buddhist holidays are observed as national holidays.

TRANSPORTATION

Indonesia is politically and economically dependent upon good communications and transportation among the islands. Transportation facilities suffered greatly from destruction and neglect during World War II and immediately thereafter. The revitalized and partially modernized system suffered an additional setback during 195758 as a result of the withdrawal of Dutch equipment and personnel.

Of the 368,360 km (229,119 mi) of roadways in 2002, a total of 213,648 km (132,889 mi) were paved. Indonesia had 3,556,000 passenger cars and 2,720,000 commercial vehicles as of 2003. Railways connect the main cities in Java and parts of Sumatra. As of 2004, the state owned all of the 6,458 km (4,013 mi) of railroad track in service, all of which was narrow gauge. Of that total, 125 km (78 mi) have been electrified. Air-conditioned cars and express service have been introduced in parts of Java, but no new lines have been built in recent years.

As of 2004, about 21,579 km (13,409 mi) of inland waterways form the most important means of transportation in Kalimantan and in parts of Sumatra. The principal ports of international trade are Tanjungpriok (for Jakarta) and Tanjungperak (for Surabaya) in Java, and Belawan (near Medan) and Padang in Sumatra. Ports with less traffic but capable of handling sizable ships are Cirebon and Semarang in Java; Palembang in Sumatra; Banjarmasin, Balikpapan, and Pontianak in Kalimantan; Tanjungpinang in Bintan; and Ujung Padang in Sulawesi. In 2005, Indonesia's merchant fleet included 728 vessels of 1,000 GRT or more, totaling 3,192,847 GRT. Regulations were imposed in 1982 requiring that all government imports and exports be shipped in Indonesian vessels, and port charges were substantially altered to benefit Indonesia's national carriers. In 1984, a policy of scrapping old vessels was implemented.

Indonesia had an estimated 667 airports in 2004. As of 2005, a total of 161 had paved runways, and there were also 23 heliports. The center of international air traffic is Jakarta's Sukarno-Hatta International Airport. Other principal airports include Halim Perdanak at Jakarta and Polonia at Medan. In 2003, about 12.221 million passengers were carried on scheduled domestic and international flights.

HISTORY

Evidence for the ancient habitation of Indonesia was discovered by the Dutch paleontologist Eugène Dubois in 1891; these fossil remains of so-called Java man (Pithecanthropus erectus ) date from the Pleistocene period, when Indonesia was linked with the Asian mainland. Indonesia's characteristic racial mixture resulted from at least two waves of invasions from South China by way of the Malay Peninsula and from intermarriage of these Indonesians with later immigrants, especially from India. The important population groups of today trace their descent from the immigrants of the second wave, which occurred around the 2nd or 3rd century bc. They subjugated and absorbed most of the other inhabitants. Indian influences permeated Java and Sumatra from the 1st to the 7th century ad. During this period and extending into the 15th century, local Buddhist and Hindu rulers established a number of powerful kingdoms. Among the most powerful of these was the Buddhist kingdom of Srivijaya, established on Sumatra in the 7th century; it prospered by gaining control of trade through the Strait of Malacca. To the east, in central Java, the Sailendra dynasty established its Buddhist kingdom in the 8th century. Relics of Sailendra rule include the great temple of Borobudur, Asia's largest Buddhist monument, with hundreds of bas-reliefs depicting the life of Buddha. Succeeding the Sailendra dynasty in 856 were followers of the Hindu god Shiva; these Shivaites built the great temple at Prambanan, east of Yogyakarta. Other Hindu kingdoms subsequently extended Indian influence eastward into east Java and Bali. The last of these was the Hindu kingdom of Majapahit, which was at the height of its power during the 13th century, when Marco Polo visited Java and northern Sumatra. When Majapahit collapsed around 1520, many of its leaders, according to tradition, fled to Bali, the only island in Indonesia that retains Hinduism as the chief religion. Even before Majapahit disintegrated, Muslim missionaries, probably Persian merchants, had begun to win much of the archipelago for Islam. About this time, also, the first Europeans arrived, and the first Chinese settlements were made. The Portuguese captured Malacca (Melaka), on the west coast of the Malay Peninsula, in 1511 and established control over the archipelago.

Dutch ships visited Java in 1596. The Dutch came in increasing numbers and soon drove the Portuguese out of the archipelago (except for the eastern half of the island of Timor), beginning nearly 350 years of colonial rule. The States-General of the Dutch Republic in 1602 incorporated the East Indian spice traders as the United East India Company and granted it a monopoly on shipping and trade and the power to make alliances and contracts with the rulers of the East. By force and diplomacy, the company thus became the supreme ruler of what became known as the Dutch East Indies. However, maladministration and corruption weakened the company after its early years of prosperity, and the Dutch government nullified its charter in 1799 and took over its affairs in 1800. The British East India Company ruled the Indies during the Napoleonic wars, from 1811 to 1816. During this period, Sir Th omas Stamford Raffl es became governor of Java. When Dutch rule was restored, the Netherlands government instituted the "culture system" on Java, under which the Javanese, instead of paying a certain proportion of their crops as tax, were required to put at the disposal of the government a share of their land and labor and to grow crops for export under government direction. From a fiscal point of view the system was very successful, yielding millions of guilders for the Netherlands treasury, but this "net profit" or "favorable balance" policy fell under increasing moral attack in the Netherlands and was brought to an end about 1877.

Thereafter, private Dutch capital moved into the Indies, but the augmentation of Dutch prosperity at the expense of Indonesian living standards was increasingly resented. With the adoption of what colonial administrators called the "ethical policy" at the beginning of the 20th century, the first steps were taken to give Indonesians participation in government. A central representative body, the Volksraad, was instituted in 1918. At first it had only advisory powers, but in 1927 it was given colegislative powers. An Indonesian nationalist movement began to develop during those years and steadily gained strength. Although retarded in the 1930s by the world economic depression, which was strongly felt in Indonesia, the movement revived during the Japanese occupation (194245) in World War II. A nationalist group under the leadership of Sukarno and Mohammad Hatta proclaimed an independent republic on 17 August 1945, adopted a provisional constitution providing for a strong presidential form of government, formed a revolutionary government, and resisted Dutch reoccupation. After four years of intermittent negotiations, frequent hostilities, and intervention by the United Nations (UN), the Netherlands agreed to Indonesian demands.

On 27 December 1949, the Dutch recognized the independence of all the former Dutch East Indies except West New Guinea (Irian Jaya) as the Republic of the United States of Indonesia. A few months later, on 17 August 1950, the federal system was rejected and a unitary state, the Republic of Indonesia, was established under a new constitution. West New Guinea remained under Dutch control until October 1962, when the Netherlands transferred the territory to the UN Temporary Executive Administration (UNTEA). On 1 May 1963, Indonesia took complete possession of the disputed territory as the province of Irian Barat (West Irian); the province was renamed Irian Jaya in 1973. Indonesia, which aimed to acquire Sarawak and Sabah (which are on the island of Borneo with Kalimantan), opposed the formation of the Federation of Malaysia in September 1963 and announced a "crush Malaysia" policy. This policy was implemented by guerrilla raids into Malaysian territory that continued until August 1966, when a formal treaty was concluded between the two countries.

Sukarno became the first president of the new nation in 1949, and Hatta the vice president. Internal diffi culties, fostered by a multiplicity of political parties inherited from Dutch colonial days, soon developed, and regional rivalries also threatened the unity of the new nation. Then as now, Java had some two-thirds of the country's population, but the great sources of wealth were found on the other, much less densely settled islands. Th ose living in the so-called Outer Islands believed too much governmental revenue was being spent in Java and too little elsewhere. After Vice President Hatta, a Sumatran, resigned in December 1956, many in the Outer Islands felt they had lost their chief and most effective spokesman in Jakarta. Territorial army commanders in Sumatra staged coups and defied the central government; other rebel movements developed in Sulawesi. The government took measures providing for greater fiscal and administrative decentralization, but discontent remained, and the rebellions were put down by force. Thereafter, Sukarno bypassed parliamentary procedures and pursued an increasingly authoritarian, anti-Western policy of "guided democracy." In 1959, he decreed a return to the 1945 constitution, providing for a centralized form of government, and consolidated his control.

Communist agitation within the country and secessionist uprisings in central and eastern Java came to a head in the 30th of September Movement under the direction of Lt. Col. Untung. Sukarno, whose foreign policy had turned increasingly toward the Communist Chinese, may have had advance knowledge of the Communist-led coup attempt on 30 September 1965, which was directed against Indonesia's top military men; the coup was crushed immediately by the army, however, and in the ensuing anti-Communist purges more than 100,000 persons (mostly Indonesian Chinese) lost their lives and another 700,000 were arrested. By mid-October, the army, under the command of Gen. Suharto, was in virtual control of the country. On 12 March 1966, following nearly three weeks of student riots, President Sukarno transferred to Suharto the authority to take, in the president's name, "all measures required for the safekeeping and stability of the government administration." In March 1967, the People's Consultative Assembly (Majetis Permusyawaratan RakyatMPR) voted unanimously to withdraw all Sukarno's governmental power and appointed Gen. Suharto acting president. One year later, it conferred full presidential powers on Suharto, and he was sworn in as president for a five-year term. The congress also agreed to postpone the general elections due in 1968 until 1971. Sukarno died in June 1970. On 3 July 1971, national and regional elections were held for the majority of seats in all legislative bodies. The Joint Secretariat of Functional Groups (Sekber Golongan KaryaGolkar), a mass political front backed by Suharto, gained 60% of the popular vote and emerged in control of both the House of Representatives (DPR) and the MPR.

Suharto Gains Control

In March 1973, the MPR elected Suharto to a second five-year term. Thus Suharto, with key backing from the military, began a long period of dominance over Indonesian politics. Under Suharto's "New Order," Indonesia turned to the West and began following a conservative economic course stressing capital development and foreign investment. In foreign affairs, Suharto's government achieved vastly improved ties with the United States, Japan, and Western Europe while maintaining links with the USSR.

On 7 December 1975, following Portugal's withdrawal from East Timor, a power struggle developed among various political groups, including the Revolutionary Front for an Independent East Timor (Frente Revolucionário de Este Timor IndependenteFretilin). The left-wing independence movement achieved military dominance forcing the Indonesian government to send troops into the former Portuguese colony and assume full control of the territory. On 17 July 1976, the Suharto government incorporated the territory as an Indonesian province. This action was neither recognized by the UN, which called on Indonesia to withdraw and allow the Timorese the right to self-determination, nor accepted by Fretilin. Discontent with the Suharto regime mounted after the elections of 1977, in which Suharto's Golkar Party gained an overwhelming majority. The government acknowledged holding 31,000 political prisoners; according to Amnesty International, the total was closer to 100,000. Student riots and criticism of government repression resulted in further government measures: political activity was suspended, and leading newspapers were temporarily closed. Suharto was elected by the MPR to a third five-year term in 1978; during late 1977 and 1978, some 16,000 political prisoners were released, and the remainder of those detained in 1965 were released by the end of 1979. Golkar made further gains in the 1982 elections, and Suharto was elected for a fourth five-year term in March 1983.

To strengthen the government in the face of rising Muslim militancy, Suharto began to reestablish Sukarno as a national hero eight years after his death. Suharto called for greater loyalty by all political groups to the Pancasila ("five principles") framed by Sukarno in 1945. The credo encompassed belief in the one supreme being, humanitarianism, national unity, consensus democracy, and social justice. Muslim groups strongly objected to the new government program and organized demonstrations that took place in 1984 and 1985. The war against Fretilin continued into the 1980s, with reports of massacres by government troops and severe economic hardship among the Timorese. Negotiations with Portugal, still considered responsible for decolonization by the UN, began in July 1983. In Irian Jaya, the Organization for a Free Papua (Organisasi Papua MerdekaOPM), which desires unification with Papua New Guinea and has been active since the early 1960s, increased its militant activities in 1986. The Indonesian Army (ABRI) continued to play a dual military and socioeconomic function, and this role was supported by legislation in 1988. Golkar made further gains in the 1987 elections, and Suharto was again reelected for a fifth five-year term in March 1988. During disagreements over nomination procedures for the vice presidency, ABRI's influence was eroded.

Golkar sought to create national unity through its resettlement policies. From 196992, the Transmigration Program, a policy aimed at redistributing population in Indonesia for political purposes and demographic reasons, resulted in almost 1,488,000 families moving from the Inner Islands to the Outer Islands. The Transmigration Program suffered from land disputes with local residents and environmental concerns over deforestation. The program alienated local populations and fueled ethnic conflict throughout the country. In Irian Jaya, OPM attempted to sabotage the government's program, which was turning the indigenous Melanesian majority into a minority. Indonesian troops attempting to capture Melanesian separatists would cross the border into Papua New Guinea. Indonesia and Papua New Guinea agreed to provide greater cooperation on security and trade issues and the leader of OPM, Melkianus Salossa, was eventually arrested in Papua New Guinea and deported to Indonesia and sentenced to life in prison in 1991. In 1989, tension from land disputes in Java and the Outer Islands produced social unrest that resulted in clashes between villagers and the armed forces. In 1990 an armed rebellion in northern Sumatra at Aceh arose over hostility toward government exploitation of mineral resources and its transmigration program. The government squashed the rebellion with a massive display of force.

Political openness was increasingly espoused during 199091 by political and labor organizations. In 1990 a group of prominent Indonesians publicly demanded that Suharto retire from the presidency at the end of his current term; in 1991 labor unrest increased with a rash of strikes, which the army was called in to quell. Government efforts to raise funds through a state lottery were opposed and finally forbidden on religious grounds when the country's highest Islamic authority declared the lottery haram (forbidden).

On 12 November 1991, during a funeral for a young Timorese killed in demonstrations against Indonesia's rule of East Timor, soldiers opened fire on the defenseless mourners, provoking worldwide condemnation. Although the government took unprecedented steps to punish those involved, Western governments threatened to suspend aid, and demands were made linking aid to human rights issues. The Netherlands' demand linking its aid to improvements in human rights was rejected when Suharto refused Dutch economic aid on 25 March 1992. In the aftermath of these events, Suharto spoke at the Nonaligned Movement summit in Jakarta and to the UN General Assembly, suggesting that developing nations needed to take a more prominent role in opposing North-South economic inequality. Suharto's challenge received a cool reception from Western nations, but it clearly signaled a reassessment of Indonesia's future international presence. In early December 1992 government forces captured Jose Alexandre (Xanana) Gusmao, leader of the Fretilin, who was hiding in Dili, East Timor. On 21 May 1993 he was sentenced to life imprisonment. In late 1992, tensions between Muslims and Christians increased to the point of violence and vandalism of churches and mosques. Suharto requested that religious tolerance be practiced. By 1993 US policy toward Indonesia shifted, toward criticism of Indonesia's rule in East Timor and a threat to revoke trade privileges pursuant to Indonesia's treatment of the largest independent trade union, the Indonesian Prosperous Labor Union (SBSI). Adding further scrutiny to Indonesia's tarnished international image was a UN resolution on Indonesia's human rights violations placing the country on a rights "watch" list in 1993.

Although its total share of votes declined, Golkar won the 1992 elections, securing 282 of the 400 elective seats. In March 1993, Suharto was elected to a sixth term as president. Try Sutrisno, the commander in chief of ABRI, was chosen as vice president. Despite Golkar's victory, the country continued to experience economic and political diffi culties. A major scandal occurred in March 1993 with the sale of $5 million in fake shares on the Jakarta Stock Exchange (JSE). In January 1994 President Suharto inaugurated 12 electric power plants with combined installed capacity of more than 2,000 MW. Violent labor unrest broke out in Medan in April 1994 with the mysterious death of a union activist. Ethnic Chinese, who are only about 3% of the population of Indonesia, were the target of demonstrators; one Chinese factory manager was killed. The success of the Chinese is widely envied and they are accused of exploiting the workers. On 21 June 1994 the government closed Tempo and two other publications by revoking publishing licenses. Tempo was accused of violating the journalistic code of ethics and pitting one person against another to the point where it affected national security based on its coverage of a controversial purchase of 39 warships from the former East German navy. Other publications were accused of more technical infractions, including the failure to comply with registration procedures and publishing political and general news in spite of license restrictions limiting a popular tabloid's coverage to detective stories and crime stories.

Violent outbreaks, clashes, and riots increased in Indonesia from 199597. Riots between Catholics and Muslims broke out in East Timor in September 1995, leaving Dili's central marketplace in ashes. This was before Timor's Roman Catholic bishop, Carlos Filipe Ximenes Belo, and pro-independence advocateJosé Ramos-Horta, shared the Nobel Peace Prize in 1996. Many incidents of rural unrest, including land disputes and ethnic strife, continued in 199596. The campaign for the 29 May 1997 elections was an unusually violent one, dubbed the "festival of democracy," as voters and demonstrators brought rocks, bricks, knives, machetes, and even snakes to the campaign. There was a ban on parades of trucks, cars, and motorcycles. This followed the uproar resulting from the ouster of Megawati Sukarnoputri as the Indonesian Democratic Party (PDI) chairperson in June 1996. Her political involvement was seen as a rallying point for democratic change. Golkar took 74% of the vote in elections that were seen to be marked by fraud; over 200 people were killed during the campaign. The Muslim-oriented United Development Party (PPP) obtained 22% and the PDI, 3%.

In other violence, hundreds of lives were lost in a full-scale ethnic war in Kalimantan, as clashes between the Dayaks, the indigenous people of the area, and Muslim settlers from the island of Madora, broke out in December 1996. The fighting led to Malaysia closing part of its border with Indonesia in February 1997. In 1997, the country experienced the dual effect of increased ethnic conflict and economic decline. These twin forces were the harbinger for the decline of Golkar and the departure of Suharto from Indonesian politics. In the May 1997 legislative elections, Golkar allegedly secured 74.3% of the popular vote, amid massive violence that killed over 100 political activists. Violence continued after the elections and was worsened by the Asian economic crisis. After severe devaluation of the rupiah in August and October of 1997, Suharto accepted an International Monetary Fund (IMF) loan package but failed to carry out IMF-imposed conditions for economic reform. By December, news of Suharto's declining health furthered doubt on his ability to see Indonesia through a worsening economic and political situation.

After Suharto won an unopposed presidential election in March 1998, student protests swept Jakarta and ethnic tensions also swelled as Chinese merchants were attacked. In East Timor, José Ramos-Horta urged the government to agree to a cease-fire and cooperation with the UN to determine the ultimate governance structure for the country. On 21 May 1998, Suharto resigned as president, after hundreds of people were killed, looting swept through the capital, and thousands of foreigners living or working in Indonesia were evacuated in months of unrest. B. J. Habibie, the former vice president, was sworn in as president. Upon assuming the presidency, he adopted a conciliatory posture toward defusing the East Timor crisis by stating that East Timor may be given "special status" with increased autonomy within Indonesia. In August 1998, Portugal and Indonesia met to discuss the future of the province. After significant pressure from the United Nations, Australia, and Portugal, Habibie agreed on 27 January 1999 to hold a referendum for the province. Despite widespread violence instigated by the pro-Indonesia armed militia, 98% of voters cast their ballots on 30 August, with 78.5% in favor of independence. Th is was followed by a rampage by pro-Indonesia forces who looted and burned the entire province creating a major humanitarian situation and refugee crisis. With the aid of Australian troops, the UN intervened with approximately 8,000 troops to restore order and establish humanitarian programs. Meanwhile, in Irian Jaya and Aceh, the military forces and the national police continued to commit extra-judicial killings in 2000.

B. J. Habibie's political fortunes waned in the aftermath of the UN-sponsored referendum in East Timor. His state of the nation address to the People's Consultative Assembly in October 1999 did not allay the perception that he had not exercised the appropriate leadership in handling domestic and international matters. Pressure on Habibie mounted and he subsequently resigned as a result of a no-confidence vote. In 20 October elections in the People's Consultative Assembly, the first free elections in 44 years, Abdurrahman Wahid, the leader of the National Awakening Party and a near-blind Muslim cleric, was pitted against Megawati Sukarnoputri, Sukarno's daughter. Megawati's party won the most votes, but rather than negotiate with other politicians to form a coalition, Megawati allowed the more experienced Wahid to become president. Despite protest from her supporters, Megawati asked backers to refrain from violent protest. She became vice president. Wahid worked to curb the influence of the military and promised major reforms in the government.

In July 2001, after months of opposition from legislators over the competence of his administration, Wahid declared a state of emergency and ordered parliament dissolved. On 23 July 2001, legislators in the People's Consultative Assembly voted 5910 to remove Wahid from the presidency. He had been charged with corruption and incompetence, being accused of embezzling us$4.1 million in state funds and illegally accepting us$2 million from the Sultan of Brunei. He was cleared of all charges that May, but the parliament continued to insist upon impeachment proceedings based on dissatisfaction with his administration. Megawati was sworn in as president immediately after Wahid's removal.

Megawati, a Muslim who was identified with nationalist-secular policies, faced demonstrations upon assuming office from strict Islamic fundamentalists calling for the establishment of Shariah law. She also had to face the Aceh independence movement, as more than 1,000 people were killed in the province in 2001, adding to the thousands more that had been killed in the past decade. Megawati expressed support for the US-led war on terrorism following the 11 September 2001 terrorist attacks, and she visited the United States the following week.

Following the fall of Suharto, Indonesia experienced a resurgence of Islamic activity. The main extremist Islamist organizations in Indonesia are Darul Islam, the Islamic Defender's Front, and Laskar Jihad. Laskar Jihad is the most prominent and organized of Indonesia's radical Islamist organizations, and between 300400 new members joined within the first month following the 11 September attacks. On 12 October 2002, Indonesia experienced its own major terrorist attack. Two nightclubs in the resort town of Kuta on the island of Bali were bombed, killing 202 people, the majority being young Western tourists, many from Australia. On 18 October, President Megawati issued an emergency decree to give the government expanded powers to fight terrorism. This act came after international criticism directed at her government for not taking the necessary steps to address the problem of terrorism. Megawati permitted the arrest of Abubakar Bashir, a Muslim cleric who is the spiritual leader of Jemaah Islamiyah. Jemaah Islamiyah, accused of staging the Bali bombings, has links to the al-Qaeda organization. Bashir in 2003 was cleared of treason charges but jailed for subversion and immigration offenses. The subversion charge was later overturned, but in 2005 he was found guilty of conspiracy over the 2002 Bali bombings, and sentenced to 2½ years in prison. Later bombing attacks took place in August 2003 outside the Marriott Hotel in Jakarta, killing 14 people; in September 2004 outside the Australian embassy in Jakarta, which killed 9 and injured more than 180 people; and in October 2005 on the island of Bali, when 3 suicide bombings killed 22 people, including the bombers.

Following its independence referendum held in August 1999, East Timor was governed by UNTAET (the United Nations Transitional Administration in East Timor) and a National Consultative Council. A constituent assembly was elected in September 2001 with the task of writing a constitution for the country. In April 2002 José Alexandre "Xanana" Gusmão was elected president, and on 20 May 2002 East Timor became an independent nation.

In June 2000, 2,500 activists representing 250 tribal groups in Irian Jaya declared the regionwhich they call West Papuaa sovereign state. The region was granted limited autonomy by parliament in October 2001, but many inhabitants, including independence rebels, rejected the measure and called for full independence. On 9 December 2002, the government and the separatist Free Aceh Movement (GAM) signed a peace deal aimed at ending over three decades of violence. The accord provided for autonomy and free elections in Aceh; in return the GAM was to disarm. In May 2003, peace talks between the government and GAM broke down; the government mounted a military offensive against GAM separatists in Aceh and imposed martial law. In August 2005, the government and GAM separatists once again signed a peace agreement providing for the disarmament of rebels and the withdrawal of government soldiers from Aceh. In September, rebels began handing in their weapons.

Demonstrators protested price increases on basic necessities such as fuel and electricity commodities that have been rooted in corruption, in January 2003. Megawati, originally seen as a friend of the poor, was urged to resign by some for failing to eliminate corruption. In April 2004, parliamentary and local elections were held: the Golkar party of former President Suharto took the greatest share of the vote, with Megawati's PDI-P (Indonesia Democracy PartyStruggle) party coming in second. In July 2004, the country's first direct presidential election was held. In the runoff held on 20 September 2004, Megawati was defeated by Susilo Bambang Yudhoyono, who received 60.6% of the vote. The election was hailed as the first peaceful transition of power in Indonesian history.

On 26 December 2004, a powerful undersea earthquake off the coast of Sumatra generated massive tidal waves. The tsunami devastated Indian Ocean communities as far away as Th ailand, India, Sri Lanka, and Somalia. More than 160,000 people were dead or missing in Indonesia alone. In March 2005, another earthquake off the coast of Sumatra killed at least 1,000 people, most of them on the island of Nias.

GOVERNMENT

The provisional constitution of 17 August 1950 provided for a unitary republic. The president and vice president, "elected in accordance with rules to be laid down by law," were to be inviolable, but cabinet ministers were jointly and individually responsible. The House of Representatives was to be a unicameral parliament. Its members were elected by a system of proportional representation for a four-year term, but it might be dissolved earlier by presidential decree. Sukarno and Hatta, the first president and vice president, were elected by parliament; no term of office was stipulated by the constitution. In practice, the government was not truly parliamentary, since President Sukarno played a role far greater than is usual for the head of state in a parliamentary system. He was the great national revolutionary hero, and his popularity with the masses enabled him to exert great influence on government policy. Parliament was not strong enough to hold the president to the role prescribed by the constitution. In 1957, Sukarno adopted a more authoritarian policy of "guided democracy." He further strengthened his powers in 1959 by decreeing a return to the provisional 1945 constitution, which called for a strong president and stressed the philosophy of Pancasila as a national ideology. On 5 March 1960, Sukarno suspended parliament and began to rule by decree. In June, he appointed a new 283-member parliament drawn from 9 political parties and 14 "functional groups." In midAugust, Sukarno named another 326 legislators who, with the 283 members of parliament, were to constitute the Provisional People's Congress. This congress was to meet at least once every five years and to be responsible for drawing up the outlines of national policy and electing the president and vice president. In 1963, the congress elected Sukarno president for life. Following the political upheavals of 196566, the army, led by Gen. Suharto, moved to establish a "New Order." In 1967, Sukarno formally relinquished power to Suharto, who had become Indonesia's effective ruler in March 1966. Suharto reorganized the cabinet, making all of its 12 ministers responsible to him. In February 1968, he dismissed 123 members of the People's Consultative Assembly (Majelis Permusyawaratan Rakyat or MPR), an outgrowth of the Provisional People's Congress, and replaced them with his own nominees. In June of that year, following his appointment to a five-year term as president, Suharto formed a new cabinet, with himself as prime minister and defense minister.

On 3 July 1971, general electionsthe first since 1955were held for portions of two reconstituted national bodies, a 460-seat House of Representatives (Dewan Perwakilan Rakyat or DPR) and a 920-seat People's Consultative Assembly or MPR. In 1987, the memberships were increased to 500 and 1,000, respectively. The number of seats in the MPR was later reduced to 700. The People's Consultative Assembly included the DPR plus 200 indirectly selected members; it met every five years to elect the president and vice president and to approve broad outlines of national policy and also had yearly meetings to consider constitutional and legislative changes. Legislative responsibility was vested in the DPR, which consisted of 462 elected members and 38 members appointed by the president from the military (Armed Forces of People's Republic of Indonesia, Angkatan Bersenjata Republik Indonesia or ABRI). Under the Suharto government, the MPR acted as a consultative body, setting guidelines for national policy; its principal legislative task was to approve the broad outlines of state policy. In March 1973, the MPR elected President Suharto to a second five-year term; he was reelected to a third term in 1978, a fourth in 1983, a fifth in 1988, a sixth in 1993, and a seventh in 1998. However, Suharto was forced to step down in May 1998 in favor of his vice president, B. J. Habibie. Habibie sought to decrease the role of the military in Indonesian politics and promised major political and economic reforms. He too was forced to resign after the People's Consultative Assembly questioned his leadership. In a surprise move, the body chose Abdurrahman Wahid as president in October 1999. Wahid, a well respected Muslim cleric, promised democratization and an end to corruption. Ironically, Wahid was eventually removed from office in July 2001, for corruption and political incompetence. Megawati Sukarnoputri, the daughter of Sukarno, became president. She also took on the perennial problem of corruption, but had to face the issue of international terrorism as well.

In August 2002, the People's Consultative Assembly (MPR) approved constitutional amendments to take effect in time for the presidential elections held in 2004. Seats in the 550-member DPR were no longer reserved for the armed forces; in return, members of the military were allowed to vote. Members of the DPR are elected for five-year terms. The MPR rejected the imposition of Shariah for Muslims. A second standing body, the Regional Representative Council (Dewan Perwakilan DaerahDPD), now functions as a senate in Indonesia. Parliament no longer elects the president; instead, he or she is now directly elected.

In 2004, Megawati was defeated in the second round of the first direct presidential elections held in Indonesia. Susilo Bambang Yudhoyono became president with 60.6% of the votes.

POLITICAL PARTIES

Until the autumn of 1955, when the first national elections were held, members of the House of Representatives were appointed by the president in consultation with party leaders. Of the 37,785,299 votes cast in the 1955 general election, six parties received more than one million votes each: the Indonesian Nationalist Party (Partai Nasional IndonesiaPNI), 22.3% of the total; the Council of Muslim Organizations (Masjumi), 20.9%; the Orthodox Muslim Scholars (Nahdlatul UlamaNU), 18.4%; the Indonesian Communist Party (Partai Komunis IndonesiaPKI), 16.4%; the United Muslim Party, 2.9%; and the Christian Party, 2.6%. In all, 28 parties won representation in the 273-member parliament. Almost all the political parties had socialist aims or tendencies. The PNI, many of whose prominent members were leaders in the prewar nationalist movement, represented a combination of nationalism and socialism. Government officials and employees had originally constituted its backbone, but subsequently it grew powerful among labor and farmer groups as well. The Masjumi was more evenly distributed throughout Indonesia than any other party. Although it contained a large percentage of the small middle class, its principles were markedly socialist, owing to the influence in the party of a religious socialist group. The NU, which broke away from the Masjumi largely because of differences in religious outlook, represented the orthodox but not strictly conservative views of the rural people and religious teachers. The Christian Party was founded by Protestants; a smaller Roman Catholic Party was also formed. On 17 August 1960, Sukarno ordered the dissolution of the Masjumi and socialist parties on the grounds of disloyalty. A month later, on 13 September, political action by all parties was barred.

Early in 1961, notice was given that all political parties were required to apply for permission to function. On 15 April, parties certified to continue in existence included the PKI, PNI, NU, Catholic, Islamic Association, Indonesian Protestant Christian, Indonesian Islam Sarekat, and the League for Upholding Indonesian Independence. The PKI, which at the height of its power in 1965 had an estimated three million members and was especially strong on Java, was banned by Gen. Suharto in March 1966, by which time more than 100,000 PKI members were estimated to have been killed in riots, assassinations, and purges; many more PKI members were arrested. Since then, the party has operated underground. The Masjumi dissolved in 1960. Under the Suhar- to government, political opposition in Indonesia had become increasingly quiescent. Prior to the 1971 elections, the government formed a mass organization, known as Golkar (Golongan Karya), as the political vanguard for its "New Order" program. Golkar drew upon elements outside traditional party ranksthe civil service, labor, youth, cooperatives, and other groupsand succeeded in effectively circumventing the parties' ability to play a national role. Prior to the 1971 voting, a government-appointed election committee screened all prospective candidates, eliminating 735 from the initial list of 3,840; only 11 of those eliminated were from Golkar. Candidates were forbidden to criticize the government or to discuss religious issues. In the elections, held on 3 July 1971, Golkar candidates received 63% of the vote, while winning 227 of the 351 contested seats in the House of Representatives. Besides Golkarwhich is not formally considered a political party9 parties took part in the elections, as compared with 28 in 1955. The Orthodox Muslim NU placed second in the balloting, with 58 seats; the moderate Indonesian Muslim Party (Parmusi), an offshoot of the banned Masjumi Party, won 24 seats; and the PNI, Sukarno's former base, won only 20 seats. Four smaller groupsthe Muslim Political Federation, the Protestant Christian Party, the Catholic Party, and the Islamic Partydivided the remaining 22 seats. The government subsequently announced that 57 million persons, or over 95% of the electorate, had taken part in the voting. An act of 1975 provided for the fusion of the major political organizations into two partiesthe United Development Party (Partai Persuatan PembangunanPPP) and the Indonesian Democratic Party (Partai DemoKrasi IndonesiaPDI)and Golkar. The PPP, then Golkar's chief opposition, is a fusion of the NU, Parmusi and other Muslim groups, while the PDI represents the merger of the PNI, the Christian Party, the Roman Catholic Party, and smaller groups. In the third general election, held on 2 May 1977, Golkar won 232 seats in the House of Representatives, against 99 seats for the PPP and 29 seats for the PDI. Golkar made further gains in the elections of 4 May 1982, winning 246 of the 364 contested seats, against 94 for the PPP and 24 for the PDI. Both opposition parties charged that the government had falsified the vote totals. Rioting marred the campaign period, and 35,000 army troops were stationed in Jakarta on election day. In the election of 23 April 1987, Golkar won 292 of the 400 elected seats (73.2%), against 64 for the PPP (16%) and 44 for the PDI (10.8%).

For the 1992 election the campaign rules banned automobile rallies and picture posters of political leaders; large outdoor rallies were discouraged, radio and televised appeals had to be approved in advance by the elections commission, and no campaigning took place in the five days before the elections. In 1992 there were 17 million first-time voters in a population of 108 million registered voters. More than 97 million Indonesians voted, 90% of the registered voters. Golkar won 68% of the popular vote, down by 5% from 1987. The PPP took 17% of the vote. The PDI took 15% of the vote compared to 10.9% in 1987. These results in terms of DPR seats were: Golkar, 281 (down 18 seats from 1987); PPP, 63 (down 2 seats from 1987); and PDI, 56 seats (an increase of 16 seats).

The most violent election campaign in recent years was in 1997 as the ruling Golkar party took 74% of the vote. The 29 May 1997 elections were marked by fraud. More than 200 people were killed in the campaign, which banned motorcades. The PPP took 22% of the vote and the PDI, 3%. The 7 June 1999 elections resulted in a victory for Megawati Sukarnoputri's PDI-P (Indonesia Democracy PartyStruggle); however, she relinquished the presidency in favor of Abdurrahman Wahid. The PDI-P took 37.4% of the vote, Golkar took 20.9% of the vote, Wahid's National Awakening Party (PKB) took 17.4% of the vote, and the PPP took 10.7%. Megawati became president on the removal of Wahid in July 2001.

The next parliamentary elections were held in April 2004. Golkar took 21.6% of the vote (128 seats), followed by the PDI-P, with 18.5% (109 seats). The PPP won 8.2% of the vote (58 seats). The National Awakening Party (PKB) won 10.6% of the vote (52 seats); the Democratic Party won 7.5% of the vote (55 seats); the National Mandate Party (PAN), 6.4% (53 seats); the Prosperous Justice Party (PKS), 7.3% (45 seats). Other parties won a collective 19.9% of the vote and held 50 seats. Due to election rules, the number of seats won does not always follow the number of votes received by the parties.

LOCAL GOVERNMENT

The structure and organization of local governments follow the pattern of national government. Indonesia is divided into 30 provinces. There are three special territories, namely the capital city of Jakarta, the special territory of Yogyakarta, and the special territory of Aceh. Each province is administered by a governor chosen by the central government from candidates proposed by the provincial assembly. Governors must be approved by the president. Provinces are divided into districts (kabupatens ), administered by bupati appointed in the same manner as governors. Both provincial and district governments are granted autonomy. There are also municipalities (kotamadyas ) headed by a mayor (walikota ), subdistricts (kecamatan ) headed by a camat, and villages. Desa are rural villages and kelurahans are urban villages. The head of a desa is elected by the village community. The head of a kelurahan, a lurah, is a civil servant appointed by a camat on behalf of the governor. A unique feature of village life is the village council of elders, composed of 9 to 15 prominent village leaders. With the implementation of decentralization on 1 January 2001, the 357 districts became the key administrative units responsible for providing most government services.

JUDICIAL SYSTEM

Since 1951, the administration of justice has been unified. Government courts, each with a single judge, have jurisdiction in the first instance in civil and criminal cases. In December 1989, the Islamic Judicature Law gave wider powers to Shariah courts. The new law gave Muslim courts jurisdiction over civil matters, including marriage. Muslims and non-Muslims can decide to appear before secular courts. The Supreme Court has as its primary function the review of decisions by lower courts. The high court hears appeals in civil cases and reviews criminal cases. Judges are appointed by the president from a list of candidates chosen by the legislature. On 16 August 2003, a separate Constitutional Court was invested by the president. In March 2004, the Supreme Court assumed administrative and financial responsibility for the lower court system from the Ministry of Justice and Human Rights. In the villages, customary law (adat ) procedures continue unchanged.

Islamic law (Shariah) governs many noncriminal matters involving Muslims, including family law, inheritance and divorce; however, the People's Consultative Assembly (MPR) rejected the imposition of Shariah for Muslims in 2002. A civil code based on Roman law is applied to Europeans; a combination of codes is applied to other groups such as ethnic Chinese and Indians. Military and administrative courts also exist below the Supreme Court level.

ARMED FORCES

The Indonesian armed forces in 2005 consisted of 302,000 active personnel and 400,000 reserves. The Army, estimated at 233,000, included provincial and special forces. The Army's weapons included 350 light tanks, 142 reconnaissance vehicles, 11 armored infantry fighting vehicles, 356 armored personnel carriers, and 1,060 artillery pieces. The Army's aviation arm had 2 attack and 37 utility helicopters. The Air Force had 24,000 personnel, with 94 combat capable aircraft, including 26 fighters and 18 fighter ground attack aircraft. The Navy had an estimated 29,000 personnel (including an estimated 1,000 naval aviation personnel and 15,000 Marines). The Navy's major units consisted of 2 tactical submarines, 13 frigates, 16 corvettes, and 23 patrol/coastal craft. Paramilitary forces consisted of a 280,000-member police force and 3 other armed security forces. Indonesia's defense budget for 2005 totaled $2.53 billion. Indonesia provided support to UN peacekeeping missions in five countries.

INTERNATIONAL COOPERATION

Indonesia was admitted to the United Nations on 28 September 1950 and is a member of ESCAP and several nonregional specialized agencies. Following the seating of Malaysia in the Security Council, Indonesia withdrew from the United Nations on 7 January 1965; it resumed its seat on 28 September 1966. Indonesia is also a member of the WTO, the Asian Development Bank, Colombo Plan, G-15, G-77, APEC, the WTO, the Organization of the Islamic Conference (OIC), APEC, and OPEC. Indonesia became one of the founding members of ASEAN in 1967. Indonesia was a founding member of the Nonaligned Movement.

In March 1970, a treaty of friendship was signed between Indonesia and Malaysia; the treaty also established the boundary between the two countries in the Strait of Malacca. Relations between Indonesia and much of the international community were strained following the 1999 East Timorese referendum through which that nation voted for its independence from Indonesia. Indonesian military forces supported violent upheavals in East Timor immediately following the referendum, but these were calmed by the arrival of the Australian-led peacekeeping mission of the International Force for East Timor (INTERFET).

In environmental cooperation, Indonesia is part of the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, International Tropical Timber Agreements, the Kyoto Protocol, the Montréal Protocol, MARPOL, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Sea, Climate Change and Desertification.

ECONOMY

In colonial times Indonesia depended upon the export of a relatively small range of primary commodities. In the 17th and 18th centuries, the basis of the export-oriented economy was spices. In the 19th century, it shifted to sugar and coffee; in the 20th century, production of oil, tin, timber, and rubber became fundamental. Despite export gains, however, subsistence agriculture, with rice as the chief crop, remains the principal occupation of a large proportion of Indonesians, and standards of living are low. In 1991, the share of manufacturing in GDP exceeded that of the agricultural sector for the first time. In the early 2000s, the services sector expanded with a determined effort to promote tourism, and in 2005 it accounted for 40.4% of GDP and employed more than one-third of the workforce. Indonesia's record of economic growth and diversification was among the most successful in the developing world; but the onset of the Asian financial crisis in 1997 with Indonesia at the epicenter, followed by the 1998 political unrest and drought, contributed to a recession that hit the country hard, severely depressing the economy and halting economic growth. The economy slowly recovered in the beginning of the 21st century, however, with a 5.1% GDP growth rate in 2004, the fastest rate since the Asian financial crisis. The 26 December 2004 Indian Ocean tsunami resulted in the deaths of an estimated 131,000 Indonesians and left another 38,000 missing, with 570,000 displaced persons and $4.5 billion in damages and losses. Nevertheless, the overall impact of the tsunami on the economy was small: the large amount of donor aid and assistance and the beginning of reconstruction was projected to contribute to a further increase in GDP growth. A recovery in investment demand was projected to enable GDP growth to average 5.2% a year in 200607.

Indonesia is exceptionally rich in coal, oil, and other industrial raw materials, but industrial development has lagged in relation to the size of the population and the national income. In part, this was a consequence of expropriation policies carried out by Sukarno and of chronic inefficiency and corruption among government officials. After the 196466 political crisis, the government of President Suharto took steps to stabilize the economy. Exporters were allowed to keep a larger proportion of their foreign exchange earnings. The government also imposed strict controls on imports, encouraged foreign investment, returned many nationalized assets, ended nonproductive projects, and reduced government control of the economy. The inflation rate, which had been 635% in 1966 and 120% in 1967, fell to 85% in 1968 and further declined to 10% in 1971. National economic planning was used to guide economic growth. Under the 196974 plan, the government successfully introduced fiscal and credit restraints, rescheduled internal debts, returned expropriated properties, liberalized foreign investment laws, and actively sought assistance from overseas. Economic growth was set back by the near-collapse in 1975 of Pertamina, the giant government-backed oil conglomerate; growth was restored as rising oil prices increased revenues in the late 1970s. The economy was again severely strained in the early 1980s as falling oil prices forced the government to cut back on spending plans. Legislation requiring majority participation of ethnic Indonesians (pribumi ) in all enterprises formed since 1974 also slowed foreign investment. Indonesia's obligation to reduce production of oil, then its chief export, in line with OPEC agreements, together with the decline in non-oil export earnings, severely strained the government's resources. In an effort to meet the nation's developmental needs, Suharto was forced to end subsidies on food and to reduce subsidies on kerosene and other fuels. He also announced new trade policies to spur exports in an effort to reverse the nation's worsening economic condition.

Restrictive monetary policy and a conservative fiscal stance held inflation to below 10%. Real growth climbed to 7.3% and 7.5% in 1994 and 1995, respectively, before peaking in 1996 at 7.8%. Inflation was held to single digits. The official unemployment rate was 3%, although underemployment was estimated at 4%. Economic catastrophe struck in mid-1997, when the collapse of currencies began in Thailand and spread swiftly to Indonesia. Within a year, 7580% of all businesses in Indonesia were technically bankrupt as the rupiah went from about 2,600 to one US dollar in June 1997 to a low of 17,000 to one US dollar in June 1998. GDP growth, which had been 8% in the first quarter of 1997, and 7% in the second quarter, fell to 3% in the third quarter and 2% in the fourth. In November 1997 an international bail-out package was arranged that included a stand-by agreement with the IMF with a $11.5 billion line of credit, an $8 billion loan from the World Bank and the Asian Development Bank (ADB), $5 billion loan from its own reserves, and $3 billion in US loan guarantees. The extended impact of the crisis can be seen in the figures for 1998, when real GDP fell by over 13%, industrial production was down by 18.24%, and the net outflow of invested capital reached of about $13.8 billion.

Economic distress erupted in bloody pogroms against resident Chinese in which over 1,000 people were killed, dozens of women raped, over 2,500 shops were looted or destroyed, and the streets were left strewn with more than 1,000 vandalized vehicles. On 19 May, students took over the parliament building, and two days later President Suharto resigned, ending 32 years of autocratic rule. His designated successor was B. J. Habibie, the architect of Indonesia's ambitious shipping and aircraft manufacturing industry. Habibie promised elections, which were held in 1999.

The government's official debt situation was being radically altered. Before the crisis of 1997, the government had incurred virtually no domestic debt, borrowing all capital primarily from the World Bank and the Asian Development Bank (ADB). External debt was 2527% of GDP. In 1998, total debt rose to 78% of GDP, but with no domestic borrowing. In 1999, however, domestic borrowing went from $0 to $68.7 million, and combined with a record $75.8 million in foreign loans, government debt reached a peak of 102% of GDP. In 1999 real growth returned, but only at an anemic 0.2% level, as there was a net outflow of investment funds of almost $10 billiona net loss of $2.7 billion in FDI and a net loss of $7.2 billion in portfolio investment. The outflow continued, as did rising violence throughout the country around the parliamentary election, and, of particular international concern, before and after the referendum on the independence of East Timor. Economic frustrations doubtless aggravated the conflicts. In February 1999 the government estimated that 27% of the population was living in poverty, with inflation at 20%.

In 2000, however, the economy showed signs of recovery with a real GDP growth rate of 4.8%, a budget deficit of 3.2% of GDP, and an inflation rate of 3.75%. In February 2000, the government entered into an extended agreement with the IMF that included a $5 billion line of credit. In April 2000, a second agreement was reached with the Paris Club members for the rescheduling another $5.8 billion of principal owed on official debt.

Unfortunately, both internal and external factors soon contrived to slow the momentum of the recovery. In December 2000, Indonesia's agreement with the IMF was suspended, and President Wahid, through a combination of neglect and defiance, was failing to implement the requirements of the IMF programs. Tensions were increased as thousands of Wahid's Islamic followers vowed to fight to the death his removal from office. It was not until August 2001, after Wahid's removal in July and the installation of Vice President Megawati Sukarnoputri as president, that discussions with the IMF could be reopened. Megawati's economic team promised a favorable response in the international economy, but this was cut short, first by the global economic slowdown of 2001, and then the aftershocks of the 11 September 2001 terrorist attacks on the United States. GDP growth averaged 3.3% for the year. Inflation returned to double digits, at 11.5%, and the government reported that poverty had increased, to 14.5% of the population. The net outflow of capital continued, reaching $9 billion for 2001.

In 2002, the economy began to look up. The total debt-to-GDP ratio for the government fell from 90% for 2001 to 70% in 2002, and the annual budget deficit was estimated to have fallen to below 2% of GDP. Hopes that Indonesia might be safely on its way out of its postcrisis stagflation were shattered by the terrorist bombs in Bali on 12 October 2002. Beyond the death toll of nearly 200 was the message that Indonesia was no longer safe for foreign visitors and foreign investors. After the Bali bombings, the rupiah depreciated to more than 9,000 to one US dollar and the Jakarta Stock Exchange Index fell back below 400. (By 2003 both indicators of investor confidence had returned to near their pre-bombing levels.)

Real GDP growth climbed to 4.1% in 2003, and to 5.1% in 2004, its fastest rate since the 1997 crisis. The budget deficit registered 1.3% of GDP in 2004, and was projected to be lower in 2005, when GDP growth was projected to be 5.3%. President Yudhoyono, elected in 2004, claimed he wanted the economy to grow by 7% or more, in part to generate enough jobs for Indonesia's large unemployed population. Yudhoyono, in March 2005, reduced subsidies on various fuels, raising gas prices by some 30%. The government had been spending more on fuel subsidies than it was on health and education combined. Economists welcomed the move for Southeast Asia's largest economy, although the reduction in subsidies resulted in a decline in popularity for Yudhoyono. In August 2005, a run on the currency took place, and prompted the government to enact an average 126% fuel price increase in October. The resulting inflation and interest-rate hikes were projected to temper growth prospects in 2006, although the government planned to spend more money on promoting infrastructure development. Nevertheless, a recovery in investment demand was forecast to lead to annual GDP growth rates of 5.2% in 200607. Average annual inflation was projected to rise in 2006, owing to the increase in fuel prices, but inflation was projected to fall significantly in 2007 as global oil prices eased. Indonesia became a net oil importer in 2004, due to declining production and a lack of new exploration investment.

INCOME

The US Central Intelligence Agency (CIA) reported that in 2005 Indonesia's gross domestic product (GDP) was estimated at $899.0 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $3,700. The annual growth rate of GDP was estimated at 5.3%. The average inflation rate in 2005 was 9.3%. It was estimated that agriculture accounted for 15.1% of GDP, industry 44.5%, and services 40.4%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $1.489 billion or about $7 per capita and accounted for approximately 0.6% of GDP. Foreign aid receipts amounted to $1,743 million or about $8 per capita and accounted for approximately 0.9% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Indonesia totaled $136.60 billion or about $635 per capita based on a GDP of $238.5 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 5.4%. In 2001 it was estimated that approximately 47% of household consumption was spent on food, 6% on fuel, 5% on health care, and 14% on education. It was estimated that in 2004 about 15.2% of the population had incomes below the poverty line.

LABOR

In 2005, Indonesia's labor force numbered an estimated 110.4 million people. In 2002, agriculture accounted for 44.3% of the workforce, with 18.8% in industry, and 36.9% in services. Unemployment figures for 2005 were estimated at 10%.

The law protects the right to form and join unions to all workers regardless of political affiliation. Ten or more workers can unionize, and thousands of unions have been registered. However, a union can be banned by the government if its foundation goes against the constitution. Sometimes there are clashes between different unions within one workplace. With the exception of civil servants, workers have the right to strike after mandatory mediation. Collective bargaining is utilized, but most contracts do not provide workers with more than the government minimum standards. The reported size of Indonesia's unionized labor force varies, depending upon how it is measured. According to a survey of union membership conducted in 2005 by the Ministry of Manpower, when compared to the total workforce, unionized workers accounted for under 4%. However, when compared to the number of employees in the nation's formal workplace, the unionized workforce totaled 14%.

Although children under age 18 were prohibited from working as of 2005, the nation's laws recognized that some children must work to supplement family income. As a result, there is an exception for 1315 year olds, who can work but are limited to working no more than three hours per day. In additiuon, they must have parental consent, cannot work during school hours, and must be paid legal wages. The law however was silent on exceptions for 1617 year olds. In addition, children are not legally permitted to work in hazardous occupations, but child labor laws are not enforced.

There is no national minimum wage. Wages are set by area wage councils who estimate the amount a worker needs to earn to provide for his or her basic needs. In 2005, the minimum wage in Jakarta was $71 per month. However, many employers do not pay this minimum wage. The 40-hour workweek and a 7- to 8-hour day are established by law throughout Indonesia, although these standards are not regularly enforced.

AGRICULTURE

About 48% of Indonesian workers are engaged in agriculture, which accounted for 17% of GDP in 2003. Some 34.4 million hectares (78.5 million acres) were under cultivation, with 3540% of the cultivated land devoted to the production of export crops. Some 60% of the country's cultivated land is in Java.

There are three main types of farming: smallholder farming (mostly rice), smallholder cash cropping, and about 1,800 large foreign-owned or privately owned estates, the latter two producing export crops. Small-scale farming is usually carried out on modest plotsthose in Java average about 0.81 hectares (22.5 acres)often without benefit of modern tools and methods, good seed, or fertilizer. Although rice, vegetables, and fruit constitute the bulk of the small farmer's crops, about 20% of output is in cash crops for export, the chief of which is rubber. Of the estategrown crops, rubber, tobacco, sugar, palm oil, hard fiber, coffee, tea, cocoa, and cinchona are the most important. Dutch, United Kingdom, United States, French, and Belgian capital financed estate agriculture in colonial times, with the Dutch share being the largest. Management of Dutch interests was taken over by the Indonesian government in December 1957; in 1964, the 104 UK-operated plantations were confiscated without any compensation, and Indonesian managers were appointed. The following year, the US-operated plantations were expropriated, and all foreign plantations were placed under the control and supervision of the Indonesian government. In 1967, some of the estates seized in 1965, including the US-leased rubber plantations, were returned, but the majority were retained by the government.

Because the population is rapidly increasing, the government seeks to achieve food self-suffi ciency through expansion of arable acreage, improved farm techniques (especially the use of fertilizers and improved seeds), extension of irrigation facilities, and expanded training for farmers. Production of rice, the staple food, has been gradually increasing, and production comes close to meeting domestic requirements. This increase has resulted less from extension of cultivated area through the government's resettlement policy than from expanded use of irrigation, fertilizers, and pesticides and cultivation of high-yielding hybrid rice, especially insect-resistant hybrids. It also reflects the success of the government's "mass guidance" program, which provides technical assistance, easy credit terms, and marketing support through a system of village cooperatives. Additional support was provided by the National Logistics Board, which is responsible for price regulation and the national rice-rationing programs.

Rice is the primary staple crop; production in 2004 totaled 54,000,000 tons. Other staple crops in 2004 included cassava (19,264,000 tons), corn (11,355,000 tons), and sweet potato (1,876,000 tons). Vegetable and melon production in 2004 totaled 6,729,410 tons. Sugar is the largest commercial crop, with production reaching 24,600,000 tons in 2004. About 2,767,000 tons of rubber were produced in 2004, as compared with about 648,400 in 1964. Faced with the prospect of declining yields, the government began an extensive replanting and rehabilitation program in 1981. In 2004, Indonesia was the world's third-largest producer of coffee (after Brazil and Vietnam); some 702,000 tons of coffee were grown that year, as compared with 188,900 tons in 1972 and an annual average of 120,400 tons during 196065. Indonesia is the world's second-largest producer of palm oil (after Malaysia); 15.2 million tons were produced in 2004/05. Palm kernels (3.63 million tons in 2004/05) and copra (1.4 million tons in 2004/05) are also important export crops.

ANIMAL HUSBANDRY

In 2005, the livestock population was 11,500,000 head of cattle, 13,182,000 goats, 8,306,000 sheep, 6,267,000 hogs, and 405,000 horses. There are also about 2,248,000 buffalo in the country. The production of meat (about 2,477,000 tons in 2005) and cows' milk (341,990 tons) is secondary to the raising of draft animals for agricultural purposes and transportation. The government has established cattle-breeding stations and artificial-insemination centers to improve the stock and has been carrying on research to improve pastures. Technical and other assistance is also offered to chicken and duck farmers in an effort to increase protein supplies. There were an estimated 1.25 billion chickens and 34.3 million ducks in 2005, when some 1.1 million tons of eggs were produced. Local demand for animal products is constrained by low purchasing power, but increases in consumer income will raise demand for animal protein. Dairy and egg exports exceeded $69 million in 2005.

FISHING

As Indonesia is the world's largest archipelago (13,667 islands), fish is a readily-available source of animal protein for domestic consumption. In 2003, the total catch was 5,960,930 tons (81% from marine fishing), ranking Indonesia sixth in aquaculture and fourth in capture fishing in the world. Fishing is more important than statistics indicate, because the catch of many part-time fishermen never enters trade channels. Commercial fishing is confined to a narrow band of inshore waters, especially off northern Java, but other fishing also takes place along the coast and in the rivers, lakes, coastal swamps, artificial ponds, and flooded rice fields. The government has stocked the inland waters, encouraged cooperatives to provide credit facilities, introduced improved fishing methods, provided for the use of motorized fishing boats and improved tackle, and built or rehabilitated piers. Fish and fish product exports had a value of $1.55 billion in 2003, 12th-highest in the world.

FORESTRY

Forests represent a potentially vast source of wealth in Indonesia. Of the 146.3 million hectares (361.5 million acres) of forests, nearly three-fourths are in Kalimantan and eastern Indonesia, and 68% are commercial forests. The more accessible forest areas of Sumatra and Kalimantan furnish the commercially cut timber for domestic consumption and export. Indonesia has over 4,000 species of trees, including 120 types of hardwood suitable for commercial use. Timber estates produce fast growth species such as pine, eucalyptus, albizia, and acacia for the pulp and paper industry. Practically all forestlands belong to the state. In Java, excessive cutting has caused soil erosion, aggravated floods, created water shortages, and damaged some irrigation facilities. Replanting and rehabilitation of the Javanese forests and reforestation in the Outer Islands are promoted as part of the nation's "regreening program." Meranti, kruing, kapur, and bakau are the leading types of logs produced. Teak and other tropical hardwoods are the most valuable species, but there is hope of obtaining wood pulp from pine and bamboo and commercial timber from new plantings of fir and pine.

Indonesia is the largest producer of tropical hardwood plywood in the world. Export sales of processed wood in 2004 amounted to $4.57 billion, representing 6.4% of all Indonesian exports. Production of sawn wood in 2004 totaled 6.25 million cu m (220 million cu ft); plywood, 6.4 million cu m (226 million cu ft); and particleboard, 427,000 cu m (15.1 million cu ft). About two-thirds of the timber output is exported. French, Japanese, US, and Philippine interests have large investments in the timber industry. Indonesia is the world's second-largest producer of tropical hardwood logs and lumber, after Malaysia. Due to a hardwood log export ban enacted in 1985 to protect rapidly diminishing forests, Indonesia has exported no logs since then. Prohibitive export taxes imposed in 1990 have all but eliminated tropical hardwood exports, in order to conserve declining forest resources for production and export of higher value items such as plywood. The annual allowable cut of logs is set at 5.74 million cu m. However, up to 68 million cu m of logs are cut illegally, with some 10 million cu m of logs illegally shipped out of the country. With plummeting annual allowable cuts of logs, industries are using conversion forests, community forests, and timber estates.

MINING

Indonesia's principal mineral resources (excluding oil, natural gas, and coal) are copper, gold, nickel, and tin. Indonesia was also a major world supplier of tin, nickel, copper and gold, with large reserves of each. In addition, Indonesia was a leading regional producer of cement, bauxite, and nitrogen fertilizer. Indonesia also produced hydraulic cement, dolomite, feldspar, granite, gypsum, marble, nitrogen, salt, quartz sand, silica stone, sulfur, and zeolite.

Mined copper output (content in ore) in 2003 was 1,005,837 metric tons, down from 1,171,726 metric tons in 2002. Bauxite production in 2003 (wet basis, gross weight) was 1.263 million tons, and 1.283 million tons in 2002. Indonesia possessed large deposits of high-grade bauxite, from mines in Kijang (Bintan Island) and Sumatra. Most of the output was exported to Japan, the remainder to the United States.

Tin mine output in 2003 was 71,694 metric tons. The chief deposits of tin were in Bangka, Belitung, and Singkep, islands off the east coast of Sumatra. Indonesia is the world's second-largest producer of tin (after China). The industry in Indonesia is dominated by PT Koba Tin and PT Tambang Timah. However, the industry has, for several years, faced depleting resources, community conflicts in several mining sites, and illegal mining and smuggling, the latter resulting in increased compensation to company contractors and high tin output from offshore mining.

Gold mine output in 2003 was 141,010 kg, down from 142,238 kg in 2002. Illegal mining activity and associated mercury contamination was an ongoing problem for the Indonesian government and legal gold mining operators.

Nickel mine output in 2003 totaled 143,000 metric tons, up from 123,000 metric tons in 2002. Nickel was produced in Soroako (North Sulawesi), Pomalaa (South Sulawesi), and the Maluku and Gebe islands, with some of the largest reserves in the world.

Iron ore was found in sizable quantities, but was commercially exploited only in central Java. There were fair-to-good reserves of gold, silver, iodine, diamond (industrial and gem quality), and phosphate rock, and considerable supplies of limestone, asphalt, bentonite, fireclay, and kaolin powder. Herald Resources Ltd. of Australia announced the discovery of significant lead and zinc resources in the Dairi area, Bukit Barisan Highland; the exploration concentrated in the Anjing Hitam area; it was estimated that the deposit contained an indicated resource of 7.5 million tons of lead and zinc at 10.3% lead, 16.7% zinc, and 14 grams per ton of silver and an inferred resource of 2.5 million tons at 6.8% lead and 11.3% zinc.

Indonesia's constitution places all natural resources in the soil and waters under the jurisdiction of the state. In 1999, the government increased taxes and royalties that created a less competitive investment environment. Restructuring and privatization of state-owned industries has been very slow, and new investment was still low. As the world's fourth-most-populous country, Indonesia could become one of the largest steel-consuming countries. However, its volatile political situation and uncertain economic climate hampered development. The state-owned general mining company, PT Aneka Tambang, was privatized, with its stock trading on the Jakarta Stock Exchange.

ENERGY AND POWER

Indonesia ranks among the world's leading petroleum-producing countries. Proven reserves in 2004 were estimated at 4.9 billion barrels. However, resources may be much larger. Sumatra, the richest oil area, produces about 70% of Indonesian oil. Kalimantan is the second-leading producer; Java and Madura have a scattering of smaller producing wells. Lesser amounts are also produced in Irian Jaya. Indonesia's production and consumption of oil in 2003 was estimated at 971,000 barrels per day, and at 1.183 million barrels per day respectively. Exports in 2003 averaged 518,100 barrels per day, with oil imports placed at 370,500 barrels per day for that year.

Indonesia also has significant reserves of natural gas. Proven reserves of natural gas in 2004 were put at 2.549 trillion cu m. For 2003, it was estimated that natural gas exports were placed at 39.7 billion cu m; consumption at 55.3 billion cu m; and production at 77.6 billion cu m, respectively. Indonesia is the world's largest exporter of LNG; its major customers are Japan, South Korea, and Taiwan.

Power facilities are overtaxed, despite heavy government investment in electrical installations. Total electric power generating capacity in 2002 was placed at 24.706 million kW, as compared with 10,830,000 kW in 1988. Production in 2003 totaled 110.2 billion kWh, up from 102.273 billion kWh in 2002. In 2002, about 85% was generated by fossil fuels, 9.6% from hydropower, and the remainder from other sources. Electricity consumption in 2003 was 92.35 billion kWh. The nation's first geothermal electric power station was inaugurated in 1974 in West Java, and a 750 MW hydroelectric plant was completed there in 1985. In 1995, P.T. Perusahaan Listrik Negara (PLN), the state-owned electric company, projected that electricity demand would rise 14% annually, with a generating capacity at 25,00030,000 million kW needed by 2010.

INDUSTRY

The leading industries by value are petroleum and natural gas; textiles, apparel and footwear; mining; cement; chemical fertilizers; plywood; rubber; food; and tourism.

Industrial expansion is given a high priority in development plans. Labor-intensive industries are stressed, together with industries producing consumer items for domestic consumption and export and products accelerating agricultural development. The government encourages industrial investors, particularly those who plan to export, to locate in one of its eight bonded zones (BZs), the Batam Industrial Park or free trade zone (FTZ) or in an export-processing zone (EPZ). The Batam Industrial Park, located on Batam Island in the Malacca Strait 20 km (12.5 mi) south of Jakarta, was designed to attract investment away from crowded Singapore.

Industries that process Indonesia's abundance of natural resources include those based on petroleum, wood, sugar, rubber, tea, coconuts, palm kernels, sisal, kapok, rice, and cassava. Manufactured products include consumer goods such as tires and tubes, rubber shoes, radios, batteries, soap, margarine, cigarettes, light bulbs, textiles, glass, paper, tractors, and trucks. Other industries include the Krakatau Steel Industrial Estate at Cilegon (in north-west Java), plywood factories, cement works, spinning mills, knitting plants, iron works, copper and other foundries, a ceramics plant, a leather-goods plant, and a glass factory. Petrochemicals and urea fertilizers are manufactured, and there are facilities for automobile assembly, shipbuilding, and aircraft manufacture.

From World War II until the 1990s, overall industrial growth was small, with agriculture the dominant sector of the Indonesian economy. However, in the 1990s, industry and services took over as the dominant sectors, respectively contributing about 41% and 42% of the GDP, with agriculture falling to 17%. Although the government has put an emphasis on developing labor-intensive industries, industry accounts for only for 16% of employment, compared to a 45% share for agriculture and 39% for services. In 1991, textiles were the key industrial export, accounting for 47% of the total. In 2001 textiles and garments were technically still the leading industrial export, but only accounted for 13.6% of total export earnings. The textile sector remains characterized by small producers, with more than 1,200 registered textile companies in Indonesia, employing more than a million workers. In January 2005, the WTO abolished world textile quotas, and Chinese exports to the United States and European Union (EU) soared. Both the United States and EU responded during the course of 2005, reimposing certain quotas to protect their textile industries, thus putting a slight curb on the flow of Chinese goods. Th is policy bode well for Indonesia and other Southeast Asian textile exporters, as competition with China was eased. Indonesia and other developing countries in the long term, however, must pursue strategies to save their clothing industries from being obliterated in a quota-free world.

The petroleum refining industry has declined over the last decade. In 2004, Indonesia had seven refineries, all operated by Pertamina, the state oil company. (Pertamina was slated to be fully privatized in 2006.) The combined capacity of Indonesia's seven refineries was nearly 993,000 barrels per day in 2004. Statistics on refined petroleum products consumption are questionable because of considerable smuggling out of Indonesia to escape its price controls. In 2004, Indonesia became a net importer of petroleum, due to declining production and a lack of new exploration investment. Natural gas production has steadily increased; Indonesia in 2005 was the world's leading exporter of liquid natural gas (LNG). Coal production reached 70 million metric tons per year by 1999, and in 2003 production was 114 million metric tons, up 11% from 2002. The regulation and licensing of the coal industry in Indonesia was decentralized in legislation that went into effect in 2001.

The steel industry in Indonesia basically consists of one large integrated millthe PT Krakatau Steel complexplus numerous mini mills that use scrap steel as their raw material input. In 1992 steel billet production was 560,000 tons. In 2000, total steel billet capacity was 2.34 million tons across 11 companies, but the plants were only running at 60% capacity. In the Asian financial crisis, Indonesia's total steel production dropped from 7.3 million tons in 1997 to 2.7 million tons in 1998 as domestic demand collapsed. The industry was able to survive through exports. What recovery had been achieved in 2000, however, was cut off abruptly in 2001 when the United States, its biggest customer, placed dumping duties on Indonesian steel. These were lifted in 2003. In 2004, Indonesia produced a total of 2.8 million metric tons of crude steel and was ranked 37th in the world in terms of crude steel production.

Indonesia produces nitrogen, phosphate, and potash fertilizers, but the strongest prospects are for the urea industry because of Indonesia's natural gas deposits. Prospects are good for an export market in urea, but most fertilizer output in the early 2000s was for domestic consumption and fertilizer formed less than 1% of exports.

Wood and wood products have traditionally been Indonesia's second-largest industrial export group, accounting for 11% or 12% of total export value, though electronics sometimes claims a larger share. The robust growth in the output of wood and wood products, from 4 million cu m in 1967 to an estimated 60 to 70 million cu m in the early 2000s, is the cause of international controversy because of the rapid deforestation involved. Global Forest Watch estimates that forest cover declined from 162 million hectares to 98 million hectares (39.5%) from 1995 to 2000. Laws are in place to curb the rate of exploitation, but it is estimated that over half of the logging done is illegal. Wood products, pulp, paper, and paper products, are Indonesia's second-largest sector of industrial exports.

The chemical industry experienced an annual growth rate of 13% prior to 1993; after 1997, the depreciation of the currency encouraged chemical production for the export market. In the consumer goods manufacturing sector, activities are run primarily by private enterprise. All oil and natural gas processing have historically been controlled by government enterprises, as have been other major heavy industries, such as basic metals, cement, paper products, fertilizer, and transport equipment. After the recession in 1998, the government proposed liberalizing heavy industry. Of the 168 parastatals, 140 were scheduled for privatization. As of 2004, however, the government controlled 158 state-owned enterprises.

In July 1992 nontariff barriers were reduced and key industries were deregulated to allow free importation of essential manufacturing inputs. There is a shortage of skilled technical personnel to support high-tech industries; most technology has been imported through joint ventures. The agency for strategic industries, a state-owned holding company including aircraft, telecommunications, and high-technology industries, formed a joint venture with a major foreign multinational technology corporation to promote technology transfer to Indonesia. Most industrial enterprises were negatively affected by the 1998 recession, with an overall decline of at least 15%. The Indonesian Bank Restructuring Agency (IBRA) took over the majority of Indonesia's nonperforming industrial assets in 2000 with plans to sell, including: cement factories, mining facilities, manufacturing plants, food processing firms, plywood production plants, vehicle assembly lines, chemical plants, property, and agribusinesses.

SCIENCE AND TECHNOLOGY

Like many developing nations, Indonesia has a shortage of scientific personnel and engineers. The Indonesian Institute of Sciences, a government agency established in 1967, has centers for research and development in biology, oceanology, geotechnology, applied physics and applied chemistry, metallurgy, limnology, biotechnology, electricity and electrical engineering, information and computer sciences, telecommunications, strategic electronics, component and material sciences, and calibration, instrumentation, and metrology. The country has 45 other research institutes concerned with agriculture and veterinary science, medicine, the natural sciences, and technology. Courses in basic and applied sciences are offered at 53 state and private universities. At a more basic level, Agricultural Training Center programs provide workshops throughout Indonesia to acquaint rural workers with the use of plumbing and automotive equipment, small engines, electric tools, and chain saws, and to familiarize farmers with the use of modern hybrid seeds, pesticides, and fertilizers.

In 198797, total expenditures for research and development amounted to 0.07% of GDP. There were also 182 scientists and engineers per million population actively engaged in research and development. During the same period, science and engineering students accounted for 39% of all college and university students. In 2002, high-tech exports were valued at $5.070 billion and accounted for 16% of manufactured exports.

DOMESTIC TRADE

Jakarta, the capital and chief commercial city, is Indonesia's main distribution center. The principal business houses, shipping and transportation firms, and service agencies have their main offices there and branches in other cities. After the end of World War II, the government sought to channel trade and business activities into Indonesian hands by a policy of granting special privileges to Indonesian firmsincluding export license monopolies, sole agency rights, and exclusive licenses to import and sell specific goodsand of making government purchases through Indonesians. In 1998, however, most of these restrictions of foreign retail investment were removed. Foreign investment is also allowed in wholesale and distribution activities; however, in many cases, the company must be represented locally by an Indonesian firm or national. Most trade is conducted through small and medium-sized importers who specialize in specific product lines. Direct marketing has become popular for a variety of goods and services.

Commercial business hours vary, but are usually 8 am to 5 pm, Monday through Friday, and from 8 am to 1 pm on Saturday, although some Indonesians take Saturday off. Many shops are open from 9 am to 10 pm, Monday through Saturday. Muslims are released for prayers every Friday from 12 to 1 pm. Local banks transact business from 9 am to 3 pm, Monday through Friday. Newspapers, magazines, television, radio, posters, and billboards are the most popular advertising media. English is widely used in business and government.

FOREIGN TRADE

Trade balances since World War II have invariably been favorable. Trade liberalization began in 1982 as an effort to increase nonoil exports. By 1987, non-oil exports matched revenue from oil and gas exports for the first time. Imports, which are closely regulated in government efforts to restrain growth of merchandise imports, consist mainly of machinery and raw materials, indicating a reliance on imports to support industry. The late 1990s revealed shrinking exports of plywood, and slow growth in exports of garments and textiles. Emerging exports such as footwear and consumer electronics also showed weak growth. However, rising world prices for oil, rubber, and other commodities kept these exports

Country Exports Imports Balance
World 61,058.2 32,550.7 28,507.5
Japan 13,603.5 4,228.3 9,375.2
United States 7,386.4 2,702.4 4,684.0
Singapore 5,399.7 4,155.1 1,244.6
Korea, Republic of 4,323.8 1,527.9 2,795.9
China 3,802.5 2,957.5 845.0
Malaysia 2,363.9 1,138.2 1,225.7
Other Asia nes 2,233.2 877.1 1,356.1
Australia 1,791.6 1,648.4 143.2
India 1,742.5 665.6 1,076.9
Germany 1,416.8 1,181.2 235.6
() data not available or not significant.

high. Economic, political, and social crisis was accompanied by a small leap in exports due to currency depreciation, but earnings in the non-oil sector remained low nonetheless.

In the 1970s, Japan became Indonesia's dominant trade partner, taking over 41% of Indonesia's exports (mainly petroleum) and supplying over 25% of its imports. Although Japan remains the dominant trade partner, other trade partnersincluding the United States, Singapore, South Korea, and Chinahave become important to the economy. Trade with the Netherlands, which was of primary importance in colonial times when Indonesia was known as the Dutch East Indies, has decreased since 1957. With the creation in 1992 of the ASEAN Free Trade Area (AFTA), trade within the region increased.

Indonesia puts out a large amount of gas and crude petroleum into its commodities export market. Other major exports include apparel, textiles, paper products, plywood, footwear, and copper ore. In percentage terms, the major exports in 2004 were crude petroleum and petroleum products (11.5% of total exports); textiles and apparel (11.4%); liquefied natural gas (10.4%); and wood and wood products (5.2%). The major imports in 2004 were machinery and transportation equipment (26.3% of all imports); flues and lubricants (23.5%); chemicals (16.3%); and manufactures (12.8%).

Indonesia's leading markets in 2004 were Japan (24.3% of all exports), the United States (15.2%), Singapore (10.2%), and South Korea (8.8%). Leading suppliers included Japan (21.6% of all imports), Singapore (12.6%), China (11.7%), and South Korea (7.6%).

BALANCE OF PAYMENTS

Indonesia had persistent balance-of-payments difficulties from the time of its independence. Indonesia's payments position brightened considerably in the late 1970s as a result of a rapid increase in oil prices mandated by OPEC. However, expansion of the non-oil export industries failed to keep pace with burgeoning import requirements

Current Account 7,534.0
     Balance on goods 23,990.0
         Imports -39,262.0
         Exports 63,252.0
     Balance on services -12,107.0
     Balance on income -6,218.0
     Current transfers 1,869.0
Capital Account
Financial Account -949.0
     Direct investment abroad
     Direct investment in Indonesia -597.0
     Portfolio investment assets
     Portfolio investment liabilities 2,251.0
     Financial derivatives
Other investment assets -5.0
Other investment liabilities -2,599.0
Net Errors and Omissions -2,937.0
Reserves and Related Items -3,647.0
() data not available or not significant.

for some consumer goods and machinery, equipment, and spare parts for development programs. The current account deficit averaged -2% of GDP between 1992 and 1997, but accrued a surplus of over 4% of GDP in 1998 due to currency devaluation and a one-third cut in imports.

In 2004, merchandise exports rose by 12.6% to $72.4 billion, and imports rose by 21.9% to $50.6 billion, resulting in a trade surplus of $21.8 billion. At the same time, the deficit rose slightly to $18.5 billion, up from $12.1 billion in 2003, leaving a currentaccount surplus of $3.3 billion. The current account balance averaged 3.9% of GDP over the 200105 period.

BANKING AND SECURITIES

The government's Bank Negara Indonesia (BNI) was established in 1953 as the successor to the Java Bank. In 1965, all state banks with the exception of State Trading Bank were incorporated into the BNI as separate units. In 1969, this policy was reversed, and the state banks were again reorganized as individual banks. In 1967, as part of the new regime's policy of encouraging foreign investment, foreign banks were permitted to operate in Indonesia, on condition that they invested at least $1 million, of which at least $500,000 had to be brought into the country. The law also provided that foreign banks were to appoint Indonesian banks as their correspondents for any dealings outside Jakarta. The Indonesian banking system transformed after 1980, through a process of gradual but steady reform that culminated in the 1992 banking law. Joint ventures were allowed with Indonesian partners. The partial liberalization of the banking industry had a dramatic impact. A precipitous growth in bank credits threatened to undermine economic stability by stimulating a sharp increase in import demand and inflationary pressures. Responding to this threat, the government initiated an abrupt tightening of monetary policy during the 1990s. From 1992 until 1997, the rupiah was managed in relation to the dollar, but in 1997, the currency was allowed to float because of Asian currency depreciation. Political and social unrest resulted in a highly volatile currency. The 1998 economic failure brought about a major restructuring of the banking system, which was literally bankrupted. State-owned banks held $80 billion in corporate debt and more than two-thirds of their loans were nonperforming in 1999. Bank Indonesia alone faced a deficit of over $4.1 billion in 2000.

Bank Indonesia, as the central bank, is responsible for the administration and regulation of the four state banks and other banking operations. Among the state banks, Bank Rakjat Indonesia specializes in credits to agricultural cooperative societies but also provides fishing and rural credit in general. Bank Tabungan Negara promotes savings among the general public. Bank Negara Indonesia (BNI) provides funding for industry. After the financial crash in 1999, four of the state banks were merged into the new Bank Mandiri; including the Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Impor, and BAPINDO. Bank Bumi Daya provided credits to estates and forestry operations; Bank Dagang Negara provided credits to the mining sector; and Bank Ekspor Impor Indonesia specialized in credits for the production, processing, and marketing of export products; and the Development Bank of Indonesia (Bank Pembangunan Indonesia-or BAPINDO) provided financial assistance to government enterprises and approved new industries. There were 128 private domestic commercial banks in 1998; 38 of them were liquidated in 1999, 8 were taken over by the government, 8 were able to function with government aid, and 71 private banks were able to continue without assistance. Foreign investment in the banking system is now allowed up to 99%.

The International Monetary Fund reports that in 2001, currency and demand depositsan aggregate commonly known as M1were equal to $16.6 billion. In that same year, M2an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual fundswas $81.6 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 15.03%. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 17.62%.

Indonesia's first stock exchange was established in December 1912 in Jakarta, although both this and two subsequent exchanges established in Surabaya and Semarang in 1925 were shut down during the Japanese occupation. An attempt to revive the capital markets in the early 1950s proved futile. It was not until August 1977 that the Jakarta Stock Exchange (JSE) was successfully relaunched amid a comprehensive set of institutional reforms that resulted in the establishment of the Capital Market Executive Agency (Badan Pelaksana Pasar Modal-BAPEPAM) to manage the market, as well as a state-owned securities firm, Danareksa, to facilitate the flotation of shares. After sinking to 276 in the fall of 1998, the JSI rose to just below 500 in early 1999 to above 700 in mid-1999. It was back down to 508 in mid-2000 and below 400 by 2001. As of 2004, a total of 331 companies were listed on the JSE, which had a market capitalization of $73.251 billion that year. In 2004, the JSE Composite Index rose 44.6% from the previous year to 1,000.2.

INSURANCE

The insurance and reinsurance industry is governed by an insurance law issued in February 1992 that allows foreign ownership of insurance companies. The industry is regulated by the Ministry of Finance as well as the Insurance Council of Indonesia. The growth of the industry over the past decade is reflected in an impressive increase in many of the industry's financial variables, including assets, gross premiums, and investments. Third-party motor liability insurance, workers' compensation, and passenger accident insurance are compulsory. Workers' compensation must be insured with the government company, ASTEK, and employees have no right to sue. A 1998 Financial Services Agreement with the WTO equalized capital requirements for both domestic and foreign insurance firms. In 2003, the value of direct premiums written totaled $3.107 billion, with nonlife premiums accounting for the largest portion at $1.733 billion. Tugu Pratama was Indonesia's largest nonlife insurer in 2003, with gross written nonlife premiums totaling $175.5 million. Bumiputera was the largest life insurer that same year, with gross written life premiums of $294.2 million.

PUBLIC FINANCE

Government expenditures (including capital expenditures) have outrun public income by a considerable margin each year since 1952, and this cash deficit has been met by foreign aid receipts. Since 1985, however, Indonesia has discouraged public sector and monetary growth. The East Asian financial crisis of 1998 hit Indonesia

Revenue and Grants 307,892 100.0%
     Tax revenue 190,614 61.9%
     Social contributions 6,106 2.0%
     Grants 52 0.0%
     Other revenue 111,121 36.1%
Expenditures 359,038 100.0%
     General public services 272,493 75.9%
     Defense 10,673 3.0%
     Public order and safety 7,400 2.1%
     Economic affairs 12,747 3.6%
     Environmental protection
     Housing and community amenities 4,726 1.3%
     Health 4,542 1.3%
     Recreational, culture, and religion 2,257 0.6%
     Education 13,433 3.7%
     Social protection 30,766 8.6%
() data not available or not significant.

hard. In 1998, the government deficit reached over 3% of GDP, partially because of subsidized rice imports and investment in the failing banking sector. As of 2002, the economy was just beginning to recover to pre-1997 levels, and the growth rate was not considered high enough to achieve full employment anytime soon. At the end of 2001, Indonesia's external debt was the equivalent of 20% of total GDP.

The US Central Intelligence Agency (CIA) estimated that in 2005 Indonesia's central government took in revenues of approximately $56.1 billion and had expenditures of $58.7 billion. Revenues minus expenditures totaled approximately -$2.5 billion. Public debt in 2005 amounted to 52.6% of GDP. Total external debt was $140.6 billion.

The International Monetary Fund (IMF) reported that in 2001, the most recent year for which it had data, central government revenues were Rp307,892 billion and expenditures were Rp359,038 billion. The value of revenues in millions of US dollars was us$30 million and expenditures us$36 million, based on a market exchange rate for 2001 of us$1 = Rp10,260.9 as reported by the IMF. Government outlays by function were as follows: general public services, 75.9%; defense, 3.0%; public order and safety, 2.1%; economic affairs, 3.6%; housing and community amenities, 1.3%; health, 1.3%; recreation, culture, and religion, 0.6%; education, 3.7%; and social protection, 8.6%.

TAXATION

Taxes on oil companies are the largest single source of central government income. Indonesia's corporate tax is progressive, with a top rate of 30% on income exceeding Rp100 million. A 30% withholding tax is payable on branch profits after corporate tax. However, concessional rates are available for tax treaty countries. Special corporation taxes, with generous depreciation and other deductions from taxable income, cover petroleum, mining, shipping, airline, and insurance companies. Individual incomes are taxed at the same rate as those of corporations. An eight-year carried-forward loss for investment in eastern Indonesia is allowed. Indirect taxes include a 10% value-added tax (VAT) that applies to most transactions. However, the building services are subject to a 4% VAT, while services provided by travel agents and couriers are taxed at 1%. Indonesia also imposes a 10% luxury tax on luxury homes, soft drinks, radios, and cosmetics. Higher rates are applied to certain vehicles, carpets and television sets. Dividend, interest and royalty payments to nonresidents are subject to a 20% withholding rate.

Indonesia has a progressive individual income tax that has a top rate of 35% on incomes over Rp200 million.

CUSTOMS AND DUTIES

Indonesia has attempted to liberalize its foreign trade, but unanticipated problems have prevented substantial progress. Most tariffs are designed to stimulate exports and to protect infant domestic industries. However, the tariff system is burdensome and time consuming and evasion is widespread. Exempt from import duties are raw materials and manufactured items imported for use in government-backed or approved labor-intensive enterprises. Duties on imports from ASEAN member countries were lowered to 20% in 1978. Two years later, duties on 384 productsincluding cement, sarongs, engine pistons, cameras, and telecommunications equipmentwere reduced or abandoned, regardless of origin. Many items may only be imported by government-approved importers and there are quotas for certain nondurable goods. A three-tiered tariff structure, with rates of 0%, 5%, of 10 % applied to various commodities, has been implemented to satisfy Indonesia's IMF commitments. An import sales tax is imposed on imports at point of entry (except for those goods considered essential by the government) at rates of 530%. Distilled spirits have a duty rate of 170% and vehicle taxes range from 5% for trucks up to 75% for some sedans. Indonesia has also committed to the ASEAN Free Trade Agreement and its Common Effective Preferential Tariff (CEPT), and is further liberalizing its trade in order to meet the provisions of that compact. There is a free trade zone on Batam Island that is exempt from all import and export taxes; a free trade facility near Tanjung Priok, the country's main port; a bonded warehouse in Cakung, near Jakarta; and a number of other export processing zones.

FOREIGN INVESTMENT

Foreign investments have played a key role in the Indonesian economy since the turn of the 20th century. The Dutch were for decades the principal foreign investors in Indonesia, involving themselves heavily in the production of sugar, cinchona, coffee, tobacco, rubber, and oil. UK investments were in oil, rubber, and manufacturing. Rubber estates, particularly those in northern Sumatra, were operated by Belgian, UK, Danish, French, Norwegian, Swiss, and US individuals and companies. In the dispute with the Netherlands over Irian Jaya, the Indonesian government took over Dutch enterprises in the country and seized Dutch assets. Although Indonesians recognized that foreign capital was needed to develop their economy, government policies were ambiguous and hesitant throughout the 1950s and early 1960s. The foreign investment law of 1958 attempted to provide certain guarantees to foreign investors and to establish safeguards for Indonesian interests. At the same time, the government guaranteed some foreign-owned industrial enterprises that they would not be expropriated by the state or nationalized for a maximum period of 20 or, in the case of large agricultural enterprises, 30 years. In November 1964, the government began to reverse this policy by nationalizing all British-owned commercial enterprises and placing them under direct Indonesian management and control. A decree of 25 February 1965 nationalized all US-owned rubber plantations in northern Sumatra, and another decree of 19 March placed three oil companiestwo of them US companiesunder the supervision and control of the government. Finally, on 24 April 1965, President Sukarno ordered the seizure of all remaining foreign property in Indonesia. This policy was again reversed after the ouster of Sukarno.

During 196770, the confiscated estates were gradually returned to their former owners (except in cases where the owner opted to accept compensation). The Foreign Capital Investment Law of 1967 governed foreign direct investment. The overall flow of private investments from overseas sources increased during the early 1970s, in response both to liberal terms offered under the Suharto government and to favorable world markets for Indonesian oil and other primary products. The annual flow of foreign investment funds approved by the government increased from $333 million in 1972 to $1,050 million in 1974. Some 65 US firms invested more than $1 billion in petroleum enterprises during 196774, accounting for about 90% of the country's total production; in 1975 alone, an additional $1.2 billion was spent in the oil sector by US interests.

During 196785, Japanese investments led all others in non-oil sectors, totaling $3.9 billion; US investors were second, supplying $1.4 billion. In all, between 1967 and 1980, a total of $8 billion was invested by foreign companies, of which $6.6 billion was in the petroleum sector. Between 1982 and 1985, foreign direct investment averaged $242.3 million annually. Since 1973, all foreign investment has been channeled through the Investment Coordinating Board (BKPM), and Indonesian partners were mandated for all foreign concerns established after 1974. Among the incentives for investment approved in 1986 were regulations allowing foreign investment in more industries (arms production is still prohibited) and granting foreign partners in joint ventures the right to distribute the products themselves. The Negative Investment List of 1989 (amended in 2000) specifies the business areas that are closed to, or impose limitations on, foreign investors.

Between 1967 and 1992, more than 1,590 manufacturing projects involving $59 billion in foreign investment were approved by the BKPM. Japan was a major investor accounting for 21% of the total, along with Hong Kong (9%) and Taiwan (7%). In 1993 the 1967 Foreign Capital Investment Law was amended to set new regulations for share ownership, to streamline the investment approval process, and to reduce import tariffs on various goods. A new deregulation package approved in 1994 further increased incentives for foreign investment by allowing 551% foreign ownership in infrastructure (harbors, electricity, telecommunications, shipping airlines, railways, and water supply). New foreign investment approvals for 199298 were estimated at a total of $160 billion. From 1967 to 1998, Japan received approval for investments in Indonesia totaling approximately $35 billion; the United Kingdom, $24 billion; Singapore, $18 billion; and Hong Kong, $14 billion.

In 1998 and 1999, new regulations paved the way for increased foreign investment; including concessions to foreign interests in distribution and the financial sector, tax concessions, and simplification of the licensing process. Sectors that remain closed to foreign investment include freshwater fishing, forestry, public transport, broadcasting and film, and medical clinics. More than one-third of the investment since 1967 has been in the chemicals industry, followed by mining and natural gas.

By 2004, improved political and economic stability had encouraged investor confidence and improved growth in the economy. Despite economic success, however, overall investment remained about 20% of GDP, below the pre-1997 Asian financial crisis levels of 30%. Indonesia remains relatively open to foreign investment, although such challenges as corruption, security, judicial reform, taxation, and labor issues face investors. Indonesia tracks only investment approvals, which, if they occur at all, may take years to realize. In the first five months of 2004, the overall value of investment approvals fell 41%, to $2.5 billion from $4.2 billion over the same period in 2003. Declining sales of state-owned assets and extremely low levels of new investment in 2004 were responsible for the decline in investment approvals.

ECONOMIC DEVELOPMENT

From the late 1960s through the mid-1980s, the Suharto government focused its efforts on financial stabilization, relying heavily on advice and assistance from multilateral aid donors. The results were mixed. The fiscal crisis threatened by the accumulated debts of the Sukarno years was averted through debt rescheduling and improved economic management; nevertheless, the depth of Indonesia's continuing reliance on foreign aid remained apparent through the mid-1980s. Public expenditures on the first five-year plan (195660) included 25% for mining and manufacturing, 25% for transport and communications, 15% for power projects, and 35% for all other categories. A subsequent plan (196974) placed emphasis on the development of agriculture. The 197579 plan placed considerable focus on the rural economy, stressing laborintensive industries along with improved provision of housing and education. Labor unions were encouraged to help improve the lot of plantation and industrial workers.

Efforts to restructure the economy in the 1980s resulted in an expansion of real GDP 6% annually on average. The 197984 development plan, called Repelita III, emphasized the "development trilogy" of economic growth, equity, and national stability. Top priorities were tourism and communication (15%), agriculture and irrigation (14%), mining and energy (13%), education (10%), and regional and local development (10%). The 198489 five-year plan, called Repelita IV, emphasized industry (9.5% growth rate), agriculture (3%), petroleum and mining (2.5%), transportation and communications (5.2%), and construction (5%). However, low oil prices caused the government to reduce its goals and to promote private and foreign investment. Repelita V, 198994 emphasized industry (8.5% growth rate), agriculture (3.6%), petroleum and mining (4.2%), trade (6%), transportation and communications (6.4%), and construction (6%). The development of mining and energy were prioritized, as well as certain areas of manufacturing, forestry, agriculture, transportation, communications, and tourism. The sixth five-year development plan (199499), Repelita VI, forecast an annual average GDP growth rate of 6.2% and focused on the privatization of industry and the gradual opening up of foreign investment. These goals were met by 1997, but the 1998 breakdown of the economy prompted international aid agencies to step in.

The 1988 Guidelines of State Policy introduced transmigration development, a policy aimed at overcoming uneven population distribution in Indonesia. The policy had multiple objectives: to ease the burden of densely populated regions, to upgrade regional development, to expand job opportunities, to support national unity, and to strengthen national defense. Transmigration in densely populated areas such as Java, Bali and West Tenggara aimed to increase population productivity and decrease environmental hazards. Transmigration in sparsely populated regions such as Sumatra, Kalimantan, Sulawesi, Maluku, Irian Jaya, and East Timor, aimed to increase productivity of natural resources, as well as increase employment and job opportunities. Agriculture was an important sector for development in the transmigration policy. Some 64,211 families (91.7%) were resettled, consisting of 25,720 families of public transmigration and 38,491 families of self-initiated transmigration.

Bilateral and multinational assistance has played a major role in Indonesia's development. Before 1965, Indonesia received substantial aid from the USSR and other communist states. After 1966, the foreign-aid pattern turned dramatically toward the West. A group of nations (including the United States, Netherlands, Japan, Belgium, France, Germany, Italy, United Kingdom, Switzerland, Canada, and New Zealand) and organizations (including the IBRD and Asian Development Bank) joined to form the Inter-Governmental Group on Indonesia (IGGI) as a major funnel for aid.

In November 1991in reaction to the Indonesian army's shootings of demonstrators in Dili, East Timorthe Netherlands, Denmark, and Canada suspended aid to Indonesia. In a blanket refusal to link foreign assistance to human rights issues, the government announced it would decline all future aid from the Netherlands. The government also requested that the IGGI be disbanded and replaced by the Consultative Group of Indonesia (CGI) formed by the World Bank and comprised of 18 donor countries (Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Japan, New Zealand, Norway, South Korea, Spain, Sweden, Switzerland, the United Kingdom, and the United States) and 12 multilateral agencies.

When President Susilo Bambang Yudhoyono took office in October 2004, the government launched an aggressive program of economic reforms aimed at improving the business and investment climate. The government began a "100 Day" program of legal reform and energy initiatives. In January 2005, transportation, water and sanitation, power, and other projects were announced. The government launched a vigorous anticorruption campaign, and Yudhoyono stressed the need for economic transparency and efficiency. Revisions of the tax, investment, and labor laws were in the works in 2005. Yudhoyono's initiatives were also geared toward helping poor Indonesians, first by directing government spending toward targeted development programs, especially in rural areas; and second by creating jobs, which would be accomplished through the reduction in corruption and increase in investment. The earthquake and tsunami disasters that struck Sumatra on 26 December 2004 resulted in the deaths of an estimated 131,000 Indonesians (exact figures by 2006 had not been calculated), with 37,000 missing and another 570,000 displaced. An estimated $4.5 billion in damages and losses was calculated. Nevertheless, the impact on the Indonesian economy by 2006 was decidedly less dire than expected: aid and assistance from international donors and the need for infrastructure rebuilding contributed to GDP growth rates of more than 5%.

SOCIAL DEVELOPMENT

The constitution enjoins the government to protect the family and to provide for the needs of the "poor and the waifs," but implementation of these principles has proceeded slowly because of the cost and the lack of professional personnel to put into effect a broad welfare program. Some social security provisions exist. Firms with 10 or more employees or a payroll of Rp1 million or more a month paid 3.7% of their payroll (and employees paid 2% of earnings) for retirement, disability, and survivor benefits, and coverage is gradually being extended to smaller companies and casual workers. Employers pay 6% of payroll for married employees (3% for single employees) to provide sickness and maternity benefits, and both employers and employees fund a workers' compensation program. In addition, many orphanages, homes for the aged, youth activities, and private volunteer organizations meet special needs, in some cases receiving government subsidies.

Women enjoy a more favorable position in Indonesia than is customary in Muslim societies. This situation is largely the result of the work of Princess Raden Ajeng Kartini at the turn of the century in promoting the development of Javanese women. The movement for the emancipation of women preceded the nationalist movement by at least 10 years. Improvement of the status of women was specifically included in the guidelines for the 197984 national economic plan. A Ministry of Women's Affairs was created to promote the economic and social welfare of women.

A Domestic Violence Act was passed in 2004 that criminalizes domestic violence. Nationwide figures on sexual assault are not available, but local papers reported an increase in violence against women. In spite of women's official equality, in practice they often find it hard to exercise their legal rights. Although they constitute roughly one-quarter of the civil service, they occupy very few of its top posts. Marriage laws define the husband as the head of the family, and divorce procedures are much more diffi cult for a woman. Citizenship for a child is derived solely from the father. Female workers generally receive lower pay than that for men. Although maternity leave is mandated by law, many women lose their jobs as a result of pregnancy. Traffi cking in women and children remain a problem.

Gross violations of human rights occurred in East Timor before the province became an independent state in 2002, especially following the referendum on autonomy held in 1999. With the liberalization of Indonesia's government, human rights abuses decreased overall, although serious problems remained as of 2006.

HEALTH

The Ministry of Health places emphasis on preventive medicine. Only 1% of the GDP goes to public health expenditures. National health programs, of which family planning is an important part, stress the building of small and healthy families. Eradication of contagious diseases focuses on malaria, rabies, elephantiasis, tuberculosis, cholera, and leprosy. Filariasis, a tropical disease that is endemic in remote rural areas, was still widespread as of 2006. The World Health Organization reported cholera active in Indonesia. Malaria is also endemic to the country. The incidence of the disease was more than 700 per 100,000 population in 2000. In that year there were an estimated 282 cases of tuberculosis per 100,000 people. Overcrowded cities, poor sanitation, impure water supplies, substandard urban housing, and dietary deficiencies are contributing factors to health problems. Approximately 76% of the population had access to safe drinking water and 56% had adequate sanitation.

Average life expectancy in 2005 was 69.57 years. The 2005 infant mortality rate was 35.6 per 1,000 live births. The overall death rate was estimated at 6.3 per 1,000 in 2002. The maternal mortality rate was 450 deaths per 100,000 live births in 1998. Malnutrition was present in 42% of all children under five years of age as of 2000. As of September 1995, the World Health Organization (WHO) reported 130,988 deaths of children under five from diarrheal diseases. The estimated goiter rate was 27.7 per 100 school-age children in 1996.

Indonesia has received much help from the UN, particularly through WHO and UNICEF, in solving health problems. The Ministry of Health is seeking to build up a health service, starting at the village level with a hygiene officer, who is an official of the village, and working up through groups of villages, with more facilities and better trained personnel, to the regional doctor, who directs the curative and preventive work.

In 2004, there were an estimated 16 physicians, 44 nurses, and 5 midwives per 100,000 people. More than one-third of the country's doctors practice in Jakarta and other big cities. Approximately 80% of the population had access to health care services. Total health care expenditure was estimated at 1.6% of GDP.

Tobacco consumption increased from 1.4 kg (3.1 lbs) in 198486 to 1.6 kg (3.5 lbs) a year per adult in 1995. A survey in 2004 indicated that 22.8% of school-age students used tobacco products regularly, with the rate significantly higher for boys (40.5%) than girls (8.1%).

Indonesia's birth rate was an estimated 21.9 per 1,000 people as of 2002. About 57% of married women (ages 15 to 49) were using contraception. A total of 40% of all Indonesian children under five were underweight. Immunization rates for children up to one year of age were as follows: tuberculosis, 100%; diphtheria, pertussis, and tetanus, 91%; polio, 90%; and measles, 92%. In 1995 the government paid 100% of the entire vaccine bill.

The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 110,000 people living with HIV/AIDS in the country. There were an estimated 2,400 deaths from AIDS in 2003.

HOUSING

Housing is an acute problem in both urban and rural areas. In the rural areas, housing generally falls below even the most modest standards. National statistics from 1998 indicate that only about 20% of all residences had access to piped water. In 2000, only about 66% of the population had access to improved sanitation systems. The total number of dwellings stood at 44,855,000 in the mid-1990s. It has been estimated that there are 735,000 new households per year in need of housing. Housing construction has not been able to keep pace with this number, so that a substantial backlog has accumulated, translating into overcrowding and substandard living conditions for many. Floods, earthquakes, drought, forest fires, and local communal conflicts continue to result in shelter problems for over one million displaced and homeless residents.

Since 1974, the government has sponsored a series of four major programs to build new housing and provide repair and maintenance for the large number of low-income housing units and slum areas. From 197493, the government adopted the Kampong Improvement Program, which was designed to upgrade slum settlements and thus provide more adequate housing for more than 36 million people. As of 2006, the program was part of the Urban Environment Upgrading Program, which relied on community initiatives rather than government intervention. In 1990, an estimated 210,000 new housing units were completed. In 2003, the government announced the One Million Houses Development Program (Satu Juta Rumah) as a plan to inspire local governments, private businesses, and community initiatives to finance and build new housing. The government has also made up several plans to improve substandard housing and slum areas. For the period of 200509, the government planned to build 1.367 million subsidized housing units.

EDUCATION

Vigorous efforts have been made to advance education and reduce illiteracy. In 1971, overall literacy was estimated to be about 58%, ranging from 77% in the cities to only 52% in rural areas. The adult literacy rate for 2004 was estimated at about 87.9%, with 92.5% for men and 83.4% for women.

Under the constitution, education must be nondiscriminatory, and nine years of basic education are free and compulsory (ages 715). In practice, however, the supply of schools and teachers is inadequate to meet the needs of the fast-growing under-15 age group. Primary school covers six years of study, followed by three years of junior secondary school. Students may then choose to continue in three years of secondary studies in general studies (natural sciences, social sciences, and languages), Islamic studies, or vocational studies. Schools are coeducational, except for certain vocational and religious schools. Private (mostly Islamic religious) schools receive government subsidies if they maintain government standards. Bahasa Indonesia is the language of instruction, but local dialects may be used until the third level.

In 2001, about 20% of children between the ages of five and six were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 92% of age-eligible students. The same year, secondary school enrollment was about 54% of age-eligible students. It is estimated that about 94% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 20:1 in 2003; the ratio for secondary school was about 14:1. In 2003, private schools accounted for about 16% of primary school enrollment and 42.9% of secondary enrollment.

There are 51 universities, the largest of which are the University of Indonesia (in Jakarta) and the University of Gajah Mada (in Yogyakarta). Most of the universities are new, having been established since the mid-1950s. There are also several polytechnical and vocational schools offering diploma or certificate programs. In 2003, about 16% of the tertiary age population were enrolled in some type of higher education program.

As of 2003, public expenditure on education was estimated at 1.2% of GDP, or 9% of total government expenditures.

LIBRARIES AND MUSEUMS

Indonesia's largest library, Perbustakaan National Library of Indonesia, was created in 1980 with the merger of four libraries. Located in Jakarta, it has a collection of over 1.15 million volumes. Th is library includes the large National Museum collection, which was established in 1778. Another well-established library is the Bibliotheca Bogoriensis, also called the Central Library for Biological Sciences and Agriculture; founded in 1814 as a library associated with the botanical gardens in Bogor, on Java, it holds more than 400,000 volumes. Another national library is the National Scientific and Technical Documentation Center, founded in 1965 in Jakarta, with a collection of more than 150,000 volumes. The Library of the Indonesian Parliament, also in Jakarta, has 150,000 volumes. There is little coordination of public libraries, but there are state libraries and local reading rooms in almost every province. University libraries tend to be autonomous faculty or departmental libraries lacking central coordination. The University of Indonesia in Jakarta has just over 200,000 volumes.

Two outstanding museums in Indonesia are the National Museum in Jakarta, which is a general museum of Indonesian history and culture, and the Zoological Museum in Bogor, on Java. There is also a Bali Museum at Denpassar, and there are several regional historical museums throughout the provinces. Jakarta also houses a museum of crime, a large military museum, a museum chronicling the country's fight for independence, and several decorative arts museums. The Agung Rai Museum of Art in Bali holds a notable private collection of works by Balinese, Javanese, and foreign artists.

MEDIA

The government owns and operates postal services and telecommunications facilities through Perumtel, a state enterprise. The Indonesian-owned telecommunications satellite Palapa B was launched in 1983. In 2003, there were an estimated 39 mainline telephones for every 1,000 people. The same year, there were approximately 87 mobile phones in use for every 1,000 people.

As of 1998, there were 678 AM and 43 FM radio stations and 41 television stations (18 government-owned and 23 commercial). Programs originating in Jakarta are in Bahasa Indonesia; programs from regional stations are usually in local languages or dialects. The overseas service (Voice of Indonesia) broadcasts 11 hours daily in Arabic, Chinese, English, French, German, Japanese, Malay, and Thai. Television service was inaugurated in 1962. Televisi Republik Indonesia (TVRI) is the public television network. There are an additional 10 commercial TV networks. In 2003, there were an estimated 159 radios and 153 television sets for every 1,000 people. The same year, there were 11.9 personal computers for every 1,000 people and 38 of every 1,000 people had access to the Internet. There were 85 secure Internet servers in the country in 2004.

Most newspapers are published in Bahasa Indonesia, with a small number appearing in local dialects, English, and Chinese. The leading dailies published in Bahasa Indonesia (with their estimated 2002 circulations) include: Kompas (523,450), Pos Kota (500,000), Suara Pembaruan (250,000), Berita Buana (150,000), Merdeka (130,000), Pikiran Rakyat (in Bandungm 150,000), Suara Merdeka (in Semarang, 200,000), Jawa Pos (in Surabaya, 120,000), Surabaya Post (in Surabaya, 115,000), Harian Pagi Memorandum (in Surabaya, 190,000), and Analisa (in Medan, 75,000).The Jakarta Post is a leading English-language daily that had a circulation of 50,000 in 2002.

The constitution declares that everyone has the "right to freedom of opinion and expression." Journalistic activities of foreigners, however, are limited in accordance with the policy that "freedom of expression" does not permit interference in domestic affairs or dissemination of "foreign ideologies" detrimental to the Indonesian system of government. The government has also arrested individuals for insulting the president or the government. The government censors foreign films and publications, and Indonesian newspapers have been temporarily closed down for violating news guidelines.

ORGANIZATIONS

Village unit cooperatives were established to meet the small farmer's need for credit and aid in marketing cash crops. The cooperatives have also been instrumental in distributing improved rice, fertilizers, pesticides, and superior cattle breeds, and also in instructing farmers in their handling. Village unit cooperatives also exist for such cottage industries as batik (a method of hand-painting textiles), textiles, and garment production, which are important forms of employment in rural areas.

Many trade and business promotional organizations are concerned with individual sectors of the business worldexporters' organizations, sugar traders' associations, and so on. An Indonesian chamber of commerce and industries has connections with leading business organizations in the country. United Kingdom, Chinese, Indian, and Pakistani business people have national associations. The Indonesian Consumers Association is active. ASEAN Council on Petroleum, ASEAN Occupational Safety and Health Network, and ASEAN Regional Forum all have offices in Jakarta. The International Labour Organization also has an office in Jakarta.

Among social welfare and women's organizations are the Indonesian Women's Congress, a federation founded in 1928; the National Council on Social Welfare; the Indonesian Planned Parenthood Association; the Council of Muslim Women's Organizations; GOPTKI, a federation of organizations that run kindergartens; Association of Women of the Republic of Indonesia; and the Indonesian National Commission on the Status of Women. International organizations with chapters in Indonesia include Habitat for Humanity, the Red Cross, Caritas, and the Kiwanis and Lion's clubs.

National youth organizations include the Indonesian Hindu Youth Association, Indonesian Muslim Youth, Islamic Association of University Students, National Board of IMKA/YMCA Indonesia, Students Solidarity for Democracy in India, Junior Chamber, and Young Generation of Islam of Indonesia. There is also a national association for Boy Scouts and Girl Scouts (Indonesia Geraken Pramuka). There are many sports associations promoting both youth and adult participation in amateur competitions.

There are a number of organizations promoting education and research into various arts and sciences, including the Indonesian Institute of Sciences and the Indonesian Medical Association.

TOURISM, TRAVEL, AND RECREATION

Among the most popular tourist destinations are Bali, the restored Borobudur Buddhist temple in Java, and historic Yogyakarta. Cultural attractions include traditional Balinese dancing, the percussive sounds of the Indonesian orchestra (gamelan ), the shadow puppet (wayang kulit ) theater, and the famous Indonesian rijsttafel, a banquet of rice and savories. Tourism, as a means of affording wider employment, is strongly promoted by the government, which has supported the development of resorts in Sumatra, Kalimantan, Nusa Tenggara, Maluku Province, and Irian Jaya, as well as surfing, skindiving, and other marine sports in the reefs and tropical seas of the archipelago. Gambling has been prohibited since 1981. Popular sports are badminton, football (soccer), and Sepak Takraw, a game where players volley a woven ball over a net using any part of their body except their hands or arms. A devastating tsunami, triggered by an underwater earthquake, struck tourism facilities in the northwest Aceh province in December 2004. Terrorist bombings of nightclubs frequented by tourists on Bali in 2002 and 2005 also had a negative impact on tourism.

A passport, valid for at least six months from the date of arrival, and an entry visa are required of most foreigners entering Indonesia, along with an onward/return ticket. Precautions against malaria, hepatitis, typhoid, and rabies are recommended.

Approximately 4,467,021 tourists visited Indonesia in 2003, almost 78% of whom came from East Asia. There were 263,014 hotel rooms with 428,813 beds and an occupancy rate of 45%. Tourism expenditures totaled $4.4 billion.

The cost of traveling in Indonesia varies from city to city. According to 2004 US Department of State estimates, the cost of staying in Jakarta was approximately $216 per day. Daily expenses were an estimated $140 for Surabaya and $234 for Bali. Elsewhere the estimated daily cost was $113.

FAMOUS INDONESIANS

Gajah Mada, prime minister under King Hayam Wuruk (r.135089), brought many of the islands under one rule, the Majapahit Empire. Princess Raden Ajeng Kartini (18791904), founder of a school for girls, led the movement for the emancipation of women. Her posthumously published letters, Door duisternis tot licht, occasioned considerable interest in the Western world. Many creative and performing artists have attained local prominence, but Indonesia's only internationally known artist is the painter Affandi (191090). Contemporary novelists of considerable local importance include Mochtar Lubis (b.1922). H. B. Jassin (19172000) was an influential literary critic and translater known locally as "the Pope of Indonesian literature." Sukarno (190170), a founder and leader of the nationalist movement, is the best-known figure of modern Indonesia; Mohammad Hatta (190280), one of the architects of Indonesian independence, served as Sukarno's vice president and concurrently as prime minister. President Suharto (b.1921), leader of Indonesia after Sukarno's overthrow, dominated Indonesia's political and economic life for three decades (196898). Adam Malik (191784) established an international reputation as a negotiator in restoring and improving relations with Malaysia, the Philippines, the United States, the United Kingdom, and the UN; formerly a foreign minister (196677), he became vice president (197883). Umar Wirahadikusumah (19242003), a retired army general, became vice president in 1983. He was succeeded by Sudharmono (19272006) and Try Sutrisno (b.1935). B. J. Habibie (b.1936) became president in 1998, followed by Abdurrahman Wahid (b.1940), Megawati Sukarnoputri (b.1947, the country's first female president), and Susilo Bambang Yudhoyono (b.1949), who began his term in 2004.

DEPENDENCIES

Indonesia has no territories or colonies.

BIBLIOGRAPHY

Altbach, Philip G. and Toru Umakoshi (eds.). Asian Universities: Historical Perspectives and Contemporary Challenges. Baltimore, Md.: Johns Hopkins University Press, 2004.

Chandra, Satish and Baladas Ghoshal (eds.) Indonesia: A New Beginning? New Delhi: Sterling Publishers, 2002.

Cribb, Robert and Audrey Kahin. Historical Dictionary of Indonesia. Lanham, Md.: Scarecrow Press, 2004.

Dumargay, Jacques. Cultural Sites of Malaysia, Singapore, and Indonesia. New York: Oxford University Press, 1998.

Gardner, Paul F. Shared Hopes, Separate Fears: Fifty Years of U.S. Indonesian Relations. Boulder, Colo.: Westview Press, 1997.

Giannakos, S.A. (ed.). Ethnic Conflict: Religion, Identity, and Politics. Athens: Ohio University Press, 2002.

Gunn, Geoffrey C. New World Hegemony in the Malay World. Trenton, N.J.: Red Sea Press, 2000.

Hill, Hal. The Indonesian Economy since 1966: Southeast Asia's Emerging Giant. New York: Cambridge University Press, 1996.

Martyn, Elizabeth. Women's Movement in Postcolonial Indonesia: Gender and Nation in a New Democracy. New York: RoutledgeCurzon, 2004.

Suryadinata, Leo. Indonesia's Foreign Policy Under Suharto: Aspiring to International Leadership. Singapore: Times Academic Press, 1996.

views updated

Indonesia

PROFILE
PEOPLE
HISTORY
GOVERNMENT AND POLITICAL CONDITIONS
ECONOMY
NATIONAL SECURITY
FOREIGN RELATIONS
U.S.-INDONESIAN RELATIONS
TRAVEL

Compiled from the August 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Republic of Indonesia

PROFILE

Geography

Area: 2 million sq. km. (736,000 sq.mi.), about three times the size of Texas; maritime area: 7,900,000 sq. km.

Cities: Capital—Jakarta (est. 8.8 million). Other cities—Surabaya 3.0 million, Medan 2.5 million, Bandung 2.5 million.

Terrain: More than 17,500 islands; 6,000 are inhabited; 1,000 of which are permanently settled. Large islands consist of coastal plains with mountainous interiors.

Climate: Equatorial but cooler in the highlands.

People

Nationality: Noun and adjective—Indonesian(s).

Population: (July 2006 est.) 245.5 million.

Annual population growth rate: (2006) 1.3%.

Ethnic groups: Javanese 45%, Sun-danese 14%, Madurese 7.5%, coastal Malays 7.5%, others 26%.

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.

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).

Work force: 94.2 million (2005 est.). Agriculture—46.5%, industry-11.8%, services—.7%.

Government

Type: Independent republic.

Independence: August 17, 1945 proclaimed.

Constitution: 1945. Embodies five principles of the state philosophy, called Pancasila, namely monotheism, humanitarianism, national unity, representative democracy by consensus, and social justice.

Government branches: Executive—president (head of government and chief of state) elected by direct popular vote. Legislative—The People's Consultative Assembly (MPR), which includes the 550-member House of Representatives (DPR) and the 128-member Council of Regional Representatives (DPD), both elected to five-year terms. Judicial—Supreme Court.

Suffrage: 17 years of age universal and married persons regardless of age.

Economy

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

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

Inflation: (2005) 10.5%; (2006 est.) 13.2%.

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

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.

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.

PEOPLE

Indonesia's approximately 245.5 million people make it the world's fourth-most populous nation. The island of Java, roughly the size of New York State, is the most populous island in the world (124 million, 2005 est.) and one of the most densely populated areas in the world. Indonesia includes numerous related but distinct cultural and linguistic groups, many of which are ethnically Malay. Since independence, Bahasa Indonesia (the national language, a form of Malay) has spread throughout the archipelago and has become the language of most written communication, education, government, business, and media. Local languages are still important in many areas, however. English is the most widely spoken foreign language. Education is compulsory for children through grade 9. In primary school, 94% of eligible children are enrolled whereas 57% of eligible children are enrolled in secondary school.

Constitutional guarantees of religious freedom apply to the six religions recognized by the state, namely Islam (88%), Protestantism (5%), Catholicism (3%), Buddhism (2%), Hinduism (1%) and Confucianism (less than 1%). In the resort island of Bali, over 90% of the population practices Hinduism. In some remote areas, animism is still practiced.

HISTORY

By the time of the Renaissance, the islands of Java and Sumatra had already enjoyed a 1,000-year heritage of advanced civilization spanning two major empires. During the 7th-14th centuries, the Buddhist kingdom of Srivijaya flourished on Sumatra. At its peak, the Srivijaya Empire reached as far as West Java and the Malay Peninsula. Also by the 14th century, the Hindu Kingdom of Majapahit had risen in eastern Java. Gadjah Mada, the empire's chief minister from 1331 to 1364, succeeded in gaining allegiance from most of what is now modern Indonesia and much of the Malay archipelago as well. Legacies from Gadjah Mada's time include a codification of law and an epic poem. Islam arrived in Indonesia sometime during the 12th century and, through assimilation, supplanted Hinduism by the end of the 16th century in Java and Sumatra. Bali, however, remains overwhelmingly Hindu. In the eastern archipelago, both Christian and Islamic proselytizing took place in the 16th and 17th centuries, and, currently, there are large communities of both religions on these islands.

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.

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.

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 nation-wide 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.

Unsuccessful rebellions on Sumatra, Sulawesi, West Java, and other islands beginning in 1958, plus a failure by the constituent assembly to develop a new constitution, weakened the parliamentary system. Consequently, in 1959, when President Soekarno unilaterally revived the provisional 1945 constitution that gave broad presidential powers, he met little resistance. From 1959 to 1965, President Soekarno imposed an authoritarian regime under the label

of “Guided Democracy.” He also moved Indonesia's foreign policy toward nonalignment, a foreign policy stance supported by other prominent leaders of former colonies who rejected formal alliances with either the West or Soviet bloc. Under Soekarno's auspices, these leaders gathered in Bandung, West Java in 1955 to lay the groundwork for what became known as the Non-Aligned Movement. In the late 1950s and early 1960s, President Soekarno moved closer to Asian communist states and toward the Indonesian Communist Party (PKI) in domestic affairs. Though the PKI represented the largest communist party outside the Soviet Union and China, its mass support base never demonstrated an ideological adherence typical of communist parties in other countries.

By 1965, the PKI controlled many of the mass civic and cultural organizations that Soekarno had established to mobilize support for his regime and, with Soekarno's acquiescence, embarked on a campaign to establish a “Fifth Column” by arming its supporters. Army leaders resisted this campaign. Under circumstances that have never been fully explained, on October 1, 1965, PKI sympathizers within the military, including elements from Soekarno's palace guard, occupied key locations in Jakarta and kidnapped and murdered six senior generals. Major General Soeharto, the commander of the Army Strategic Reserve, rallied army troops opposed to the PKI to reestablish control over the city. Violence swept throughout Indonesia in the aftermath of the October 1 events and unsettled conditions persisted through 1966. Rightwing gangs killed tens of thousands of alleged communists in rural areas. Estimates of the number of deaths range between 160,000 and 500,000. The violence was especially brutal in Java and Bali. During this period, PKI members by the tens of thousands turned in their membership cards. The emotions and fears of instability created by this crisis persisted for many years as the communist party remains banned from Indonesia.

Throughout the 1965-66 period, President Soekarno vainly attempted to restore his political stature and shift the country back to its pre-October 1965 position. Although he remained President, in March 1966, Soekarno transferred key political and military powers to General Soeharto, who by that time had become head of the armed forces. In March 1967, the Provisional People's Consultative Assembly (MPRS) named General Soeharto acting President. Soekarno ceased to be a political force and lived under virtual house arrest until his death in 1970.

President Soeharto proclaimed a “New Order” in Indonesian politics and dramatically shifted foreign and domestic policies away from the course set in Soekarno's final years. The New Order established economic rehabilitation and development as its primary goals and pursued its policies through an administrative structure dominated by the military but with advice from Western-educated economic experts. In 1968, the People's Consultative Assembly (MPR) formally selected Soeharto to a full five-year term as President and he was re-elected to successive 5-year terms in 1973, 1978, 1983, 1988, 1993, and 1998. In mid-1997, Indonesia suffered from the Asian financial and economic crisis, accompanied by the worst drought in 50 years and falling prices for oil, gas, and other commodity exports. As the exchange rate changed from a fixed to a managed float to fully floating, the rupiah depreciated in value, inflation increased significantly, and capital flight accelerated. Demonstrators, initially led by students, called for Soeharto's resignation. Amid wide-spread civil unrest, Soeharto resigned on May 21, 1998, three months after the MPR had selected him for a seventh term. Soeharto's hand-picked Vice President, B.J. Habibie, became Indonesia's third President. President Habibie reestablished International Monetary Fund (IMF) and donor community support for an economic stabilization program. He released several prominent political and labor prisoners, initiated investigations into the unrest, and lifted controls on the press, political parties, and labor unions.

In January 1999, Habibie and the Indonesian Government agreed to a process, with UN involvement, under which the people of East Timor would be allowed to choose between autonomy and independence through a direct ballot held on August 30, 1999. Some 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 and destruction after the announcement of the pro-independence vote.

Indonesia's first elections in the post-Soeharto period were held for the national, provincial, and sub-provincial parliaments on June 7, 1999. Forty-eight political parties participated in the elections. For the national parliament, Partai Demokrasi Indonesia Perjuangan (PDI-P, Indonesian Democratic Party of Struggle led by Megawati Soekar-noputri) won 34% of the vote; Golkar (“Functional Groups” party) 22%; Partai Kebangkitan Bangsa (PKB, National Awakening Party linked to the conservative Islamic organization Nadhlatul Ulama headed by former President Abdurrahman Wahid) 13%; and Partai Persatuan Pembangunan (PPP, United Development Party led by Hamzah Haz) 11%. The MPR selected Abdurrahman Wahid as Indonesia's fourth President in November 1999 and replaced him with Megawati Soekarnoputri in July 2001.

The constitution, as amended in the post-Soeharto era, provides for the direct election by popular vote of the president and vice president. Under the 2004 amendment, only parties or coalitions of parties that gained at least 3% of the House of Representatives (DPR) seats or 5% of the vote in national legislative elections were eligible to nominate a presidential and vice presidential ticket. The 2004 legislative elections took place on April 5 and were considered to be generally free and fair. PDI-P lost its plurality in the House of Representatives, dropping to under 19% of the total vote, while Golkar remained near 1999 levels with 21% of the vote. Five other parties won between 6 and 11% of the national vote. Of the 18 other parties that participated, nine won small numbers of seats in the DPR. The first direct presidential election was held on July 5, 2004, contested by five tickets. As no candidate won at least 50% of the vote, a runoff election was held between the top two candidates, President Megawati Sukarnoputri and retired General Susilo Bambang Yudhoyono, on September 20, 2004. In this final round, Yudhoy-ono won 60.6% of the vote. Approximately 76.6% of the eligible voters participated, a total of roughly 117 million people, making Indonesia's presidential election the largest single-day election in the world. The Carter Center, which sent a delegation of election observers, issued a statement congratulating “the people and leaders of Indonesia for the successful conduct of the presidential election and the peaceful atmosphere that has prevailed throughout the ongoing democratic transition.”

Natural disasters have devastated many parts of Indonesia over the past few years. On December 26, 2004 a 9.1 to 9.3 magnitude earthquake took place in the Indian Ocean, and the resulting tsunami killed over 130,000 people in Aceh and left more than 500,000 homeless. On March 26, 2005, an 8.7 magnitude earthquake struck between Aceh and northern Sumatra, killing 905 people and displacing tens of thousands. After much media attention of the seismic activity on Mt. Merapi in April and May 2006, a 6.2 magnitude earthquake occurred 30 miles to the southwest. It killed over 5,000 people and left an estimated 200,000 people homeless in the Yogyakarta region.

GOVERNMENT AND POLITICAL CONDITIONS

Indonesia is a republic based on the 1945 constitution providing for a separation of executive, legislative, and judicial power. Substantial restructuring has occurred since President Soeharto's resignation in 1998 and the short, transitional Habibie administration in 1998 and 1999. The Habibie government established political reform legislation that formally set up new rules for the electoral system, the House of Representatives (DPR), the People's Consultative Assembly (MPR), and political parties without changing the 1945 Indonesian constitution. After these reforms, the constitution now limits the president to two terms in office.

The president, elected for a five-year term, is the top government and political figure. The president and the vice president were elected by popular vote for the first time on September 20, 2004. Previously, the MPR selected Indonesia's president. In 1999, the MPR selected Abdurrahman Wahid, also known as Gus Dur, as the fourth President. The MPR removed Gus Dur in July 2001, immediately appointing then-Vice President Megawati Soekarnoputri as the fifth President. Megawati brought a certain amount of stability to Indonesia, yet there were concerns over progress on combating corruption and encouraging economic growth. In 2004, Susilo Bambang Yudhoyono was elected to succeed Megawati.

The president, assisted by an appointed cabinet, has the authority to conduct the administration of the government. President Yudhoyono's Democratic Party (PD), holds 55 of the 550 seats in the House of Representatives (DPR), making it the fourth-largest political party represented in the legislature as of mid-2006. Yudhoyono, however, also had the support of other political parties that combined to hold a majority of the seats in the DPR. The People's Consultative Assembly (MPR) has 678 members, consisting of the 550 members of the DPR and the 128 representatives of the House of Regional Representatives (DPD), which includes four members from each of Indonesia's 32 provinces. Since 2004, all seats in the DPR and DPD have been held by legislators elected by the citizenry. Previously, some seats had been reserved for representatives of the armed forces. The military has been a significant political force throughout Indonesian history.

The armed forces shaped the political environment and provided leadership for Soeharto's New Order from the time it came to power in the wake of the abortive 1965 uprising. Military officers, especially from the army, were key advisers to Soeharto and Habibie and had considerable influence on policy. Under the dual function concept (“dwifungsi”), the military asserted a continuing role in socio-political affairs. This concept was used to justify placement of officers to serve in the civilian bureaucracy at all government levels. Although the military retains influence and is one of the only truly national institutions, the wide-ranging democratic reforms instituted since 1999 abolished “dwifungsi” and ended the armed forces’ formal involvement in government administration. The police have been separated from the military, further reducing the military's direct role in governmental matters. Control of the military by the democratically elected government has been strengthened.

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

Last Updated: 2/1/2008

Pres.: Susilo Bambang YUDHOYONO

Vice Pres.: Muhammad Yusuf KALLA

Coordinating Min. for Economic Affairs: BOEDIONO

Coordinating Min. for the People's Welfare: Aburizal BAKRIE

Coordinating Min. for Political, Legal, & Security Affairs:WIDODO Adi Sutjipto

Min. of Agriculture: Anton APRIYANTONO

Min. for Communication & Information: Mohammad NUH

Min. for Cooperatives & Small & Medium Enterprises: Suryadharma ALI

Min. of Culture & Tourism: Jero WACIK

Min. of Defense: Juwono SUDARSONO

Min. for the Development of Disadvantaged Regions: Mohammad Lukman EDY

Min. of Education: Bambang SUDIBYO

Min. for Energy & Mineral Resources: Purnomo YUSGIANTORO

Min. for the Environment: Rachmat Nadi WITOELAR Kartaadipoetra

Min. of Finance: SRI MULYANI Indrawati

Min. of Foreign Affairs: Noer Hassan WIRAJUDA

Min. of Forestry: M. S. KABAN

Min. of Health: Siti Fadilah SUPARI

Min. of Home Affairs: Muhammad MA’RUF

Min. of Industry: Fahmi IDRIS

Min. of Justice & Human Rights: Andi MATTALATA

Min. of Manpower & Transmigration: Erman SUPARNO

Min. of Maritime Affairs & Fisheries: Freddy NUMBERI

Min. for National Development Planning: Paskah SUZETTA

Min. for Public Housing: Mohammad Yusuf ASYARI

Min. of Public Works: Joko KIRMANTO

Min. of Religion: Muhammad Maftuh BASYUNI

Min. of Research & Technology: KUSMAYANTO Kadiman

Min. of Social Affairs: Bachtiar CHAMSYAH

Min. for State Apparatus Reform: Taufiq EFFENDI

Min. for State-Owned Enterprises: Sofyan DJALIL

Min. of Trade: Mari Elka PANGESTU

Min. of Transportation: Jusman Syafii DJAMAL

Min. for Women's Empowerment: Meutia Farida HATTA Swasono

Min. for Youth & Sports: Adhyaksa DAULT

Attorney Gen.: Hendarman SUPANDJI

Cabinet Sec.: Sudi SILALAHI

State Sec.: Hatta RAJASA

Dir., State Intelligence Agency (BIN): Syamsir SIREGAR

Governor, Bank Indonesia: Burhanuddin ABDULLAH

Ambassador to the US: SUDJADNAN Parnohadiningrat

Permanent Representative to the UN, New York: Rezlan Ishar JENIE

The Embassy of Indonesia is at 2020 Massachusetts Avenue NW, Washington, DC 20036 (tel. 202-775-5200-5207; fax: 202-775-5365). Consulates General are in New York (5 East 68th Street, New York, NY 10021, tel. 212-879-0600/0615; fax: 212-570-6206); Los Angeles (3457 Wilshire Blvd., Los Angeles, CA 90010; tel. 213-383-5126; fax: 213-487-3971); Houston (10900 Richmond Ave., Houston, TX 77042; tel. 713-785-1691; fax: 713-780-9644). Consulates are in San Francisco (1111 Columbus Avenue, San Francisco, CA 94133; tel. 415-474-9571; fax: 415-441-4320); and Chicago (2 Illinois Center, Suite 1422233 N. Michigan Avenue, Chicago, IL 60601; tel. 312-938-0101/4; 312-938-0311/0312; fax: 312-938-3148).

ECONOMY

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%.

Economic Policy

After he took office on October 20, 2004, President Yudhoyono moved quickly to implement a “pro-growth, pro-poor, pro-employment” economic program. He appointed a respected group of economic ministers who announced a “100-Day Agenda” of short-term policy actions designed to energize the bureaucracy. President Yudhoyono also announced an ambitious anti-corruption plan in December 2004. The State Ministry of National Development Planning (BAPPENAS) released in early 2005 a Medium Term Plan focusing on four broad objectives: creating a safe and peaceful Indonesia; creating a just and democratic Indonesia; creating a prosperous Indonesia; and establishing a stable macroeconomic framework for development. President Yudhoyono reshuffled his cabinet in December 2005, appointing former Finance Minister Boediono as Coordinating Minister for Economic Affairs, and moving Sri Mulyani Indrawati from the National Development Planning Agency to the Finance Ministry. In early 2006, the Government of Indonesia announced new policy packages for stimulating investment and infrastructure.

The Yudhoyono Administration has targeted average growth of 6.6% from 2004-2009 to reduce unemployment and poverty significantly. Indonesia's overall macroeconomic picture is stable and improving. By 2004, real GDP per capita returned to pre-financial crisis levels. In 2005, domestic consumption continued to account for the largest portion of GDP, at 65.4%, followed by investment at 22%, government consumption at 8.2%, and net exports at 4.3%. In evidence of an accelerating economy, investment realization doubled in 2005. Capital goods imports increased 35.9% in 2005, a further indication of a strengthening economy.

The government raised fuel prices by an average of 126% on October 1, 2005 in an effort to reduce Indonesia's fuel subsidy burden, projected to reach Rp 89.2 trillion in 2005, or 3.3% of GDP. The fuel price hikes led to a surge in inflation as consumer price inflation reached 10.5% for 2005 and an estimated 13.2% for 2006. The Indonesian Government implemented a quarterly cash compensation package for low-income families and an extra range of benefits including subsidized rice, improved health and social services, housing subsidies, micro credit, and family planning programs.

Banking Sector

Indonesia currently has 130 banks, of which 11 are majority foreign-owned and 28 are foreign joint venture banks. The top 10 banks control about 67% of assets in the sector. Four state-owned banks (Bank Mandiri, BNI, BRI, BTN) continue to dominate the sector with approximately 40% of assets. The Indonesian central bank, Bank Indonesia (BI), announced plans in January 2005 to strengthen the banking sector by encouraging consolidation and improving prudential banking and supervision. BI hopes to encourage small banks with less than Rp 100 billion (about U.S. $11 million) in capital to either raise more capital or merge with healthier “anchor banks” before 2009, announcing the criteria for anchor banks in July 2005. In October 2006, BI announced a single presence policy to further prompt consolidation. The policy stipulates that a single party can own a controlling interest in only one banking organization. Controlling interest is defined as 25% or more of total out-standing shares or having direct or indirect control of the institution. BI plans to adopt Basel II standards beginning in 2008 and to improve operations of its credit bureau to centralize data on borrowers. Another important banking sector reform was the decision to eliminate the blanket guarantee on bank third-party liabilities. BI and the Indonesian Government completed the process of replacing the blanket guarantee with a deposit insurance scheme run by the independent Indonesian Deposit Insurance Agency (also known by its Indonesian acronym, LPS) in March 2007. Sharia banking has grown considerably in Indonesia in recent years, representing 1.4% of the banking sector, about $2.2 billion in assets at the end of 2005.

Exports and Trade

Indonesia's exports grew to a record $100.7 billion in 2006, an increase of 17.6% from 2005. The largest export commodities for 2006 were oil and gas (21.2%), minerals (15.7%), electrical appliances (14.7%), rubber products (6.9%), and textiles (3.4%). The top four destinations for exports for 2006 were Japan (15.4%), the U.S. (13.4%), Singapore (9.8%), and China (6.9%). Meanwhile, total imports were $61.1 billion in 2006, including: raw materials and intermediaries ($47.2 billion), capital goods ($9.1 billion), and consumer goods ($4.6 billion). The U.S. trade deficit with Indonesia decreased by 16.5% in 2006 to $7.2 billion ($4.0 billion in exports versus $11.2 billion in imports).

Oil and Minerals Sector

Indonesia, the only Asian member of the Organization of Petroleum Exporting Countries (OPEC), ranks 21st among world oil producers (according to 2006 estimates), with about 1.8% of world production. Crude and condensate output averaged 1.04 million barrels per day (b/d) in 2006. In 2006, the oil and gas sector, including refining, contributed $23 billion, or 24% of government revenues. U.S. companies have invested heavily in the petroleum sector. Due to limited refining capacity and growing domestic demand for petroleum fuels, Indonesia became a net oil importer in 2004 and continued to be a net oil importer through mid-2007. Indonesia ranks eighth in world gas production. In early 2007, Qatar passed Indonesia as the world's number one exporter of liquefied natural gas (LNG). Despite the declining trends, Indonesia's oil and gas trade balance remained positive at $1.8 billion in 2005 and $2.3 billion for 2006, according to unofficial statistics.

Although minerals production traditionally centered on bauxite, silver, and tin, Indonesia is expanding its copper, nickel, gold, and coal output for export markets. In mid-1993, the Energy Ministry reopened the coal sector to foreign investment. Total coal production reached 159 million metric tons in 2006, including exports of 119.8 million tons. Two U.S. firms operate two copper/gold mines in Indonesia, with a Canadian and U.K. firm holding significant investments in nickel and gold, respectively. Indonesian gold production in 2006 was 85.4 tons, down about 50% compared with 167 tons in 2005. Indonesia achieved its peak output in 2001 with 180 tons. Production mainly came from Freeport's Grasberg mine, the world's biggest gold-producing mine. Indonesia's share of global hard rock mining exploration spending has dropped from 3% to 1%. Since 1998, only three new gold mines have opened. This decline does not reflect Indonesia's mineral prospects, which are high; rather the decline reflects uncertainty over mining laws and regulations, low competitiveness in the tax and royalty system, and investor concerns over divestment policies and the sanctity of contracts.

Investment

Since the late 1980s, Indonesia has made significant changes to its regulatory framework to encourage investment and economic growth. This growth was financed largely from private investment, both foreign and domestic. U.S. investors provided a majority of the investment in the oil and gas sector and undertook some of Indonesia's largest mining projects. In addition, the presence of U.S. banks, manufacturers, and service providers expanded, especially after the industrial and financial sector reforms of the 1980s. While many petroleum and mining investors remained after the 1997 financial crisis, the number of U.S. investors in other sectors declined. Other major foreign investors include Japan, the United Kingdom, Singapore, the Netherlands, Hong Kong, Taiwan, and South Korea. Infrastructure investment declined steadily after the financial crisis and has not yet recovered. In November 2006, however, the Indonesian Government announced that it is opening up 110 infrastructure projects valued at $16.5 billion and is working on 120 regulations to encourage infrastructure investment.

President Yudhoyono and his economic ministers have stated repeatedly their intention to improve the climate for private sector investment in order to raise the level of GDP growth and reduce unemployment. In addition to general corruption and legal uncertainty, businesses have cited a number of specific factors that have reduced the competitiveness of Indonesia's investment climate, including: corrupt and inefficient customs services; non-transparent and arbitrary tax administration; inflexible labor markets that have reduced Indonesia's advantage in labor-intensive manufacturing; increasing infrastructure bottlenecks; and uncompetitive investment laws and regulations.

In February 2006, the Indonesian Government announced a new policy package to improve the investment climate in Indonesia for both domestic and foreign investors. The package, announced in Presidential Instruction (INPRES) No. 3/2006, consists of policies designed to strengthen investment services, harmonize central and regional regulations (Perda), improve customs, excise, and taxation services, create jobs, and support small and medium enterprises. However, labor reforms planned for 2006 have been delayed in parliament.

The passage of a new copyright law in July 2002 and accompanying optical disc regulations in 2004 greatly strengthened Indonesia's intellectual property rights (IPR) regime. Despite the government's recent efforts to improve enforcement, IPR piracy remains a major concern to U.S. intellectual property holders and foreign investors, particularly in the high-technology sector. In March 2006, President Yudhoyono issued a decree establishing a National Task Force for IPR Violation Prevention. The IPR Task Force will formulate national policy to prevent IPR violations and determine additional resources needed for prevention. It will also help to educate the public through various activities and improve bilateral, regional, and multilateral cooperation to prevent IPR violations. Due to these positive developments on IPR issues, Indonesia was removed from the U.S. Trade Representative's “Priority Watch” list and placed on the “Watch” list.

NATIONAL SECURITY

Indonesia's armed forces (Tentara Nasional Indonesia, or TNI) total approximately 350,000 members, including the army, navy, marines, and air force. The army is the largest branch with about 280,000 active-duty personnel. Defense spending in the national budget accounts for 1.8% of GDP, but is supplemented by revenue from many military businesses and foundations.

The Indonesian National Police were a branch of the armed forces for many years. The police were formally separated from the military in April 1999, a process that was formally completed in July 2000. With 250,000 personnel, the police represent a much smaller portion of the population than in most nations.

Indonesia has peaceful relations with its neighbors. Without a credible external threat in the region, the military historically viewed its prime mission as assuring internal security. Military leaders have said that they wish to transform the military to a professional, external security force, providing domestic support to civilian security forces as necessary.

Throughout Indonesian history, the military maintained a prominent role in the nation's political and social affairs. A significant number of cabinet members have had military back-grounds, while active duty and retired military personnel occupied a large number of seats in the parliament. Commanders of the various territorial commands played influential roles in the affairs of their respective regions. With the inauguration of the newly-elected national parliament in October 2004, the military no longer has a formal political role, although it retains important political influence.

FOREIGN RELATIONS

Since independence in 1945, Indonesia has espoused a “free and active” foreign policy, seeking to play a role in regional affairs commensurate with its size and location but avoiding involvement in conflicts among major powers. Indonesian foreign policy under the “New Order” government of President Soeharto moved away from the stridently anti-Western, anti-American posturing that characterized the latter part of the Soekarno era. Following Soeharto's ouster in 1998, Indonesia's Presidents have preserved the broad out-lines of Soeharto's independent, moderate foreign policy. The traumatic separation of East Timor from Indonesia after an August 1999 East Timor referendum, and subsequent events in East and West Timor, strained Indonesia's relations with the international community.

A cornerstone of Indonesia's contemporary foreign policy is its participation in the Association of Southeast Asian Nations (ASEAN), of which it was a founding member in 1967 with Thailand, Malaysia, Singapore, and the Philippines. Since then, Brunei, Vietnam, Laos, Burma, and Cambodia also have joined ASEAN. While organized to promote common economic, social, and cultural goals, ASEAN acquired a security dimension after Vietnam's invasion of Cambodia in 1979. The security policy aspect of ASEAN expanded with the establishment of the ASEAN Regional Forum in 1994, in which 22 countries participate, including the United States. At ASEAN's Bali Summit in October 2003, the organization undertook to create an ASEAN Community characterized by greater integration in the areas of political and security affairs, economics, and socio-cultural affairs. Indonesia was a strong proponent of this initiative. Indonesia also was one of the founders of the Non-Aligned Movement (NAM) and has taken moderate positions in its councils. As NAM Chairman in 1992-95, Indonesia led NAM positions away from the rhetoric of North-South confrontation, advocating instead the broadening of North-South cooperation in the area of development. Indonesia continues to be a prominent leader of the Non-Aligned Movement.

A secular state, Indonesia has the world's largest Muslim population and is a member of the Organization of the Islamic Conference (OIC). It carefully considers the interests of Islamic solidarity in its foreign policy decisions while providing a moderating influence in the OIC. President Wahid, for example, pursued better relations with Israel.

After 1966, Indonesia welcomed and maintained close relations with the donor community, particularly the United States, Western Europe, Australia, and Japan, through the Inter-governmental Group on Indonesia (IGGI) and its successor, the Consultative Group on Indonesia (CGI), which have provided substantial foreign economic assistance. Donors remain committed to helping Indonesia reform, but express increasing frustration with poor governance and implementation.

Indonesia has been a strong supporter of the Asia-Pacific Economic Cooperation (APEC) forum. Largely through the efforts of President Soe-harto at the 1994 meeting in Bogor, Indonesia, APEC members agreed to implement free trade in the region by 2010 for industrialized economies and 2020 for developing economies. Indonesia often supports Non-Aligned Movement (NAM) and Group of 77 (G-77) foreign policy views, taking positions regarding human rights contrary to the United States. In May 2005, the Yudhoyono administration, in a major effort to reinvigorate its leadership of the NAM and reset the movement's future course, hosted an Asia-Africa Summit to commemorate the founding of the NAM in Bandung, Indonesia in 1955.

President Yudhoyono has sought a higher international profile for Indonesia. In March 2006, Yudhoyono traveled to Burma to discuss democratic reform and visited several Middle Eastern countries in April and May 2006. Yudhoyono delivered a major speech in Saudi Arabia, encouraging the Muslim world to embrace globalization and technology for greater social and economic progress. In November 2006, Indonesia sent about 1,000 peacekeeping troops to southern Lebanon to be part of the UN Interim Force in Lebanon (UNIFIL). In 2007 and 2008, Indonesia holds a non-permanent seat on the UN Security Council.

U.S.-INDONESIAN RELATIONS

The United States has important economic, commercial, and security interests in Indonesia. It remains a linchpin of regional security due to its strategic location astride a number of key international maritime straits, particularly the Malacca Strait. Relations between Indonesia and the U.S. are positive and have advanced since the election of President Yudhoyono in October 2004. The U.S. played a role in Indonesian independence in the late 1940s and appreciated Indonesia's role as an anti-communist bulwark during the Cold War. Cooperative relations are maintained today, although no formal security treaties bind the two countries. The United States and Indonesia share the common goal of maintaining peace, security, and stability in the region and engaging in a dialogue on threats to regional security. Cooperation between the U.S. and Indonesia on counter-terrorism has increased steadily since 2002, as terrorist attacks in Bali (October 2002 and October 2005), Jakarta (August 2003 and September 2004) and other regional locations demonstrated the presence of terrorist organizations, principally Jemaah Islamiyah, in Indonesia. The United States has welcomed Indonesia's contributions to regional security, especially its leading role in helping restore democracy in Cambodia and in mediating territorial disputes in the South China Sea.

The U.S. is committed to consolidating Indonesia's democratic transition and supports the territorial integrity of the country. Nonetheless, there are friction points in the bilateral political relationship. These conflicts have centered primarily on human rights, as well as on differences in foreign policy. The U.S. Congress cut off grant military training assistance through International Military Education and Training (IMET) to Indonesia in 1992 in response to a November 12, 1991, incident in East Timor when Indonesian security forces shot and killed East Timorese demonstrators. This restriction was partially lifted in 1995. Military assistance programs were again suspended, however, in the aftermath of the violence and destruction in East Timor following the August 30, 1999 referendum favoring independence.

Separately, the U.S. had urged the Indonesian Government to identify and bring to justice the perpetrators of the August 2002 ambush murders of two U.S. teachers near Timika in Papua province. In 2005, the Secretary of State certified that Indonesian cooperation in the murder investigation had met the conditions set by Congress, enabling the resumption of full IMET. Eight suspects were arrested in January 2006, and in November 2006 seven were convicted.

In November 2005, the Under Secretary of State for Political Affairs, under authority delegated by the Secretary of State, exercised a National Security Waiver provision provided in the FY 2005 Foreign Operations Appropriations Act to remove congressional restrictions on Foreign Military Financing (FMF) and lethal defense articles. These actions represented a reestablishment of normalized military relations, allowing the U.S. to provide greater support for Indonesian efforts to reform the military, increase its ability to respond to national and regional disasters, and promote regional stability.

Regarding worker rights, Indonesia was the target of several petitions filed under the Generalized System of Preferences (GSP) legislation arguing that Indonesia did not meet internationally recognized labor standards. A formal GSP review was suspended in February 1994 without terminating GSP benefits for Indonesia. Since 1998, Indonesia has ratified all eight International Labor Organization core conventions on protecting internationally recognized worker rights and allowed trade unions to organize. However, enforcement of labor laws and protection of workers rights remains inconsistent and weak in some areas. Indonesia's slow economic recovery has pushed more workers into the informal sector, which reduces legal protection and could create conditions for increases in child labor.

Development Assistance from the United States to Indonesia

The U.S. Agency for International Development (USAID) and its predecessors have provided development assistance to Indonesia since 1950. Initial assistance focused on the most urgent needs of the new republic, including food aid, infrastructure rehabilitation, health care, and training.

Through the 1970s, a time of great economic growth in Indonesia, USAID played a major role in helping the country achieve self-sufficiency in rice production and in reducing the birth rate. Today, USAID assistance programs focus on basic education, democratic governance, rebuilding after the tsunami, economic growth, health, water, food, and the environment.

Education: In October 2003, President Bush announced a $157 million Indonesian Education Initiative for 2004-2009 to improve the quality of education in Indonesia. This initiative is a cornerstone of the U.S. Government assistance program in Indonesia, directly responding to Indonesia's priorities and reflecting a joint Indonesia-U.S. commitment to revitalize education for the next generation of Indonesia's leaders.

Managing Basic Education (MBE): Since 2003, this project has worked with local governments to strengthen their capacity to effectively manage basic education services in 20 districts/municipalities in East and Central Java, Aceh, and Jakarta. MBE is also working with 10,000 educators to improve the quality of teaching and learning in grades 1-9 through in-service teacher training, community participation, and the promotion of school-based management.

MBE directly reaches 450 schools, 20% of which are madrassah, and 140,000 students. Through dissemination of good practices, teachers from 2,000 additional schools received training last year.

Decentralized Basic Education (DBE): The Indonesia Education Initiative will increase the quality of basic education in primary and junior secondary schools, both public and private, and focus on three results: (DBE1) Local governments and communities more effectively manage education services; (DBE2) Enhance the quality of teaching and learning to improve student performance in key subjects such as math, science, and reading; and (DBE3) Youth gain more relevant life and work skills to better compete for jobs in the future.

Opportunities for Vulnerable Children: This program promotes inclusive education in Indonesia. Children with special needs such as visual impairment are provided the opportunity to be educated in public schools. Replicable models are being developed to expand the reach of the program.

Sesame Street Indonesia: A new Indonesian co-production of the award-winning television show targeting young children is being developed and produced by the Sesame Workshop in New York with local Indonesian partners and USAID funding. Millions of Indonesian children will be better equipped to start school. The first season is scheduled to air in mid-2007.

Effective Democracy and Decentralized Governance: This objective aims to support democratic reforms by supporting effective and accountable local governance, addressing conflict and encouraging pluralism, and consolidating national-level democratic reforms.

Mitigation of Conflict and Support for Peace: USAID remains a key donor working to mitigate conflict and support peace in conflict areas, such as Aceh, Papua, Sulawesi, and Ambon. Assistance activities focus on: conflict resolution/mitigation; civilian-military affairs; livelihoods development in conflict areas; drafting and monitoring of relevant legislation; and emergency and post-conflict transitional assistance to conflict affected persons.

Anti-Trafficking In Persons: USAID's anti-trafficking programs work closely with the Ministry of Women's Empowerment and civil society groups in policy making, program development, victim support, and dissemination of information which will contribute to reducing the trafficking of women and children in Indonesia.

Justice Sector Reforms: Through the Democratic Reform Support Program and Justice Sector Reform Program, USAID's current Justice Sector programs provide technical assistance and training to judges, prosecutors and staff members at the Supreme Court, the Constitutional Court, and the Attorney General's Office.

Legislative Strengthening: Technical assistance and training are provided to strengthen the legislative and legal drafting skills of parliamentarians as well as provide institutional support to the National House of Representatives, National Regional Representative Council, nine provincial legislative councils and 40 district-level legislative councils. Activities include promoting constituency and media outreach; developing the capacity to draft and analyze legislation and operational budgets; creating inter-party coalitions; encouraging legislative commissions to carry-out their functions, and perform strategic planning.

The Local Governance Support Program: Currently assisting 60 local governments, this program works to increase governmental accountability and transparency, strengthen the local legislative process, promote citizen engagement and civil service reform, and improve the delivery of basic services.

Media Development: In October 2005, USAID funded a new media development project entitled “Building on the Foundations: Strengthening Professional, Responsible and Responsive Broadcast Media in Indonesia.” The goal of the program is to build professional, information-based local media that are responsive to the development and reform of districts across Indonesia. The program assists local radio stations in North Sumatra, Aceh and Java, fostering dialogue on media regulations, and providing support for Media and Media Education in Aceh.

Tsunami Reconstruction: The U.S. Government was one of the first donors to respond to the disaster, and remains one of the largest contributors to relief and reconstruction efforts in Indonesia. Through numerous grants to non-governmental organizations (NGOs), international organizations, and UN agencies, USAID has helped stabilize the humanitarian situation in Aceh, avert a public health crisis, and provide relief services to survivors.

Rebuilding Shelter and Key Infrastructure: USAID is assisting communities by providing much needed shelter, working with the Indonesian Government to rebuild key infrastructure, and ensuring proper mapping and planning is considered through local cooperation.

Restoring Livelihoods: USAID enables communities to direct capacity building to benefit people at the local level. USAID's Community Based Recovery Initiative is working with 59 villages to organize local capacity-building initiatives.

Strengthening Capacity and Governance: USAID is providing assistance to restore local government services in Aceh, working to increase governmental accountability and transparency, strengthen the local legislative process, promote citizen engagement and civil service reform, and improve the delivery of basic service.

Economic Growth Strengthened and Employment Created: Assistance to the Indonesian Government and private sector focuses on creating jobs by improving the business and investment climate, combating corruption, increasing competitiveness in key sectors, and improving the safety of the financial system. USAID is working with Indonesians to ensure that future generations enjoy an increasingly prosperous, democratic and stable country.

Business Climate and Enterprise Development: Efforts to promote a transparent and predictable legal and regulatory business climate aim to reduce the hidden costs of doing business, to reduce uncertainty, and to promote trade, investment and job creation. USAID delivers technical assistance to leading industry sectors in an effort to fuel growth, exports, jobs, and prosperity. These efforts drive increased productivity and national competitiveness by forging stronger coalitions of public, private, and civil society advocates for legal, regulatory, and policy change.

Financial Sector Safety and Soundness: USAID is working to improve the oversight of bank and non-bank financial intermediaries in order to promote safety and soundness in the financial system and to improve transparency and governance.

Improving the Quality of Basic Human Services: The USAID Basic Human Services Office provides assistance to Indonesia through an integrated strategy combining health, food/nutrition, and environmental management and water services at the district and community levels.

Environmental Services: This program supports better health through improved water resources management and expanded access to clean water and sanitation services. With a ridge to reef approach, partners improve water resource management from watershed sources, along rivers, through cities, and to coastal reefs. In the upper watershed, the program promotes forest management, biodiversity conservation, and land use planning to protect a steady, year-round source of clean water. Further downstream, the program strengthens municipal water utilities to improve and expand piped water and sanitation services to communities. Stakeholder forums link upstream and downstream communities to build consensus on water and waste management issues. Marginalized urban communities also benefit from the introduction of safe drinking water through Air Rahmat, a home chlorination product being introduced to the market through a public-private partnership.

Health Services: Women, newborns and children are the principal beneficiaries of this integrated public health program. Working with the government, NGOs, and other partners, USAID focuses on maternal, neonatal and child health; reproductive health; nutrition; HIV/AIDS, tuberculosis, malaria; and decentralization of the health sector. Improved health-seeking behaviors within communities link key hygiene promotion interventions, such as hand-washing with soap, in order to reduce diarrheal disease, a major cause of childhood death. New initiatives address challenges from the re-emergence of polio and the outbreak of avian influenza in Indonesia.

Food and Nutrition: Improving the nutritional status of Indonesians, USAID food assistance targets poor communities. These activities directly impact women and children through targeted supplemental feeding and nutritional education activities. The food assistance program works with villages to construct public latrines, washing facilities, protected water stations, and to organize solid waste disposal efforts to better protect community health. Over one million people will be direct recipients of USAID food assistance under this program.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

JAKARTA (E) Medan Merdeka Selatan 5, APO/FPO Box 8129, FPO, AP 96520-8129, (62-21) 3435-9000, Fax (62) (21) 386-2259, INMARSAT Tel 683-142-927, Workweek: M-F 7:30 a.m.-4:00 p.m., Website: http://jakarta.usembassy.gov.

DCM OMSTeresa Coddington
AMB OMSLavay Miller
DCM/CHGJohn A. Heffern
ECO:Peter D. Haas
FCS:Richard M. Rothman
FM:Michael Itinger
MGT:Lawrence Mandel
AMB:Cameron Hume
CG:William M. Howe
CON:William Howe
PAO:Michael H. Anderson
GSO:Henry Kaminski
RSO:Jeff D. Lischke
AFSA:Ruth Hall
AGR:Fred R. Kessel
AID:Walter North
CLO:Tracy Blair/Lauren Huot
DAO:Col. Kevin E. Richards
EEO:Ruth R. Hall
EST:Colette A. Marcellin
FMO:Ralph A. Hamilton
ICASS:Chair William P. Tuchrello, Loc
IMO:Michael B. Bretz
IPO:C. John Rogers
ISO:Wade C. Martin
ISSO:Wade C. Martin
LAB:Stanley Harsha
LEGATT:David C. Smith
POL:Joseph L. Novak
State ICASS:Colette A. Marcellin

SURABAYA (CG) Jl. Dr. Soetomo 33, Surabaya 60264, APO/FPO Unit 8131, FPO, AP 96520, 62-31-295-6400, Fax (62-31) 567-4492, INMAR-SAT Tel 383-134-370, Workweek: M-F 7:30 a.m to 4:00 p.m., Website: http://jakarta.usembassy.gov/sby.

MGT:Vacant
POL ECO:Jeff Loree
CG:Caryn McClelland
CON:Rebecca Couture
PAO:John Taylor
RSO:Kevin T. Whitson

TRAVEL

Consular Information Sheet

October 12, 2007

Country Description: Indonesia is an independent republic consisting of more than 16,500 islands spread over 3,000 miles. The country encompasses the world's longest archipel-ago, spreading out 3,400 miles along the Equator. Indonesia's total land area covers about 736,000 square miles. The main islands are Java, Sumatra, Bali, Kalimantan (Borneo), Sulawesi ( Celebes), Papua, and Maluku. The capital city of Jakarta lies in the lowlands of West Java. The country has approximately 234,000,000 people and more than 300 ethnic groups.

The U.S. diplomatic mission in Indonesia consists of approximately 220 American staff and 500 family members in addition to an average of 150 temporary duty officials who visit the Embassy each month. Annually, there are approximately 150,000 US tourists to Indonesia.

Entry Requirements: A passport valid for at least six months from the date of arrival in Indonesia and an onward/return ticket are required to enter Indonesia. Indonesian authorities regularly deny entry to Americans who arrive with less than six months validity on their passports. The U.S. Embassy cannot obtain entry permission for Americans in this situation. Travelers will be required to depart for Singapore or a nearby country to obtain a new U.S. passport.

American citizens are required to have a visa to enter Indonesia. U.S. citizens may apply for a visa on arrival at the airports in Jakarta, Bali, Surabaya, Medan, and a few other major cities. Visas on arrival are available at a limited number of seaports but are not available at any land border crossing. Travelers should check carefully when planning travel between Indonesia and other countries in the region to be sure their return to Indonesia is through a designated visa on arrival port or airport. Travelers will not be allowed to enter or return to Indonesia at an entry that does not have visa on arrival facilities. Indonesian visas require an entire passport page. Travelers without a blank visa page may be denied entry. Additional visa pages may be added at most U.S. Embassies and Consulates, or domestically through a Passport Agency. All airline passengers, including children, are subject to a Rupiah-denominated departure tax, which must be paid in cash. The international departure tax as of August 2007 is 100,000 Rupiah; domestic departure taxes are lower and vary by airport. Visitors may be granted a 3-day visa on arrival for a fee of $10 or a 30-day visa on arrival for a fee of $25. Recent experience has shown that some visitors are granted a 7-day visa on arrival for $10. All visas on arrival are non-extendable. Travelers must exit the country to be able to purchase another visa on arrival. Travelers are strongly advised to purchase the 30-day visa on arrival to avoid problems if travel plans change unexpectedly. Travelers who overstay visas on arrival are subject to a fine of US $20 per day, as of early 2007. Indonesia strictly enforces its immigration/visa requirements. Several Westerners, including Americans, have been jailed for visa violations and overstays. Violators may also be subject to substantial fines and deportation from Indonesia for immigration and visa violations. Immigration officials have also detained people for conducting business, academic, or other non-tourist activities while in tourist visa status. Volunteer work with local or international NGOs is not permitted on tourist visa status. Penalties for such immigration/visa violations incur a prison sentence of up to 5 years and a fine of Rupiah 25 million. Travelers are encouraged to contact an Indonesian consular office to determine the appropriate visa category before traveling to Indonesia. Please consult the Criminal Penalties section below for further information.

U.S. citizens may also apply for a visa at the Indonesian Embassy in Washington, DC or at an Indonesian Consulate in the U.S. A visitor's visa for business purposes and social/cultural stays of longer duration require a letter of intent/sponsorship from the Indonesian employer and/or sponsor. For up-to-date information, travelers may contact the Embassy of the Republic of Indonesia: 2020 Massachusetts Ave. NW, Washington, DC 20036, phone: (202) 775-5200 or via Internet: http://www.embassyofindo-nesia.org. Indonesian Consulates are located in Los Angeles (213) 383-5126, San Francisco (415) 474-9571, Chicago (312) 920-1880, New York (212) 879-0600, and Houston (713) 785-1691. Visit the Embassy of Indonesia web site online at http://www.embassyofindonesia.org for the most current visa information.

Safety and Security: Due to the possibility of terrorist attacks directed against American or other Western citizens and interests, the Department of State urges American citizens to evaluate carefully the risks of travel to Indonesia. The October 1, 2005, terrorist attacks in Bali, in which suicide bombers killed 20 people and injured more than 100, are a reminder that terrorists remain active in Indonesia. The possibility of future attacks in Bali, Jakarta, or other areas of Indonesia cannot be ruled out.

Terrorist attacks in Indonesia could occur at any time and could be directed against any location, including those frequented by foreigners, as well as identifiably American or other Western facilities or businesses in Indonesia. Such targets could include but are not limited to places where Americans and other Westerners live, congregate, work, study, shop, or visit, including hotels, clubs, restaurants, shopping centers, identifiably Western businesses, housing compounds, transportation systems, places of worship, schools, or public recreation events. While past terrorist attacks have involved the use of vehicle-borne explosives or suicide bombers carrying explosives in backpacks, terrorists may use other forms of attack in the future. Terrorists may target individual American citizen residents, visitors, students, or tourists, and tactics could include but are not limited to kidnapping, shooting, or poisoning.

In addition to the October 1, 2005, bombings in Bali, several other serious terrorist incidents occurred in Indonesia in recent years. A terrorist bombing outside the Australian Embassy in Jakarta on September 9, 2004, killed eleven and injured more than 180 people. An August 2003 terrorist bombing at a major international hotel in Jakarta killed 12 persons and injured scores, including several American citizens. A terrorist attack in Bali in October 2002 killed 202 people, including seven Americans. Suicide bombers wearing explosives in vests or backpacks carried out the October 1, 2005, bombings in Bali. Prior terrorist attacks involved the use of vehicle-borne explosives.

The U.S. Mission in Indonesia restricts U.S. government employees’ travel to certain areas of the country and, at times, denies them permission to travel to specific locations. As of September 2007, employee travel to the provinces of Papua, Central Sulawesi, and Maluku requires the concurrence of the Embassy's Regional Security Officer. Americans seeking the latest travel restriction information may contact a consular office.

The U.S. Mission can occasionally suspend service to the public, or close, because of security concerns; in these situations, it will continue to provide emergency services to American citizens.

The Department of State urges Americans in Indonesia to avoid crowds, maintain a low profile, and be vigilant about security at all times. Americans are advised to monitor local news broadcasts, vary their routes and times in carrying out daily activities, and consider the level of preventive security when visiting public places in Indonesia. Americans who choose to vacation in Indonesia despite the security risks are advised to consider the level of preventive security when choosing hotels, restaurants, beaches, entertainment venues, and recreation sites.

American travelers and American residents are urged to update their passports and important personal papers in case it becomes necessary to depart Indonesia quickly. Travel distances, poor communications, and the inadequate health care infrastructure make it extremely difficult for the Embassy to respond to U.S. citizen emergencies. Many parts of Indonesia (including many tourist destinations) are isolated and difficult to reach or contact.

For the latest security information, Americans traveling abroad should regularly monitor the Department of State, Bureau of Consular Affair's Internet site at http://travel.state.gov, where the current Travel Warnings and Travel Alerts, including the Worldwide Caution Travel Alert, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada, or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: Indonesia has a high crime rate. Crimes of opportunity such as pick pocketing and theft occur throughout the country. Americans in Jakarta and Surabaya are advised to engage a taxi either from a major hotel queue or by calling a reputable taxi company, rather than hailing one on the street. Passengers should only use taxis in which the driver's identification and taxi company information are posted prominently in the taxi. Taxi robberies conducted by criminals in taxis painted to look similar to taxis from reputable companies occur regularly in Jakarta; booking taxis by telephone directly from the company is the best way to avoid falling victim to this crime.

Claiming to act in the name of religious or moral standards, certain extremist groups have, on occasion, attacked nightspots and places of entertainment. Most of these attacks have sought to destroy property rather than to injure individuals. International news events can sometimes trigger anti-American or anti-Western demonstrations.

Credit card fraud and theft is a serious and growing problem in Indonesia, particularly for Westerners. Travelers should avoid using credit cards, if possible, and use cash. If used, credit card numbers should be closely safeguarded at all times. There have been many reports of shop, restaurant and hotel staff writing down the credit card numbers of customers and then making purchases using the credit card number after the consumer has departed the retail location.

U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times, so that, if questioned by local officials, proof of identity and proof of U.S. citizenship are readily available. When U.S. citizens are arrested or detained, formal notification of the arrest is normally provided to the U.S. Embassy in Jakarta in writing, a process that can take several weeks. If detained, U.S. citizens should telephone the nearest U.S. consular office immediately.

Maritime piracy is a persistent and growing problem in Indonesian waters, targeting primarily commercial vessels. The majority of piracy attacks occur in the Straits of Malacca between the Riau Province and Singapore and in the waters north of Sulawesi and Kalimantan. Before traveling by sea in these areas, passengers are advised to review the current security situation with their local port agent.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: The general level of sanitation and health care in Indonesia is far below U.S. standards. Some routine medical care is available in all major cities, although most expatriates leave the country for serious medical procedures. Psychological and psychiatric medical and counseling services are limited throughout Indonesia. Serious medical problems requiring hospitalization and/or medical evacuation to Singapore or Australia, the closest locations with acceptable medical care, or the United States, can cost thousands of dollars. Doctors and hospitals often expect immediate cash payments or sizable deposits for health services. A list of English-speaking doctors and hospitals is available at the U.S. Embassy Jakarta web site at http://www.usembassyjakarta.org.

Indonesian ambulance attendants lack training equivalent to U.S. standards. Americans staying in Indonesia for extended periods, especially those who have known health problems, are advised to investigate private ambulance services in their area and to provide family and close contacts with the direct telephone number (s) of the service they prefer.

Malaria, dengue and other tropical and contagious diseases occur frequently in Indonesia. In 2005, polio re-emerged in Western Java. Avian Influenza A (H5N1) is endemic among poultry in Indonesia and poultry outbreaks have been reported in the majority of Indonesia's provinces. While human cases of H5N1 remain rare, more than 85 people have died of H5N1 in Indonesia since 2004. Travelers are urged to consult with their personal physicians and to obtain updated information on Avian Influenza before traveling to Indonesia. Updated information and links to the WHO and CDC are posted on the U.S. Embassy web site at http://www.usembassyjakarta.org.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's Internet site at http://wwwn.cdc.gov/travel/default.aspx. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith/en.

Medical Insurance: The Department of State urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Indonesia is provided for general reference only, and may not be accurate in a particular location or circumstance.

In general, traffic in Indonesia is congested and undisciplined. The number and variety of vehicles on the road far exceed the capacity of existing roadways to handle the traffic. Road conditions vary from good (in the case of toll roads and major city roads) to dangerously poor. Generally, road safety awareness is very low in Indonesia, although it is increasing. Buses and trucks are often dangerously overloaded and tend to travel at high speeds. Most roads outside major urban areas have a single lane of traffic in each direction, making passing dangerous. Most Indonesian drivers do not maintain a safe following distance in a manner familiar to U.S. drivers and tend to pass or maneuver with considerably less margin for error than in the United States. Although traffic in Indonesia moves on the left side of the road, drivers tend to pass on both sides and may use the shoulder for this purpose. It is common for drivers to create extra lanes regardless of the lane markings painted on the roads.

Throughout Indonesia, there is an overabundance of motorcycles claiming to have the right of way. Many motorcycle drivers recklessly weave in and out of traffic and typically fail to observe traffic regulations. Throughout the country, motor vehicles also share the roads with other forms of transportation such as bicycle pedicabs, horse and ox carts, and pushcarts.

Although Indonesia requires the use of seat belts in front seats, most Indonesian automobiles do not have seat belts in the rear passenger seats. The use of infant and child car seats is not common, and it can be very difficult to rent a car seat for temporary use. Helmets are required for all passengers on motorcycles, but this law is inconsistently enforced. Passengers often do not wear helmets. Accidents on rented motorcycles constitute the largest cause of death and serious accident among foreign visitors to Indonesia. American citizens are discouraged from riding motorcycles.

Expatriates and affluent Indonesians often use professional drivers. All car rental firms provide drivers for a nominal additional fee. Travelers unfamiliar with Indonesian driving conditions are strongly encouraged to hire drivers.

Driving at night can be extremely dangerous outside of major urban areas. Drivers often refuse to use their lights until it is completely dark, and most rural roads are unlit. Sometimes, residents in rural areas use road surfaces as public gathering areas, congregating on them after dark.

When an accident involving personal injury occurs, Indonesian law requires both drivers to await the arrival of a police officer to report the accident. Although Indonesian law requires third party insurance, most Indonesian drivers are uninsured, and even when a vehicle is insured, it is common for insurance companies to refuse to pay damages. Drivers should be aware that ambulance service in Indonesia is unreliable, and that taxis or private cars are often used to transport the injured to a medical facility. In cases of serious injury to a pedestrian, the driver of the vehicle could be required to help transport the injured person to the hospital. When an accident occurs outside a major city, before stopping, it may be advisable to drive to the nearest police station to seek assistance.

Visit the website of Indonesia's national tourist office online at http://my-indonesia.info/indexpromo.php.

Aviation Safety Oversight: Based on publicly available information, including the results of a study commissioned by the Indonesian Government, the U.S. Federal Aviation Administration (FAA) has determined that the Indonesian Directorate General of Civil Aviation is not in compliance with International Civil Aviation Organization (ICAO) aviation safety standards for the over-sight of Indonesia's air carrier operations. For more information, travelers may visit the FAA's internet website at http://www.faa.gov.

Indonesian civil aviation continues to experience air incidents and accidents, including three crashes with fatalities between September 5, 2005, and March 7, 2007. Incidents included hard landings, collapsed landing gear, and planes veering off the runway. On June 25, 2007, the Indonesian government released the results of its second operational performance assessment for all domestic air carriers; only four Indonesian air carriers—Garuda Airlines, Mandala Airlines, Premi Air and Airfast Indonesia—were found to meet minimum civil aviation safety standards. The Indonesian government did not provide information about its assessment criteria or methodology. Whenever possible, Americans traveling to and from Indonesia should fly directly to their destinations on international carriers from countries whose civil aviation authorities meet international aviation safety standards for the oversight of their air carrier operations under the FAA's International Aviation Safety Assessment (IASA) program.

Natural Disasters: Indonesia's geographic location and topography make the country prone to natural disasters and is especially prone to seismic upheaval due to its location on the “Ring of Fire,” an arc of volcanoes and fault lines encircling the Pacific Basin. One major fault, which runs the length of the west coast of Sumatra about 125 miles offshore, is the meeting point of the Eurasian and Pacific tectonic plates that cause huge stresses to build up. The Indian Ocean earthquake and tsunami on December 26, 2004 killed more than 130,000 people and left over 37,000 missing in Aceh and North Sumatra. On September 12, 2007 a 8.4-magnitude quake off shore of Sumatra along the edge of the Menawai island patch damaged hundreds of homes and killed at least 13 people. Dozens of strong aftershocks were felt and magnitude 7.8 and 7.1 tremors were recorded during the following two days. Major earthquakes on Nias Island off Sumatra in March 2005 and in Yogyakarta in May 2006 killed thousands of people. An earthquake and tsunami on the southern Java coast in July 2006 killed more than 600 people and left thousands homeless. Mt. Merapi Volcano near Yogy-akarta experienced significant pyroclastic flows from April to early July 2006, and authorities evacuated residents within a 15-mile radius. Americans planning hiking or other outdoor activities in Indonesia are encouraged to obtain up-to-date information on local conditions, to travel with a local guide and to carry a local cell phone. Travelers should obey instructions from civil defense and emergency personnel and should not enter restricted areas.

Air Quality: Air quality in Indonesia is acceptable most of the time. However, within Indonesia's major cities, air quality can range from “unhealthy for sensitive groups” to “unhealthy.” The air quality in Jakarta is particularly polluted. Individuals susceptible to chronic respiratory illnesses should consult with their doctor before spending significant amounts of time in Jakarta.

Scuba Diving, Snorkeling and Surfing: U.S. citizens should exercise prudence when scuba diving, surfing and snorkeling, and when visiting remote tourist locations, as every year several Americans die in accidents while participating in such activities. Surfers and divers should be aware that local fishermen in coastal waters may use explosives to catch fish, although this practice is illegal in Indonesian waters.

Commercial Disputes: U.S. citizens involved in commercial or property matters should be aware that the business environment is complex and dispute settlement mechanisms are not highly developed. Local and foreign businesses often cite corruption and ineffective courts as serious problems. Business and regulatory disputes, which would be generally considered administrative or civil matters in the U.S., may in some cases be treated as criminal cases in Indonesia. It can be challenging to resolve trade disputes. For more information, please refer to the U.S. Department of Commerce's Country Commercial Guide for Indonesia at http://www.buyusainfo.net/docs/x_6987010.pdf.

Internet Purchases: U.S. citizens frequently experience difficulties when purchasing goods by Internet from Indonesian suppliers with whom the buyer has not met personally. An increase in fraud has been noted with American citizens attempting to purchase goods via the internet from Indonesian stores and suppliers.

Currency: Counterfeit currency is a problem in Indonesia. Banks, exchange facilities and most commercial establishments do not accept U.S. currency that is worn, defaced, torn or issued before 1996.

Dual Nationality: Indonesian law does not recognize dual nationality for adults over 18 years. Because of this, U.S. citizens who are also documented as Indonesian nationals may experience difficulties with immigration formalities in Indonesia. Holding dual citizenship may also hamper the U.S. Embassy or Consulate's ability to provide consular protection to Americans. In addition to being subject to all Indonesian laws affecting U.S. citizens, dual nationals may also be subject to other laws that impose special obligations on Indonesian citizens. In July 2006 the Indonesian Parliament passed new legislation allowing children under age 18 to maintain a foreign nationality as well as Indonesian citizenship. Parents whose children hold both Indonesian and U.S. citizenship may experience difficulties with entry and exit immigration procedures until the new law is fully implemented.

Transportation: There has been a rapid rise in all manners of public and private transportation within Indonesia. Various private airlines have begun operation in Indonesia over the past several years, as have new bus and ferry lines. Several recent air accidents have resulted in fatalities, injuries and significant damage to aircraft. In the past year, several ferries sank and another was badly damaged by fire, resulting in a significant number of deaths and injuries. While all forms of transportation are regulated in Indonesia, equipment tends to be less well maintained than similar equipment operated in the United States, and the quality of amenities found on various modes of transportation do not typically meet Western standards.

Customs Regulations: Indonesian customs authorities have strict regulations concerning import and export of items such as prescription medicines and foreign language materials or videotapes/discs. Americans are encouraged to contact the Embassy of Indonesia in Washington or one of Indonesia's consulates in the United States for specific information about customs requirements. Transactions involving such products are illegal, and bringing them back to the United States may result in forfeiture and/or fines.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Indonesia's laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Indonesia are severe, and convicted offenders can expect long jail sentences and heavy fines. The death sentence can be given in cases of drug trafficking; several foreigners have been sentenced to death in recent years. One U.S. citizen was given a life sentence for drug trafficking.

Indonesian prisons are harsh and do not meet Western standards. Many prisoners are required to supplement their prison diets and clothing with funds from relatives. Medical care within Indonesian prisons, while available, is below Western standards, and access to medical testing to diagnose illness, as well as medications to treat conditions, is often difficult to obtain.

Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: There have been several recent cases of parental child abduction in Indonesia. While each case is different, Indonesian courts and police typically have not recognized valid U.S. sole custody decrees. Indonesia is not a signatory to the Hague Convention on the Civil Aspects of International Child Abduction. For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family.

Registration and Embassy Locations: Americans living or traveling in Indonesia are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration web site so that they can obtain updated information on travel and security within Indonesia. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency.

The U.S. Embassy is located in Jakarta at Medan Merdeka Selatan 5; telephone: (62)(21) 3435-9000; fax (62)(21) 385-7189. The Embassy's web site is http://www.usembassy-jakarta.org. The consular section can be reached by e-mail at [email protected] To subscribe to the U.S. Embassy Emergency Notification System, please register at http://jakarta.usembassy.gov/consular/ACSREGISTER.html.

The U.S. Consulate General in Surabaya is at Jalan Raya Dr. Sutomo 33; telephone: (62)(31)295-6400; fax (62)(31) 567-4492; e-mail: [email protected]; after-hours duty officer (62)(811)334-183. The consulate should be the first point of contact for Americans needing assistance who are present or residing in the Indonesian provinces of: East Java, Nusa Tenggara Timor, Nusa Tenggara Barat, all of Sulawesi and North and South Maluku.

There is a Consular Agency in Bali at Jalan Hayam Wuruk 188, Denpasar, Bali; telephone: (62)(361) 233-605; fax (62)(361) 222-426; e-mail: [email protected] The U.S. Consulate in Surabaya is an alternate contact for American citizens in Bali.

The U.S. Consulate in Medan, North Sumatra, only provides emergency assistance to U.S. citizens and does not yet have public consular hours. Americans citizens needing consular assistance in Sumatra should contact the U.S. Embassy in Jakarta.

International Parental Child Abduction

February 2008

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Parental Child Abduction section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is provided for general information only. Questions involving interpretation of specific foreign laws should be addressed to foreign legal counsel.

General Information: Indonesia is not a party to the Hague Convention on the Civil Aspects of International Child Abduction, nor are there any international or bilateral treaties in force between Indonesia and the United States dealing with international parental child abduction. Therefore, there is no treaty remedy by which the left-behind parent would be able to pursue recovery of the child or children should they be abducted or wrongfully retained in Indonesia. Once in Indonesia, the child or children would be completely subject to Indonesian law for all matters including custody. The United States is not a party to any treaty or convention on the enforcement of court orders. A custody decree issued by a court in the U.S. has no binding legal force abroad, although it may have a persuasive force in some countries. Furthermore, a U.S. custody decree may be considered by foreign courts and authorities as evidence and, in some cases, foreign courts may voluntarily recognize and enforce it on the basis of comity (the voluntary recognition by courts of one jurisdiction of the laws and judicial decisions of another). Custody Disputes: Parental child abduction is not a crime under Indonesian law. Custody disputes are considered civil legal matters that must be resolved between the concerned parties or through the courts in Indonesia. The district/religious courts will hear and process child custody cases only as part of a divorce petition. Family issues and custody disputes are adjudicated based on Indonesian's Civil Code (“Kitab Undang-undang Hukum Perdata”).

In order to bring a case/petition before the local court, the left-behind parent will require the assistance of an attorney licensed to practice in Indonesia. The court will also consider a child's relationship with each of the disputing parties and will evaluate each parent's ability to provide education and general living conditions and welfare for the child or children. Domestic law does not provide visitation rights to the non-custodian parent unless the parent(s) ask the court to incorporate visitation orders before the final divorce decree is issued.

The district and religious courts have jurisdiction on civil law cases, including child custody disputes. For Muslims, Islamic (Sharia) law can apply in family and religious matters. Questions on specific Islamic laws as they pertain to custody rights should be addressed to a lawyer licensed to practice in Indonesia. Additional general information on Islamic Family Law is also available on the Internet online at http://travel.state.gov/family/family_1732.html.

For more information, please read the International Parental Child Abduction section of this book and review current reports online at http://travel.state.gov/family.

Deportation: There is no extradition treaty between the United States and Indonesia. However, if the taking parent is a U.S. citizen whose U.S. passport has been revoked due to an outstanding federal Unlawful Flight to avoid Prosecution (UFAP) warrant or indictment on charges of International Parental Kidnapping (IPKCA) in violation of 18 USC Section 1204, Indonesian authorities may consider deportation based on lack of a valid travel document. Exit permits are required for foreigners who stay in Indonesia for more than six months. Exit/re-entry permits are given to foreigners who are holding “KITAS” (temporary stay permit).

Dual Nationality: A child with a parent who was born outside of the U.S. or who has acquired a second nationality through naturalization in another country may have a claim to citizenship in that country. There is no requirement that a U.S. citizen parent consent to the acquisition by his/her child of another nationality and in many cases a parent is unaware that his/her child may have dual citizenship. The Embassy of Indonesia in Washington D.C. will be able to provide more detailed information on whether your child has a claim.

Initiating Foreign Enforcement Proceedings Under Local Law: If a country is not a signatory to the Hague Convention on the Civil Aspects of International Child Abduction, it may be necessary for you to initiate a child custody action in the courts in the foreign country. This usually will require retaining the services of an attorney abroad. The Department of State, Office of Children's Issues is not a repository for foreign laws. However, selected information may be available concerning general procedures on child custody in particular countries. Contact the Office of Children's Issues to see if such information is available.

Retaining A Foreign Attorney: A list of English-speaking attorneys is available from the U.S. State Department, Office of American Citizens Services. See also the Martindale Hubbell Law Directory available in law libraries. It may be helpful to provide your foreign attorney with copies of any state laws concerning child custody orders and their enforcement in the U.S.

Criminal Remedies: The Department of State is not a law enforcement agency. The Department of Justice, Office of International Affairs works with U.S. prosecuting attorneys, the Federal Bureau of Investigation and with Interpol (an international police agency) in a joint cooperative effort to return persons charged with U.S. crimes from foreign countries. Extradition of the abducting adult may not result in the return of the child. Foreign countries may refuse to extradite a person to the United States if that person is also a citizen of the foreign country. Foreign countries may not recognize parental abduction as a crime. Please note that the extradition process applies only to the abducting adult/fugitive and not the child. The proper channel for the return of the child is through civil mechanisms or voluntary return arrangements. Additional information is also available on the Internet at the web site of the U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention (OJJDP) at http://www.ojjdp.ncjrs.org.

For further information on international parental child abduction, contact the Office of Children's Issues, U.S. Department of State at 1-888-407-4747 or visit its web site on the Internet at http://travel.state.gov/family. You may also direct inquiries to: Office of Children's Issues, U.S. Department of State, Washington, DC 20520-4811; Phone: (202) 736-9090; Fax: (202) 312-9743.

International Adoption

March 2007

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Important Notes: Indonesian Government stipulates that an adoptive child must be of the same religion as the adoptive parents. Where the religion of the child's birth parents is not known, the child will be deemed to be Muslim.

There have been a number of instances in which Americans have been poorly advised (by legal practitioners) and have entered into fostering/adoption arrangements which, even though endorsed by local Indonesian courts, do not meet the requirements of Indonesian adoption law. Adoptions that do not meet these requirements will not meet the requirements for the issuance of U.S. immigrant visas for the children. Americans intending to adopt a child in Indonesia should not attempt to circumvent the proper processes.

U.S. citizens are strongly encouraged to contact U.S. consular officials in Jakarta, Indonesia, before formalizing an adoption agreement to ensure that appropriate procedures have been followed which will make it possible for the Embassy to issue a U.S. immigrant visa for the child.

Patterns of Immigration: Please review current reports online at http://travel.state.gov/family.

Adoption Authority: The Ministry of Social Affairs of the Republic of Indonesia, Directorate of Child Social Service Development is the agency designated by the Indonesian government to manage the administration of Indonesian adoption law and regulations. This office may be reached in writing or by phone at:

Jalan Salemba Raya No. 28
Jakarta Pusat, Indonesia
Telephone: 62-21-310-0375

In addition, American prospective adoptive parents considering adopting an Indonesian child should contact Yayasan Sayap Ibu (the Sayap Ibu Foundation). This organization has been designated by the Ministry of Social Affairs to handle adoptions by foreigners. In areas of Indonesia where Yayasan Sayap Ibu is not represented, the first point of contact should be the Ministry itself. The Yayasan Sayap Ibu office in Jakarta is located at:

Yayasan Sayap Ibu
Jalan Barito II # 55
Telephone: 62-21-722-1763

Eligibility Requirements for Adoptive Parents: The Indonesian government has imposed the following criteria on prospective adoptive parents:

  • Couples must be between 30 and 45 years of age;
  • Married for a minimum of 5 years;
  • Resident in Indonesia for at least 2 years with a permit issued by the local authorities (Rukun Tetangga, Rukun Warga, Kelurahan, Kecamatan), and a letter from the Embassy in Jakarta (a statement of Domicile);
  • Couples can be either childless, have one of their own children or have previously adopted an Indonesian child. If the prospective adoptive mother has had birth children in the past, she must no longer be capable of bearing children;
  • Believe in God;
  • Both parents must appear at the Court hearing;
  • The adoptive child must be less than 5 years old;
  • The adoptive child must be in the care of a registered and authorized social welfare organization.

Recent legislation also stipulates that an adoptive child must be of the same religion as the adoptive parents. Where the religion of the child's birth parents is not known, the child will be deemed to be Muslim.

Residency Requirements: Foreign national prospective adoptive parents must be resident in Indonesia and must have been working and living in Indonesia for at least two years prior to the application to adopt. Past experience has shown that if one foreign national parent is resident in Indonesia before the other, he or she may initiate the process as long as s/he has already been resident in Indonesia for at least two years.

In cases where one prospective adoptive parent is a foreign national and the other is an Indonesian citizen, the residency requirement has not applied as long as the Indonesian national has resided in Indonesia to see the adoption process through completion. Such cases, however, are necessarily more complicated, and different courts may interpret the law differently.

Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

Time Frame: Adoption procedures can take from 12 to 18 months.

Adoption Agencies and Attorneys: The U.S. Embassy in Jakarta is not aware of any legally recognized Indonesian agencies who can assist adoptive parents. Foreigners may seek private legal assistance to facilitate the process of adoption and seek advice and information from certain orphanages.

Adoption Fees: The legal fees paid to the Indonesian authorities for adoption are approximately US$ 400. However, some adoptive parents have indicated that the cost can run up to $600 or more total.

Adoption Procedures: This is a guide to local procedures for adoption of Indonesian children by American citizens. For further information, Americans wishing to adopt a child in Indonesia should contact Yayasan Sayap Ibu.

There are several required documents that must be completed by the adoptive parents. When all the required paperwork is completed, applications for adoption are directed through Yayasan Sayap Ibu or another designated social organization to the Department of Social Affairs, which usually grants permission for the child to be released into the prospective adoptive parents’ foster care. The adoptive parent must complete a minimum period of six months of foster parenting the child before commencing the court process to finalize the adoption. Monitoring by an Indonesian social worker appointed by the Department of Social Affairs (DEPSOS) is a part of this fostering process.

After the adoptive parents have completed the requisite six months of foster parenting, fulfilled the two-year residency requirement, and have delivered all the necessary paper-work to the Sayap Ibu Orphanage, a court date will be set. The court hearing will officially establish the foster parents as the child's adoptive parents.

Americans intending to adopt a child in Indonesia should not attempt to circumvent the proper processes. In order to obtain a valid court order, all adoptions must be vetted by an Inter-Departmental Committee (Tim Pertimbangan Perizinan Pangangkatan Anak Antara Warganegara Indonesia dan Warganegara Asing) that authorizes foreign adoptions. The final court decision must refer to the approval decision made by this committee.

Approximately two weeks after the court hearing approving the adoption, the adoptive parents will receive the official court adoption document. With the court document in hand, the parents can apply for the child's Indonesian passport. The child will not be able to depart Indonesia or be issued a U.S. visa until he/she has a passport.

Required Documents:

  • Letter of no objection to the adoption from the American Embassy (issued by the Consular Section);
  • Marriage Certificate (authenticated by the Indonesian Embassy/ Consulate in the country of issuance);
  • Birth Certificates of both parents (authenticated by the Indonesian Embassy/Consulate in the country of issuance);
  • Birth Certificates of previous children (authenticated by the Indonesian Embassy/Consulate in the country of issuance);
  • Reference letters from the parents or close relatives of both prospective adoptive parents stating that they approve of the prospective parents’ desire to adopt an Indonesian child;
  • Health statement for the husband and wife by a medical practitioner at an Indonesian government hospital. Statement from an Indonesian government hospital gynecologist regarding involuntary childlessness (i.e. the mother is infertile or can no longer have any more children even if she has had children previously);
  • Income statement;
  • Good conduct certificates from the Indonesian police for both husband and wife;
  • Family photos and photos of the home and surroundings;
  • Three photos each (3cm x 4cm) of husband and wife;
  • Statement from the adoptive parents that they will report the condition of the adopted child to the Indonesian Embassy or Consulate in future areas of residence;
  • Statement of motivation for adopting an Indonesian child (with U.S. Embassy seal);
  • Separate statements of domicile issued by the U.S. Embassy in Jakarta and from the local authorities (Rukun Tangga/ Rukun Warga / Kelurahan / Keca-matan);
  • Photocopy of Work or Residence Permits;
  • Photocopy of passports;
  • A letter from the U.S. Embassy in Jakarta stating that the child will be allowed to enter the United States after the adoption is granted, and that under U.S. adoption legislation an adopted child becomes a child of the adopters as if he/she had been born to them in marriage.

Note: All documents must be translated into Indonesian (Bahasa Indonesia) by a translator that has registered their signature with the Embassy so that translations may be certified with greater ease. Prospective adoptive parents may obtain the list of sworn translators from the U.S. Embassy in Jakarta.

Embassy of Indonesia
2020 Massachusetts Ave. N.W.
Washington, D.C. 20036
Phone: 202-775-5200
Fax: 202-775-5365 Indonesia also has consulates in Chicago, Honolulu, Houston, Los Angeles, New York and San Francisco.

U.S. Immigration Requirements: Prospective adoptive parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

U.S. Embassy Jakarta
Jalan Medan Merdeka Selatan #4-5
Jakarta—10110
Phone: 62-21-3435-9000
Fax: 62-21-385-7189

U.S. Consulate Surabaya
Jalan Dr. Sutomo No. 33
Surabaya
Phone: 62-31-295-6400
Fax: 62-31-567-4492

Consulate Agency Bali
Jl. Hayam Wuruk 188
Denpasar
Phone: 62-361-233-605
Fax: 62-361-222-426

Additional Information: Specific questions about adoption in Indonesia may be addressed to the U.S. Embassy in Jakarta. General questions regarding intercountry adoption may be addressed to the Office of Children's Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-404-4747.

Travel Warning

October 5, 2007

This Travel Warning updates information concerning the security situation in Indonesia and urges American citizens to evaluate carefully the risks of travel to that country. This Travel Warning supersedes the January 9, 2007.

Due to the possibility of terrorist attacks directed against American or other Western citizens and interests, the Department of State urges American citizens to evaluate carefully the risks of travel to Indonesia. The October 1, 2005, terrorist attacks in Bali, in which suicide bombers killed 20 people and injured more than 100, are a reminder that terrorists remain active in Indonesia. Similarly, during the three prior years, there were three significant terrorist attacks in Indonesia, two in Jakarta and one in Bali. During 2007, the Indonesian police and security forces disrupted a number of cells linked with Jemaah Islamiyah, a U.S. Department of State-designated foreign terrorist organization. The existence of additional cells intending to carry out future attacks in Bali, Jakarta, or other areas of Indonesia cannot be ruled out.

Terrorist attacks in Indonesia could occur at any time and could be directed against any location, including those frequented by foreigners, as well as identifiably American or other Western facilities or businesses in Indonesia. Such targets could include but are not limited to places where Americans and other Westerners live, congregate, work, study, shop, or visit, including hotels, clubs, restaurants, shopping centers, identifiably Western businesses, housing compounds, transportation systems, places of worship, schools, or public recreation events. While past terrorist attacks have involved the use of vehicle-borne explosives or suicide bombers carrying explosives in back-packs, terrorists may use other forms of attack in the future. Terrorists may target individual American citizen residents, visitors, students, or tourists, and tactics could include but are not limited to kidnapping, shooting, or poisoning.

The Department of State urges Americans in Indonesia to avoid crowds, maintain a low profile, and be vigilant about security at all times. Americans are advised to monitor local news broadcasts, vary their routes and times in carrying out daily activities, and consider the level of preventive security when visiting public places in Indonesia. Americans who choose to vacation in Indonesia despite the security risks are advised to consider the level of preventive security when choosing hotels, restaurants, beaches, entertainment venues, and recreation sites.

The U.S. Mission in Indonesia restricts U.S. Government employees’ travel to certain areas of the country and, at times, denies them permission to travel to specific locations. Employee travel to the provinces of Papua, Central Sulawesi, and Maluku requires the concurrence of the Embassy's Regional Security Officer. Americans seeking the latest travel restriction information may contact a consular office. The U.S. Mission can occasionally suspend service to the public, or close, because of security concerns; in these situations, it will continue to provide emergency services to American citizens.

Americans who choose to travel to Indonesia despite this Travel Warning should obtain up-to-date health information before departing the United States. The websites of the U.S. Centers for Disease Control at www.cdc.gov/travel and the World Health Organization at www.who.int have current information on out-breaks of contagious and tropical diseases. Americans considering travel to Indonesia should read the Department of State's Fact Sheet on Avian Influenza dated July 2006 and should consult with their personal physicians concerning Avian Flu.

Americans living and traveling in Indonesia are urged to register and update their contact information with U.S. Embassy Jakarta, U.S. Consulate General Surabaya, or the U.S. Consular Agent in Bali. Registration facilitates the U.S. Mission's contact with Americans in emergency situations and may be done on line and in advance of travel. Information on registering can be found at the Department of State's Consular Affairs website: travelregistration.state.gov. Registration information and recent warden messages are also available on the U.S. Embassy Jakarta website at jakarta.usembassy.gov.

Americans can obtain information on travel and security in Indonesia from the Department of State by calling 1-888-407-4747 within the United States and Canada; or 1-202-501-4444 from outside the United States and Canada. Americans also can call the Embassy in Jakarta at (62)(21) 3435-9000, the Consulate General in Surabaya at (62)(31) 295-6400, and the Consular Agent in Bali at (62)(361) 233-605. American citizens should read the Department of State's Country Specific Information for Indonesia, the latest Worldwide Caution Travel Alert, and Fact Sheet on Avian Influenza, all available at http://travel.state.gov.

views updated

Indonesia

Culture Name

Indonesian

Orientation

Identification. The Republic of Indonesia, the world's fourth most populous nation, has 203 million people living on nearly one thousand permanently settled islands. Some two-to-three hundred ethnic groups with their own languages and dialects range in population from the Javanese (about 70 million) and Sundanese (about 30 million) on Java, to peoples numbering in the thousands on remote islands. The nature of Indonesian national culture is somewhat analogous to that of Indiamulticultural, rooted in older societies and interethnic relations, and developed in twentieth century nationalist struggles against a European imperialism that nonetheless forged that nation and many of its institutions. The national culture is most easily observed in cities but aspects of it now reach into the countryside as well. Indonesia's borders are those of the Netherlands East Indies, which was fully formed at the beginning of the twentieth century, though Dutch imperialism began early in the seventeenth century. Indonesian culture has historical roots, institutions, customs, values, and beliefs that many of its people share, but it is also a work in progress that is undergoing particular stresses at the beginning of the twenty-first century.

The name Indonesia, meaning Indian Islands, was coined by an Englishman, J. R. Logan, in Malaya in 1850. Derived from the Greek, Indos (India) and nesos (island), it has parallels in Melanesia, "black islands"; Micronesia, "small islands"; and Polynesia, "many islands." A German geographer, Adolf Bastian, used it in the title of his book, Indonesien, in 1884, and in 1928 nationalists adopted it as the name of their hoped-for nation.

Most islands are multiethnic, with large and small groups forming geographical enclaves. Towns within such enclaves include the dominant ethnic group and some members of immigrant groups. Large cities may consist of many ethnic groups; some cities have a dominant majority. Regions, such as West Sumatra or South Sulawesi, have developed over centuries through the interaction of geography (such as rivers, ports, plains, and mountains), historical interaction of peoples, and political-administrative policies. Some, such as North Sumatra, South Sulawesi, and East Java are ethnically mixed to varying degrees; others such as West Sumatra, Bali, and Aceh are more homogeneous. Some regions, such as South Sumatra, South Kalimantan, and South Sulawesi, share a long-term Malayo-Muslim coastal influence that gives them similar cultural features, from arts and dress to political and class stratification to religion. Upland or upriver peoples in these regions have different social, cultural, and religious orientations, but may feel themselves or be perforce a part of that region. Many such regions have become government provinces, as are the latter three above. Others, such as Bali, have not.

Location and Geography. Indonesia, the world's largest archipelago nation, is located astride the equator in the humid tropics and extends some 2,300 miles (3,700 kilometers) east-west, about the same as the contiguous United States. It is surrounded by oceans, seas, and straits except where it shares an island border with East Malaysia and Brunei on Borneo (Kalimantan); with Papua New Guinea on New Guinea; and with Timor Loro Sae on Timor. West Malaysia lies across the Straits of Malaka, the Philippines lies to the northeast, and Australia lies to the south.

The archipelago's location has played a profound role in economic, political, cultural, and religious developments there. For more than two thousand years, trading ships sailed between the great civilizations of India and China via the waters and islands of the Indies. The islands also supplied spices and forest products to that trade. The alternating east and west monsoon winds made the Indies a layover point for traders and others from diverse nations who brought their languages, ideas about political order, and their arts and religions. Small and then large kingdoms grew as a result of, and as part of, that great trade. Steamships altered some trade patterns, but the region's strategic location between East and South Asia and the Middle East remains.

Indonesia consists of all or part of some of the world's largest islandsSumatra, Java, most of Kalimantan (Borneo), Sulawesi (Celebes), Halmahera, and the west half of New Guinea (Papua)and numerous smaller islands, of which Bali (just east of Java) is best known. These islands plus some others have mountain peaks of 9,000 feet (2,700 meters) or more, and there are some four hundred volcanos, of which one hundred are active. Between 1973 and 1990, for example, there were twenty-nine recorded eruptions, some with tragic consequences. Volcanic lava and ash contributed to the rich soils of upland Sumatra and all of Java and Bali, which have nurtured rice cultivation for several thousand years.

The inner islands of Java, Madura, and Bali make up the geographical and population center of the archipelago. Java, one of the world's most densely settled places (with 2,108 people per square mile [814 per square kilometer] in 1990), occupies 78 percent of the nation's land area but accounts for about 60 percent of Indonesia's population. (About the size of New York state, Java's population is equivalent to 40 percent of that of the United States.) The outer islands, which form an arc west, north, and east of the inner ones, have about 90 percent of the land area of the country but only about 42 percent of the population. The cultures of the inner islands are more homogeneous, with only four major cultural groups: the Sundanese (in West Java), the Javanese (in Central and East Java), the Madurese (on Madura and in East Java), and the Balinese (on Bali). The outer islands have hundreds of ethnolinguistic groups.

Forests of the inner islands, once plentiful, are now largely gone. Kalimantan, West Papua, and Sumatra still have rich jungles, though these are threatened by population expansion and exploitation by loggers for domestic timber use and export. Land beneath the jungles is not fertile. Some eastern islands, such as Sulawesi and the Lesser Sundas (the island chain east of Bali), also have lost forests.

Two types of agriculture are predominant in Indonesia: permanent irrigated rice farming (sawah ) and rotating swidden or slash-and-burn (ladang ) farming of rice, corn, and other crops. The former dominates Java, Bali, and the highlands all along the western coast of Sumatra; the latter is found in other parts of Sumatra and other outer islands, but not exclusively so. Fixed rain-fed fields of rice are prominent in Sulawesi and some other places. Many areas are rich in vegetables, tropical fruit, sago, and other cultivated or forest crops, and commercial plantations of coffee, tea, tobacco, coconuts, and sugar are found in both inner and outer islands. Plantation-grown products such as rubber, palm oil, and sisal are prominent in Sumatra, while coffee, sugar, and tea are prominent in Java. Spices such as cloves, nutmeg, and pepper are grown mainly in the outer islands, especially to the east. Maluku (formerly the Moluccas) gained its appellation the "Spice Islands" from the importance of trade in these items. Gold, tin, and nickel are mined in Sumatra, Bangka, Kalimantan, Sulawesi, and Papua for domestic and international markets, and oil and liquified natural gas (especially from Sumatra) are important exports. Numerous rivers flowing from mountainous or jungle interiors to coastal plains and ports have carried farm and forest products for centuries and have been channels for cultural communication.

Demography. Indonesia's population increased from 119,208,000 in 1971 to 147,500,000 in 1980, to 179,300,000 in 1990, and to 203,456,000 in 2000. In the meantime the fertility rate declined from 4.6 per thousand women to 3.3; the crude death rate fell at a rate of 2.3 percent per year; and infant mortality declined from 90.3 per thousand live births to 58. The fertility rate was projected to fall to 2.1 percent within another decade, but the total population was predicted to reach 253,700,000 by 2020. As of the middle of the twentieth century, Indonesia's population was largely rural, but at the beginning of the twenty-first century, about 20 percent live in towns and cities and three of five people farm.

Cities in both inner and outer islands have grown rapidly, and there are now twenty-six cities with populations over 200,000. As in many developing countries, Indonesia's population is still a young one. The above patterns are national, but there are ethnic and regional variations. Population has grown at different rates in different areas owing to such factors as economic conditions and standard of living, nutrition, availability and effectiveness of public health and family planning programs, and cultural values and practices.

Migration also plays a part in population fluctuations. Increased permanent or seasonal migration to cities accompanied economic development during the 1980s and 1990s, but there is also significant migration between rural areas as people leave places such as South Sulawesi for more productive work or farm opportunities in Central Sumatra or East Kalimantan.

Linguistic Affiliation. Nearly all of Indonesia's three hundred to four hundred languages are subgroups of the Austronesian family that extends from Malaysia through the Philippines, north to several hill peoples of Vietnam and Taiwan, and to Polynesia, including Hawaiian and Maori (of New Zealand) peoples. Indonesia's languages are not mutually intelligible, though some subgroups are more similar than others (as Europe's Romance languages are closer to each other than to Germanic ones, though both are of the Indo-European family). Some language subgroups have sub-subgroups, also not mutually intelligible, and many have local dialects. Two languagesone in north Halmahera, one in West Timorare non-Austronesian and, like Basque in Europe, are not related to other known languages. Also, the very numerous languages of Papua are non-Austronesian.

Most people's first language is a local one. In 1923, however, the Malay language (now known as Bahasa Malaysia in Malaysia where it is the official language) was adopted as the national language at a congress of Indonesian nationalists, though only a small minority living in Sumatra along the Straits of Malaka spoke it as their native language. Nevertheless, it made sense for two reasons.

First, Malay had long been a commercial and governmental lingua franca that bound diverse peoples. Ethnically diverse traders and local peoples used Malay in ports and hinterlands in its grammatically simplified form known as "market Malay." Colonial governments in British Malaya and the Netherlands Indies used high Malay in official documents and negotiations and Christian missionaries first translated the Bible into that language.

Second, nationalists from various parts of the archipelago saw the value of a national language not associated with the largest group, the Javanese. Bahasa Indonesia is now the language of government, schools, courts, print and electronic media, literary arts and movies, and interethnic communication. It is increasingly important for young people, and has a youth slang. In homes, a native language of the family is often spoken, with Indonesian used outside the home in multiethnic areas. (In more monolingual areas of Java, Javanese also serves outside the home.) Native languages are not used for instruction beyond the third grade in some rural areas. Native language literatures are no longer found as they were in colonial times. Many people lament the weakening of native languages, which are rich links to indigenous cultures, and fear their loss to modernization, but little is done to maintain them. The old and small generation of well-educated Indonesians who spoke Dutch is passing away. Dutch is not known by most young and middle-aged people, including students and teachers of history who cannot read much of the documentary history of the archipelago. English is the official second language taught in schools and universities with varying degrees of success.

Symbolism. The national motto, Bhinneka Tunggal Ika, is an old Javanese expression usually translated as "unity in diversity." The nation's official ideology, first formulated by President Sukarno in 1945, is the Pancasila, or Five Principles: belief in one supreme God; just and civilized humanitarianism; Indonesian unity; popular sovereignty governed by wise policies arrived at through deliberation and representation; and social justice for all Indonesian people. Indonesia was defined from the beginning as the inheritor of the Netherlands East Indies. Though West Papua remained under the Dutch until 1962, Indonesia conducted a successful international campaign to secure it. Indonesia's occupation of the former Portuguese East Timor in 1975, never recognized by the United Nations, conflicted with this founding notion of the nation. After two decades of bitter struggle there, Indonesia withdrew.

Since 1950 the national anthem and other songs have been sung by children throughout the country to begin the school day; by civil servants at flag-raising ceremonies; over the radio to begin and close broadcasting; in cinemas and on television; and at national day celebrations. Radio and television, government owned and controlled for much of the second half of the twentieth century, produced nationalizing programs as diverse as Indonesian language lessons, regional and ethnic dances and songs, and plays on national themes. Officially recognized "national heroes" from diverse regions are honored in school texts, and biographies and with statues for their struggles against the Dutch; some regions monumentalize local heros of their own.

History and Ethnic Relations

Emergence of the Nation. Though the Republic of Indonesia is only fifty years old, Indonesian societies have a long history during which local and wider cultures were formed.

About 200 c.e., small states that were deeply influenced by Indian civilization began to develop in Southeast Asia, primarily at estuaries of major rivers. The next five hundred to one thousand years saw great states arise with magnificent architecture. Hinduism and Buddhism, writing systems, notions of divine kingship, and legal systems from India were adapted to local scenes. Sanskrit terms entered many of the languages of Indonesia. Hinduism influenced cultures throughout Southeast Asia, but only one people are Hindu, the Balinese.

Indianized states declined about 1400 c.e. with the arrival of Muslim traders and teachers from India, Yemen, and Persia, and then Europeans from Portugal, Spain, Holland, and Britain. All came to join the great trade with India and China. Over the next two centuries local princedoms traded, allied, and fought with Europeans, and the Dutch East India Company became a small state engaging in local battles and alliances to secure trade. The Dutch East India Company was powerful until 1799 when the company went bankrupt. In the nineteenth century the Dutch formed the Netherlands Indies government, which developed alliances with rulers in the archipelago. Only at the beginning of the twentieth century did the Netherlands Indies government extend its authority by military means to all of present Indonesia.

Sporadic nineteenth century revolts against Dutch practices occurred mainly in Java, but it was in the early twentieth century that Indonesian intellectual and religious leaders began to seek national independence. In 1942 the Japanese occupied the Indies, defeating the colonial army and imprisoning the Dutch under harsh conditions.

On 17 August 1945, following Japan's defeat in World War II, Indonesian nationalists led by Sukarno and Mohammad Hatta declared Indonesian independence. The Dutch did not accept and for five years fought the new republic, mainly in Java. Indonesian independence was established in 1950.

National Identity. Indonesia's size and ethnic diversity has made national identity problematic and debated. Identity is defined at many levels: by Indonesian citizenship; by recognition of the flag, national anthem, and certain other songs; by recognition of national holidays; and by education about Indonesia's history and the Five Principles on which the nation is based. Much of this is instilled through the schools and the media, both of which have been closely regulated by the government during most of the years of independence. The nation's history has been focused upon resistance to colonialism and communism by national heroes and leaders who are enshrined in street names. Glories of past civilizations are recognized, though archaeological remains are mainly of Javanese principalities.

Ethnic Relations. Ethnic relations in the archipelago have long been a concern. Indonesian leaders recognized the possibility of ethnic and regional separatism from the beginning of the republic. War was waged by the central government against separatism in Aceh, other parts of Sumatra, and Sulawesi in the 1950s and early 1960s, and the nation was held together by military force.

The relationships between native Indonesians and overseas Chinese have been greatly influenced by Dutch and Indonesian government policies. The Chinese number about four to six million, or 3 percent of the population, but are said to control as much as 60 percent of the nation's wealth. The Chinese traded and resided in the islands for centuries, but in the nineteenth century the Dutch brought in many more of them to work on plantations or in mines. The Dutch also established a social, economic, and legal stratification system that separated Europeans, foreign Asiatics and Indo-Europeans, and Native Indonesians, partly to protect native Indonesians so that their land could not be lost to outsiders. The Chinese had little incentive to assimilate to local societies, which in turn had no interest in accepting them.

Even naturalized Chinese citizens faced restrictive regulations, despite cozy business relationships between Chinese leaders and Indonesian officers and bureaucrats. Periodic violence directed toward Chinese persons and property also occurred. In the colonial social system, mixed marriages between Chinese men and indigenous women produced half-castes (peranakan ), who had their own organizations, dress, and art forms, and even newspapers. The same was true for people of mixed Indonesian-European descent (called Indos, for short).

Ethnolinguistic groups reside mainly in defined areas where most people share much of the same culture and language, especially in rural areas. Exceptions are found along borders between groups, in places where other groups have moved in voluntarily or as part of transmigration programs, and in cities. Such areas are few in Java, for example, but more common in parts of Sumatra.

Religious and ethnic differences may be related. Indonesia has the largest Muslim population of any country in the world, and many ethnic groups are exclusively Muslim. Dutch policy allowed proselytization by Protestants and Catholics among separate groups who followed traditional religions; thus today many ethnic groups are exclusively Protestant or Roman Catholic. They are heavily represented among upriver or upland peoples in North Sumatra, Kalimantan, Sulawesi, Maluku, and the eastern Lesser Sundas, though many Christians are also found in Java and among the Chinese. Tensions arise when groups of one religion migrate to a place with a different established religion. Political and economic power becomes linked to both ethnicity and religion as groups favor their own kinsmen and ethnic mates for jobs and other benefits.

Urbanism, Architecture, and the Use of Space

Javanese princes long used monuments and architecture to magnify their glory, provide a physical focus for their earthly kingdoms, and link themselves to the supernatural. In the seventeenth through nineteenth centuries the Dutch reinforced the position of indigenous princes through whom they ruled by building them stately palaces. Palace architecture over time combined Hindu, Muslim, indigenous, and European elements and symbols in varying degrees depending upon the local situation, which can still be seen in palaces at Yogyakarta and Surakarta in Java or in Medan, North Sumatra.

Dutch colonial architecture combined Roman imperial elements with adaptations to tropical weather and indigenous architecture. The Dutch fort and early buildings of Jakarta have been restored. Under President Sukarno a series of statues were built around Jakarta, mainly glorifying the people; later, the National Monument, the Liberation of West Irian (Papua) Monument, and the great Istiqlal Mosque were erected to express the link to a Hindu past, the culmination of Indonesia's independence, and the place of Islam in the nation. Statues to national heroes are found in regional cities.

Residential architecture for different urban socioeconomic groups was built on models developed by the colonial government and used throughout the Indies. It combined Dutch elements (highpitched tile roofs) with porches, open kitchens, and servants quarters suited to the climate and social system. Wood predominated in early urban architecture, but stone became dominant by the twentieth century. Older residential areas in Jakarta, such as Menteng near Hotel Indonesia, reflect urban architecture that developed in the 1920s and 1930s. After 1950, new residential areas continued to develop to the south of the city, many with elaborate homes and shopping centers.

The majority of people in many cities live in small stone and wood or bamboo homes in crowded urban villages or compounds with poor access to clean water and adequate waste disposal. Houses are often tightly squeezed together, particularly in Java's large cities. Cities that have less pressure from rural migrants, such as Padang in West Sumatra and Manado in North Sulawesi, have been able to better manage their growth.

Traditional houses, which are built in a single style according to customary canons of particular ethnic groups, have been markers of ethnicity. Such houses exist in varying degrees of purity in rural areas, and some aspects of them are used in such urban architecture as government buildings, banks, markets and homes.

Traditional houses in many rural villages are declining in numbers. The Dutch and Indonesian governments encouraged people to build "modern" houses, rectangular structures with windows. In some rural areas, however, such as West Sumatra, restored or new traditional houses are built by successful urban migrants to display their success. In other rural areas people display status by building modern houses of stone and tile, with precious glass windows. In the cities, old colonial homes are renovated by prosperous owners who put newer contemporary-style fronts on the houses. The roman columns favored in Dutch public buildings are now popular for private homes.

Food and Economy

Food in Daily Life. Indonesian cuisine reflects regional, ethnic, Chinese, Middle Eastern, Indian, and Western influences, and daily food quality, quantity, and diversity vary greatly by socioeconomic class, season, and ecological conditions. Rice is a staple element in most regional cooking and the center of general Indonesian cuisine. (Government employees receive monthly rice rations in addition to salaries.) Side dishes of meat, fish, eggs, and vegetables and a variety of condiments and sauces using chili peppers and other spices accompany rice. The cuisine of Java and Bali has the greatest variety, while that of the Batak has much less, even in affluent homes, and is marked by more rice and fewer side dishes. And rice is not the staple everywhere: in Maluku and parts of Sulawesi it is sago, and in West Timor it is maize (corn), with rice consumed only for ceremonial occasions. Among the Rotinese, palm sugar is fundamental to the diet.

Indonesia is an island nation, but fish plays a relatively small part in the diets of the many people who live in the mountainous interiors, though improved transportation makes more salted fish available to them. Refrigeration is still rare, daily markets predominate, and the availability of food may depend primarily upon local produce. Indonesia is rich in tropical fruit, but many areas have few fruit trees and little capacity for timely transportation of fruit. Cities provide the greatest variety of food and types of markets, including modern supermarkets; rural areas much less so. In cities, prosperous people have access to great variety while the poor have very limited diets, with rice predominant and meat uncommon. Some poor rural regions experience what people call "ordinary hunger" each year before the corn and rice harvest.

Food Customs at Ceremonial Occasions. The most striking ceremonial occasion is the Muslim month of fasting, Ramadan. Even less-observant Muslims fast seriously from sunup to sundown despite the tropical heat. Each night during Ramadan, fine celebratory meals are held. The month ends with Idul Fitri, a national holiday when family, friends, neighbors, and work associates visit each other's homes to share food treats (including visits by non-Muslims to Muslim homes).

In traditional ritual, special food is served to the spirits or the deceased and eaten by the participants. The ubiquitous Javanese ritual, selamatan, is marked by a meal between the celebrants and is held at all sorts of events, from life-cycle rituals to the blessing of new things entering a village. Life-cycle events, particularly marriages and funerals, are the main occasions for ceremonies in both rural and urban areas, and each has religious and secular aspects. Elaborate food service and symbolism are features of such events, but the content varies greatly in different ethnic groups. Among the Meto of Timor, for example, such events must have meat and rice (sisi-maka' ), with men cooking the former and women the latter. Elaborate funerals involve drinking a mixture of pork fat and blood that is not part of the daily diet and that may be unappetizing to many participants who nonetheless follow tradition. At such events, Muslim guests are fed at separate kitchens and tables.

In most parts of Indonesia the ability to serve an elaborate meal to many guests is a mark of hospitality, capability, resources, and status of family or clan whether for a highland Toraja buffalo sacrifice at a funeral or for a Javanese marriage reception in a five-star hotel in Jakarta. Among some peoples, such as the Batak and Toraja, portions of animals slaughtered for such events are important gifts for those who attend, and the part of the animal that is selected symbolically marks the status of the recipient.

Basic Economy. About 60 percent of the population are farmers who produce subsistence and market-oriented crops such as rice, vegetables, fruit, tea, coffee, sugar, and spices. Large plantations are devoted to oil palm, rubber, sugar, and sisel for domestic use and export, though in some areas rubber trees are owned and tapped by farmers. Common farm animals are cattle, water buffalo, horses, chickens, and, in non-Muslim areas, pigs. Both freshwater and ocean fishing are important to village and national economies. Timber and processed wood, especially in Kalimantan and Sumatra, are important for both domestic consumption and export, while oil, natural gas, tin, copper, aluminum, and gold are exploited mainly for export. In colonial times, Indonesia was characterized as having a "dual economy." One part was oriented to agriculture and small crafts for domestic consumption and was largely conducted by native Indonesians; the other part was export-oriented plantation agriculture and mining (and the service industries supporting them), and was dominated by the Dutch and other Europeans and by the Chinese. Though Indonesians are now important in both aspects of the economy and the Dutch/European role is no longer so direct, many features of that dual economy remain, and along with it are continuing ethnic and social dissatisfactions that arise from it.

One important aspect of change during Suharto's "New Order" regime (19681998) was the rapid urbanization and industrial production on Java, where the production of goods for domestic use and export expanded greatly. The previous imbalance in production between Java and the Outer Islands is changing, and the island now plays an economic role in the nation more in proportion to its population. Though economic development between 1968 and 1997 aided most people, the disparity between rich and poor and between urban and rural areas widened, again particularly on Java. The severe economic downturn in the nation and the region after 1997, and the political instability with the fall of Suharto, drastically reduced foreign investment in Indonesia, and the lower and middle classes, particularly in the cities, suffered most from this recession.

Land Tenure and Property. The colonial government recognized traditional rights of indigenous peoples to land and property and established semicodified "customary law" to this end. In many areas of Indonesia longstanding rights to land are held by groups such as clans, communities, or kin groups. Individuals and families use but do not own land. Boundaries of communally held land may be fluid, and conflicts over usage are usually settled by village authorities, though some disputes may reach government officials or courts. In cities and some rural areas of Java, European law of ownership was established. Since Indonesian independence various sorts of "land reform" have been called for and have met political resistance. During Suharto's regime, powerful economic and political groups and individuals obtained land by quasi-legal means and through some force in the name of "development," but serving their monied interest in land for timber, agro-business, and animal husbandry; business locations, hotels, and resorts; and residential and factory expansion. Such land was often obtained with minimal compensation to previous owners or occupants who had little legal recourse. The same was done by government and public corporations for large-scale projects such as dams and reservoirs, industrial parks, and highways. Particularly vulnerable were remote peoples (and animals) in forested areas where timber export concessions were granted to powerful individuals.

Commercial Activities. For centuries, commerce has been conducted between the many islands and beyond the present national borders by traders for various local and foreign ethnic groups. Some indigenous peoples such as the Minangkabau, Bugis, and Makassarese are well-known traders, as are the Chinese. Bugis sailing ships, which are built entirely by hand and range in size from 30 to 150 tons (27 to 136 metric tons), still carry goods to many parts of the nation. Trade between lowlands and highlands and coasts and inland areas is handled by these and other small traders in complex market systems involving hundreds of thousands of men and women traders and various forms of transport, from human shoulders, horses, carts, and bicycles, to minivans, trucks, buses, and boats. Islam spread along such market networks, and Muslim traders are prominent in small-scale trade everywhere.

In the nineteenth and twentieth centuries the Dutch used the Chinese to link rural farms and plantations of native Indonesians to small-town markets and these to larger towns and cities where the Chinese and Dutch controlled large commercial establishments, banks, and transportation. Thus Chinese Indonesians became a major force in the economy, controlling today an estimated 60 percent of the nation's wealth though constituting only about 4 percent of its population. Since independence, this has led to suppression of Chinese ethnicity, language, education, and ceremonies by the government and to second-class citizenship for those who choose to become Indonesian nationals. Periodic outbreaks of violence against the Chinese have occurred, particularly in Java. Muslim small traders, who felt alienated in colonial times and welcomed a change with independence, have been frustrated as New Order Indonesian business, governmental, and military elites forged alliances with the Chinese in the name of "development" and to their financial benefit.

Major Industries. Indonesia's major industries involve agro-business, resource extraction and export, construction, and tourism, but a small to medium-sized industrial sector has developed since the 1970s, especially in Java. It serves domestic demand for goods (from household glassware and toothbrushes to automobiles), and produces a wide range of licensed items for multinational companies. Agro-business and resource extraction, which still supply Indonesia with much of its foreign exchange and domestic operating funds, are primarily in the outer islands, especially Sumatra (plantations, oil, gas, and mines), Kalimantan (timber), and West Papua (mining). The industrial sector has grown in Java, particularly around Jakarta and Surabaya and some smaller cities on the north coast.

Social Stratification

Classes and Castes. Aristocratic states and hierarchically-ordered chiefdoms were features of many Indonesian societies for the past millennium. Societies without such political systems existed, though most had the principle of hierarchy. Hindu states that later turned to Islam had aristocracies at the top and peasants and slaves at the bottom of society. Princes in their capitals concentrated secular and spiritual power and conducted rites for their principalities, and they warred for subjects, booty and land, and control of the sea trade. The Dutch East India Company became a warring state with its own forts, military, and navy, and it allied with and fought indigenous states. The Netherlands Indies government succeeded the company, and the Dutch ruled some areas directly and other areas indirectly via native princes. In some areas they augmented the power of indigenous princes and widened the gap between aristocrats and peasants. In Java, the Dutch augmented the pomp of princes while limiting their authority responsibility; and in other areas, such as East Sumatra, the Dutch created principalities and princely lines for their own economic and political benefit.

In general, princes ruled over areas of their own ethnic group, though some areas were multiethnic in character, particularly larger ones in Java or the port principalities in Sumatra and Kalimantan. In the latter, Malay princes ruled over areas consisting of a variety of ethnic groups. Stratified kingdoms and chiefdoms were entrenched in much of Java, the Western Lesser Sundas and parts of the Eastern Lesser Sundas, South Sulawesi, parts of Maluku, parts of Kalimantan, and the east and southeast coast of Sumatra.

Members of ruling classes gained wealth and the children of native rulers were educated in schools that brought them in contact with their peers from other parts of the archipelago.

Not all Indonesian societies were as socially stratified as that of Java. Minangkabau society was influenced by royal political patterns, but evolved into a more egalitarian political system in its West Sumatran homeland. The Batak of North Sumatra developed an egalitarian political order and ethos combining fierce clan loyalty with individuality. Upland or upriver peoples in Sulawesi and Kalimantan also developed more egalitarian social orders, though they could be linked to the outside world through tribute to coastal princes.

Symbols of Social Stratification. The aristocratic cultures of Java and the Malay-influenced coastal principalities were marked by ceremonial isolation of the princes and aristocrats, tribute by peasants and lesser lords, deference to authority by peasants, sumptuary rules marking off classes, the maintenance by aristocrats of supernaturally powerful regalia, and high court artistic and literary cultures. The Dutch in turn surrounded themselves with some of the same aura and social rules in their interaction with native peoples, especially during the late colonial period when European women came to the Indies and Dutch families were founded. In Java in particular, classes were separated by the use of different language levels, titles, and marriage rules. Aristocratic court culture became a paragon of refined social behavior in contrast to the rough or crude behavior of the peasants or non-Javanese. Indirection in communication and self-control in public behavior became hallmarks of the refined person, notions that spread widely in society. The courts were also exemplary centers for the arts music, dance, theater, puppetry, poetry, and crafts such as batik cloth and silverworking. The major courts became Muslim by the seventeenth century, but some older Hindu philosophical and artistic practices continued to exist there or were blended with Muslim teachings.

In the late nineteenth and early twentieth centuries a more complex society developed in Java and some other parts of the Indies, which created a greater demand for trained people in government and commerce than the aristocratic classes could provide, and education was somewhat more widely provided. A class of urbanized government officials and professionals developed that often imitated styles of the earlier aristocracy. Within two decades after independence, all principalities except the sultanates of Yogyakarta and Surakarta were eliminated throughout the republic. Nevertheless, behaviors and thought patterns instilled through generations of indigenous princely ruledeference to authority, paternalism, unaccountability of leaders, supernaturalistic power, ostentatious displays of wealth, rule by individuals and by force rather than by lawcontinue to exert their influence in Indonesian society.

Political Life

Government. During 2000, Indonesia was in deep governmental crisis and various institutions were being redesigned. The 1945 constitution of the republic, however, mandates six organs of the state: the People's Consultative Assembly (Majelis Permusyawaratan Rakyat, or MPR), the presidency, the People's Representative Council (Dewan Perwakilan Rakyat, or DPR), the Supreme Advisory Council (Dewan Pertimbangan Agung ), the State Audit Board (Badan Pemeriksa Keuangan ), and the Supreme Court (Mahkamah Agung ).

The president is elected by the MPR, which consists of one thousand members from various walks of lifefarmers to businesspeople, students to soldierswho meet once every five years to elect the president and endorse his or her coming five-year plan. The vice president is selected by the president.

The DPR meets at least once a year and has five hundred members: four hundred are elected from the provinces, one hundred are selected by the military. The DPR legislates, but its statutes must be approved by the president. The Supreme Court can hear cases from some three hundred subordinate courts in the provinces but cannot impeach or rule on the constitutionality of acts by other branches of government.

In 1997, the nation had twenty-seven provinces plus three special territories (Aceh, Yogyakarta, and Jakarta) with different forms of autonomy and their own governors. East Timor ceased to be a province in 1998, and several others are seeking provincial status. Governors of provinces are appointed by the Interior Ministry and responsible to it. Below the twenty-seven provinces are 243 districts (kabupaten ) subdivided into 3,841 subdistricts (kecamatan ), whose leaders are appointed by the government. There are also fifty-five municipalities, sixteen administrative municipalities, and thirty-five administrative cities with administrations separate from the provinces of which they are a part. At the base of government are some sixty-five thousand urban and rural villages called either kelurahan or desa. (Leaders of the former are appointed by the subdistrict head; the latter are elected by the people.) Many officials appointed at all levels during the New Order were military (or former military) men. Provincial, district, and subdistrict governments oversee a variety of services; the functional offices of the government bureaucracy (such as agriculture, forestry, or public works), however, extend to the district level as well and answer directly to their ministries in Jakarta, which complicates local policy making.

Leadership and Political Officials. During the New Order, the Golkar political party exerted full control over ministerial appointments and was powerfully influential in the civil service whose members were its loyalists. Funds were channeled locally to aid Golkar candidates, and they dominated the national and regional representative bodies in most parts of the country. The Muslim United Development Party and the Indonesian Democratic Party lacked such funds and influence and their leaders were weak and often divided. Ordinary people owed little to, and received little from, these parties. After the fall of President Suharto and the opening of the political system to many parties, many people became involved in politics; politics, however, mainly involves the leaders of the major parties jockeying for alliances and influence within the representative bodies at the national and provincial levels, as well as within the president's cabinet.

The civil and military services, dominant institutions since the republic's founding, are built upon colonial institutions and practices. The New Order regime increased central government authority by appointing heads of subdistricts and even villages. Government service brings a salary, security, and a pension (however modest it may be) and is highly prized. The employees at a certain level in major institutions as diverse as government ministries, public corporations, schools and universities, museums, hospitals, and cooperatives are civil servants, and such positions in the civil service are prized. Membership carried great prestige in the past, but that prestige diminished somewhat during the New Order. Economic expansion made private sector positionsespecially for trained professionals more available, more interesting, and much more lucrative. Neither the number of civil service positions nor salaries have grown comparably.

The interaction of ordinary people with government officials involves deference (and often payments) upward and paternalism downward. Officials, most of whom are poorly paid, control access to things as lucrative as a large construction contract or as modest as a permit to reside in a neighborhood, all of which can cost the suppliant special fees. International surveys have rated Indonesia among the most corrupt nations in the world. Much of it involves sharing the wealth between private persons and officials, and Indonesians note that bribes have become institutionalized. Both the police and the judiciary are weak and subject to the same pressures. The unbridled manipulation of contracts and monopolies by Suharto family members was a major precipitant of unrest among students and others that brought about the president's fall.

Social Problems and Control. At the end of the colonial period, the secular legal system was divided between native (mainly for areas governed indirectly through princes) and government (for areas governed directly through administrators). The several constitutions of the republic between 1945 and 1950 validated colonial law that did not conflict with the constitution, and established three levels of courts: state courts, high courts (for appeal), and the supreme court. Customary law is still recognized, but native princes who were once responsible for its management no longer exist and its position in state courts is uncertain.

Indonesians inherited from the Dutch the notion of "a state based upon law" (rechtsstaat in Dutch, negara hukum in Indonesian), but implementation has been problematic and ideology triumphed over law in the first decade of independence. Pressure for economic development and personal gain during the New Order led to a court system blatantly subverted by money and influence. Many people became disenchanted with the legal system, though some lawyers led the fight against corruption and for human rights, including the rights of those affected by various development projects. A national human rights commission was formed to investigate violations in East Timor and elsewhere, but has so far had relatively little impact.

One sees the same disaffection from the police, which were a branch of the military until the end of the New Order. Great emphasis was placed upon public order during the New Order, and military and police organs were used to maintain a climate of caution and fear among not just lawbreakers but also among ordinary citizens, journalists, dissidents, labor advocates, and others who were viewed as subversive. Extrajudicial killings of alleged criminals and others were sponsored by the military in some urban and rural areas, and killings of rights activists, particularly in Atjeh, continue. The media, now free after severe New Order controls, is able to report daily on such events. In 1999 2000, vigilante attacks against even suspected lawbreakers were becoming common in cities and some rural areas, as was an increase in violent crime. Compounding the climate of national disorder were violence among refugees in West Timor, sectarian killing between Muslims and Christians in Sulawesi and Maluku, and separatist violence in Atjeh and Papua; in all of which, elements of the police and military are seen to be participating, even fomenting, rather than controlling.

In villages many problems are never reported to the police but are still settled by local custom and mutual agreement mediated by recognized leaders. Customary settlement is frequently the only means used, but it also may be used as a first resort before appeal to courts or as a last resort by dissatisfied litigants from state courts. In multiethnic areas, disputes between members of different ethnic groups may be settled by leaders of either or both groups, by a court, or by feud. In many regions with settled populations, a customary settlement is honored over a court one, and many rural areas are peaceful havens. Local custom is often based upon restorative justice, and jailing miscreants may be considered unjust since it removes them from oversight and control of their kinsmen and neighbors and from working to compensate aggrieved or victimized persons. Where there is great population mobility, especially in cities, this form of social control is far less viable and, since the legal system is ineffective, vigilantism becomes more common.

Military Activity. The Armed Forces of the Republic of Indonesia (Angkatan Bersenjata Republik Indonesia, or ABRI) consist of the army (about 214,000 personnel), navy (about 40,000), air force (nearly 20,000), and, until recently, state police (almost 171,000). In addition, almost three million civilians were trained in civil defense groups, student units, and other security units. The premier force, the army, was founded and commanded by members of the Royal Netherlands Indies Army and/or the Japanese-sponsored Motherland Defenders. Many soldiers at first came from the latter, but many volunteers were added after the Japanese left. Some local militias were led by people with little military experience, but their success in the war of independence made them at least local heroes. The army underwent vicissitudes after independence as former colonial officers led in transforming guerilla-bands and provincial forces into a centralized modern army, with national command structure, education, and training.

From its beginning the armed forces recognized a dual function as a defense and security force and as a social and political one, with a territorial structure (distinct from combat commands) that paralleled the civilian government from province level to district, subdistrict, and even village. General Suharto came to power as the leader of an anticommunist and nationalist army, and he made the military the major force behind the New Order. Its security and social and political functions have included monitoring social and political developments at national and local levels; providing personnel for important government departments and state enterprises; censoring the media and monitoring dissidents; placing personnel in villages to learn about local concerns and to help in development; and filling assigned blocs in representative bodies. The military owns or controls hundreds of businesses and state enterprises that provide about three-quarters of its budget, hence the difficulty for a civilian president who wishes to exert control over it. Also, powerful military and civilian officials provide protection and patronage for Chinese business-people in exchange for shares in profits and political funding.

Social Welfare and Change Programs

The responsibility for most formal public health and social welfare programs rests primarily with government and only secondarily with private and religious organizations. From 1970 to 1990, considerable investment was made in roads and in health stations in rural and urban areas, but basic infrastructure is still lacking in many areas. Sewage and waste disposal are still poor in many urban areas, and pollution affects canals and rivers, especially in newly industrializing areas such as West Java. Welfare programs to benefit the poor are minimal compared to the need, and rural economic development activities are modest compared to those in cities. The largest and most successful effort, the national family planning program, used both government and private institutions to considerably reduce the rate of population increase in Java and other areas. Transmigration, the organized movement of people from rural Java to less populated outer island areas in Sumatra, Kalimantan, Sulawesi, and West Papua, was begun by the Dutch early in the twentieth century and is continued vigorously by the Indonesian government. It has led to the agricultural development of many outer island areas but has little eased population pressure in Java, and it has led to ecological problems and to ethnic and social conflicts between transmigrants and local people.

Nongovernmental Organizations and Other Organizations

Despite government dominance in many areas of social action, nongovernmental organizations (NGOs) have a rich history, though they often have had limited funds, have operated under government restraint, and have been limited in much of their activity to urban areas. They have served in fields such as religion, family planning, education, rural health and mutual aid, legal aid, workers' rights, philanthropy, regional or ethnic interests, literature and the arts, and ecology and conservation Muslim and Christian organizations have been active in community education and health care since the early twentieth century. Foreign religious, philanthropic, and national and international organizations have supported welfare efforts by government and NGOs, though most NGOs are homegrown. The authoritarian nature of the New Order led to tensions between the government and NGOs in areas such as legal aid, workers' rights, and conservation, and the government sought to co-opt some such organizations. Also, foreign support for NGOs led to tensions between the various governments, even cancellations of aid, when that support was viewed as politically motivated. With the collapse of the New Order regime and pressures for reform since 1998, NGOs are more active in serving various constituencies, though economic upset during the same period has strained their resources.

Gender Roles and Statuses

Division of Labor by Gender. Women and men share in many aspects of village agriculture, though plowing is more often done by men and harvest groups composed only of women are commonly seen. Getting the job done is primary. Gardens and orchards may be tended by either sex, though men are more common in orchards. Men predominate in hunting and fishing, which may take them away for long durations. If men seek long-term work outside the village, women may tend to all aspects of farming and gardening. Women are found in the urban workforce in stores, small industries, and markets, as well as in upscale businesses, but nearly always in fewer numbers than men. Many elementary schoolteachers are women, but teachers in secondary schools and colleges and universities are more frequently men, even though the numbers of male and female students may be similar. Men predominate at all levels of government, central and regional, though women are found in a variety of positions and there has been a woman cabinet minister. The vice president, Megawati Sukarnoputri, a woman, was a candidate for president, though her reputation derives mainly from her father, Sukarno, the first president. She was opposed by many Muslim leaders because of her gender, but she had the largest popular following in the national legislative election of 1999.

The Relative Status of Women and Men. Though Indonesia is a Muslim nation, the status of women is generally considered to be high by outside observers, though their position and rights vary considerably in different ethnic groups, even Muslim ones. Nearly everywhere, Indonesian gender ideology emphasizes men as community leaders, decision makers, and mediators with the outside world, while women are the backbone of the home and family values.

Marriage, Family, and Kinship

Marriage. People in Indonesia gain the status of full adults through marriage and parenthood. In Indonesia, one does not ask, "Is he (or she) married?," but "Is he (or she) married yet?," to which the correct response is, "Yes" or "Not yet." Even homosexuals are under great family pressure to marry. Certain societies in Sumatra and eastern Indonesia practice affinal alliance, in which marriages are arranged between persons in particular patrilineal clans or lineages who are related as near or distant cross-cousins. In these societies the relationship between wife-giving and wife-taking clans or lineages is vitally important to the structure of society and involves lifelong obligations for the exchange of goods and services between kin. The Batak are a prominent Sumatran example of such a people. Clan membership and marriage alliances between clans are important for the Batak whether they live in their mountain homeland or have migrated to distant cities. Their marriages perpetuate relationships between lineages or clans, though individual wishes and love between young people may be considered by their families and kinsmen, as may education, occupation, and wealth among urbanites.

In societies without lineal descent groups, love is more prominent in leading people to marry, but again education, occupation, or wealth in the city, or the capacity to work hard, be a good provider, and have access to resources in the village, are also considered. Among the Javanese or Bugis, for example, the higher the social status of a family, the more likely parents and other relatives will arrange a marriage (or veto potential relationships). In most Indonesian societies, marriage is viewed as one important means of advancing individual or family social status (or losing it).

Divorce and remarriage practices are diverse. Among Muslims they are governed by Muslim law and may be settled in Muslim courts, or as with non-Muslims, they may be settled in the government's civil court. The initiation of divorce and its settlements favors males among Muslims and also in many traditional societies. Divorce and remarriage may be handled by local elders or officials according to customary law, and terms for such settlements may vary considerably by ethnic group. In general, societies with strong descent groups, such as the Batak, eschew divorce and it is very rare. Such societies may also practice the levirate (widows marrying brothers or cousins of their deceased spouse). In societies without descent groups, such as the Javanese, divorce is much more common and can be initiated by either spouse. Remarriage is also easy. Javanese who are not members of the upper class are reported to have a high divorce rate, while divorce among upper-class and wealthy Javanese is rarer.

Polygamy is recognized among Muslims, some immigrant Chinese, and some traditional societies, but not by Christians. Such marriages are probably few in number. Marriages between members of different ethnic groups are also uncommon, though they may be increasing in urban areas and among the better educated.

Domestic Unit. The nuclear family of husband, wife, and children is the most widespread domestic unit, though elders and unmarried siblings may be added to it in various societies and at various times. This domestic unit is as common among remote peoples as among urbanites, and is also unrelated to the presence or absence of clans in a society. An exception is the traditional, rural matrilineal Minangkabau, for whom the domestic unit still comprises coresident females around a grandmother (or mothers) with married and unmarried daughters and sons in a large traditional house. Husbands come only as visitors to their wife's hearth and bedchamber in the house. Some societies, such as the Karo of Sumatra or some Dayak of Kalimantan, live in large (or long) houses with multiple hearths and bedchambers that belong to related or even unrelated nuclear family units.

Inheritance. Inheritance patterns are diverse even within single societies. Muslim inheritance favors males over females as do the customs of many traditional societies (an exception being matrilineal ones where rights over land, for example, are passed down between females). Inheritance disputes, similar to divorces, may be handled in Muslim courts, civil courts, or customary village ways. Custom generally favors males, but actual practice often gives females inheritances. In many societies, there is a distinction between property that is inherited or acquired; the former is passed on in clan or family lines, the latter goes to the children or the spouse of the deceased. Such a division may also be recognized at divorce. In many areas land is communal property of a kin or local group, while household goods, personal items, or productive equipment are familial or individual inheritable property. In some places economic trees, such as rubber, may be personally owned, while rice land is communally held. With changing economic conditions, newer ideas about property, and increasing demand for money, the rules and practices regarding inheritance are changing, which can produce conflicts that a poorly organized legal system and weakened customary leaders cannot easily manage.

Kin Groups. Many of Indonesia's ethnic groups have strong kinship groupings based upon patrilineal, matrilineal, or bilateral descent. Such peoples are primarily in Sumatra, Kalimantan, Maluku, Sulawesi, and the Eastern Lesser Sundas. Patrilineal descent is most common, though matriliny is found in a few societies, such as the Minangkabau of West Sumatra and southern Tetun of West Timor. Some societies in Kalimantan and Sulawesi, as well as the Javanese, have bilateral kinship systems.

Kinship is a primordial loyalty throughout Indonesia. Fulfilling obligations to kin can be onerous, but provides vital support in various aspects of life. Government or other organizations do not provide social security, unemployment insurance, old age care, or legal aid. Family, extended kinship, and clan do provide such help, as do patron-client relationships and alliances between peers. Correlated with these important roles of family and kin are practices of familial and ethnic patrimonialism, nepotism, patronage, and paternalism in private sectors and government service.

Socialization

Child Rearing and Education. In the government education system, generally, quantity has prevailed over quality. Facilities remain poorly equipped and salaries remain so low that many teachers must take additional jobs to support their families.

Higher Education. The colonial government greatly limited education in Dutch and the vernaculars, and people were primarily trained for civil service and industrial and health professions. At the time of independence in 1950, the republic had few schools or university faculties. Mass education became a major government priority for the next five decades. Today many Indonesians have earned advanced degrees abroad and most have returned to serve their country. In this effort the government has received considerable support from the World Bank, United Nation agencies, foreign governments, and private foundations. Increasingly, better-educated people serve at all levels in national and regional governments, and the private sector has benefitted greatly from these educational efforts. Private Muslim and Christian elementary and secondary schools, universities and institutes, which are found in major cities and the countryside, combine secular subjects and religious education.

Higher education has suffered from a lecture-based system, poor laboratories, a shortage of adequate textbooks in Indonesian, and a poor level of English-language proficiency, which keeps many students from using such foreign textbooks as are available. Research in universities is limited and mainly serves government projects or private enterprise and allows researchers to supplement their salaries.

From the late 1970s through the l990s, private schools and universities increased in number and quality and served diverse students (including Chinese Indonesians who were not accepted at government universities). Many of these institutions' courses are taught in afternoons and evenings by faculty members from government universities who are well paid for their efforts.

The colonial government limited education to an amount needed to fill positions in the civil service and society of the time. Indonesian mass education, with a different philosophy, has had the effect of producing more graduates than there are jobs available, even in strong economic times. Unrest has occurred among masses of job applicants who seek to remain in cities but do not find positions commensurate with their view of themselves as graduates.

Students have been political activists from the 1920s to the present. The New Order regime made great efforts to expand educational opportunities while also influencing the curriculum, controlling student activities, and appointing pliant faculty members to administrative positions. New campuses of the University of Indonesia near Jakarta, and Hasanuddin University near Makassar, for example, were built far from their previous locations at the center of these cities, to curb mobilization and marching.

Etiquette

When riding a Jakarta bus, struggling in post-office crowds, or getting into a football match, one may think that Indonesians have only a push-and-shove etiquette. And in a pedicab or the market, bargaining always delays action. Children may repeatedly shout "Belanda, Belanda" (white Westerner) at a European, or youths shout, "Hey, Mister." In some places a young woman walking or biking alone is subject to harassment by young males. But public behavior contrasts sharply with private etiquette. In an Indonesian home, one joins in quiet speech and enjoys humorous banter and frequent laughs. People sit properly with feet on the floor and uncrossed legs while guests, men, and elders are given the best seating and deference. Strong emotions and rapid or abrupt movements of face, arms, or body are avoided before guests. Drinks and snacks must be served, but not immediately, and when served, guests must wait to be invited to drink. Patience is rewarded, displays of greed are avoided, and one may be offered a sumptuous meal by a host who asks pardon for its inadequacy.

Whether serving tea to guests, passing money after bargaining in the marketplace, or paying a clerk for stamps at the post office, only the right hand is used to give or receive, following Muslim custom. (The left hand is reserved for toilet functions.) Guests are served with a slight bow, and elders are passed by juniors with a bow. Handshakes are appropriate between men, but with a soft touch (and between Muslims with the hand then lightly touching the heart). Until one has a truly intimate relationship with another, negative feelings such as jealousy, envy, sadness, and anger should be hidden from that person. Confrontations should be met with smiles and quiet demeanor, and direct eye contact should be avoided, especially with social superiors. Punctuality is not prized Indonesians speak of "rubber time"and can be considered impolite. Good guidebooks warn, however, that Indonesians may expect Westerners to be on time! In public, opposite sexes are rarely seen holding hands (except perhaps in a Jakarta mall), while male or female friends of the same sex do hold hands.

Neatness in grooming is prized, whether on a crowded hot bus or at a festival. Civil servants wear neat uniforms to work, as do schoolchildren and teachers.

The Javanese emphasize the distinction between refined (halus ) and crude (kasar ) behavior, and young children who have not yet learned refined behavior in speech, demeanor, attitude, and general behavior are considered "not yet Javanese." This distinction may be extended to other peoples whose culturally correct behavior is not deemed appropriate by the Javanese. The Batak, for example, may be considered crude because they generally value directness in speech and demeanor and can be argumentative in interpersonal relationships. And a Batak man's wife is deemed to be a wife to his male siblings (though not in a sexual way), which a Javanese wife might not accept. Bugis do not respect persons who smile and withdraw in the face of challenges, as the Javanese tend to do; they respect those who defend their honor even violently, especially the honor of their women. Thus conflict between the Javanese and others over issues of etiquette and behavior is possible. A Javanese wife of a Batak man may not react kindly to his visiting brother expecting to be served and to have his laundry done without thanks; a young Javanese may smile and greet politely a young Bugis girl, which can draw the ire (and perhaps knife) of her brother or cousin; a Batak civil servant may dress down his Javanese subordinate publicly (in which case both the Batak and the Javanese lose face in the eyes of the Javanese). Batak who migrate to cities in Java organize evening lessons to instruct newcomers in proper behavior with the majority Javanese and Sundanese with whom they will live and work. Potential for interethnic conflict has increased over the past decades as more people from Java are transmigrated to outer islands, and more people from the outer islands move to Java.

Religion

Religious Beliefs. Indonesia has the largest Muslim population of any nation, and in 1990 the population was reported to be 87 percent Muslim. There is a well-educated and influential Christian minority (about 9.6 percent of the population in 1990), with about twice as many Protestants as Catholics. The Balinese still follow a form of Hinduism. Mystical cults are well established among the Javanese elite and middle class, and members of many ethnic groups still follow traditional belief systems. Officially the government recognizes religion (agama ) to include Islam, Christianity, Hinduism, and Buddhism, while other belief systems are called just that, beliefs (kepercayaan ). Those who hold beliefs are subject to conversion; followers of religion are not. Belief in ancestral spirits, spirits of diverse sorts of places, and powerful relics are found among both peasants and educated people and among many followers of the world religions; witchcraft and sorcery also have their believers and practitioners. The colonial regime had an uneasy relationship with Islam, as has the Indonesian government. The first of the Five Principles extols God (Tuhan ), but not Allah by name. Dissidents have wanted to make Indonesia a Muslim state, but they have not prevailed.

The Javanese are predominantly Muslim, though many are Catholic or Protestant, and many Chinese in Java and elsewhere are Christian, mainly Protestant. The Javanese are noted for a less strict adherence to Islam and a greater orientation to Javanese religion, a mixture of Islam and previous Hindu and animist beliefs. The Sundanese of West Java, by contrast, are ardently Muslim. Other noted Muslim peoples are the Acehnese of North Sumatra, the first Indonesians to become Muslim; the Minangkabau, despite their matriliny; the Banjarese of South Kalimantan; the Bugis and Makassarese of South Sulawesi; the Sumbawans of the Lesser Sunda Islands; and the people of Ternate and Tidor in Maluku.

The Dutch sought to avoid European-style conflict between Protestants and Catholics by assigning particular regions for conversion by each of them. Thus today the Batak of Sumatra, the Dayak of Kalimantan, the Toraja and Menadonese of Sulawesi, and the Ambonese of Maluku are Protestant; the peoples of Flores and the Tetun of West Timor are Catholic.

Religious Practitioners. Islam in Indonesia is of the Sunni variety, with little hierarchical leadership. Two major Muslim organizations, Nahdatul Ulama (NU) and Muhammadiyah, both founded in Java, have played an important role in education, the nationalist struggle, and politics after independence. The New Order regime allowed only one major Muslim political group, which had little power; but after the fall of President Suharto, many parties (Muslim and others) emerged, and these two organizations continued to play an important role in the elections. The leader of NU, Abdurrahman Wahid (whose grandfather founded it), campaigned successfully and became the country's president; an opponent, Amien Rais, head of Muhammadiyah, became speaker of the DPR. During this time of transition, forces of tolerance are being challenged by those who have wanted Indonesia to be a Muslim state. The outcome of that conflict is uncertain.

Muslim-Christian relations have been tense since colonial times. The Dutch government did not proselytize, but it allowed Christian missions to convert freely among non-Muslims. When Christians and Muslims were segregated on different islands or in different regions, relations were amicable. Since the 1970s, however, great movements of peopleespecially Muslims from Java, Sulawesi, and parts of Maluku into previously Christian areas in Kalimantan, Sulawesi, Maluku, and West Papuahas led to changes in religious demography and imbalances in economic, ethnic, and political power. The end of the New Order regime has led to an uncapping of tensions and great violence in places such as Ambon (capital of the Maluku province), other Maluku islands, and Sulawesi. A loss of authority by commanders over Muslim and Christian troops in the outer islands is playing a part. Christians generally have kept to themselves and avoided national politics. They lack mass organizations or leaders comparable to Muslim ones, but disproportionate numbers of Christians have held important civil, military, intellectual, and business positions (a result of the Christian emphasis upon modern education); Christian secondary schools and universities are prominent and have educated children of the elite (including non-Christians); and two major national newspapers, Kompas and Suara Pembaruan, were of Catholic and Protestant origin, respectively. Some Muslims are displeased by these facts, and Christians were historically tainted in their eyes through association with the Dutch and foreign missionaries and the fact that Chinese Indonesians are prominent Christians.

During the New Order, those not having a religion were suspected of being Communist, so there was a rush to conversion in many areas, including Java, which gained many new Christians. Followers of traditional ethnic beliefs were under pressure as well. In places such as interior Kalimantan and Sulawesi, some people and groups converted to one of the world religions, but others sought government recognition for a reorganized traditional religion through both regional and national politicking. Among the Ngaju Dayak, for instance, the traditional belief system, Kaharingan, gained official acceptance in the Hindu-Buddhist category, though it is neither. People who follow traditional beliefs and practices are often looked down upon as primitive, irrational, and backward by urban civil and military leaders who are Muslim or Christian but these groups formed new sorts of organizations, modeled on urban secular ones, to bolster support. Such moves represent both religious and ethnic resistance to pressure from the outside, from neighboring Muslim or Christian groups, and from exploitative government and military officers or outside developers of timber and mining industries. On Java, mystical groups, such as Subud, also lobbied for official recognition and protections. Their position was stronger than that of remote peoples because they had followers in high places, including the president.

Rituals and Holy Places. Muslims and Christians follow the major holidays of their faiths, and in Makassar, for example, the same decorative lights are left up for celebrating both Idul Fitri and Christmas. National calendars list Muslim and Christian holidays as well as Hindu-Buddhist ones. In many places, people of one religion may acknowledge the holidays of another religion with visits or gifts. Mosques and churches have the same features found elsewhere in the world, but the temples of Bali are very special. While centers for spiritual communication with Hindu deities, they also control the flow of water to Bali's complex irrigation system through their ritual calendar.

Major Muslim annual rituals are Ramadan (the month of fasting), Idul Fitri (the end of fasting), and the hajj (pilgrimage). Indonesia annually provides the greatest number of pilgrims to Mecca. Smaller pilgrimages in Indonesia may also be made to graves of saints, those believed to have brought Islam to Indonesia, Sunan Kalijaga being the most famous.

Rituals of traditional belief systems mark life-cycle events or involve propitiation for particular occasions and are led by shamans, spirit mediums, or prayer masters (male or female). Even in Muslim and Christian areas, some people may conduct rituals at birth or death that are of a traditional nature, honor and feed spirits of places or graves of ancestors, or use practitioners for sorcery or countermagic. The debate over what is or is not allowable custom by followers of religion is frequent in Indonesia. Among the Sa'dan Toraja of Sulawesi, elaborate sacrifice of buffalos at funerals has become part of the international tourist circuit, and the conversion of local custom to tourist attractions can be seen in other parts of Indonesia, such as on Bali or Samosir Island in North Sumatra.

Death and the Afterlife. It is widely believed that the deceased may influence the living in various ways, and funerals serve to ensure the proper passage of the spirit to the afterworld, though cemeteries are still considered potentially dangerous dwellings for ghosts. In Java the dead may be honored by modest family ceremonies held on Thursday evening. Among Muslims, burial must occur within twenty-four hours and be attended by Muslim officiants; Christian burial is also led by a local church leader. The two have separate cemeteries. In Java and other areas there may be secondary rites to assure the well-being of the soul and to protect the living. Funerals, like marriages, call for a rallying of kin, neighbors, and friends, and among many ethnic groups social status may be expressed through the elaborateness or simplicity of funerals. In clan-based societies, funerals are occasions for the exchange of gifts between wife-giving and wife-taking groups. In such societies representatives of the wife-giving group are usually responsible for conducting the funeral and for leading the coffin to the grave.

Funeral customs vary. Burial is most common, except for Hindu Bali where cremation is the norm. The Sa'dan Toraja are noted for making large wooden effigies of the deceased, which are placed in niches in sheer stone cliffs to guard the tombs. In the past, the Batak made stone sarcophagi for the prominent dead. This practice stopped with Christianization, but in recent decades, prosperous urban Batak have built large stone sarcophagi in their home villages to honor the dead and reestablish a connection otherwise severed by migration.

Medicine and Health Care

Modern public health care was begun by the Dutch to safeguard plantation workers. It expanded to hospitals and midwifery centers in towns and some rural health facilities. During the New Order public health and family planning became a priority for rural areas and about seven thousand community health centers and 20,500 sub-health centers were built by 1995. In Jakarta medical faculties exist in a number of provincial universities. Training is often hampered by poor facilities, and medical research is limited as teaching physicians also maintain private practices to serve urban needs and supplement meager salaries. Physicians and government health facilities are heavily concentrated in large cities, and private hospitals are also located there, some founded by Christian missions or Muslim foundations. Many village areas in Java, and especially those in the outer islands, have little primary care beyond inoculations, maternal and baby visits, and family planning, though these have had important impacts on health conditions.

Traditional medicine is alive throughout the archipelago. Javanese curers called dukun deal with a variety of illnesses of physical, emotional, and spiritual origin through combinations of herbal and magical means. In north Sumatra, some ethnic curers specialize; for example, Karo bonesetters have many clinics. Herbal medicines and tonics called jamu are both home blended and mass produced. Commercial brands of tonics and other medicines are sold throughout the archipelago, and tonic sellers' vehicles can be seen in remote places.

Various forms of spiritual healing are done by shamans, mediums, and other curers in urban and rural areas. Many people believe that ritual or social missteps may lead to misfortune, which includes illness. Traditional healers diagnose the source and deal with the problems, some using black arts. Bugis transvestite healers serve aristocratic and commoner households in dealing with misfortune, often becoming possessed in order to communicate with the source of misfortune. In Bali, doctors trained in modern medicine may also practice spirit-oriented healing. Accusations of sorcery and attacks on alleged sorcerers are not uncommon in many areas and are most liable to arise in times of social, economic, and political unrest.

Secular Celebrations

The most important national celebration is Independence Day, 17 August, which is marked by parades and displays in Jakarta and provincial and district capitals. Provincial celebrations may have local cultural or historical flavor. Youth are often prominent. Kartini Day, 21 April, honors Indonesia's first female emancipationist; schools and women's organizations hold activities that day. The military also has its celebrations. New Year's is celebrated 1 January when businesses close and local fairs with fireworks are held in some places. Western-style dances are held in hotels in cities. Public celebration by the Chinese of their New Year was not allowed for decades, but this rule was lifted in 1999 and dragons again danced in the streets. Previously it was celebrated only in homes, though businesses did close and for two days the bustle of Jakarta traffic was stilled. Local celebrations recognize foundings of cities, historical events and personages, or heroes (some national, others regional), while others mark special events, such as bull racing on Madura and palace processions in Yogyakarta or Surakarta. On Bali a lunar calendar New Year's day is celebrated with fasting, prayer, silence, and inactivity. All people (including tourists) must remain indoors and without lights on so that harmful spirits will think Bali is empty and will leave.

The Arts and Humanities

Support for the Arts. In the past in Java and Bali, royal courts or rich persons were major patrons of the arts. They continue their support, but other institutions joined them. The Dutch founded the Batavia Society for the Arts and Sciences in 1778, which established the National Museum that continues to display artifacts of the national culture. The Dutch-founded National Archive seeks to preserve the literary heritage, despite poor funding and the hazards of tropical weather and insects. Over the past several decades, regional cultural museums were built using national and provincial government funding and some foreign aid. Preservation of art and craft traditions and objects, such as house architecture, batik and tie-dye weaving, wood carving, silver and gold working, statuary, puppets, and basketry, are under threat from the international arts and crafts market, local demands for cash, and changing indigenous values.

A college for art teachers, founded in 1947, was incorporated in 1951 into the Technological Institute of Bandung; an Academy of Fine Arts was established in Yogyakarta in 1950; and the Jakarta Institute of Art Education was begun in 1968. Academies have since been founded elsewhere; the arts are part of various universities and teacher training institutes; and private schools for music and dance have been founded. Private galleries for painters and batik designers are legion in Yogyakarta and Jakarta. Academies and institutes maintain traditional arts as well as develop newer forms of theater, music, and dance.

Literature. Indonesia's literary legacy includes centuries-old palm, bamboo, and other fiber manuscripts from several literate peoples, such as the Malay, Javanese, Balinese, Buginese, Rejang, and Batak. The fourteenth century Nagarakrtagama is a lengthy poem praising King Hayam Wuruk and describing the life and social structure of his kingdom, Majapahit. The I La Galigo of the Bugis, which traces the adventures of their culture hero, Sawerigading, is one of the world's longest epic poems.

In colonial times some literature was published in regional languages, the most being in Javanese, but this was stopped after Indonesian independence. The earliest official publishing house for Indonesian literature is Balai Pustaka, founded in Batavia in 1917. National culture was expressed and, in some ways formed, through spoken Malay-Indonesian (understood by many people) and newspapers, pamphlets, poetry, novels, and short stories for those who could read. By the time of independence, literary production was not great, but it has grown considerably since the 1950s. The literary tradition is now rich, but one should note that reading for pleasure or enlightenment is not yet part of the culture of average urban Indonesians and plays little if any part in the life of village people. Indonesia has made literacy and widespread elementary education a major effort of the nation, but in many rural parts of the country functional literacy is limited. For students to own many books is not common; universities are still oriented toward lecture notes rather than student reading; and libraries are poorly stocked.

In the conflict between left-and right-wing politics of the 1950s and early 1960s, organizations of authors were drawn into the fray. In the anticommunist purges of the late 1960s, some writers who had participated in left-wing organizations were imprisoned. The most famous is Pramoedya Ananta Toer, a nationalist who had also been imprisoned by the Dutch from 1947 to 1949. He composed books as stories told to fellow prisoners in exile on the island of Buru from 1965 to 1979. He was released from Buru and settled in Jakarta, but remained under city arrest. Four of his novels, the Buru Quartet, published between 1980 and 1988 in Indonesian, are rich documentaries of life in turn-of-the-century colonial Java. They were banned in Indonesia during the New Order. Pram (as he is commonly known, rhyming with Tom) received a PEN Freedom-to-Write Award in 1988 and a Magsaysay Award in 1995. In English translation, the Buru Quartet received critical acclaim, and after the end of the New Order in 1999, Pram made a tour of the United States. He is the only Indonesian novelist to have received such acclaim overseas.

Graphic Arts. Stone sculptures of the elaborate Hindu variety in Java or the ornate sarcophagi of Sumatra are archaeological remains of value, but only in Bali is elaborate stone carving still done (apart from that which may decorate some upscale Jakarta homes or public buildings). Wood carving is more common. The cottage carving industry of Bali finds a wide domestic and international market for its statues of people, deities, and animals, many of which are finely artistic, some hackneyed. Perhaps the most common carving is in the urban furniture industry, mainly in Java, where ornately carved sofas and chairs are very popular. Traditional puppet or animal carvings of the mountain Batak of Sumatra or the upriver Dayak of Kalimantan are now mainly for tourists, though they once showed rich artistry (now largely seen in museums). The Toraja homes are still elaborately carved, and small examples of these carvings are sold to tourists. Toraja carve decorations on large bamboo tubes used for carrying palm wine or rice, and people in eastern Indonesia decorate small bamboo tubes that carry lime used in betel chewing. Among contemporary urban artists, painting on canvas or making batik is much more common than making sculpture.

Indonesian textiles are becoming more widely known overseas. Batik is the Javanese word for "dot" or "stipple"; ikat, a Malay-Indonesian word for "to tie," is a type of cloth that is tie-dyed before weaving. Batik textiles were made in royal courts and cottages, but also became a major commercial industry in Java and Bali, an industry that has experienced economic vicissitudes over the decades. Batik cloth varies enormously in artistry, elaboration, quality, and cost. Formal occasions require that Javanese, Sundanese and Balinese women wear whole cloths wrapped ornately to form a skirt. Men nowadays do so only at their marriage (or if they are in royal courts or are performers in gamelan, dance, or theater). Long-sleeved batik shirts are now accepted formal social wear for men of all ethnic backgrounds, though formal wear for men also includes civil service uniforms, shirts and ties, or Western suits.

Performance Arts. Performance arts are diverse and include: Javanese and Balinese gong-chime orchestras (gamelan) and shadow plays (wayang ), Sundanese bamboo orchestras (angklung ), Muslim orchestral music at family events or Muslim holiday celebrations, trance dances (reog ) from east Java, the dramatic barong dance or the monkey dances for tourists on Bali, Batak puppet dances, horse puppet dances of south Sumatra, Rotinese singers with lontar leaf mandolins, and the dances for ritual and life-cycle events performed by Indonesia's many outer island ethnic groups. All such arts use indigenously produced costumes and musical instruments, of which the Balinese barong costumes and the metalworking of the gamelan orchestra are the most complex. Best known in Indonesia is the Javanese and Balinese shadow puppet theater based on the Ramayana epic, with its brilliant puppeteers (dalang ) who may manipulate over a hundred puppets in all-night oral performances accompanied by a gamelan orchestra. Bali is best known for the diversity of its performance arts. Despite the fact that Bali draws visitors from around the world, and its troupes perform overseas, most Balinese performers are villagers for whom art complements farming.

Contemporary (and partly Western-influenced) theater, dance, and music are most lively in Jakarta and Yogyakarta, but less common elsewhere. Jakarta's Taman Ismail Marzuki, a national center for the arts, has four theaters, a dance studio, an exhibition hall, small studios, and residences for administrators. Contemporary theater (and sometimes traditional theater as well) has a history of political activism, carrying messages about political figures and events that might not circulate in public. During the New Order, poets and playwrights had works banned, among them W. S. Rendra whose plays were not allowed in Jakarta. There is a long Javanese tradition of the poet as a "voice on the wind," a critic of authority.

The State of the Physical and Social Sciences

The development of science and technology has formed part of Indonesia's five-year plans and is directed toward both basic science and applied technology, with emphasis on the latter. Health, agriculture and animal husbandry, defense, physical sciences, and applied technology have had priority. The Indonesian Institute of Sciences has its headquarters and main library in Jakarta. Its task is to oversee and encourage research in diverse fields, to coordinate between institutions, and to advise on national science and technology policy. It also approves research by foreign scholars. Indonesia's major scientific research training centers are the Technological Institute, in Bandung, and the Agricultural Institute, in Bogor, founded in the colonial period, which draw top secondary school graduates.

Among social sciences, economics has received the greatest attention since the 1950s when the Ford Foundation launched a major program to train economists abroad. These so-called technocrats rose to great importance during the early decades of the New Order and molded economic policy throughout the country's growth period, from the 1970s through the 1990s. Social sciences are included in the national mandate largely as they contribute to supporting development activities. Fields such as political science and sociology received far less attention during the New Order, owing to their potential for, and actual involvement in, social and political criticism.

Bibliography

Abdullah, Taufik, and Sharon Siddique, eds. Islam and Society in Southeast Asia, 1987.

Abeyasekere, Susan. Jakarta: A History, 1987.

Alisyahbana, S. Takdir. Indonesia: Social and Cultural Revolution, 1966.

Anderson, Benedict R. O'G. Language and Power: Exploring Political Cultures in Indonesia, 1990.

Bellwood, Peter, James J. Fox, and Darrell Tryon, eds. The Austronesians: Historical and Comparative Perspectives,1995.

Boomgaard, Peter. Children of the Colonial State: Population Growth and Economic Development in Java, 1795 1880, 1989.

Brenner, Suzanne April. The Domestication of Desire: Women, Wealth, and Modernity in Java, 1998.

Bresnan, John. Managing Indonesia: The Modern Political Economy, 1993.

Buchori, Mochtar. Sketches of Indonesian Society: A Look from Within, 1994.

Covarrubias, Miguel. Island of Bali, 1937.

Cribb, Robert. Historical Dictionary of Indonesia, 1992.

Cunningham, Clark E. "Celebrating a Toba Batak National Hero: An Indonesian Rite of Identity." In Susan D. Russell and Clark E. Cunningham, eds., Changing Lives, Changing Rites, 1989.

. "Indonesians." In David Levinson and Melvin Ember, eds., American Immigrant Cultures, 1997.

Dalton, Bill. Indonesia Handbook, 6th ed., 1995.

Emmerson, Donald K., ed. Indonesia beyond Suharto: Polity, Economy, Society, Transition, 1999.

Fontein, Jan. The Sculpture of Indonesia, 1990.

Fox, James J. Harvest of the Palm: Ecological Change in Eastern Indonesia, 1977.

Furnivall, J. S. Colonial Policy and Practice: A Comparative Study of Burma and Netherlands India, 1948.

Geertz, Clifford. The Religion of Java, 1976.

. Agricultural Involution: The Process of Ecological Change in Indonesia, 1970.

. Negara: The Theatre State in Nineteenth-Century Bali, 1980.

Geertz, Hildred. The Javanese Family: A study of kinship and socialization, 1961.

. "Indonesian Cultures and Communities." In Ruth T. McVey, ed., Indonesian,1963.

Geertz, Hildred, and Clifford Geertz. Kinship in Bali, 1975.

Gillow, John. Traditional Indonesian Textiles, 1992.

Grant, Bruce. Indonesia, 3rd ed., 1996.

Hefner, Robert W., and Patricia Horvatich, eds. Islam in an Era of Nation-States, 1997.

Hoskins, Janet. "The Headhunter as Hero Local: Traditions and Their Reinterpretation in National History." American Ethnologist 14 (4): 605622, 1987.

Josselin de Jong, P. D. de, ed. Unity in Diversity Indonesia as a Field of Anthropological Study, 1984.

Kahin, George Mc T. Nationalism and Revolution in Indonesia, 1952.

Kartodirdjo, Sartono. Modern Indonesia Tradition and Transformation, 1984.

Kayam, Umar. The Soul of Indonesia: A cultural journey, 1985.

Keeler, Ward. Javanese Shadow Puppets, 1992.

Kipp, Rita Smith, and Susan Rodgers, eds. Indonesian Religions in Transition, 1987.

Koentjaraningrat. Introduction to the Peoples and Cultures of Indonesia and Malaysia, 1975.

. Javanese Culture, 1985.

. ed. Villages in Indonesia, 1967.

Kwik, Greta. "Indos." In David Levinson and Melvin Ember, eds., American Immigrant Cultures, 1997.

Lev, Daniel, S. and Ruth McVey, eds. Making Indonesia Essays on Modern Indonesia in Honor of George McT. Kahin, 1996.

Levinson, David, and Melvin Ember, eds. American Immigrant Cultures: Builders of a Nation, 1997.

Liddle, R. William. Leadership and Culture in Indonesian Politics, 1996.

Loveard, Keith. Suharto: Indonesia's Last Sultan, 1999.

Lubis, Mochtar. The Indonesian Dilemma, 1983.

McVey, Ruth T., ed. Indonesia, 1963.

Miksic, John. Borobudur: Golden Tales of the Buddhas,1990.

Mulder, Niels. Individual and Society in Java, 1989.

. Inside Indonesian Society: An Interpretation of Cultural Change in Java, 1994.

Peacock, James L. The Muhammadijah Movement in Indonesian Islam, 1978.

Pemberton, John. On the Subject of "Java," 1994.

Ricklefs, M. C. A History of Modern Indonesia since c. 1300, 2nd ed.,1993.

Russell, Susan D., and Clark E. Cunningham, eds. Changing Lives, Changing Rites: Ritual and Social Dynamics in Philippine and Indonesian Uplands, 1989.

Schwarz, Adam. A Nation in Waiting: Indonesia in the 1990s, 1994.

Siegel, James T. Solo in the New Order: Language and Hierarchy in an Indonesian City, 1986.

Sumarsam. Gamelan: Cultural Interaction and Musical Development in Central Java, 1995.

Suryadinata, Leo, ed. Ethnic Chinese as Southeast Asians, 1997.

Taylor, Paul Michael, ed. Fragile Traditions: Indonesian Art in Jeopardy, 1994.

and Lorraine V. Aragon. Beyond the Java Sea: Art of Indonesia's Outer Islands, 1991.

Toer, Pramoedya Ananta. The Buru Quartet: This Earth of Mankind, 1982; Child of All Nations, 1982; Footsteps, 1990; House of Glass, 1992.

Walean, Sam A., ed. Indonesia Year Book, 19961997, 1998.

Waterson, Roxana. The Living House: An Anthropology of Architecture in South-East Asia, 1990.

Watson, C. W. Of Self and Nation: Autobiography and the Representation of Modern Indonesia, 2000.

Wiener, Margaret J. Visible and Invisible Realms: Power, Magic, and Colonial Conquest in Bali, 1995.

Williams, Walter L. Javanese Lives: Women and Men in a Modern Indonesian Society, 1991.

Wolters, O. W. History, Culture, and Region in Southeast Asian Perspectives, 1982, rev. ed., 1999.

Woodward, Mark R. Islam in Java: Normative Piety and Mysticism in the Sultanate of Yogyakarta, 1989.

Clark E. Cunningham

views updated

Indonesia

Compiled from the January 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Indonesia

PROFILE

PEOPLE

HISTORY

GOVERNMENT AND POLITICAL CONDITIONS

ECONOMY

NATIONAL SECURITY

FOREIGN RELATIONS

U.S.-INDONESIAN RELATIONS

TRAVEL

PROFILE

Geography

Area: 2 million sq. km. (736,000 sq. mi.), about three times the size of Texas; maritime area: 7,900,000 sq. km.

Cities: Capital—Jakarta (est. 8.8 million). Other cities—Surabaya 3.0 million, Medan 2.5 million, Bandung 2.5 million.

Terrain: More than 17,500 islands; 6,000 are inhabited; 1,000 of which are permanently settled. Large islands consist of coastal plains with mountainous interiors.

Climate: Equatorial but cooler in the highlands.

People

Nationality: Noun and adjective—Indonesian(s).

Population: (July 2006 est.) 245.5 million.

Annual population growth rate: (2006) 1.3%.

Ethnic groups: Javanese 45%, Sundanese 14%, Madurese 7.5%, coastal Malays 7.5%, others 26%.

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.

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).

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

Government

Type: Independent republic.

Independence: August 17, 1945 proclaimed.

Constitution: 1945. Embodies five principles of the state philosophy, called Pancasila, namely monotheism, humanitarianism, national unity, representative democracy by consensus, and social justice.

Government branches: Executive—president (head of government and chief of state) elected by direct popular vote. Legislative—The People’s Consultative Assembly (MPR), which includes the 550-member House of Representatives (DPR) and the 128-member Council of Regional Representatives (DPD), both elected to five-year terms. Judicial—Supreme Court.

Suffrage: 17 years of age universal and married persons regardless of age.

Economy

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

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

Inflation: (2005) 10.5%;: (2006 est.) 6.1%.

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

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.

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.

PEOPLE

Indonesia’s approximately 245.5 million people make it the world’s fourth-most populous nation. The island of Java, roughly the size of New York State, is the most populous island in the world (124 million, 2005 est.) and one of the most densely populated areas in the world. Indonesia includes numerous related but distinct cultural and linguistic groups, many of which are ethnically Malay. Since independence, Bahasa Indonesia (the national language, a form of Malay) has spread throughout the archipelago and has become the language of most written communication, education, government, business, and media. Local languages are still important in many areas, however. English is the most widely spoken foreign language. Education is compulsory for children through grade 9. In primary school, 94% of eligible children are enrolled whereas 57% of eligible children are enrolled in secondary school.

Constitutional guarantees of religious freedom apply to the six religions recognized by the state, namely Islam (88%), Protestantism (5%), Catholicism (3%), Buddhism (2%), Hinduism (1%) and Confucianism (less than 1%). In the resort island of Bali, over 90% of the population practices Hinduism. In some remote areas, animism is still practiced.

HISTORY

By the time of the Renaissance, the islands of Java and Sumatra had already enjoyed a 1,000-year heritage of advanced civilization spanning two major empires. During the 7th-14th centuries, the Buddhist kingdom of Srivijaya flourished on Sumatra. At its peak, the Srivijaya Empire reached as far as West Java and the Malay Peninsula. Also by the 14th century, the Hindu Kingdom of Majapahit had risen in eastern Java. Gadjah Mada, the empire’s chief minister from 1331 to 1364, succeeded in gaining allegiance from most of what is now modern Indonesia and much of the Malay archipelago as well. Legacies from Gadjah Mada’s time include a codification of law and an epic poem. Islam arrived in Indonesia sometime during the 12th century and, through assimilation, supplanted Hinduism by the end of the 16th century in Java and Sumatra. Bali, however, remains overwhelmingly Hindu. In the eastern archipelago, both Christian and Islamic proselytizing took place in the 16th and 17th centuries, and, currently, there are large communities of both religions on these islands.

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.

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.

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.

Unsuccessful rebellions on Sumatra, Sulawesi, West Java, and other islands beginning in 1958, plus a failure by the constituent assembly to develop a new constitution, weakened the parliamentary system. Consequently, in 1959, when President Soekarno unilaterally revived the provisional 1945 constitution that gave broad presidential powers, he met little resistance. From 1959 to 1965, President Soekarno imposed an authoritarian regime under the label

of “Guided Democracy.” He also moved Indonesia’s foreign policy toward nonalignment, a foreign policy stance supported by other prominent leaders of former colonies who rejected formal alliances with either the West or Soviet bloc. Under Soekarno’s auspices, these leaders gathered in Bandung, West Java in 1955 to lay the groundwork for what became known as the Non-Aligned Movement. In the late 1950s and early 1960s, President Soekarno moved closer to Asian communist states and toward the Indonesian Communist Party (PKI) in domestic affairs. Though the PKI represented the largest communist party outside the Soviet Union and China, its mass support base never demonstrated an ideological adherence typical of communist parties in other countries.

By 1965, the PKI controlled many of the mass civic and cultural organizations that Soekarno had established to mobilize support for his regime and, with Soekarno’s acquiescence, embarked on a campaign to establish a “Fifth Column” by arming its supporters. Army leaders resisted this campaign. Under circumstances that have never been fully explained, on October 1, 1965, PKI sympathizers within the military, including elements from Soekarno’s palace guard, occupied key locations in Jakarta and kidnapped and murdered six senior generals. Major General Soeharto, the commander of the Army Strategic Reserve, rallied army troops opposed to the PKI to reestablish control over the city. Violence swept throughout Indonesia in the aftermath of the October 1 events and unsettled conditions persisted through 1966. Right-wing gangs killed tens of thousands of alleged communists in rural areas. Estimates of the number of deaths range between 160,000 and 500,000. The violence was especially brutal in Java and Bali. During this period, PKI members by the tens of thousands turned in their membership cards. The emotions and fears of instability created by this crisis persisted for many years as the communist party remains banned from Indonesia.

Throughout the 1965-66 period, President Soekarno vainly attempted to restore his political stature and shift the country back to its pre-October 1965 position. Although he remained President, in March 1966, Soekarno transferred key political and military powers to General Soeharto, who by that time had become head of the armed forces. In March 1967, the Provisional People’s Consultative Assembly (MPRS) named General Soeharto acting President. Soekarno ceased to be a political force and lived under virtual house arrest until his death in 1970.

President Soeharto proclaimed a “New Order” in Indonesian politics and dramatically shifted foreign and domestic policies away from the course set in Soekarno’s final years. The New Order established economic rehabilitation and development as its primary goals and pursued its policies through an administrative structure dominated by the military but with advice from Western-educated economic experts. In 1968, the People’s Consultative Assembly (MPR) formally selected Soeharto to a full five-year term as President and he was re-elected to successive 5-year terms in 1973, 1978, 1983, 1988, 1993, and 1998. In mid-1997, Indonesia suffered from the Asian financial and economic crisis, accompanied by the worst drought in 50 years and falling prices for oil, gas, and other commodity exports. As the exchange rate changed from a fixed to a managed float to fully floating, the rupiah depreciated in value, inflation increased significantly, and capital flight accelerated. Demonstrators, initially led by students, called for Soeharto’s resignation. Amid widespread civil unrest, Soeharto resigned on May 21, 1998, three months after the MPR had selected him for a seventh term. Soeharto’s hand-picked Vice President, B.J. Habibie, became Indonesia’s third President. President Habibie reestablished International Monetary Fund (IMF) and donor community support for an economic stabilization program. He released several prominent political and labor prisoners, initiated investigations into the unrest, and lifted controls on the press, political parties, and labor unions.

In January 1999, Habibie and the Indonesian Government agreed to a process, with UN involvement, under which the people of East Timor would be allowed to choose between autonomy and independence through a direct ballot held on August 30, 1999. Some 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 and destruction after the announcement of the pro-independence vote.

Indonesia’s first elections in the post-Soeharto period were held for the national, provincial, and sub-provincial parliaments on June 7, 1999. Forty-eight political parties participated in the elections. For the national parliament, Partai Demokrasi Indonesia Perjuangan (PDI-P, Indonesian Democratic Party of Struggle led by Megawati Soekarnoputri) won 34% of the vote; Golkar (“Functional Groups” party) 22%; Partai Kebangkitan Bangsa (PKB, National Awakening Party linked to the conservative Islamic organization Nadhlatul Ulama headed by former President Abdurrahman Wahid) 13%; and Partai Persatuan Pembangunan (PPP, United Development Party led by Hamzah Haz) 11%. The MPR selected Abdurrahman Wahid as Indonesia’s fourth President in November 1999 and replaced him with Megawati Soekarnoputri in July 2001.

The constitution, as amended in the post-Soeharto era, provides for the direct election by popular vote of the president and vice president. Under the 2004 amendment, only parties or coalitions of parties that gained at least 3% of the House of Representatives (DPR) seats or 5% of the vote in national legislative elections were eligible to nominate a presidential and vice presidential ticket. The 2004 legislative elections took place on April 5 and were considered to be generally free and fair. PDI-P lost its plurality in the House of Representatives, dropping to under 19% of the total vote, while Golkar remained near 1999 levels with 21% of the vote. Five other parties won between 6 and 11% of the national vote. Of the 18 other parties that participated, nine won small numbers of seats in the DPR. The first direct presidential election was held on July 5, 2004, contested by five tickets. As no candidate won at least 50% of the vote, a runoff election was held between the top two candidates, President Megawati Sukarnoputri and retired General Susilo Bambang Yudhoyono, on September 20, 2004. In this final round, Yudhoyono won 60.6% of the vote. Approximately 76.6% of the eligible voters participated, a total of roughly 117 million people, making Indonesia’s presidential election the largest single-day election in the world. The Carter Center, which sent a delegation of election observers, issued a statement congratulating “the people and leaders of Indonesia for the successful conduct of the presidential election and the peaceful atmosphere that has prevailed throughout the ongoing democratic transition.”

Natural disasters have devastated many parts of Indonesia over the past few years. On December 26, 2004 a 9.1 to 9.3 magnitude earthquake took place in the Indian Ocean, and the resulting tsunami killed over 130,000 people in Aceh and left more than 500,000 homeless. On March 26, 2005, an 8.7 magnitude earthquake struck between Aceh and northern Sumatra, killing 905 people and displacing tens of thousands. After much media attention of the seismic activity on Mt. Merapi in April and May 2006, a 6.2 magnitude earthquake occurred 30 miles to the southwest. It killed over 5,000 people and left an estimated 200,000 people homeless in the Yogyakarta region.

GOVERNMENT AND POLITICAL CONDITIONS

Indonesia is a republic based on the 1945 constitution providing for a separation of executive, legislative, and judicial power. Substantial restructuring has occurred since President Soeharto’s resignation in 1998 and the short, transitional Habibie administration in 1998 and 1999. The Habibie government established political reform legislation that formally set up new rules for the electoral system, the House of Representatives (DPR), the People’s Consultative Assembly (MPR), and political parties without changing the 1945 Indonesian constitution. After these reforms, the constitution now limits the president to two terms in office.

The president, elected for a five-year term, is the top government and political figure. The president and the vice president were elected by popular vote for the first time on September 20, 2004. Previously, the MPR selected Indonesia’s president. In 1999, the MPR selected Abdurrahman Wahid, also known as Gus Dur, as the fourth President. The MPR removed Gus Dur in July 2001, immediately appointing then-Vice President Megawati Soekarnoputri as the fifth President. Megawati brought a certain amount of stability to Indonesia, yet there were concerns over progress on combating corruption and encouraging economic growth. In 2004, Susilo Bambang Yudhoyono was elected to succeed Megawati.

The president, assisted by an appointed cabinet, has the authority to conduct the administration of the government. President Yudhoyono’s Democratic Party (PD), holds 55 of the 550 seats in the House of Representatives (DPR), making it the fourth-largest political party represented in the legislature as of mid-2006. Yudhoyono, however, also had the support of other political parties that combined to hold a majority of the seats in the DPR. The People’s Consultative Assembly (MPR) has 678 members, consisting of the 550 members of the DPR and the 128 representatives of the House of Regional Representatives (DPD), which includes four members from each of Indonesia’s 32 provinces. Since 2004, all seats in the DPR and DPD have been held by legislators elected by the citizenry. Previously, some seats had been reserved for representatives of the armed forces. The military has been a significant political force throughout Indonesian history.

The armed forces shaped the political environment and provided leadership for Soeharto’s New Order from the time it came to power in the wake of the abortive 1965 uprising. Military officers, especially from the army, were key advisers to Soeharto and Habibie and had considerable influence on policy. Under the dual function concept (“dwifungsi”), the military asserted a continuing role in socio-political affairs. This concept was used to justify placement of officers to serve in the civilian bureaucracy at all government levels. Although the military retains influence and is one of the only truly national institutions, the wide-ranging democratic reforms instituted since 1999 abolished “dwifungsi” and ended the armed forces’ formal involvement in government administration. The police have been separated from the military, further reducing the military’s direct role in governmental matters. Control of the military by the democratically elected government has been strengthened.

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

Last Updated: 2/7/2006

President: Susilo Bambang YUDHOYONO

Vice President: Muhammad Yusuf KALLA

Coordinating Min. for Economic Affairs: BOEDIONO

Coordinating Min. for the People’s Welfare: Aburizal BAKRIE

Coordinating Min. for Political, Legal, & Security Affairs: WIDODO Adi Sutjipto

Min. of Agriculture: Anton APRIYANTONO

Min. for Communication & Information: Sofyan A. DJALIL

Min. for Cooperatives & Small & Medium Enterprises: Suryadharma ALI

Min. of Culture & Tourism: Jero WACIK

Min. of Defense: Juwono SUDARSONO

Min. for the Development of Disadvantaged Regions: SYAIFULLAH Yusuf

Min. of Education: Bambang SUDIBYO

Min. for Energy & Mineral Resources: PURNOMO Yusgiantoro

Min. for the Environment: Rachmat WITOELAR

Min. of Finance: SRI MULYANI Indrawati

Min. of Foreign Affairs: Noer Hasan WIRAJUDA

Min. of Forestry: M. S. KABAN

Min. of Health: Siti Fadilah SUPARI

Min. of Home Affairs: Muhammad MA’RUF

Min. of Industry: Andung NITIMIHARJA

Min. of Justice & Human Rights: HAMID Awaluddin

Min. of Manpower & Transmigration: Fahmi IDRIS

Min. of Maritime Affairs & Fisheries: Freddy NUMBERI

Min. for National Development Planning: Paskah SUZETTA

Min. for People’s Housing: Mohammad Yusuf ASYARI

Min. of Public Works: Joko KIRMANTO

Min. of Religion: Muhammad Maftuh BASYUNI

Min. of Research & Technology: KUSMAYANTO Kadiman

Min. of Social Affairs: Bachtiar CHAMSYAH

Min. for State Apparatus Reform: Taufiq EFFENDI

Min. for State-Owned Enterprises: SUGIHARTO

Min. of Trade: Mari Elka PANGESTU

Min. of Transportation: Hatta RAJASA

Min. for Women’s Empowerment: Meutia Farida HATTA Swasono

Min. for Youth & Sports: Adhyaksa DAULT

Attorney General: Abdul Rahman SALEH

Cabinet Secretary: Sudi SILALAHI

State Secretary: Yusril Izha MAHENDRA

Director, State Intelligence Agency (BIN) (Acting): Said Ali AS’AT

Governor, Bank Indonesia: Burhanuddin ABDULLAH

Ambassador to the US: SUDJADNAN Parnohadiningrat

Permanent Representative to the UN, New York: Rezlan Ishar JENIE

The Embassy of Indonesia is at 2020 Massachusetts Avenue NW, Washington, DC 20036 (tel. 202-775-5200-5207; fax: 202-775-5365). Consulates General are in New York (5 East 68th Street, New York, NY 10021, tel. 212-879-0600/0615; fax: 212-570-6206); Los Angeles (3457 Wilshire Blvd., Los Angeles, CA 90010; tel. 213-383-5126; fax: 213-487-3971); Houston (10900 Richmond Ave., Houston, TX 77042; tel. 713-785-1691; fax: 713-780-9644). Consulates are in San Francisco (1111 Columbus Avenue, San Francisco, CA 94133; tel. 415-474-9571; fax: 415-441-4320); and Chicago (2 Illinois Center, Suite 1422233 N. Michigan Avenue, Chicago, IL 60601; tel. 312-938-0101/4; 312-938-0311/0312; fax: 312-938-3148).

ECONOMY

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%.

Economic Policy

After he took office on October 20, 2004, President Yudhoyono moved quickly to implement a “pro-growth, pro-poor, pro-employment” economic program. He appointed a respected group of economic ministers who announced a “100-Day Agenda” of short-term policy actions designed to energize the bureaucracy. President Yudhoyono also announced an ambitious anticorruption plan in December 2004. The State Ministry of National Development Planning (BAPPENAS) released in early 2005 a Medium Term Plan focusing on four broad objectives: creating a safe and peaceful Indonesia; creating a just and democratic Indonesia; creating a prosperous Indonesia; and establishing a stable macroeconomic framework for development. President Yudhoyono reshuffled his cabinet in December 2005, appointing former Finance Minister Boediono as Coordinating Minister for Economic Affairs, and moving Sri Mulyani Indrawati from the National Development Planning Agency to the Finance Ministry. In early 2006, the Government of Indonesia announced new policy packages for stimulating investment and infrastructure.

The Yudhoyono Administration has targeted average growth of 6.6% from 2004-2009 to reduce unemployment and poverty significantly. Indonesia’s overall macroeconomic picture is stable and improving. By 2004, real GDP per capita returned to pre-financial crisis levels. In 2005, domestic consumption continued to account for the largest portion of GDP, at 65.4%, followed by investment at 22%, government consumption at 8.2%, and net exports at 4.3%. In evidence of an accelerating economy, investment realization doubled in 2005. Capital goods imports increased 35.9% in 2005, a further indication of a strengthening economy.

The government raised fuel prices by an average of 126% on October 1, 2005 in an effort to reduce Indonesia’s fuel subsidy burden, projected to reach Rp 89.2 trillion in 2005, or 3.3% of GDP. The fuel price hikes led to a surge in inflation as consumer price inflation reached 10.5% for 2005 and an estimated 13.2% for 2006. The Indonesian Government implemented a quarterly cash compensation package for low-income families and an extra range of benefits including subsidized rice, improved health and social services, housing subsidies, micro credit, and family planning programs.

Banking Sector

Indonesia currently has 131 banks, of which 41 are under the control of foreign investors. The top ten banks control about 80% of assets in the sector. Four state-owned banks (Bank Mandiri, BNI, BRI, BTN) continue to dominate the sector with approximately 40% of assets. The Indonesian central bank, Bank Indonesia (BI), announced plans in January 2005 to strengthen the banking sector by encouraging consolidation and improving prudential banking and supervision. BI hopes to encourage small banks with less than Rp 100 billion (about U.S. $11 million) in capital to either raise more capital or merge with healthier “anchor banks” before 2009, announcing the criteria for anchor banks in July 2005. BI plans to adopt Basel II standards beginning in 2008 and is establishing a credit bureau to centralize data on borrowers. Another important reform was the decision to gradually reduce the blanket guarantee on bank third-party liabilities. BI and the Indonesian Government will replace the blanket guarantee with a deposit insurance scheme run by the independent Indonesian Deposit Insurance Agency (also known by its Indonesian acronym, LPS). Sharia banking has grown considerably in Indonesia in recent years, representing 1.4% of the banking sector, about $2.2 billion in assets at the end of 2005.

Exports and Trade

Indonesia’s exports grew to a record $86.2 billion in 2005, an increase of 19.4% from 2004, and are estimated to reach $91.2 billion in 2006. The largest export commodities through November 2006 were oil and gas (21.2%), minerals (12.3%), electrical appliances (11.7%), rubber products (5.6%), and textiles (3.4%), As of November 2006, the top four destinations for exports for the year were Japan (15.2%), the U.S. (13.9%), Singapore (9.8%), and China (6.9%). Meanwhile, total imports increased to $63.9 billion in 2005 and are estimated to be $70.4 billion in 2006. As of November 2006, total imports are $56.1 billion, including: raw materials & intermediaries ($43.4 billion), capital goods ($8.3 billion), and consumer goods ($4.4 billion).

The U.S. trade deficit with Indonesia decreased by 13.3% in 2005 to $5.9 billion ($3.9 billion in exports versus $9.9 billion in imports).

Oil and Minerals Sector

Indonesia, the only Asian member of the Organization of Petroleum Exporting Countries (OPEC), ranks 22nd among world oil producers (according to 2005 estimates), with about 1.8% of world production. Crude and condensate output averaged 1.06 million barrels per day (b/d) in 2005. In 2005, the oil and gas sector, including refining, contributed $19.2 billion, or 22.5% of total export earnings and about 30% of government revenues, a greater percentage than recent years due to high world oil prices. U.S. companies have invested heavily in the petroleum sector. Due to limited refining capacity and growing domestic demand for petroleum fuels, Indonesia became a net oil importer in 2004 and continued to be a net oil importer through 2006. Indonesia, which ranks eighth in world gas production, is still the world’s number one exporter of liquefied natural gas (LNG), though its world market share has declined from 32% in 1998 to approximately 19% in 2004. Despite the declining trends, Indonesia’s oil and gas trade balance remained positive at $1.8 billion in 2005 and was forecast to be $2.3 billion for 2006.

Although minerals production traditionally centered on bauxite, silver, and tin, Indonesia is expanding its copper, nickel, gold, and coal output for export markets. In mid-1993, the Energy Ministry reopened the coal sector to foreign investment. Total coal production reached 144.5 million metric tons in 2005, including exports of 104.8 million tons. Two U.S. firms operate three copper/gold mines in Indonesia, with a Canadian and U.K. firm holding significant investments in nickel and gold, respectively. Indonesian gold production in 2005 was 167 tons, up almost 50% from 2004 production, but still below the 2001 peak of 180 tons. Production mainly came from Freeport’s Grasberg mine, the world’s biggest gold-producing mine. Indonesia’s share of global exploration spending has dropped from 3 to 1%. Since 1998, only three new gold mines have opened. This decline does not reflect Indonesia’s mineral prospects, which are high; rather the decline reflects uncertainty over mining laws and regulations, low competitiveness in the tax and royalty system, and investor concerns over divestment policies and the sanctity of contracts.

Investment

Since the late 1980s, Indonesia has made significant changes to its regulatory framework to encourage investment and economic growth. This growth was financed largely from private investment, both foreign and domestic. U.S. investors provided a majority of the investment in the oil and gas sector and undertook some of Indonesia’s largest mining projects. In addition, the presence of U.S. banks, manufacturers, and service providers expanded, especially after the industrial and financial sector reforms of the 1980s. While many petroleum and mining investors remained after the 1997 financial crisis, the number of U.S. investors in other sectors declined. Other major foreign investors include Japan, the United Kingdom, Singapore, the Netherlands, Hong Kong, Taiwan, and South Korea. Infrastructure investment declined steadily after the financial crisis and has not yet recovered. In November 2006, however, the Indonesian Government announced that it is opening up 110 infrastructure projects valued at $16.5 billion and is working on 120 regulations to encourage infrastructure investment.

President Yudhoyono and his economic ministers have stated repeatedly their intention to improve the climate for private sector investment in order to raise the level of GDP growth and reduce unemployment. In addition to general corruption and legal uncertainty, businesses have cited a number of specific factors that have reduced the competitiveness of Indonesia’s investment climate, including: corrupt and inefficient customs services; non-transparent and arbitrary tax administration; inflexible labor markets that have reduced Indonesia’s advantage in labor-intensive manufacturing; increasing infrastructure bottlenecks; and uncompetitive investment laws and regulations. In February 2006, the Indonesian Government announced a new policy package to improve the investment climate in Indonesia for both domestic and foreign investors. The package, announced in Presidential Instruction (INPRES) No. 3/2006, consists of policies designed to strengthen investment services, harmonize central and regional regulations (Perda), improve customs, excise, and taxation services, create jobs, and support small and medium enterprises. However, labor reforms planned for 2006 have been delayed in parliament.

The passage of a new copyright law in July 2002 and accompanying optical disc regulations in 2004 greatly strengthened Indonesia’s intellectual property rights (IPR) regime. Despite the government’s recent efforts to improve enforcement, IPR piracy remains a major concern to U.S. intellectual property holders and foreign investors, particularly in the high-technology sector. In March 2006, President Yudhoyono issued a decree establishing a National Task Force for IPR Violation Prevention. The IPR Task Force will formulate national policy to prevent IPR violations and determine additional resources needed for prevention. It will also help to educate the public through various activities and improve bilateral, regional, and multilateral cooperation to prevent IPR violations. Due to these positive developments on IPR issues, Indonesia was removed from the U.S. Trade Representative’s “Priority Watch” list and placed on the “Watch” list.

NATIONAL SECURITY

Indonesia’s armed forces (Tentara Nasional Indonesia, or TNI) total approximately 350,000 members, including the army, navy, marines, and air force. The army is the largest branch with about 280,000 active-duty personnel. Defense spending in the national budget accounts for 1.8% of GDP, but is supplemented by revenue from many military businesses and foundations.

The Indonesian National Police were a branch of the armed forces for many years. The police were formally separated from the military in April 1999, a process that was formally completed in July 2000. With 250,000 personnel, the police represent a much smaller portion of the population than in most nations.

Indonesia has peaceful relations with its neighbors. Without a credible external threat in the region, the military historically viewed its prime mission as assuring internal security. Military leaders have said that they wish to transform the military to a professional, external security force, providing domestic support to civilian security forces as necessary.

Throughout Indonesian history, the military maintained a prominent role in the nation’s political and social affairs. A significant number of cabinet members have had military backgrounds, while active duty and retired military personnel occupied a large number of seats in the parliament. Commanders of the various territorial commands played influential roles in the affairs of their respective regions. With the inauguration of the newly-elected national parliament in October 2004, the military no longer has a formal political role, although it retains important political influence.

FOREIGN RELATIONS

Since independence in 1945, Indonesia has espoused a “free and active” foreign policy, seeking to play a role in regional affairs commensurate with its size and location but avoiding involvement in conflicts among major powers. Indonesian foreign policy under the “New Order” government of President Soeharto moved away from the stridently anti-Western, anti-American posturing that characterized the latter part of the Soekarno era. Following Soeharto’s ouster in 1998, Indonesia’s Presidents have preserved the broad outlines of Soeharto’s independent, moderate foreign policy. The traumatic separation of East Timor from Indonesia after an August 1999 East Timor referendum, and subsequent events in East and West Timor, strained Indonesia’s relations with the international community.

A cornerstone of Indonesia’s contemporary foreign policy is its participation in the Association of Southeast Asian Nations (ASEAN), of which it was a founding member in 1967 with Thailand, Malaysia, Singapore, and the Philippines. Since then, Brunei, Vietnam, Laos, Burma, and Cambodia also have joined ASEAN. While organized to promote common economic, social, and cultural goals, ASEAN acquired a security dimension after Vietnam’s invasion of Cambodia in 1979. The security policy aspect of ASEAN expanded with the establishment of the ASEAN Regional Forum in 1994, in which 22 countries participate, including the United States. At ASEAN’s Bali Summit in October 2003, the organization undertook to create an ASEAN Community characterized by greater integration in the areas of political and security affairs, economics, and socio-cultural affairs. Indonesia was a strong proponent of this initiative. Indonesia also was one of the founders of the Non-Aligned Movement (NAM) and has taken moderate positions in its councils. As NAM Chairman in 1992-95, Indonesia led NAM positions away from the rhetoric of North-South confrontation, advocating instead the broadening of North-South cooperation in the area of development. Indonesia continues to be a prominent leader of the Non-Aligned Movement.

A secular state, Indonesia has the world’s largest Muslim population and is a member of the Organization of the Islamic Conference (OIC). It carefully considers the interests of Islamic solidarity in its foreign policy decisions while providing a moderating influence in the OIC. President Wahid, for example, pursued better relations with Israel.

After 1966, Indonesia welcomed and maintained close relations with the donor community, particularly the United States, Western Europe, Australia, and Japan, through the Inter-governmental Group on Indonesia (IGGI) and its successor, the Consultative Group on Indonesia (CGI), which have provided substantial foreign economic assistance. Donors remain committed to helping Indonesia reform, but express increasing frustration with poor governance and implementation.

Indonesia has been a strong supporter of the Asia-Pacific Economic Cooperation (APEC) forum. Largely through the efforts of President Soeharto at the 1994 meeting in Bogor, Indonesia, APEC members agreed to implement free trade in the region by 2010 for industrialized economies and 2020 for developing economies. Indonesia often supports Non-Aligned Movement (NAM) and Group of 77 (G-77) foreign policy views, taking positions regarding human rights contrary to the United States. In May 2005, the Yudhoyono administration, in a major effort to reinvigorate its leadership of the NAM and reset the movement’s future course, hosted an Asia-Africa Summit to commemorate the founding of the NAM in Bandung, Indonesia in 1955.

President Yudhoyono has sought a higher international profile for Indonesia. In March 2006, Yudhoyono traveled to Burma to discuss democratic reform and visited several Middle Eastern countries in April and May 2006. Yudhoyono delivered a major speech in Saudi Arabia, encouraging the Muslim world to embrace globalization and technology for greater social and economic progress. In November 2006, Indonesia sent about 1,000 peacekeeping troops to southern Lebanon to be part of the UN Interim Force in Lebanon (UNIFIL). In 2007 and 2008, Indonesia holds a non-permanent seat on the UN Security Council.

U.S.-INDONESIAN RELATIONS

The United States has important economic, commercial, and security interests in Indonesia. It remains a linchpin of regional security due to its strategic location astride a number of key international maritime straits, particularly the Malacca Strait. Relations between Indonesia and the U.S. are positive and have advanced since the election of President Yudhoyono in October 2004. The U.S. played a role in Indonesian independence in the late 1940s and appreciated Indo-nesia’s role as an anti-communist bulwark during the Cold War. Cooperative relations are maintained today, although no formal security treaties bind the two countries. The United States and Indonesia share the common goal of maintaining peace, security, and stability in the region and engaging in a dialogue on threats to regional security. Cooperation between the U.S. and Indonesia on counter-terrorism has increased steadily since 2002, as terrorist attacks in Bali (October 2002 and October 2005), Jakarta (August 2003 and September 2004) and other regional locations demonstrated the presence of terrorist organizations, principally Jemaah Islamiyah, in Indonesia. The United States has welcomed Indonesia’s contributions to regional security, especially its leading role in helping restore democracy in Cambodia and in mediating territorial disputes in the South China Sea.

The U.S. is committed to consolidating Indonesia’s democratic transition and supports the territorial integrity of the country. Nonetheless, there are friction points in the bilateral political relationship.

These conflicts have centered primarily on human rights, as well as on differences in foreign policy. The U.S. Congress cut off grant military training assistance through International Military Education and Training (IMET) to Indonesia in 1992 in response to a November 12, 1991, incident in East Timor when Indonesian security forces shot and killed East Timorese demonstrators. This restriction was partially lifted in 1995. Military assistance programs were again suspended, however, in the aftermath of the violence and destruction in East Timor following the August 30, 1999 referendum favoring independence.

Separately, the U.S. had urged the Indonesian Government to identify and bring to justice the perpetrators of the August 2002 ambush murders of two U.S. teachers near Timika in Papua province. In 2005, the Secretary of State certified that Indonesian cooperation in the murder investigation had met the conditions set by Congress, enabling the resumption of full IMET. Eight suspects were arrested in January 2006, and in November 2006 seven were convicted.

In November 2005, the Under Secretary of State for Political Affairs, under authority delegated by the Secretary of State, exercised a National Security Waiver provision provided in the FY 2005 Foreign Operations Appropriations Act to remove congressional restrictions on Foreign Military Financing (FMF) and lethal defense articles. These actions represented a reestablishment of normalized military relations, allowing the U.S. to provide greater support for Indonesian efforts to reform the military, increase its ability to respond to national and regional disasters, and promote regional stability.

Regarding worker rights, Indonesia was the target of several petitions filed under the Generalized System of Preferences (GSP) legislation arguing that Indonesia did not meet internationally recognized labor standards. A formal GSP review was suspended in February 1994 without terminating GSP benefits for Indonesia.

Since 1998, Indonesia has ratified all eight International Labor Organization core conventions on protecting internationally recognized worker rights and allowed trade unions to organize. However, enforcement of labor laws and protection of workers rights remains inconsistent and weak in some areas. Indonesia’s slow economic recovery has pushed more workers into the informal sector, which reduces legal protection and could create conditions for increases in child labor.

Development Assistance from the United States to Indonesia

The U.S. Agency for International Development (USAID) and its predecessors have provided development assistance to Indonesia since 1950. Initial assistance focused on the most urgent needs of the new republic, including food aid, infrastructure rehabilitation, health care, and training. Through the 1970s, a time of great economic growth in Indonesia, USAID played a major role in helping the country achieve self-sufficiency in rice production and in reducing the birth rate.

Today, USAID assistance programs focus on basic education, democratic governance, rebuilding after the tsunami, economic growth, health, water, food, and the environment.

Improving the Quality of Decentralized Education: In October 2003, President Bush announced a $157 million Indonesian Education Initiative for 2004-2009 to improve the quality of education in Indonesia. This initiative is a cornerstone of the U.S. Government assistance program in Indonesia, directly responding to Indonesia’s priorities and reflecting a joint Indonesia-U.S. commitment to revitalize education for the next generation of Indonesia’s leaders.

Managing Basic Education (MBE): Since 2003, this project has worked with local governments to strengthen their capacity to effectively manage basic education services in 20 districts/municipalities in East and Central Java, Aceh, and Jakarta. MBE is also working with 10,000 educators to improve the quality of teaching and learning in grades 1-9 through in-service teacher training, community participation, and the promotion of school-based management. MBE directly reaches 450 schools, 20% of which are madrassah, and 140,000 students. Through dissemination of good practices, teachers from 2,000 additional schools received training last year.

Decentralized Basic Education (DBE): The Indonesia Education Initiative will increase the quality of basic education in primary and junior secondary schools, both public and private, and focus on three results: (DBE1) Local governments and communities more effectively manage education services; (DBE2) Enhance the quality of teaching and learning to improve student performance in key subjects such as math, science, and reading; and (DBE3) Youth gain more relevant life and work skills to better compete for jobs in the future.

Opportunities for Vulnerable Children: This program promotes inclusive education in Indonesia. Children with special needs such as visual impairment are provided the opportunity to be educated in public schools. Replicable models are being developed to expand the reach of the program.

Sesame Street Indonesia: A new Indonesian co-production of the award-winning television show targeting young children is being developed and produced by the Sesame Workshop in New York with local Indonesian partners and USAID funding. Millions of Indonesian children will be better equipped to start school. The first season is scheduled to air in mid-2007.

Effective Democracy and Decentralized Governance: This objective aims to support democratic reforms by supporting effective and accountable local governance, addressing conflict and encouraging pluralism, and consolidating national-level democratic reforms.

Mitigation of Conflict and Support for Peace: USAID remains a key donor working to mitigate conflict and support peace in conflict areas, such as Aceh, Papua, Sulawesi, and Ambon. Assistance activities focus on: conflict resolution/mitigation; civilian-military affairs; livelihoods development in conflict areas; drafting and monitoring of relevant legislation; and emergency and post-conflict transitional assistance to conflict affected persons.

Anti-Trafficking In Persons: USAID’s anti-trafficking programs work closely with the Ministry of Women’s Empowerment and civil society groups in policy making, program development, victim support, and dissemination of information which will contribute to reducing the trafficking of women and children in Indonesia.

Justice Sector Reforms: Through the Democratic Reform Support Program and Justice Sector Reform Program, USAID’s current Justice Sector programs provide technical assistance and training to judges, prosecutors and staff members at the Supreme Court, the Constitutional Court, and the Attorney General’s Office.

Legislative Strengthening: Technical assistance and training are provided to strengthen the legislative and legal drafting skills of parliamentarians as well as provide institutional support to the National House of Representatives, National Regional Representative Council, nine provincial legislative councils and 40 district-level legislative councils. Activities include promoting constituency and media outreach; developing the capacity to draft and analyze legislation and operational budgets; creating inter-party coalitions; encouraging legislative commissions to carry-out their functions, and perform strategic planning.

The Local Governance Support Program: Currently assisting 60 local governments, this program works to increase governmental accountability and transparency, strengthen the local legislative process, promote citizen engagement and civil service reform, and improve the delivery of basic services.

Media Development: In October 2005, USAID funded a new media development project entitled “Building on the Foundations: Strengthening Professional, Responsible and Responsive Broadcast Media in Indonesia.” The goal of the program is to build professional, information-based local media that are responsive to the development and reform of districts across Indonesia. The program assists local radio stations in North Sumatra, Aceh and Java, fostering dialogue on media regulations, and providing support for Media and Media Education in Aceh.

Tsunami Reconstruction: The U.S. Government was one of the first donors to respond to the disaster, and remains one of the largest contributors to relief and reconstruction efforts in Indonesia. Through numerous grants to non-governmental organizations (NGOs), international organizations, and UN agencies, USAID has helped stabilize the humanitarian situation in Aceh, avert a public health crisis, and provide relief services to survivors.

Rebuilding Shelter and Key Infrastructure: USAID is assisting communities by providing much needed shelter, working with the Indonesian Government to rebuild key infrastructure, and ensuring proper mapping and planning is considered through local cooperation.

Restoring Livelihoods: USAID enables communities to direct capacity building to benefit people at the local level. USAID’s Community Based Recovery Initiative is working with 59 villages to organize local capacity-building initiatives.

Strengthening Capacity and Governance: USAID is providing assistance to restore local government services in Aceh, working to increase governmental accountability and transparency, strengthen the local legislative process, promote citizen engagement and civil service reform, and improve the delivery of basic services.

Economic Growth Strengthened and Employment Created: Assistance to the Indonesian Government and private sector focuses on creating jobs by improving the business and investment climate, combating corruption, increasing competitiveness in key sectors, and improving the safety of the financial system. USAID is working with Indonesians to ensure that future generations enjoy an increasingly prosperous, democratic and stable country.

Business Climate and Enterprise Development: Efforts to promote a transparent and predictable legal and regulatory business climate aim to reduce the hidden costs of doing business, to reduce uncertainty, and to promote trade, investment and job creation. USAID delivers technical assistance to leading industry sectors in an effort to fuel growth, exports, jobs, and prosperity. These efforts drive increased productivity and national competitiveness by forging stronger coalitions of public, private, and civil society advocates for legal, regulatory, and policy change.

Financial Sector Safety and Soundness: USAID is working to improve the oversight of bank and non-bank financial intermediaries in order to promote safety and soundness in the financial system and to improve transparency and governance.

Improving the Quality of Basic Human Services: The USAID Basic Human Services Office provides assistance to Indonesia through an integrated strategy combining health, food/nutrition, and environmental management and water services at the district and community levels.

Environmental Services: This program supports better health through improved water resources management and expanded access to clean water and sanitation services. With a ridge to reef approach, partners improve water resource management from watershed sources, along rivers, through cities, and to coastal reefs. In the upper watershed, the program promotes forest management, biodiversity conservation, and land use planning to protect a steady, year-round source of clean water. Further downstream, the program strengthens municipal water utilities to improve and expand piped water and sanitation services to communities. Stakeholder forums link upstream and downstream communities to build consensus on water and waste management issues. Marginalized urban communities also benefit from the introduction of safe drinking water through Air Rahmat, a home chlorination product being introduced to the market through a public-private partnership.

Health Services: Women, newborns and children are the principal beneficiaries of this integrated public health program. Working with the government, NGOs, and other partners, USAID focuses on maternal, neonatal and child health; reproductive health; nutrition; HIV/AIDS, tuberculosis, malaria; and decentralization of the health sector. Improved health-seeking behaviors within communities link key hygiene promotion interventions, such as hand-washing with soap, in order to reduce diarrheal disease, a major cause of childhood death. New initiatives address challenges from the re-emergence of polio and the outbreak of avian influenza in Indonesia.

Food and Nutrition: Improving the nutritional status of Indonesians, USAID food assistance targets poor communities. These activities directly impact women and children through targeted supplemental feeding and nutritional education activities. The food assistance program works with villages to construct public latrines, washing facilities, protected water stations, and to organize solid waste disposal efforts to better protect community health. Over one million people will be direct recipients of USAID food assistance under this program.

Principal U.S. Embassy Officials

JAKARTA (E) Address: Medan Merdeka Selatan 5; APO/FPO: Box 8129, FPO, AP 96520-8129; Phone: (62-21) 3435-9000; Fax: (62) (21) 386-2259; INMARSAT Tel: 683-142-927; Workweek: M-F 7:30 a.m.-4:00 p.m.; Website: www.usembassyjakarta.org.

AMB:Ambassador B. Lynn Pascoe
AMB OMS:Karen Davis
DCM:John A. Heffern
DCM OMS:Teresa Coddington
CG:Mary Grandfield
POL:Marc Desjardins
CON:Mary Grandfield
MGT:Lawrence Mandel
AFSA:Ruth Hall
AGR:Fred Kessel
AID:William Frej
CLO:Tracy Blair/Rena Hansen
DAO:Col. Kevin Richards
ECO:William Heidt
EEO:Max Kwak
EST:Colette Marcellin
FCS:Richard Rothman
FMO:Ralph Hamilton
GSO:Henry Kaminski
ICASS Chair:Fred Kessel
IMO:David Yeutter
IPO:C. John Rogers
ISO:Ron Lay
ISSO:Ron Lay
LAB:Stanley Harsha
PAO:Michael Anderson
RSO:Earl R. Miller
State ICASS:Colette Marcellin

Last Updated: 11/13/2006

SURABAYA (CG) Address: Jl. Dr. Soetomo 33, Surabaya 60264; APO/FPO: Unit 8131, FPO, AP 96520; Phone: 62-31-295-6400; Fax: (62-31) 567-4492; INMARSAT Tel: 383-134-370; Workweek: Mon-Fri 7:30 a.m to 4:00 p.m.; Website: www.usconsulatesurabaya.us.

PO:Claire Pierangelo
POL/ECO:David S. Williams
MGT:Brian Himmlesteib
CA:Angela Pan
PAO:Mary Beth Polley
RSO:Kevin T. Whitson

Last Updated: 10/31/2006

TRAVEL

Consular Information Sheet : December 28, 2005

Country Description: Indonesia is an independent republic consisting of more than 16,500 islands spread over 3,000 miles. Indonesia’s economy is developing, and tourist services are plentiful in the major tourist areas.

Entry Requirements: A passport valid for at least six months from the date of arrival in Indonesia and an onward/return ticket are required. Indonesian authorities regularly deny entry to Americans who arrive with less than six months validity on their passports. The U.S. Embassy cannot obtain entry permission for Americans in this situation. Travelers will be required to depart for Singapore or a nearby country to obtain a new U.S. passport.

American citizens are required to have a visa to enter Indonesia. U.S. citizens may apply for a visa on arrival at the airports in Jakarta, Bali, Surabaya, Medan and a few other cities. Visas on arrival are available at a limited number of seaports. Visas on arrival are not available at any land border crossing. Travelers should check carefully when planning travel between Indonesia and other countries in the region to be sure their return to Indonesia is through a designated visa on arrival port or airport. Travelers will not be allowed to enter or return to Indonesia at an entry that does not have visa on arrival facilities. All airline passengers, including children, are subject to a rupiah-denominated departure tax, which must be paid by cash. The international departure tax as of July 2005 is 100,000 rupiah; domestic departure taxes are lower and vary by airport.

Visitors may be granted a 3-day visa on arrival for a fee of $10 or a 30-day visa on arrival for a fee of $25. Both visas are non-extendable, and travelers must exit the country to be able to purchase another 3-day or 30-day visa on arrival. U.S. citizens may also apply for a visa at the Indonesian Embassy in Washington, DC or at an Indonesian Consulate in the U.S. A visitor’s visa for business purposes and social/cultural stays of longer duration require a letter of intent/sponsorship from the employer and/or sponsor. For up-to-date information, travelers may contact the Embassy of the Republic of Indonesia: 2020 Massachusetts Ave., N.W., Washington, D.C. 20036 (202) 775-5200; or via Internet, www.embassy-ofindonesia.org. Indonesian Consulates are located in Los Angeles (213) 383-5126, San Francisco (415) 474-9571, Chicago (312) 595-1777, New York (212) 879-0600, and Houston (713) 785-1691.

Indonesia strictly enforces its immigration/visa requirements. Several Westerners, including Americans, have been jailed for visa violations. Violators may also be subject to substantial fines.

Safety and Security: The Department of State continues to urge Americans to defer all non-essential travel to Indonesia. The Department urges Americans who choose to travel to Indonesia despite this warning to observe vigilant personal security precautions and to remain aware of the continued potential for terrorist attacks against Americans, U.S. or other Western interests throughout Indonesia.

The terrorist threat in Indonesia remains high. Attacks could occur at any time and could be directed against any location, including those frequented by foreigners and identifiably American or other Western facilities or businesses in Indonesia. Such targets could include, but are not limited to places where Americans and other Westerners live, congregate, shop, or visit, including hotels, clubs, restaurants, shopping centers, identifiably Western businesses, housing compounds, transportation systems, places of worship, schools, or public recreation events. Attacks could include the targeting of individual American citizens.

The terrorist organization Jemaah Islamiah has cells in several Southeast Asian countries, including Indonesia, and connections with Al Qaeda. A terrorist bombing outside the Australian Embassy in Jakarta on September 9, 2004, killed eleven and injured more than 180 people. An August 2003 terrorist bombing at a major international hotel in Jakarta injured several American citizens, and seven Americans were among over 200 persons killed in a terrorist attack in Bali in October 2002.

The U.S. Mission in Indonesia restricts U.S. government employees’ travel to certain areas of the country and, at times, denies them permission to travel to Indonesia. For the latest security information, contact a U.S. Mission consular office. The U.S. Mission can occasionally suspend service to the public, or close, because of security concerns; in these situations, it will continue to provide emergency services to American citizens.

Sectarian, ethnic, communal and separatist violence continue to threaten personal safety and security in several areas. Over the past three years, domestically targeted bombings have struck religious, political and business targets. In 2003, the Jakarta international airport, an open-air concert in Aceh, and other Indonesian government facilities were bombed.

Americans should avoid travel to Aceh. Northern parts of the island of Sumatra and particularly the province of Aceh, suffered severe damage following an earthquake and series of tsunami waves in December 2004. While reconstruction efforts are underway, communications infrastructure, roads, medical care and tourist facilities on the western and northern coasts of Sumatra, and on coastal islands off Sumatra, were seriously damaged and have not yet been fully restored. Infrastructure on the island of Nias was seriously damaged in an earthquake on March 28, 2005. Adequate lodging facilities are difficult to find in Aceh and Nias. Regulations regarding entry into and permission to remain in Aceh can change at any time. As of March 2005, all foreigners wishing to travel to Aceh require written permission from the Indonesian authorities. Humanitarian workers should be cautious of their security when traveling in Aceh due to the continuing potential for separatist and terrorist violence, which could be directed against American humanitarian assistance workers.

Americans should not travel to Aceh to participate in humanitarian relief efforts except under the auspices of a recognized assistance organization that has permission to operate in Indonesia. Americans participating in relief efforts should make sure that their organization has facilities in place to accommodate and feed staff and a security plan approved by Indonesian authorities. All travelers to Aceh should follow health precautions for travelers to the tsunami area from the U.S. Centers for Disease Control at http://www.cdc.gov/travel.

Americans considering travel to the province of Papua should exercise extreme caution because of sectarian, ethnic, communal and separatist strife. Papua’s on-going separatist conflict has the potential to become violent. In August 2002, two Americans were killed in Papua under unresolved circumstances. Americans should avoid travel to Maluku, in particular the capital city of Ambon. Since April 2004, sectarian violence has killed at least 40 and injured more than 220 people.

Americans should avoid travel to Central, South and Southeast Sulawesi; those considering travel to North Sulawesi should exercise extreme caution. Sporadic violence occurred in Poso and in neighboring areas of Central Sulawesi in 2003 and 2004, resulting in several fatalities. Central Sulawesi’s general security situation remains unstable; bombings and killings occurred in late 2004 and 2005 in Poso and Palu. A bombing May 28, 2005 in a public market in Tentana, near Poso, killed 21 people and injured dozens.

The Philippine-based terrorist Abu Sayyaf Group poses an ongoing kidnapping risk/threat in areas near Malaysia and the Philippines.

American travelers and American residents are urged to update their passports and important personal papers in case it becomes necessary to depart Indonesia quickly. Travel distances, poor communications, and the inadequate health care infrastructure make it extremely difficult for the Embassy to respond to U.S. citizen emergencies. Many parts of Indonesia (including many tourist destinations) are isolated and difficult to reach or contact.

For the latest security information, Americans traveling abroad should regularly monitor the Department’s Internet web site at http://travel.state.gov where the current Travel Warnings and Public Announcements, including the Worldwide Caution Public Announcement, can be found. Up-to-date information on safety and security also can be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays). The Department of State urges American citizens to take responsibility for their own personal security while traveling overseas. For general information about appropriate measures travelers can take to protect themselves in an overseas environment, see the Department of State’s pamphlet A Safe Trip Abroad.

Crime: Indonesia has a high crime rate. Credit card and ATM fraud are growing problems, as are robberies. Crimes such as pick pocketing and theft occur throughout the country. Thieves on motorcycles commit “snatch thefts” where they speed up to a victim from behind and snatch a purse, bag or cellular telephone. Thefts and robberies from cars stopped at traffic lights have been reported on occasion. American citizens are advised to keep car doors locked and windows rolled up. Americans in Jakarta and Surabaya are also advised to engage a taxi either from a major hotel queue or by calling a reputable taxi company, rather than hailing one on the street.

Claiming to act in the name of religious or moral standards, certain extremist groups have, on occasion, attacked nightspots and places of entertainment. Most of these attacks have sought to destroy property rather than to injure individuals. These groups have on occasion threatened to mount hunts for Americans and members of certain religious groups to demand they leave the country. International news events can sometimes trigger anti-American or anti-Western demonstrations.

Americans should carry photocopies of their passports at all times. If stopped and detained, Americans should attempt to comply with all instructions from law enforcement officers, but should also make it clear that they are American citizens and that they wish to contact the U.S. Embassy or U.S. Consulate General. Any incidents should be reported to the U.S. Embassy or U.S. Consulate General immediately.

Maritime piracy is a persistent and growing problem in Indonesian waters, targeting primarily commercial vessels. The majority of piracy attacks occur in the Straits of Malacca between the Riau Province and Singapore and in the waters north of Sulawesi and Kalimantan. Before traveling by sea in these areas, passengers are advised to review the current security situation with their local port agent.

U.S. citizens should exercise prudence when scuba diving, surfing and snorkeling, and when visiting remote tourist locations, as every year several Americans die in accidents while participating in such activities. Surf-ers and divers should be aware that local fishermen in coastal waters off Sumatra may use explosives to facilitate catching quantities of fish, although this practice is illegal in Indonesian waters.

Information for Victims of Crime:

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities: The general level of sanitation and health care in Indonesia is far below U.S. standards. Some routine medical care is available in all major cities, although most expatriates leave the country for serious medical procedures. Serious medical problems requiring hospitalization and/or medical evacuation to Singapore or Australia, the closest locations with acceptable medical care, or the United States, can cost thousands of dollars. Doctors and hospitals often expect immediate cash payment for health services.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Several cases of polio occurred in western Java in mid-2005; the Indonesian Ministry of Health has begun an extensive vaccination campaign for children in the affected region. Travelers are encouraged to consult their personal physicians and the above websites for additional information.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Indonesia is provided for reference only. In general, traffic in Indonesia is congested and undisciplined. The number and variety of vehicles on the road far exceed the capacity of existing roadways to handle the traffic. Road conditions vary from good (in the case of toll roads and major city roads) to dangerously poor.

Generally, road safety awareness is very low in Indonesia, although it is increasing. Buses and trucks are often dangerously overloaded and tend to travel at high speeds. Most roads outside major urban areas have a single lane of traffic in each direction, making passing dangerous. Most Indonesian drivers do not maintain a safe following distance in a manner familiar to U.S. drivers and tend to pass or maneuver with considerably less margin for error than in the United States. Although traffic in Indonesia moves on the left side of the road, drivers tend to pass on both sides and may use the shoulder for this purpose. It is common for drivers to create extra lanes regardless of the lane markings painted on the roads. Throughout the country, motor vehicles share the roads with other forms of transportation such as bicycle pedicabs, horse and ox carts, and push-carts.

Although Indonesia requires the use of seat belts in front seats, most Indonesian automobiles do not have seat belts in the rear passenger seats. The use of infant and child car seats is not common, and it can be very difficult to rent a car seat for temporary use. Helmets are required on motorcycles, but this law is inconsistently enforced. Passengers rarely wear helmets. Accidents on rented motorcycles constitute the largest cause of death and serious accident among foreign visitors to Bali.

Expatriates and affluent Indonesians often use professional drivers. All car rental firms provide drivers for a nominal additional fee. Travelers unfamiliar with Indonesian driving conditions are strongly encouraged to hire drivers.

Driving at night can be extremely dangerous outside of major urban areas. Drivers often refuse to use their lights, and most rural roads are unlit. Sometimes, residents in rural areas use road surfaces as public gathering areas, congregating on them after dark.

When an accident involving personal injury occurs, Indonesian law requires both drivers to await the arrival of a police officer to report the accident. Although Indonesian law requires third party insurance, most Indonesian drivers are uninsured, and even when a vehicle is insured, it is common for insurance companies to refuse to pay damages. Drivers should be aware that ambulance service in Indonesia is unreliable, and that taxis or private cars are often used to transport the injured to a medical facility. In cases of serious injury to a pedestrian, the driver of the vehicle could be required to help transport the injured person to the hospital. When an accident occurs outside a major city, before stopping, it may be advisable to drive to the nearest police station to seek assistance.

Aviation safety and Security oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Indonesia as being in compliance with ICAO international aviation safety standards for oversight of Indonesia’s air carrier operations. For more information, travelers may visit the FAA’s Internet web site at www.faa.gov/avr/iasa/index.cfm.

On December 23, 2005, the Transportation Security Administration (TSA) announced that the Bandara Ngurah Rai International Airport in Bali, Indonesia does not meet international security standards. The U.S. carrier that flies directly between the United States and Indonesia is temporarily providing additional security measures that counter the deficiencies identified at the airport.

TSA representatives will continue to work with Indonesia and to assist local authorities with correcting security deficiencies at the airport as quickly as possible. For more information regarding this action, travelers may visit the DHS Internet web site at www.dhs.gov/dhspublic/theme_home8.jsp.

Special Circumstances: U.S. citizens involved in commercial or property matters should be aware that the business environment is complex, and dispute settlement mechanisms are not highly developed. Local and foreign businesses often cite corruption and ineffective courts as serious problems. Business and regulatory disputes, which would be generally considered administrative or civil matters in the U.S., may be treated as criminal cases in Indonesia. It is often difficult to resolve trade disputes. U.S. citizens frequently experience difficulties when purchasing goods by Internet from Indonesian suppliers with whom the buyer has not met personally. For more information, please refer to the 2003 Country Commercial Guide for Indonesia at http://www.usembassyjakarta.org/ccg/ccg.html.

Counterfeit currency is a problem in Indonesia. Banks, exchange facilities and most commercial establishments do not accept U.S. currency that is worn, defaced, torn or issued before 1996.

U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times, so that, if questioned by local officials, proof of identity and U.S. citizenship are readily available. When U.S. citizens are arrested or detained, formal notification of the arrest is normally provided to the U.S. Embassy in Jakarta in writing, a process that can take several weeks. If detained, U.S. citizens should telephone the nearest U.S. consular office.

Indonesian law does not recognize dual nationality. Because of this, U.S. citizens who are also documented as Indonesian nationals may experience difficulties with immigration formalities in Indonesia. Holding dual citizenship may also hamper the U.S. Embassy or Consulate’s ability to provide consular protection to Americans. In addition to being subject to all Indonesian laws affecting U.S. citizens, dual nationals may also be subject to other laws that impose special obligations on Indonesian citizens.

Customs Regulations: Indonesian customs authorities have strict regulations concerning temporary importation into or export from Indonesia of items such as prescription medicines and foreign material or videotapes. Americans are encouraged to contact the Embassy of Indonesia in Washington or one of Indonesia’s consulates in the United States for specific information about customs requirements. In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines.

Criminal Penalties: Indonesia strictly enforces visa regulations. Immigration officials have detained people for conducting business, academic, or other non-tourist activities while in tourist visa status. Penalties for such immigration/visa violations incur a prison sentence of up to 5 years and a fine of 25 million Rp. Travelers are encouraged to contact an Indonesian consular office to determine the appropriate visa category before traveling to Indonesia.

While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses.

Persons violating Indonesia’s laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Indonesia are severe, and convicted offenders can expect long jail sentences and heavy fines. The death sentence can be given in cases of drug trafficking; several foreigners have been sentenced to death in recent years. One U.S. citizen was given a life sentence for trafficking. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/family.

Registration/Embassy and Consulate Locations: Americans living in or visiting Indonesia are encouraged to register at the Consular Section of the U.S. Embassy in Indonesia and obtain updated information on travel and security within Indonesia. The U.S. Embassy is located in Jakarta at Medan Merdeka Selatan 5; telephone: (62)(21) 3435-9000; fax (62)(21) 385-7189. The Embassy’s web site is http://jakarta.usembassy.gov.

The consular section can be reached by email at [email protected] U.S. citizens can register online at http://jakarta.usembassy.gov/consular/onlinereg.html. To subscribe to the U.S. Embassy Emergency Notification System, please register at http://jakarta.usembassy.gov/consular/Mailwarden.html.

The U.S. Consulate General in Surabaya is at Jalan Raya Dr. Sutomo 33; telephone: (62)(31) 568-2287/8; fax (62)(31) 567-4492; email: [email protected] The consulate should be the first point of contact for Americans needing assistance who are present or residing in the Indonesian provinces of: East and Central Java, Yogyakarta, Nusa Tenggara Timor, Nusa Tenggara Barat, all of Sulawesi and North and South Maluku.

There is a Consular Agency in Bali at Jalan Hayam Wuruk 188, Denpasar, Bali; telephone: (62)(361) 233-605; fax (62)(361) 222-426; email: [email protected] The U.S. Consulate in Surabaya is an alternate contact for American Citizens in Bali.

As of June 2005 the U.S. Embassy is in the process of opening an American Presence Post (APP) in Medan, North Sumatra. This office, once officially opened, will provide only emergency assistance to U.S. citizens. Americans citizens needing consular assistance in Sumatra should contact the U.S. Embassy in Jakarta.

International Parental Child Abduction : January 2006

The information below has been edited from the report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Child Abduction section of this book and review current reports online at www.travel.state.gov.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and our current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

General Information: Indonesia is not a party to the Hague Convention on the Civil Aspects of International Child Abduction, nor are there any international or bilateral treaties in force between Indonesia and the United States dealing with international parental child abduction. Therefore, there is no treaty remedy by which the left-behind parent would be able to pursue recovery of the child/ren should they be abducted or wrongfully retained in Indonesia.

Custody Disputes: Parental child abduction is not a crime under Indonesian law. Custody disputes are considered civil legal matters that must be resolved between the concerned parties or through the courts in Indonesia. The district/religious courts will hear and process child custody cases only as part of a divorce petition. Family issues and custody disputes are adjudicated based on Indonesian’s Civil Code (“Kitab Undang-undang Hukum Perdata”). In order to bring a case/petition before the local court, the left-behind parent will require the assistance of an attorney licensed to practice in Indonesia. Ideally, these orders and proceedings ensure due process under the local laws as well as providing protection for the child/ren. The court will also consider a child’s relationship with each of the disputing parties and will evaluate each parent’s ability to provide education and general living conditions and welfare for the children.

Although there is no treaty in force between the United States and Indonesia on enforcement of judgments, the Indonesia courts will also take into consideration child custody decrees issued by foreign courts in deciding disputes regarding children residing in Indonesia. Domestic law does not provide visitation rights to the non-custodian parent unless the parent(s) ask the court to incorporate visitation orders before the final divorce decree is issued. Indonesian authorities advise the U.S. Embassy in Jakarta that non-compliance or violation of a local court order can result in a prison sentence. It should also be noted that Indonesian police or local law enforcement are reluctant to get involved in custody disputes and could not be counted on to enforce custody decrees issued by the Indonesian courts.

For more information, please read the International Child Abduction section of this book and review current reports online at www.travel.state.gov.

Deportation: There is no extradition treaty between the United States and Indonesia. However, if the taking parent is a U.S. citizen whose U.S. passport has been revoked due to an outstanding federal Unlawful Flight to avoid Prosecution (UFAP) warrant or indictment on charges of International Parental Kidnapping (IPKCA) in violation of 18 USC Section 1204, Indonesian authorities may consider deportation based on lack of a valid travel document.

Dual Nationality: A child with a parent who was born outside of the U.S. or who has acquired a second nationality through naturalization in another country may have a claim to citizenship in that country. There is no requirement that a U.S. citizen parent consent to the acquisition by his/her child of another nationality and in many cases a parent is unaware that his/her child may have dual citizenship. The Embassy of Indonesia in Washington D.C. will be able to provide more detailed information on whether your child has a claim.

Initiating Foreign Enforcement Proceedings Under Local Law: If a country is not a signatory to the Hague Convention on the Civil Aspects of International Child Abduction, it may be necessary for you to initiate a child custody action in the courts in the foreign country. This usually will require retaining the services of an attorney abroad. The Department of State, Office of Children’s Issues is not a repository for foreign laws. However, selected information may be available concerning general procedures on child custody in particular countries. Contact the Office of Children’s Issues to see if such information is available.

Retaining a Foreign Attorney: A list of English-speaking attorneys is available from the U.S. State Department, Office of American Citizens Services.

Criminal Remedies: Foreign countries may not recognize parental abduction as a crime. Please note that the extradition process applies only to the abducting adult/fugitive and not the child. The proper channel for the return of the child is through civil mechanisms or voluntary return arrangements.

Additional information is also available on the Internet at the web site of the U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention (OJJDP) at http://www.ojjdp.ncjrs.org.

For further information on international parental child abduction, contact the Office of Children’s Issues at 202-736-7000, visit the State Department website on the Internet at http://travel.state.gov, or send a nine-by-twelve-inch, self-addressed envelope to: Office of Children’s Issues, SA-29, U.S. Department of State, 2201 C Street, NW, Washington, DC 20520-2818; Phone: (202) 736-9090; Fax: (202) 312-9743.

Travel Warning : January 9, 2007

This Travel Warning updates information concerning the security situation in Indonesia and reminds Americans of the risks associated with travel to that country. This Travel Warning supersedes the November 18, 2005, Travel Warning for Indonesia.

Due to the possibility of terrorist attacks directed against American or other Western citizens and interests, the Department of State urges American citizens to evaluate carefully the risks of travel to Indonesia.

The October 1, 2005, terrorist attacks in Bali in which suicide bombers killed 20 people and injured more than 100 are a reminder that terrorists remain active in Indonesia. The possibility of future attacks in Bali, Jakarta, or other areas of Indonesia cannot be ruled out.

Terrorist attacks in Indonesia could occur at any time and could be directed against any location, including those frequented by foreigners, as well as identifiably American or other Western facilities or businesses in Indonesia. Such targets could include but are not limited to places where Americans and other Westerners live, congregate, work, study, shop, or visit, including hotels, clubs, restaurants, shopping centers, identifiably Western businesses, housing compounds, transportation systems, places of worship, schools, or public recreation events.

While past terrorist attacks have involved the use of vehicle-borne explosives or suicide bombers carrying explosives in backpacks, terrorists may use other forms of attack in the future. Terrorists may target individual American citizen residents, visitors, students, or tourists, and tactics could include but are not limited to kidnapping, shooting, or poisoning.

The Department of State urges Americans in Indonesia to avoid crowds, maintain a low profile, and be vigilant about security at all times. Americans are advised to monitor local news broadcasts, vary their routes and times in carrying out daily activities, and consider the level of preventive security when visiting public places in Indonesia.

Americans who choose to vacation in Indonesia despite the security risks are advised to consider the level of preventive security when choosing hotels, restaurants, beaches, entertainment venues, and recreation sites.

In addition to the October 1, 2005, bombings in Bali, several other serious terrorist incidents occurred in Indonesia in recent years. A terrorist bombing outside the Australian Embassy in Jakarta on September 9, 2004, killed eleven and injured more than 180 people. An August 2003 terrorist bombing at a major international hotel in Jakarta killed 12 persons and injured scores, including several American citizens.

A terrorist attack in Bali in October 2002 killed 202 people, including seven Americans. Suicide bombers wearing explosives in vests or backpacks carried out the October 1, 2005, bombings in Bali. Prior terrorist attacks involved the use of vehicle-borne explosives.

The U.S. Mission in Indonesia restricts U.S. government employees’ travel to certain areas of the country and, at times, denies them permission to travel to specific locations. As of early 2007, employee travel to the provinces of Aceh, Papua, Central and South Sulawesi, and Maluku requires the concurrence of the Embassy’s Regional Security Officer. Americans seeking the latest travel restriction information may contact a consular office. The U.S. Mission can occasionally suspend service to the public, or close, because of security concerns; in these situations, it will continue to provide emergency services to American citizens.

Americans who choose to travel to Indonesia despite this Travel Warning should obtain up-to-date health information before departing the United States. The websites of the U.S. Centers for Disease Control at http://www.cdc.gov/travel and the World Health Organization at http://www.who.int have current information on outbreaks of contagious and tropical diseases. Americans considering travel to Indonesia should read the Department of State’s Fact Sheet on Avian Influenza dated July 2006, and should consult with their personal physicians concerning avian flu.

Americans living and traveling in Indonesia are urged to register and update their contact information with U.S. Embassy Jakarta, U.S. Consulate General Surabaya, or the U.S. Consular Agent in Bali.

Registration facilitates the U.S. Mission’s contact with Americans in emergency situations and may be done on line and in advance of travel. Information on registering can be found at the Department of State’s Consular Affairs website: https://travelregistration.state.gov. Registration information and recent warden messages are also available on the U.S. Embassy Jakarta website at http://jakarta.usembassy.gov.

Americans can obtain information on travel and security in Indonesia from the Department of State by calling 1-888-407-4747 within the United States; or 1-202-501-4444 from outside the United States and Canada. Americans also can call the Embassy in Jakarta at (62)(21) 3435-9000, the Consulate General in Surabaya at (62)(31) 295-6400, and the Consular Agent in Bali at (62)(361) 233-605. American citizens should read the Department of State’s Consular Information Sheet for Indonesia, the latest Worldwide Caution Public Announcement, and Fact Sheet on Avian Influenza, all available at http://travel.state.gov.

views updated

INDONESIA

Republic of Indonesia

Major Cities:
Jakarta, Surabaya, Medan

Other Cities:
Ambon, Bandung, Kupang, Palembang, Semarang, Surakarta, Ujung Pandang, Yogyakarta

EDITOR'S NOTE

This chapter was adapted from the Department of State Post Report 2001 for Indonesia. Supplemental material has been added to increase coverage of minor cities, facts have been updated, and some material has been condensed. Readers are encouraged to visit the Department of State's web site at http://travel.state.gov/ for the most recent information available on travel to this country.

INTRODUCTION

Man has woven a rich brocade of cultures among the far-flung islands of the world's largest archipelago. Most of Indonesia's inhabitants trace their descent from Malay seafarers who left the Asian mainland long before the time of Christ. Chinese pearl fishermen and Indian holy men brought their influences-Hinduism survives on Bali, a storied setting of temples and rice paddies where an endless pageantry of festivals and dances placates attentive spirits. Arab mariners introduced Islam. The Dutch monopolized the rich spice trade of the Moluccas and with them brought Christianity.

Indonesia's 3,000 islands stretch almost 5,000 km (3,100 miles) into the Pacific Ocean. Richly endowed with natural resources and hosting a phenomenal array of distinct cultures, for centuries they have been a magnet to Chinese and Indian traders, European colonizers, wayward adventurers, and intrepid travelers.

It is generally believed that the earliest inhabitants of the Indonesian archipelago originated in India or Burma. In 1890, fossils of Java Man (homo erectus), some 500,000 years old, were found in east Java.

Later migrants ("Malays") came from southern China and Indochina, and they began populating the archipelago around 3000 BC.

By the 15th century, a strong Moslem empire had developed with its center at Melaka (Malacca) on the Malay Peninsula. Its influence was shortlived, and it fell to the Portuguese in 1511. The Dutch East India Company, based in Jakarta, took control of Java by the mid-18th century. The Dutch took control in the early 19th century, and by the early 20th century, the entire archipelago was under their control.

Burgeoning nationalism and the Japanese occupation in World War II weakened Dutch resolve. Indonesia declared independence in 1945, which the Dutch recognized in 1949.

Today, Indonesia is a vibrant, multi-ethnic nation comprised of more than 300 ethnic groups in the midst of an enormous democratic transformation after years of authoritarian government.

MAJOR CITIES

Jakarta

Jakartathe capital, chief port, and commercial center of Indonesiaand its suburbs cover some 350 square miles. Over 11 million people live within this area. As seat of the central government, Jakarta is the center of political life, with the Presidential Palace, national government offices, Parliament, and the Supreme Court all located in the city center.

The main ethnic groups in Jakarta are Sundanese, who predominate in the surrounding province of West Java, and Javanese. However, the city is a melange of all main groups from throughout the archipelago, including a substantial Chinese population and tens of thousands of expatriates.

In the 16th century, Jakarta, called Sunda Kelapa, was the chief port for the Sundanese (West Javanese) kingdom of Pajajaran. Later, the Sultan of Bantam changed the name to Jayakarta, "Glorious Fortress" in the Sundanese language. At the end of the 16th century, Dutch and Portuguese traders struggled for a foothold on Java. Since it was difficult for foreigners to pronounce Jayakarta, the name was changed to Jakarta. Eventually, the Dutch won possession of Java and established a fortified trading post at Jakarta, which they renamed Batavia. For three-and-a-half centuries after the Dutch arrival, Batavia was the focal point of a rich, sprawling commercial empire called the Netherlands East Indies. In older sections, Dutch-style gabled houses with diamond-paned windows and swinging shutters are still found. The canals, narrow downtown streets, and old drawbridges will remind you of the city's Dutch heritage and early settlers.

Eventually, more modern sections of the city were built some 8 miles inland. Indonesia became a sovereign State on December 27, 1949; the next day Batavia was renamed Jakarta. The city has grown rapidly in population from about 600,000 in 1940 to over 11 million. Physically, Jakarta has changed much in the last decade. A modern center with hotels, restaurants, and tall office buildings now has grown up amidst the crowded "kampungs" often with banana groves and rice paddies reminiscent of rural Java. Infrastructure, roads, electric power, and water supply are vastly improved, and new housing and apartments have gone up. With Jakarta's expanding boundaries, most Americans and other foreigners live in newer suburbs, such as Kebayoran, 5 miles from downtown. Air pollution and traffic congestion are increasing problems.

Like most Asian commercial cities, Jakarta has a large population of Chinese origin, many of whom have Indonesian citizenship. They constitute the country's largest non-Indonesian ethnic group. Many have lived in Indonesia for generations and no longer speak Chinese, but most maintain Chinese traditions and family ties. Most Chinese in Jakarta operate businesses. Their district, Kota (or Glodok), has a distinctly Chinese flavor.

Over 25,000 foreigners live in the Jakarta area. Over 60 nations now maintain diplomatic or consular missions. The U.S., Russia, Germany, The Netherlands, Japan, and Australia operate the largest. Over 6,000 Americans reside in Jakartamembers of U.S. Government agencies, the U.N. and private, nongovernmental agencies, business representatives, and missionaries. Jakarta is the main stop for an increasing number of U.S. business visitors and many American, European, and Australian tourists visit Jakarta each year, usually on their way to tourist areas such as Bali or Yogyakarta.

Jakarta's average temperature ranges from 72°F to 87°F. It seldom varies more than a few degrees all year. The average humidity, 82 percent, rises to 83 percent or 84 percent during the wet season. It rains about 125 days a year for an average of 70 inches. Although heavy rains occur during the wet season (November through March), they do not compare to the heavy, monsoon downpours that characterize the rainy season in other tropical countries. Although monotonous and enervating, the heat will not oppress you as do the summers in Tokyo and Washington, D.C.

Western-style clothes predominate in Jakarta, but many still wear Indonesian attire. English is understood by many higher level Indonesian officials, business representatives, and professionals, particularly the younger generation. However, some knowledge of Bahasa Indonesia, the national language, is needed by foreigners for everyday communication. The older, Dutch-educated Indonesians can speak Dutch, especially those who grew up under The Netherlands colonial rule.

Food

Most food can be purchased in Jakarta. There is a good variety of fresh fruits and vegetables (locally-produced and imported), beef, pork, chicken and fish available in local markets and grocery stores. An increasing amount of western convenience foods and snack items are available in local stores, albeit at prices higher than in the U.S. Imported brands of toiletries are expensive but available here. Otherwise, with a little initiative, you will be able to find everything you need in Jakarta.

Clothing

General: Men, women, and children wear cotton and other lightweight clothing year round. Due to frequent, hard washing, clothing does not last as long as in the U.S. Launderers generally do satisfactory ironing and pressing. Adequate drycleaning costs considerably less than in a major U.S. city. Shoes wear out sooner than in U.S. due to the dampness and rough terrain. Locally made men's and women's shoes are adequate to good, but large sizes are sometimes difficult to find. There is a very wide range of price and quality available locally. Imported shoes for both men and women are available at many shops and department stores, but larger sizes are rare even in imported shoes. Several places in Jakarta sell moderately priced made-to-order shoes. Athletic shoes are more readily available in larger sizes, especially at outlets for the many name brands that are manufactured locally. For children and young teens, sandals, cloth shoes, and tennis shoes are available.

Imported fabrics are available locally but are expensive. Indonesian batik, with its distinctive patterns, is popular for dresses and sportswear. Prices for batik vary widely depending on the quality and intricacy of design. Take advantage of inexpensive tailoring to have clothing made. Tailors and seamstresses do not work from patterns, but can copy based on a picture or a sample item. Bring some warm clothing for travel to Tokyo, Hong Kong, or the U.S. in winter months.

Men: Many men wear batik shirts (long and short sleeves) for social affairs. Indonesians consider long-sleeved batik shirts formal attire. Batik shirts can be purchased ready-made or tailor made. American sport shirts are usually worn only for casual affairs and at private parties. Bring an adequate supply of shoes. Only a few exclusive, expensive shops sell Western styles and sizes. Some have found sandal, desirable for informal wear. Bring your own golf shoes or buy them in Tokyo, Hong Kong, or Singapore for better quality and more reasonable prices. For evenings in the mountains, men will need a light jacket of sweater. Bring sports clothes, including tennis or golf shorts and swimming trunks.

Women: Office wear for women is similar to that in Washington, D.C., during summer. Since offices, cars, and most indoor places are completely air-conditioned, moss lightweight summer fabrics, including knits, are suitable. Some women wear nylon hose. Casual dresses or long pants are suitable for nearly all daytime occasions Evening wear is usually casual. Special occasions are dressy or formal. Both long and short casual dresses are appropriate for informal events.

A wide variety of fabrics, both local and imported, is available locally. Women who wear smaller sizes will not have trouble finding attractive and affordable clothing locally, but larger sizes are rare. Bring some shorts and sleeveless shirts. Shorts are worn primarily for golf and tennis. Also bring swimsuits, tennis and golf clothes, and sports clothing.

You can often use a wool sweater and slacks during the cool mountain evenings Ready-made maternity clothes are not available. Most women bring an ample supply of underwear. Women rarely wear hats and gloves; they are not required it churches or for calling. Bring plenty of shoes and sandals. Some prefer closed (canvas-type) shoes for shopping and sightseeing during the rainy season. Bring your regular size if you know your feel don't swell in hot weather.

Children: At JIS, all children in grades 7 thru 9 must wear uniforms (available for purchase at the school) and tennis shoes for physical education classes. Most children wear shorts at home and at the pool. Local shop sell children's shoes, but a proper fit ma. be difficult to obtain. Western-style clothe are popular with young people in Jakarta Jeans and denims are sold everywhere.

Supplies and Services

Most basic toiletries are available locally, but if you rely on a particular U.S brand, you should pack a supply. Bring special medicines or vitamins and reorder them by mail.

Drycleaning is generally deemed adequate. Shoe repair facilities are fair. Prices are less than in the U.S A few beauty shops are recommended some are small and simple, others are more luxurious. They offer the usual services a low, reasonable prices. Color rinses, perm; and dyes are available but expensive. You provide your own perm and dye supplies. Major hotels and shopping areas have barbershops. The usual services are reasonable.

Generally, radio, TV, and household appliance repairs do not meet U.S. standards. However, several shops perform adequate repair services; parts are usually imported and expensive. Good quality batik floor cushions and draperies can be custom made at reasonable prices. Picture framing is inexpensive and quality and selection varies.

Jakarta has many dressmakers, but prices and competence vary greatly. Some will visit your home for fittings. Establish a dressmaker's competence before providing an expensive piece of fabric. Tailors are available and, again, their competence and prices vary greatly. They make shirts, shorts, and suits.

Domestic Help

As in most of Asia, household help is not a luxury, but a necessity-not to provide a life of ease, but to help a family live a normal life and maintain a good level of security. You must take extra precautions when preparing food and must thoroughly scrub and peel vegetables before cooking, or soak them in disinfectant and rewash them in bottled water if you eat them raw. Marketing can be time consuming, although the preponderance of Western-style supermarkets makes shopping easier, albeit at a higher price. In many households, the cook shops for food in local markets at a considerable savings to the family. Domestic staff cannot shop in the commissary.

Aside from being practical, household help is customary in this part of the world. Even Indonesians of moderate circumstances have them.

The number of household help needed and their salaries differ according to individual households, with varying emphasis on their responsibility and ability. Below are examples of staff responsibilities. Salaries are paid in Rupiah and are considered quite affordable by western standards.

Cook: Plans the meals with you; informs you of what is on the market and does shopping; keeps a kitchen account book, which you should check; cleans the kitchen; and does the dishes.

Maid/Houseboy : Serves at table, mixes drinks, and cleans living and dining rooms; may also prepare meals on the cook's day off or if she or he is the only servant in a small household.

Nanny: Takes care of children, cleans their room, mends their clothing, and sees that it comes back from the launderer in good condition. May help with general housework if the family is small.

Driver: Acts as chauffeur, purchases gas and oil, and keeps your ar in good operating condition.

Gardener: Tends the lawn, shrubs, flowers, etc. Most common is a combination gardener/watchman who watches the house during the day while he tends the yard.

Night Watchman: Guards your house.

Many families employ one or more "all in one" helpers who combine the functions of cook, maid/houseboy, and nanny. Domestic staff in Indonesia depend on their employers. The employer customarily provides uniforms and/or clothing, a Lebaran or Christmas bonus (1 month's salary if the employee has worked at least a year, prorated for shorter periods), and some employers provide uniforms and/or clothing as well as some basic food stuffs and some medical expenses. Additionally, employers must provide a bed (including the mattress), sheets, pillows, and towels for each employee that lives in. A bed, mattress, and pillow (at minimum) purchased locally costs between $25 and $35. Sheets and towels are very expensive on the local market.

All household staff should have a preemployment physical examination and annual stool tests and chest x-rays. As of February 2000, the range in cost for full physicals was $8-$20; x-rays were $15. Domestic employees who are dismissed by you for any reason other than wrongdoing should be given severance pay at the rate of 1 month's salary for each full year worked and a prorated portion of a month's salary for employment periods of less than full years. If the employee resigns, you are not obliged to give severance pay but may want to give "service pay," something like a thank-you bonus. Prevailing practice in business is to give one-half a month's salary after 5 years of employment. But should you choose to give "service pay," the amount is at your discretion. Some staff require constant supervision, especially on cleanliness, market prices, storage and use of food supplies, and personal effects.

Religious Activities

In Jakarta, churches of several denominations hold regular services in English: Roman Catholic, Anglican, Baptist, interdenominational Protestant, Lutheran, and the Church of Jesus Christ of Latter-day Saints. There are also two active Christian youth groups: Friday Night Live for teens and preteens and International Christian Youth for high school students. There is an informal Jewish network that plans observations of high holidays and holds some social events.

Education

American children from kindergarten (prep-1) through grade 12 living in Jakarta generally attend Jakarta International School (JIS). Enrollment for the 2000-2001 school year was 2,526. Currently more than half of the 227-member teaching staff is American. The high school is fully accredited by the Association of Western Schools and Colleges and the European Council of International Schools. All instruction is in English.

JIS has three campuses, two of which are elementary schools, in two locations. For elementary level students, campus assignment is based primarily on area of residence.

Pattimura is located in Kebayoran Baru and houses prep-1 through grade 5. Completely reconstructed in 1986, Pattimura now consists of 23 classrooms, a library with more than 20,000 volumes, a computer lab, a theater, a gymnasium and special rooms for art, music, ESOL and reading. All indoor facilities are air-conditioned.

Pondok Indah Elementary (PIE) is located in Cilandak, behind but not connected to the Middle and High School campus. PIE houses prep-1 through grade 5. Located on 9 acres, it includes 47 classrooms, a library with more than 30,000 volumes, two computer labs, a science lab, gymnasium, theater, cafeteria, covered play area, swimming pool and expansive fields for outdoor recreation. All buildings are air-conditioned.

Cilandak houses the Middle (grades 6-8) and High School (grades 9-12), in addition to the administrative offices. The 23-acre campus includes 115 classrooms, two libraries totaling more than 37,000 volumes, nine computer labs, two theaters, two gymnasiums, tennis courts, sports fields, a swimming pool and cafeteria.

The JIS elementary curriculum gives students a solid foundation in basic skills. The school offers up-to-date programs in math and science, using discovery and inquiry methods, and places a strong emphasis on language arts. Students have specialist teachers for music, art, computers, library and physical education. In grades 3, 4, and 5, students also have specialist teachers for Indonesian language and culture.

The Middle School curriculum includes a balanced emphasis on basic skill development and content. A variety of teaching methods is employed. The school's program of studies and daily schedule provide a gradual transition from the largely self-contained school structure of the elementary school to the departmental organization found in the high school. Students receive instruction in English/language arts, mathematics, history/social studies, science, and physical education. There is also a variety of exploratory and elective options in the areas of visual and performing arts, computer education, practical arts and modern languages. Each 7-8th grade student also must complete required courses in computer applications, Indonesian language and health.

The High School curriculum offers a modified American curriculum as well as the International Baccalaureate (IB), fulfilling admission requirements for American universities as well as those of other countries. Normally, six subjects are taken each year, including a sequential progression of courses in English, mathematics, science and social studies. The following foreign languages are offered: French, Spanish, German, Dutch, Japanese, Korean and Indonesian. One semester of Indonesian language and geography is required for JIS High School graduation. Electives include music, drama, fine arts, practical arts, business, computer studies, physical education, year-book, and journalism. Advanced courses are offered in selected areas in order to prepare students for Advanced Placement (AP) exams and the IB diploma.

To supplement the academic program, JIS provides a variety of extracurricular activities designed to encourage physical well-being, intellectual interchange and participation in social activities. Boys and girls can participate in a varied after school sports program. There are also special interest clubs such as photography, chess, handicrafts, etc. Community leagues in soccer, basketball, baseball and competitive swimming are available.

At the high school level, JIS participates in the Interscholastic Association of Southeast Asia Schools (IASAS), a regional organization that offers competition in sports, as well as cultural events. Club activities are available at all levels, as well as Boy and Girl Scout Programs.

The school year begins in mid-August and ends early in June. There is a three-week vacation between semesters and a one-week break during second semester. The school observes Indonesian holidays. School hours are:

Prekindergarten (Prep Junior): 7:30 a.m.-noon Kindergarten (Prep Senior): 7:30 a.m.-noon (1st semester) 7:30 a.m.-1:45 p.m. (2nd semester) Grades 1-5: 7:30 a.m.-1:45 p.m. Grades 6-12: 7:30 a.m.-2:40 p.m.

A catering service sells sandwiches and hot lunches on campus. Ice cream, bottled drinks, and various snacks are also available at the student stores on campus.

School uniforms are worn only for physical education; however, clothing should be clean, neat and comfortable. Shoes must be worn at all times for health reasons.

JIS does not have the facilities to deal with children who have serious learning, emotional or physical disabilities. Parents of prospective students are advised that the school is able to serve only those mildly learning disabled students who are able to function in the regular program with minimal support. If a child is receiving special services, such as LD instruction, remedial teaching, speech/language therapy or seeing any educational specialist outside the regular classroom, parents are advised to contact the school and discuss the child's situation before making a decision to come to Jakarta.

There are several other schools in Jakarta, including schools following the British, French, and Australian educational curricula, as well as a Montessori school. The Australian International School (AIS) is a smaller, relatively new school in southern Jakarta that offers special needs programs. Children with special needs are mainstreamed, with full-time Indonesian classroom assistants assigned as necessary. A special needs coordinator works with the children individually several times per week. Speech therapy is sometimes available, though not guaranteed. School facilities are basic, but class sizes tend to be small. The school offers classes from preschool through grade 12, operating on the Australian school calendar which means that the school year goes from January-December. For more information, contact the school at [email protected], or phone 6221-780-5152.

Students wishing to enroll in prep I (kindergarten) at JIS must reach their 5th birthdays prior to October 31 of the current school year.

Preschools: There are several good English-language preschools at post. Many families of young children take advantage of part-or full-time preschools, including Bambino, Tutor Time, Discovery Center and Jakarta Montessori School. JIS has a preschool program for 3-and 4-year-olds; however, most Embassy families find the JIS program to be too expensive.

Special Educational Opportunities

Indonesian language training is available through a number of local resources, including the Lembaga Indonesia-Amerika (Yayasan LIA) and ICAC. The Indonesian Heritage Society offers various opportunities to study Indonesian culture in depth through its study groups, lecture series, and museum volunteer program. Although several Indonesian colleges and universities exist, all instruction is in Indonesian.

Sports

Jakarta hosts a variety of recreational and sports facilities, from fitness clubs to golf driving ranges to tennis courts to riding stables.

AERA provides a variety of activities to enhance the morale of American families. Facilities include dining areas, a Western-style bar with large-screen TV, a pool table, video games, NTSC video rental, a satellite dish, tennis courts, swimming pool, a fitness center, and multipurpose rooms used for fitness and children's classes and available for special-purpose rental.

The club conducts a summer camp for elementary school-aged children, organizes activities for adults and children, and hosts programs for American holidays and other special occasions. It also provides catering services for members. Membership fees include a reasonable initiation fee and monthly dues. Charges for food, video rentals, etc., are payable on a monthly basis.

There are several other clubs that expatriates join, including the Jakarta American Club (not affiliated with the Embassy or the AERA Club) and the Mercantile Athletic Club. Several large hotels make their facilities available on a daily or membership basis. In addition, the Mission housing pool includes some apartment complexes and housing complexes that have swimming pools, tennis courts, and other amenities.

Golf. Golf enthusiasts can choose from 18-and 9-hole golf courses and driving ranges. Some are open to casual players, but others require memberships. Membership and green fees are moderate. Courses are generally well maintained and are open from sunrise to sunset. Most have pro shops, snack or meal service, locker room facilities, and instruction. Golf equipment is available locally but is more expensive than in the U.S.

Tennis : Most clubs have tennis courts, including the AERA Club, the Hilton, the Senayan Sports Complex, and JIS. Several housing compounds also have tennis facilities. Although tennis equipment and balls are available locally, prices are generally higher than in the U.S.

Swimming: In Jakarta, most clubs, hotels, and apartment or townhouse complexes have swimming pools. Many hotels charge daily fees for use of the pool. Ancol and Pondok Indah offer public swimming and water park facilities. These tend to be crowded on weekends and public holidays. Saltwater bathing is available at beach resorts and nearby islands. Beach lovers should note, however, that the closest beach is some 3-1/2 hours by car from Jakarta. Pelabuhan Ratu (Samudra Beach) on the Indian Ocean, south of Jakarta, is about 41/2 hours by car, and Anyer, Carita, and Sombola, on the Sunda Straits west of Jakarta, are about 3-1/2 hours by car. Pulau Seribu or Thousand Islands is a system of small islands in the sea north of Jakarta. There are several basic but pleasant resorts that offer scuba, snorkeling, swimming, and various sports.

Touring and Outdoor Activities

Snorkeling and scuba diving: Snorkeling and scuba diving are available both near and far from Jakarta. Several islands of the Thousand Islands area have popular sites for viewing coral, highly colored tropical fish, and other sea life. Some are reachable by boat in several hours. Pulau Putri and other islands have beaches and full tourist facilities, including cottages for rent. Scuba courses are available, and informal groups organize trips to the islands. For travel further afield, several other islands and resorts offer both activities, including Sulawesi, Sumatra, Lombok, Bali, Kalimantan, Maluku and Papua. Most dive shops / tour operators rent tanks and weights. Most also sell equipment, but it is expensive compared to U.S. prices. It is advisable to bring your own regulator and BCD.

Horseback Riding: Several high-quality English-style equestrian facilities offer regular lessons for all levels, including jumping and polo; costs of lessons are cheaper than the equivalent in the U.S. Horses can be leased long term, which is the best arrangement if you plan to ride more than a couple of times a week.

Photography: Picturesque villages, colorful native dress, street scenes, mountains, and beaches provide a variety of photo opportunities. Film and slides, mostly Japanese and U.S. brands, are available locally at reasonable prices. Local processing of color film is good and reasonably priced.

Sightseeing In and around Jakarta: there are several museums, including the National Museum, which houses a large collection of Indonesian antiques, cultural displays, and one of the world's finest Asian porcelain collections; the Museum of the Armed Forces; Museum Wayang, which houses a collection of puppets representing various regions and eras in Indonesia; Museum-Tekstil, containing a collection of Indonesian textiles; the Adam Malik Museum, containing some of the late states-man's collection; the Ceramic Museum; and the Jakarta Historical Museum.

Taman Mini, located about 13 miles southeast of Jakarta, has several theme museums, exhibits of traditional houses of the 27 regions in the country, amusement rides, an orchid garden, and various other attractions. Taman Impian Jaya Ancol is located in the north of Jakarta and has a water park, an amusement park, an art and handi-craft market, and Seaworld. Many consider visiting the various market areas as a sightseeing trip in itself. Jakarta also has a zoo and planetarium. Newcomers often enjoy city tours arranged by major hotels and travel agencies. The Indonesian Heritage Society has an Explorers Club that organizes regular tours to a wide variety of local landmarks and historic areas. It is an interesting way to see the city and meet new friends.

To learn about Indonesian culture, take trips outside the city. The Puncak Hills and the nearby town of Bogor offer a pleasant climate and scenery change. In Bogor, the famous Botanical Gardens feature a 275-acre park with a zoological museum, scientific library, and laboratory. The orchid collection is a special attraction. Puncak Pass, on the road to Bandung, is 5,000 feet high. Jakarta residents often rent cottages in the Puncak on weekends. A Safari Park, where you can drive through and view wild animals, is located here. There is also a children's zoo on the premises.

Bandung, a 4-hour drive from Jakarta or a pleasant train ride, offers good hotel accommodations and pleasant mountain views. Several modern artists live and work in Bandung; one of Indonesia's art schools is here. About 15 miles north of Bandung is the Tangkuban Prahu Volcano.

Yogyakarta and Solo are interesting cities on Java. Yogyakarta is of historical and cultural interest-here are some of Indonesia's best-pre-served Hindu and Buddhist monuments and temples, among them the famous Borobudur Temple. At the magnificent Prambanan Temple, between Yogyakarta and Solo, a Javanese dance-drama is performed twice a month at full moon during the dry season. Both Solo and Yogyarkarta are Javanese cultural centers and offer a variety of events and shopping opportunities. Good hotels are available.

The Island of Bali is one of the most popular vacation spots for tourists. It has beautiful beaches and striking volcanic scenery. Accommodations range from four-star hotels to simple guest houses and bungalows. Balinese culture is particularly interesting. As Islam swept through Indonesia, many Hindus fled to Bali, where Hindu and Indonesian culture and customs mix in an interesting fashion. The island abounds in cultural activities and performances and shopping opportunities. Bali is about 1 hour and 20 minutes by air from Jakarta.

Although rioting in January of 2000 caused some damage to the tourist industry, the Island of Lombok continues to be popular. Considered similar to Bali of 30 years ago, this still-unspoiled island has lovely beaches and is famous for its weaving and pottery. There are flights from Jakarta, via either Bali or Yogyakarta.

The Island of Sumatra offers Lake Toba, a beautiful volcanic lake in the north; Padang, central Sumatra's largest city and center of the Minangkabau people (a matriarchal society); Palembang, site of a refinery and large oil installations; and an elephant training center near Lampung in southern Sumatra. Visiting many of these places requires a car, but travelers must be wary of poor road conditions and hazardous local driving. Some travel agents and hotels offer packages that include tours onsite with a rented vehicle and driver.

Entertainment

Jakarta offers a large variety of restaurants ranging from international-standard restaurants, generally housed in major hotels, to moderately priced, family-style restaurants, to most popular American fast-food restaurants. A 10% government tax and 11% service charge is included in the bill at nicer restaurants.

The city offers a variety of nightlife, including clubs both in major hotels and as independent establishments. There are several discotheques that offer both live and recorded music.

Expatriates frequent several Jakarta cinemas; they are air-conditioned, clean, and wide screened. American films are shown in their original English language version with Indonesian subtitles. Admission is usually about $2.50. American movies shown here tend to be several months old and are subject to government censorship.

Americans occasionally attend Indonesian dances, music performances, and puppet shows. Local artists frequently hold exhibits throughout the city. Several amateur theater groups present English language plays and musicals. There are classical music evenings and an occasional ballet. Stage plays are rare, but the number of rock concerts is increasing.

Taman Ismail Marzuki (TIM), the Jakarta Cultural Center, has an enclosed theater, an open-air theater, a cinema, exhibition rooms for art shows, and a planetarium.

There are no real public libraries here, and although popular English-language books are available in several bookstores, prices can be double what they are in the U.S. The British Council, ICAC, and AWA operate small lending libraries, and parents of JIS students can use the high school library. The AERA Club operates small, informal used book exchanges. Many families order books from Internet bookstore sites.

Social Activities

Most social life centers around private homes and includes cocktail parties, buffets, dinners, and card parties. Heavy traffic patterns frequently determine the timing and frequency of such entertaining.

AWA organizes social and charitable activities for women and their families. Monthly meetings are held with guest speakers or other activities. Twice a year, AWA sponsors major craft bazaars, which are very popular. It publishes Introducing Indonesia, an excellent guide to expatriate living in Indonesia, as well as the Jakarta Shoppers Guide and other useful books. It also maintains a center that houses a thrift shop, a used book section, a lending library, and a servants registry. The organization also organizes group tours within and outside of Indonesia.

The American Chamber of Commerce in Indonesia, commonly known as AMCHAM, is an association of businesspeople abroad and is concerned with U.S. trade, investment, and community services. AMCHAM holds monthly luncheons with guest speakers and sponsors some social activities.

With a large international community, social activities include Indonesians, Americans, and other expatriates of many nationalities. A great deal of entertaining occurs among international representatives and Indonesians. The Women's International Club (WIC) has members from many nationalities. It was organized in 1950 to promote friendship and understanding among different nationalities. It sponsors social activities and classes and is active in social welfare programs. It sponsors an annual Christmas Bazaar that is very popular with both expatriates and Indonesians.

ICAC is a nonprofit organization that provides workshops, activities, professional counseling services, a lending library, a small craft shop, and a newcomers resource center. It conducts orientation programs quarterly and smaller luncheons and discussion groups to help newcomers meet each other and begin their adjustment to Jakarta.

The International Allied Medical Association (IAMA) is an informal group of English-speaking health professionals interested in keeping up with current developments in the medical field. Monthly meetings with guest speakers are held.

The Indonesian Heritage Society is an organization of volunteers interested in learning about the history, art, and culture of Indonesia. Volunteers assist in the museums of Jakarta and sponsor a public lecture series and smaller study groups.

A multinational community chorus, the PPIA choir, presents concerts twice a year and is open to all. In addition to these groups, there are many other organizations based on specific interests and needs, such as Rotary and Lions Clubs

Surabaya

Surabaya, with a population of about 2.7 million, is Indonesia's second largest city and provincial capital of East Java. Surabaya is on the northeastern coast of Java opposite the nearby Island of Madura. The city itself is thickly settled along the Brantas River Estuary. The area around the city to the west and south is marshy, coastal plain. In recent years, the abundant rice cultivation in the south has given way to steady development of industrial sites. The southern plain gradually rises to a range of volcanic mountains, the nearest of note is about 31 miles south of the city.

Surabaya's climate is very hot and humid with an average humidity of 75 percent, rainfall of 60 inches, and an average temperature of 81°F. The rainy season begins in November and ends around April. The rest of the year, particularly June through October is drier. The periods when the monsoons change direction (usually March-April and November-December) are characterized by harsh rains and often result in some flooding in East Java and in greater Surabaya. The months of July and August are the most comfortable of the year.

At the turn of the century, Surabaya was the leading port of the Dutch Indies. The city exported rubber, tobacco, teak, kapok, sugar, and fibers. Despite the impact of World Wars, the 1930s depression, the 1945-49 resolution, and subsequent periods of civil turbulence, Surabaya remains a major agricultural-industrial center and is Indonesia's second largest port. Since 1968 Surabaya has progressed rapidly. It is the commercial hub for the second largest market in the country, and the province of East Java has one of the best development records in Indonesia.

The city's present population is almost entirely indigenous Indonesian (primarily Javanese and Madurese), with a small but visible ethnic Chinese minority, an ethnic Indian community of perhaps a thousand, and a few hundred other foreigners, including Japanese, Koreans, Europeans, and Americans. About 180 Americans live in the greater Surabaya area, primarily engaged in business. The Indonesian-American friendship association (PPIA) sponsors English language courses, college counseling, and cultural programs. The number of American tourists visiting Surabaya is rising, but most tourists visit Bali and Yogyakarta.

Food

An increasing number of Western-style supermarkets ease the grocery shopping experience in Surabaya. And though you can generally get everything on your list (from olive oil to Swiss Miss instant cocoa), you may have to visit two or more stores and/or wait a matter of weeks for that hard to find item to turn up again on the shelves. A wide variety of local seafood, chicken, beef (often tough and dry), pork (including bacon) and mutton are available. In addition, sausages, lamb and a better quality beef are imported from neighboring New Zealand and Australia but are more expensive. Most dairy products are also imported: cheddar, mozzarella, Edam, Gouda, Parmesan, Camembert, Brie, and feta cheeses are available.

Entertainment

Surabaya offers a wide variety of restaurants, including Western, Indonesian, and other Asian (Chinese, Japanese, Korean, etc.) cuisine. Surabaya also has several nightclubs and discos. Film is available locally. Local printing and developing service is inexpensive and satisfactory. Surabaya has several air-conditioned theater complexes that show subtitled American films, including first-run movies. The video system in this country is PAL, and the format in Surabaya is primarily VCD, followed by DVD. VHS choices are extremely limited. Surabaya has a small museum and a large zoo with Komodo dragons, a nocturnal animal exhibit, outstanding bird and ape collections, and an excellent aquarium of tropical fish. The Taman Remaja Amusement Park, open daily, has several rides and games for small children.

Social Activities

Social life in Surabaya is centered around the home and generally informal. Dinner parties at home and at hotel restaurants are the most common forms of entertainment. Several local firms provide catering services for private parties. Two international organizations, the Expatriate Women's Association of Surabaya (EWAS) and the Women's International Club (WIC), meet regularly.

Medan

Medan was formerly the capital of the Island of Sumatra, Indonesia's second largest island. It is now capital of only North Sumatra Province, which borders the Straits of Malacca. In 1910, this relatively new city moved to its present location, a few miles inland from the city of Belawan-Deli. The Medan municipality still includes the port of Belawan, where rubber, palm oil, coffee, and tea are exported, and consumer and industrial goods are imported. It is Indonesia's largest port in value of exports.

The city is set on a lush green plain, surrounded by rice paddies and palm trees. The Bukit Barisan mountain range, which runs the length of Sumatra, can be seen to the south. Only 82 feet above sea level, just north of the equator, Medan has a climate which is generally hot and humid. The heaviest rains fall from September through December most years. The Medan community has grown from 77,000 in 1940 to some 1.8 million (2000 est.). These figures include about 250,000 Chinese, 15,000 Indians, 200 Europeans, and 60 Americans. The Western community recently has been decreasing in size due to Indonesianization of expatriate positions in the petroleum industry and a relocation of some of the remaining workers outside Medan. Medan today is the largest banking and commercial community in Indonesia, next to Jakarta.

Medan is a sprawling city of kampungs, (native Indonesian villages), with a crowded Chinese sector and an Indian (Tamil) district. Some areas with elegant old government office buildings, parks, and peaked tile-roofed houses reflect the early Dutch colonial heritage. A few tall buildings and new houses with modern curved roofs are springing up. Traffic is chaotic, with swarms of fume-spewing motorized becaks (pedicabs), motorcycles, bicycles, cars, buses, trucks, and jaywalking pedestrians. A one-way street system has helped traffic, but it makes the city a puzzle for the newcomer.

Education

The Medan International School has classes from pre-kindergarten through eighth grade. Founded in 1969, this coeducational school has instruction in English, and the school uses American textbooks. Information about Medan International may be obtained by writing them at P.O. Box 191, Medan, Sumatra, Indonesia.

Secondary-age students must be educated away from the city. Most American children attend the Medan International School through the eighth grade, then transfer to Jakarta International School or the Singapore American School, although both schools offer grades one through 12. Neither school offers boarding facilities, and arrangements must be made with a private family or a private hotel. The address of the Singapore American School is 60 King's Road, Singapore 1026, Republic of Singapore. Jakarta International School's address is J1. Terogong Raya 33, Jakarta 12430, Indonesia.

Recreation

In the mountains, about 105 miles southwest of Medan, is lovely Lake Toba. It is 55 miles long and 18 miles wide, and is dominated by the Island of Samosir. The elevation at the water's edge is almost 3,000 feet, and mountain peaks rise along the shore. Sight-seeing tours to Samosir Island and the Batak villages can be made by boat. There are several hotels in the tiny town of Prapat that offer reasonable food and lodging.

About one-and-a-half hours southwest of Medan, through tropical forests and up a series of hairpin curves, is the highland area of Brastagi. At an altitude of 5,000 feet, the weather is even cooler than at Lake Toba. Live volcanos afford striking scenery. Golf, horseback riding, and hiking are possible.

Roads are slowly improving in northern Sumatra, but travel to more remote areas usually requires a four-wheel-drive vehicle.

Tennis, swimming, softball, cricket, squash, golf, badminton, bowling, and horseback riding are possible in Medan, but some facilities are not up to U.S. standards.

Several health clubs and fitness centers of varying size and equipment are available. The Medan Club has three tennis courts and a squash court for use by members. The Deli Golf Club, about 40 minutes from downtown, has an 18-hole course.

The playing field areas in Medan have little playground equipment, and are used primarily for soccer by the Indonesians. On occasion, expatriate community members organize a Sunday softball game on one of these fields. There are no picnic areas or beaches in the city's vicinity. The nearest beach is at Pantai Cermin, some 31 miles away, but it is shallow, muddy, and made even less attractive by poisonous sea snakes. Sailing is not common; good skin diving areas are far from Medan.

Entertainment

Entertainment is limited in the Medan area. The city's movie theaters rarely offer English-language films but few Americans patronize them. Chinese, Kung Fu movies and Indian films are standard local fare.

Color broadcasts are shown on local television; most programming comes from Jakarta. Programs are generally limited to news, sports, Indonesian cultural shows, some children's cartoons, or dated English films. The broadcast system is PAL. There are no English-language radio programs, so it is necessary to have a shortwave radio in order to keep up with U.S. and world news.

The United States Information Service (USIS)-sponsored library has English-language books, primarily classics, references, or textbooks, and shows weekly U.S. news summaries on videotape. The British Council has a library with 6,000 books for leisure reading, as well. All local newspapers are in Indonesian, although the English-language Singapore Straits Times and the Jakarta Times or the Jakarta Post can be home-delivered. Asian editions of Time and Newsweek are available in local book shops.

Medan has a new cultural center complex, but presentations are infrequent.

Chinese restaurants are the most popular of the few dining establishments in Medan. One of the international class hotels, the Tiara, offers reasonably good European food, but Indonesian and Indian restaurants do not serve good-quality meats. Prices vary from moderate to expensive for non-Indonesian food.

Several nightclubs are open, but Americans and Europeans rarely patronize them.

OTHER CITIES

AMBON , with a population of 313,000, is the capital of Maluku Province on the Banda Sea in eastern Indonesia. This important seaport was founded by the Portuguese in 1574. Early in the 17th century, the Dutch and English settled in the area, and fought over it for 200 years. The "massacre of Amboina" took place in 1623 and involved the killing of many English settlers by the Dutch. Japanese forces held the city during World War II from 1942 until 1945. A few examples of Dutch colonial architecture remain today. Fort Victoria, still an active military post, and the former Dutch governor's home, both stand in the heart of Ambon. The Museum Siwalima is in the eastern suburb of Karang Panjang. It houses a number of artifacts, including Chinese ceramics, objects of magic, and skulls.

BANDUNG , is a city of 2.4 million, and the fourth largest municipality in the country. Located at a rail junction 75 miles southeast of Jakarta, it is a bustling city, with many factories, hospitals, government departments, and schools. A well-known textile center, Bandung is the center of Indonesia's quinine industry, using the cinchona grown in the nearby plantations. Founded in 1810, it is the center of Sudanese cultural life. Bandung was the site of a World War II Japanese prison camp. Surrounded by mountains and volcanoes, Bandung is a tourist resort known for its cool and healthy climate. Bandung is also an educational and cultural center. A textile institute, a technological institute, a state university, two private universities, and a nuclear research center are located here. The city was the site of the Bandung Conference in 1955, a meeting between 29 Asian and African nations to promote cultural and economic cooperation. Bandung Alliance School, featuring a U.S. curriculum for grades one through six, and Bandung International School, featuring a combined curriculum for pre-kindergarten through grade eight, are located here.

KUPANG is the capital of East Nusa Tenggara Province. It is situated on Kupang Bay at the tip of Timor Island. It was settled by the Dutch early in the 17th century. Kupang has a population over 400,000.

PALEMBANG , situated about 300 miles northwest of Jakarta in South Sumatra, is Indonesia's richest city. Large oil refineries and a petro-chemical complex employ many of the provincial capital's 1.4 million residents (2000 est.). Other industries are shipbuilding and iron and rubber production. Long a trade center, Palembang lies on the Musi River, which links it to principal Asian ports. The area was the capital of a Hindu Kingdom in the seventh century; the Dutch and British came a thousand years later. Landmarks here include the Great Mosque, built in 1740; the provincial parliament building; and the Rumah Bari Museum. Statuary, sculptures, weapons, and crafts are on display in the museum. A university was founded in Palembang in 1960.

SEMARANG , the capital of Central Java Province, is a seaport city and one of the major commercial centers in Indonesia. It is located on the north coast, 225 miles east of Jakarta. The manufacture of textiles and machinery and shipbuilding and fishing are the economic mainstays here; exports include sugar, coffee, and rubber. It came under Dutch control as early as 1748, and was occupied by the Japanese during World War II from February 1942 until September 1945. Many steamship companies maintain offices in this city of approximately 787,000 residents (2000 est.). Deponegoro University, founded in 1957, is located here, along with Semarang International School, which features a U.S. curriculum for nursery school through sixth grade. The student body numbers forty-one. Semarang International is located at J1. Raung 16, Candi, Semarang, 50232, Jateng, Indonesia.

SURAKARTA (also known as Solo) is located in central Java Province 50 miles southeast of Semarang, and is connected to Jakarta and Surabaya by rail. This city of approximately 516,500 residents (1995 est.) is the trade center for the surrounding region that produces sugar, tobacco, and rice. Surakarta is particularly known for its handi-crafts, which include gold work and batik cloth; it also manufactures textiles, furniture, machinery, metal products, leather work, and cigarettes. In addition, Surakarta is a cultural center recognized for its gamelan music and for its shadow plays called wayang. Landmarks in the city include a Dutch fort, built in 1799 to resemble a Dutch town; and the walled palace of the sultan that is almost a city in itself. There is a private university in Surakarta, as well as an extension facility of the Islamic University of Indonesia that has a library and a museum.

UJUNG PANDANG (formerly called Makassar) is the business center of Sulawesi, situated 900 miles east of Jakarta on the Makassar Straits. Improvements in the city's harbor have expanded the export trade which includes gums, resins, coffee, and rattan. In the center of town is the grave of the national hero, Prince Diponegoro of Yogyakarta (1785-1855). He was a Javanese leader in the war against the Dutch in the late 1820s. The dungeon where the Dutch held him for 27 years is still standing; Indonesians make pilgrimages to both sites. Ujung Pandang was a principal port for the Goa Kingdom when the Portuguese arrived in the 16th century, followed by the Dutch. The fall of the kingdom in 1667 came with the conquest of the old benteng, or fort, which was rebuilt as Amsterdam Castle. This now is considered an excellent example of 17th-century Dutch fortress construction. The Ujung Pandang Provincial Museum has several displays in the fort, including costumes, coins, and musical instruments. The city's population is an estimated 1.1 million (2000 est.).

YOGYAKARTA (also spelled Jog-jakarta) is located in central Java Province, 175 miles southwest of Surabaya. Situated at the foot of Mount Merapi, Yogyakarta was founded in 1749 and was once the capital of a sultanate. It was also the site of a revolt against the Dutch in the early 19th century, and played an important role in the Indonesian independence movement from 1946 to 1950. Today, Yogyakarta is Java's cultural center known for drama and dance festivals, as well as for its handicraft industry. The city is an important tourist center and has beautifully preserved Hindu temples and monuments. The Borobudor Temple (26 miles to the northwest) is one of the finest Buddhist monuments in central Java, dating from about the ninth century. The shrine was left to crumble in the jungle rot and periodic earthquakes of the area for over a thousand years until it was rediscovered in the 19th century and restored under a $23 million U.N.-sponsored beautification project. The walled palace of the sultan of Yogyakarta served as Indonesia's provisional capital in 1949-1950, and now houses Gadjah Mada University. Islamic University of Indonesia and several colleges are also located here. Yogyakarta's population is over 500,000.

COUNTRY PROFILE

Geography And Climate

The Republic of Indonesia encompasses the world's longest archipelago, From the tiny island of Sabang in the northwest to Papua (formerly Irian Jaya or West Irian) in the east, over 17,000 island, stretch some 3,400 miles along the Equator. The total land area covers about 736,000 square miles. The main islands. in terms of population and importance, are Java, Sumatra, Bali, Kalimantan (Borneo). Sulawesi (Celebes), Papua, and the Maluku. The landscape is highly varied with mountain peaks and volcanoes, some rising to over 15,000 feet. In central Papua, snow covers some peaks all year.

The tropical climate varies with location, season, and altitude. Jakarta lies in the lowlands. The climate is monotonous and enervating with heavy rainfalls, low winds, high temperatures, and high humidity. Spanning the Equator, Indonesia experiences no real seasons. However, a wet season begins in November and lasts until March, followed by a dry season from April to October. Days and nights each last 12 hours.

The tropical climate and rich soil support abundant flora and fauna. Mangrove swamps and marshes flourish along the coast; tropical rain forests cover most of the terrain up to 3,000 feet; and abundant subtropical vegetation, such as oak, pine, and hardwoods, thrives at higher altitudes. The abundant forest cover and favorable climate have stimulated a diverse animal life.

Many endangered and unique animals, such as single-horn rhinoceroses, orangutans, saltwater crocodiles, Komodo "dragons," Sumatran tigers, giant monitor lizards, and anoa, the pygmy buffalo of Celebes, still find a home in Indonesia. Many species of snakes, insects, and birds abound.

Population

Indonesia's 219 million people (2000 estimate), make it the fifth most populous-as well as the most populous Moslem-country in the world. Some 63% live on overcrowded Java and the adjacent islands of Madura and Bali. Some 65% are under age 25; about 85% live in rural areas. Indonesia has over 300 ethnic groups. Roughly 45% of the population are Javanese. Other large ethnic groups include the Sundanese (West Java), Madurese, Balinese, Bataks (North Sumatra), Minangkabau (West Sumatra), coastal Malays, Dayaks (Kalimantan), Ambonese (Maluku), Makasarese-Buginese (Sulawesi), and Chinese.

Indonesian (Bahasa Indonesia), a form of Malay, is the official language. Many Indonesian leaders speak English. Some 87% of the population are Moslem. Islam originally came to Indonesia via Persia and India. It is less austere than the Middle Eastern variety and in some areas encompasses Hindu and pre-Islamic Indonesian customs and beliefs.

European and American Christian missionaries have been influential in certain parts of Indonesia, especially in northern Sulawesi, the Moluccas or "Spice Islands," North Sumatra, the lesser Sundas (Flores, Timor, Sumba), and Papua. Currently both Catholic and Protestant minorities exist. Many ethnic Chinese are Catholic. The island of Bali is predominantly Hindu. The annual population growth rate is 1.6%. To reduce the growth rate, the government sponsors family planning. About 50% of eligible couples on crowded Java and Bali have enrolled.

Public Institutions

Indonesia is a unitary republic, divided administratively into 32 provinces. (The former province of East Timor gained independence following a referendum in August 1999.) The provinces are further subdivided into regencies, subdistricts, and municipalities. Since the collapse of Soeharto's authoritarian "new order" regime in May 1998, the country has embarked on the road to democratization and decentralization. Under the transitional presidency of B.J. Habibie, freedom of expression was restored and political laws were rewritten paving the way for the June 1999 parliamentary elections, the first free and fair elections held in more than 40 years. Out of the 48 parties that contested the election, the largest 6 vote winners were the Indonesian Democratic Party of Struggle (PDI P) with 34%, GOLKAR with 22%, the National Awakening Party (PKB) with 13%, the Unity and Development Party (PPP) with 11%, the National Mandate Party (PAN) with 7%, and the Crescent and Star Party (PBB) with 2% of the vote. Several smaller parties won seats in the current Parliament (DPR), but, under law, will be required to merge in order to contest the next election in 2004.

In October 1999, the People's Consultative Assembly (MPR), the constitutionally highest governmental body, elected Abdurrahman Wahid (a.k.a. "Gus Dur") to a 5-year term as the country's fourth president. "Professionalizing" the military, which played important political, economic, and social roles under past governments, is a current goal, and so are justice sector reform and a fight against corruption. Both the MPR and DPR have become very active, with the MPR addressing constitutional reform and the DPR exerting considerable influence on government policy and the budget.

The government is implementing new laws on regional autonomy aimed at devolving political and economic control to the regions. Success in this effort is seen as crucial in addressing grievances that have helped spawn separatist movements in some provinces including Aceh and Papua (formerly Irian Jaya). Most internationally known commercial, social, and philanthropic organizations such as the Chamber of Commerce, Red Cross, Rotary, Lions Club, and Scouts are represented.

Arts, Science, and Education

The arts in Indonesia reflect the perception and creativity of a people surrounded by great natural beauty and a rich cultural heritage. Art, like religion, is woven into patterns of daily life. It is an integral accompaniment to celebrations and religious rites, as well as a principal source of leisure time enjoyment. Various Indonesian art forms are based on folklore but others were developed in the courts of former kingdoms or, as in Bali, are part of religious tradition.

The famous dance dramas of Java and Bali derive from Hindu mythology and often feature fragments from the Ramayana and Mahabarata Hindu epics. These highly stylized dances with elaborate costumes are accompanied by full "gamelan" orchestras comprising instruments similar to the xylo-phone as well as drums, gongs, and occasionally, stringed instruments and flutes.

One of the most fascinating types of Indonesian performing arts is the "wayang," art puppet performance, accompanied by gamelan. Two main types of wayang exist: The "wayang kulit" features flat leather shadow puppets, and the "wayang golek" uses wooden hand puppets. In both forms, the puppets are used to narrate a story usually based on one of the Hindu epics, but they frequently offer veiled comments on contemporary political figures and events.

Transportation

Automobiles

Personal cars for work, shopping, social occasions, and trips to the mountains or seashore add a great deal of convenience and independence to life here. Please consider the following before deciding to ship or purchase vehicle locally.

Only sedans and station wagon-type vehicles may be imported, but the government has allowed the import of some smaller SUV's, like the RAV 4, and occasionally small engine Jeeps or other SUV type vehicles and minivans on a case-by-case basis. Buses, vans, sports cars, and luxury vehicles (4,000cc engine capacity and those above the highest priced Indonesian vehicle) are generally not allowed for import.

The most commonly imported and locally available automobiles are Toyotas and other Japanese models, and to a lesser extent European and Australian models; few American models are imported due to high prices (the Indonesian Government considers most luxury vehicles), limited parts, and lack of repair facilities. Automobile resale values vary and are less favorable for large U.S. models. Smaller cars are easier to handle, as streets and highways are narrow and traffic is heavily congested.

As of February 2000, a locally assembled Toyota Corolla SE with automatic transmission and air-conditioning costs $18,918.

Importing a car into Indonesia requires two separate permits and approvals from the Government of Indonesia: (1) Preliminary approval (PPI) before your car is shipped/ordered/or purchased; (2) Customs approval (PP-8) when the car arrives.

Auto insurance is available locally. You might also consider U.S. insurance coverage available through various companies before deciding. By law, you must have third-party coverage in an amount equal to Rp 1,000,000. Full comprehensive coverage is recommended. Collision insurance is strongly recommended, as most Indonesians are financially unable to pay for damages.

Driving in Indonesia, traffic moves on the left. Right-hand drive is recommended but not required. A left-hand-drive car is less hazardous in Jakarta than on the busy, narrow two-lane (or one and one-half lane) roads leading from Jakarta to mountain and beach resorts. Driving in Indonesia requires care and vigilance to avoid accidents. Many long term visitors hire a full-time or part-time driver.

Travelers can drive in Indonesia using either an Indonesian drivers license, obtainable on presentation of a valid U.S., foreign, or international license, or an international drivers license validated by the Government of Indonesia. Keep in mind this license must be renewed annually. If you do not have a valid license, you must take written and driving tests for a fee.

The state-owned Pertamina Company sells gasoline and diesel fuel through its outlets throughout the country. Unleaded fuel (called Super TT) is Rps 1,400 a liter. Higher octane leaded is Rps 1,300; lower octane leaded is Rps 1,000; and diesel fuel costs Rps 600 a liter. A few stations sell unleaded gasoline. However, unleaded fuel is now available in some major cities and on the toll road to Bogor and Puncak.

Adequate asphalt roads connect major cities in central and east Java. A standard shift is preferable, and air-conditioning is necessary. Heavy-duty springs and shock absorbers, undercoating, and rust-proofing are recommended. If your car has tubeless tires, bring at least one spare with a tube for emergencies.

Local

By Western standards, public transportation in Jakarta is over-burdened and inadequate. Buses in particular are not maintained properly and are considered so unsafe, Embassy personnel rarely use them. Several taxicab companies operate fleets from the major hotels in Jakarta, in the suburb of Kebayoran (which houses many Embassy employees), and have reliable reservation services. Use metered taxis to avoid haggling over fares and overcharging. "Bajajs" (motor-driven, three-wheeled vehicles) also operate and can be used for short distances. However, Bajaj and taxi drivers speak little English and often know only the names of major streets.

Surabaya. "Becaks" (pedicabs) are the most commonly used means of local public transportation for short trips. Various types of three-and four-wheeled vehicles supplement the city bus system, but Consulate General personnel rarely use any of these motorized public vehicles. Metered taxi service is available.

Regional

The rainy season often causes the generally poor roads to become impassable. Otherwise, trucks, buses, animal carts, becaks, and pedestrians congest the roads. Depending on the season and local road conditions, you can possibly drive from Jakarta to the eastern tip of Java (about 800 miles) in 2 or 3 days. From there your car can be ferried across to Bali. The Indonesian State railway system serves major cities in Java. Accommodations, standards, and service vary from air-conditioned comfort to steerage. Limited rail and road networks on Sumatra make traveling difficult.

Garuda Indonesian Airways, Bouraq, Merpati, and several other local airlines provide air service to major cities and outlying islands in Indonesia, including Denpasar on the island of Bali. Garuda also flies to major Asian, European, and Australian cities. Numerous daily flights to and from Singapore, 1 hour and 20 minutes from Jakarta, exist. The international airport is some 20 miles from downtown Jakarta. Several daily flights from Medan serve Jakarta and Singapore. One flight a day goes to Penang, Malaysia. Several weekly flights within Sumatra service Padang, Banda Aceh, and Pekanbaru. An almost hourly shuttle service connects Jakarta and Surabaya.

Communications

Telephone and Telegraph

A 24-hour satellite-telephone service connects Indonesia with the U.S. Reception on international calls is usually good, but local phone service is only fair. Cables and central exchange equipment are often saturated and sometimes inadequately maintained.In-country direct dialing is available throughout Indonesia.

If you have a telephone charge card from a U.S. company, use it during your stay for cheaper rates on calls to the U.S. Many long-distance companies provide reduced rates upon request for calls made with their calling cards.

Radio and TV

Commercial television was allowed by the government to begin operations in 1989, after many years of government television only. Indonesian broadcast television is in the PAL (European) format. Programming varies greatly, from locally produced dramas and game shows to U.S. sitcoms and dramatic series with Indonesian subtitles. There is daily English news on Televisi Republik Indonesia (TVRI), the government network. The local cable and satellite television services offer CNN, BBC, CNBC, Star News, and Australian news programs to subscribers, as well as HBO, Cinemax, ESPN, Discovery, National Geographic, C-Span, Worldnet, and Star TV, and other educational and entertainment channels. Subscribers can receive up to 50 channels, in various Asian and European languages as well as English. Rates are comparable to those in the U.S. Jakarta has abundant TV, radio, and stereo equipment sales and repair services, although prices on new equipment can be high.

Vendors sell or rent DVDs, VCDs, laser disks, and PAL videotapes. Locally sold or rented videotapes are censored. Local power is 220v, 50-cycle, AC but fluctuates widely. A voltage regulator, available locally, is recommended to protect audio and video equipment. U.S.-standard NTSC videotapes are rented by the AERA Club, so U.S.-standard televisions and VCRs are useful to view these videos.

Radio keeps most of the population informed and entertained. In addition to hundreds of small commercial stations throughout the country, Radio Republik Indonesia (RRI), the government radio network, broadcasts nationwide via relay stations. RRI Jakarta broadcasts news and commentary in English for about an hour in the early mornings and evenings. Dozens of AM and FM stations broadcast in Jakarta, including several with English programming and Western popular music. Most are stereo. Since all newscasts come from RRI and all stations relay it, the top of the hour begins with the same voices on all radio stations at once. Some personnel might also want to have a shortwave radio receiver for VOA, BBC, and Radio Australia. Shortwave reception is generally good.

Newspapers, Magazines, and Technical Journals

The British Council, the Women's International Club, and the Indonesia-America Friendship Society (PPIA) operate lending libraries with minimal membership requirements and collections of approximately 20,000 books. The library facilities of the Jakarta International School (JIS) are available to students and their parents. Anyone in the international community may use the library's facilities on the school premises, but only families with students attending JIS may borrow books. Each elementary school library contains more than 20,000 books, and the high school library has almost 40,000.

English-language sources of news in Jakarta are readily available. Three English-language dailies are published in Jakarta. The most widely read is the Jakarta Post, followed by the Indonesian Observer and the Indonesia Times. The International Herald Tribune, the Asian Wall Street Journal, and USA Today are sold in many major hotels. The Tribune is available for home delivery. A wide variety of international magazines in English are available commercially.

Many hotels and bookstores have a selection of English-language books at prices some 50% higher than those in the U.S. The American Women's Association (AWA), the International Community Activity Center (ICAC), AERA, and the commissary all operate small bookshelves recycling used books. Bring basic reference works, particularly for children, and leisure reading material.

Surabaya. The Jakarta English-language newspapers and many international newspapers and magazines are also available commercially. PPIA offers free memberships for a small English-language lending library.

Internet. A wide variety of home connections to the internet, including through high-speed digital lines, TV cable, and dialup services, are available at reasonable monthly prices. Cable modems are available for rent at less than $10/month. Additionally, there are large numbers of internet cafes throughout all major urban centers where customers can connect for nominal fees.

Health and Medicine

Medical Facilities

If you take chronic medication, bring your own. This includes birth control pills, vitamins, blood pressure medication, and thyroid or estrogen hormones. Local pharmacies carry a range of products of variable quality, availability, and cost. Some chronic medications may be bought here, but make that decision after you arrive. Establish a supply source before coming.

Local medical facilities are used selectively for specialty consultation and emergency hospitalization. Elective surgery is not recommended in Jakarta. Patients with problems that cannot be handled in Jakarta are evacuated to Singapore. The hospital used (whether local or regional) depends on the condition and urgency of the problem.

Indonesian facilities to handle high-risk obstetrics and neonatal care are very limited.

Dental care, such as cleaning, repairs of dental cavities, and root canal and bridge work, can be performed in Jakarta. Complicated dental problems can be referred to specialists in Singapore. There are orthodontists who work in Jakarta, though the quality of their work is quite inconsistent.

Jakarta has optometrists and selected ophthalmologists of reasonable quality. Lens work is satisfactory, but bring an extra pair of glasses with you.

Local physicians are used selectively, with variable satisfaction. No American or European doctors currently practice in the city. Hospitals are generally of a significantly lower standard than in Jakarta. Surabaya is not equipped to support significant ongoing medical problems, and persons posted in Surabaya must be aware of this. Concerns and plans regarding dental and optometry care and chronic medications should be considered and resolved prior to arrival. Local pharmacies carry a range of products of variable quality, availability, and cost.

Community Health

Community sanitation and public health programs are inadequate throughout Indonesia and subject to frequent breakdowns. Water and air pollution and traffic congestion have rapidly increased

with the growth of major cities. Almost all maladies of the developing world are found here. Residents are subject to water-and food-borne illnesses such as typhoid, hepatitis, cholera, worms, amebiasis, and bacterial dysentery. Mosquito-borne dengue fever exists throughout Indonesia. Malaria is endemic in metropolitan Jakarta, Medan, the Puncak, Surabaya, and southern Bali and in a few other locations. Respiratory difficulties are common and are exacerbated by the high pollution levels. Asthma problems are generally worse during a tour here, as are any other respiratory or skin allergies.

Preventive Measures

Recommended immunizations for children include all of the standard pediatric immunizations of diphtheria, pertussis, tetanus, polio, measles, mumps, rubella, and hemophilus B, plus hepatitis B, hepatitis A, typhoid, and preexposure rabies for toddlers. Adults should be current on all recommended immunizations. Malaria prophylaxis is recommended for travel to endemic areas outside major cities. Additionally, use of screens, clothes that cover the body, and insect repellent for children and adults is important to decrease exposure not only to mosquitoes carrying malaria but also to those carrying dengue fever, a disease that is present in both urban and rural areas.

Because of evidence of hydrocarbon and other chemical contamination in Jakarta. All water used for consumption should be bottled. Bottled water is also supplied in Surabaya. Factory-bottled soft drinks and juices are generally safe. Milk sold in sealed containers is generally safe. Standard recommendations for preparing fresh fruits, vegetables, and meats apply here. Washing, soaking, and peeling and/or thoroughly cooking are mandatory to minimize insecticide residue and bacterial and parasitic contamination. A wide variety of foods are available in local markets and supermarkets, and it is possible to eat a well-balanced diet.

Car accidents are the primary causes of severe injury to foreigners living in Indonesia. Defensive driving and use of seatbelts are encouraged, and use of motorcycles is strongly discouraged. The U.S maintains a list of available blood donors, but Rh negative blood may be difficult to obtain in an area with very few Westerners. Therefore, it is important to know your blood type and recognize that this may be a problem.

LOCAL HOLIDAYS

Jan. 1 New Year's Day

Feb. Chinese New Year*

AprilNyepi*

Mar/Apr. Good Friday*

Mar/Apr. Easter*

May/JuneAscension of Christ*

July 23 Children's Day

Aug. 17Independence Day

Dec. 25 Christmas Day

Muharran*

Id al-Fitr*

Waisak*

Id al-Adha*

Mawlid an Nabi*

Galungan**

Kunigan**

*variable

**Galungan & Kuningan are Hindu Balinese Holidays. Balinese use Caka Year, which is 210 days per year, not 365. Therefore, these holidays are celebrated twice in one Gregorian year.

NOTES FOR TRAVELERS

Passage, Customs & Duties

The usually traveled route to Indonesia from the U.S. is by air via the Pacific. This route in particular is advantageous to families traveling with children or pets since it eliminates the forced stop overnight in Singapore. Since the trip from the U.S. to Jakarta is so long and tiresome, you may wish to make a rest stop along the way.

A passport valid for six months beyond the intended date of departure from Indonesia is required. A visa is not required for tourist stays up to two months. As of November 2000 the Government of Indonesia has been discussing implementing visa requirements for foreign travelers. Travelers should reconfirm entry requirements before traveling. For additional information about entry requirements for Indonesia, travelers may contact the Embassy of the Republic of Indonesia, 2020 Massachusetts Avenue, N.W., Washington, D.C. 20036, telephone (202) 775-5200, fax (202) 775-5365.

U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times, so that, if questioned by local officials, proof of identity and U.S. citizenship are readily available. When U.S. citizens are arrested or detained, formal notification of the arrest is normally provided to the U.S. Embassy in Jakarta in writing, a process that can take several weeks. If detained, U.S. citizens are encouraged to attempt to telephone the nearest U.S. consular office.

Americans living in or visiting Indonesia are encouraged to register at the U.S. Embassy or Consulate where they may obtain updated information on travel and security within the country.

The U.S. Embassy is located in Jakarta at Medan Merdeka Selatan 5; telephone:(62)(21)3435-9000; fax (62)(21)3435-9922. The Embassy's web site is located at http://www.usembassyjakarta.org. The consular section can be reached by e-mail at [email protected].

The U.S. Consulate General is in Surabaya at Jalan Raya Dr., Sutomo 33; telephone: (62)(31) 567-2287/8; fax (62)(31)567-4492;e-mail [email protected].

There is a Consular Agency in Bali at Jalan Hayam Wuruk 188, Denpasar, Bali; telephone: (62)(361)233-605; fax (62)(31) 222-426; e-mail [email protected].

Pets

Except for a prohibition against importing birds, pets are admissible into Indonesia. All animals must have a certificate of health issued by a veterinarian. Owners must produce evidence that within 6 months to 30 days before arrival the pets were inoculated against rabies. No quarantine is required. There are two ways to bring pets to Jakarta. The first method is as accompanied baggage (excess baggage) since the pet travels with you on the same flights. Your pet can be immediately cleared through Customs if all documentation is in hand and is valid. The airline determines the excess baggage costs and these are a personal, non-reimbursable expense.

The second and often most expensive method of shipping a pet is as airfreight.

In the freight system, the pet is transported unaccompanied by the owner. Animals are loaded into pressurized holds along with other cargo. Fees for this type of shipment vary according to your country of origin, the number of pets, and the airline handling the transport. You can find airfreight forwarders through your local yellow pages, the worldwide web or through your veterinarian. Some airlines limit pet transport to only certain portions of the year due to high temperatures. Upon arrival in Jakarta it will take about 3 hours to clear your pet through Indonesian Customs.

Do not route your pet (alone or accompanied) via Australia, where it will be confiscated and destroyed. Persons bringing pets through Hong Kong or Singapore must have prior authorization from those governments to do so. This authorization is required regardless of the carrying airline and must be obtained directly from the governments of those countries. Instructions for applying for this authorization can be obtained at any British (for Hong Kong) or Singaporean embassy. The desired transit time must be stated on the authorization. If pets arrive without the authorization (even if only in transit), they will be quarantined at your expense or destroyed.

Firearms and Ammunition

Personal weapons in Indonesia present a problem due to the difficulty of obtaining import licenses and certificates of registration.

Currency, Banking, and Weights and Measures

The monetary unit is the rupiah. The rate of exchange changes constantly (as of February 2001, Rp 9,440 = US$1). The international metric system of weights and measures is used in Indonesia. Gasoline and other liquids are sold by the liter (1.0567 liquid quarts); cloth, by the meter (39 inches); and food and other weighted items, by the kilogram (2.2 pounds). Distance is measured by the kilometer (0.625 miles); speed, in kilometers per hour (40 kph =25 mph).

Taxes, Exchange, and Sale of Property Restrictions

Direct consumer taxes and service charges, such as those imposed on hotel and restaurant bills, gasoline purchases, and airport departure, are paid.

SPECIAL CIRCUMSTANCES:

U.S. citizens involved in commercial or property matters should be aware that the business environment is complex. In many cases, trade complaints are difficult to resolve.

DISASTER PREPAREDNESS:

Indonesia is located in an area of high seismic activity. Although the probability of a major earthquake occurring during an individual trip is remote, earthquakes can and will continue to happen. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov/.

RECOMMENDED READING

These titles are provided as a general indication of the material published on this country.

Prehistoric Indonesia

Bellwood, Peter. Man's Conquest of the Pacific, The Prehistory of Southeast Asia and Oceania. Oxford University Press: New York, 1971.

Van Oosterzee, Penny Van. Where Worlds Collide, the Wallace Line. Cornell University Press, 1997.

Indian, Islamic, and Dutch Influence

Jall, D.G.E. A History of Southeast Asia. 4th ed. Macmillan: London, 1981.

Ricklefs, M.C. A History of Modern Indonesia: C. 1300 to the Present. Indiana University Press: Bloomington, 1981.

Steinberg, David Joel, ed. In Search of Southeast Asia. Praeger: New York, 1971.

Sutherland, Heather. The Making of a Bureaucratic Elite. Heinemann Educational Books (Asia): Singapore, 1979.

The Revolution

Anderson, Benedict R.O'G. "Cartoons and Monuments; The Evolution of Political Communications Under the New Order." In Jackson and Pye, eds., Political Power and Communications. University of California Press: Berkeley.

Anderson, Benedict R.O'G., and Kahin, Audrey, eds. Interpreting Indonesian Politics: Thirteen Contributions to the Debate. Cornell Modern Indonesia Project, Southeast Asia Program, Cornell University: Ithaca, 1982.

Baker, Richard et al. Indonesia: The Challenge of Change. Institute of Southeast Asian Studies, Singapore, 1999. (www.iseas.edu.sg/pub.html)

Castles, Lance. "Notes on the Islamic School at Gontor." Indonesia. No. 1 April 1966.

CIA. Indonesia 1965: The Coup That Backfired

Crouch, Harold. The Army and Politics in Indonesia. Cornell University Press: Ithaca, 1978.

Feith, Herbert. The Decline of Constitutional Democracy in Indonesia. Cornell University Press: Ithaca, 1962.

Feith, Herbert. " Dynamics of Guided Democracy." In McVey, Ruth T., ed., Indonesia. Yale University Press: New Haven, 1963.

Gardner, Paul. Shared Hope, Separate Fears: US-Indonesian Relations. Westview Press, 1997.

Hughes, John. Indonesian Upheaval. McKay: New York, 1967.

Jones, Howard. Indonesia: The Possible Dream. Harcourt Brace Jovanovich: New York, 1971.

Kahin, George McT. Nationalism and Revolution in Indonesia. Cornell University Press: Ithaca, 1962.

McDonald, Hamish. Suharto's Indonesia. Fontana/Collins: Blackburn, Victoria, Australia, 1980.

Polomka, Peter. Indonesia Since Sukarno. Penguin: 1971.

Reid, Anthony J.S. Indonesian National Revolution, 1945-50. Longman: Australia, 1974.

Schwarz, Adam. A Nation in Waiting: Indonesia in the 1990s. Allen and Unwin (Australia), 1994 and revised edition 1999.

Sundhaussen, Ulf. The Road to Power: Indonesian Military Politics, 1945-1967. Oxford University Press: Kuala Lumpur, 1982.

Indonesian Art and Culture

Adyatman, Mara. Indonesian Ceramics. Himpunan Keramik: Jakarta, 1981.

Dumarcay, Jacques. Borobudur. Oxford University Press: Kuala Lumpur, 1978.

Gittinger, Mattiebelle. Splendid Symbols: Textiles and Tradition in Indonesia. The Textile Museum: Washington, D.C., 1982.

Heuken, Adolf. Historical Sites of Jakarta. Cipta Loka Caraka: Jakarta, 1982.

Holt, Claire. Art in Indonesia: Continuities and Change. Cornell University Press: Ithaca, 1967.

Lindsay, Jennifer. Javanese Gamelan. Oxford University Press: Kuala Lumpur, 1979.

VanNess, Edward and Sita Van-Neus. Wayang Kulit. Oxford University Press: Kuala Lumpur.

Bali

Bandem, I. Made and Fredrick Eugene deBoer. Kaja and Kelod: Balinese Dance in Transition. Oxford University Press: Kuala Lumpur, 1982 (revised edition: 1995).

Covarrubias, Miguel. Island of Bali. Oxford: 1937. (Reprinted by Oxford: Asia, 1972).

deZoete, Beryl and Walter Spies. Dance and Drama in Bali. London, 1938. (Reprinted by Oxford: Asia, 1978)

Geertz, Clifford. Negara: The Theatre State in Nineteenth Century Bali. Princeton University Press: Princeton, 1980.

Ramseyer, Urs. The Art and Culture of Bali. Oxford University Press: Kuala Lumpur, 1977 (reprint: 1986).

Rhodius, Hans and John Darling. Walter Spies and Balinese Art. Terra Zutphen: Amsterdam, 1980.

Novel and Short Stories

Aveling, Harry, ed. and trans. From Surabaya to Armageddon: Indonesian Short Stories. Heinemann Educational Books (Asia): Singapore, 1976.

Baum, Vicki. A Tale From Bali. Oxford University Press: London, 1972.

Koch, C.J. The Year of Living Dangerously. Sphere Books, Ltd: London, 1981.

Lubis, Mochtar. Twilight in Jakarta. Multatuli, Max. Havelaar. University of Massachusetts Press: Amherst, 1982.

Toer, Pramoedya Ananta. Buru Quartet. Penguin Books, 1985 and after. (Fiction; English translation of major Indonesian author.) This is the full set of books.

Toer, Pramoedya Ananta. A Heap of Ashes. University of Queensland Press: St. Lucia, Queensland, 1975.

Toer, Pramoedya Ananta. This Earth of Mankind (Bumi Manusia). Ringwood, Penguin Books Australia, Ltd: Victoria, 1982.

Travel Guides

Bacon, Derek. Culture Shock! Jakarta at your Door. Graphic Arts Center Pub. Co, 1999 A thorough, relevant, and highly entertaining introduction to life in Jakarta, aimed at newcomers planning to stay long-term.

Dalton, Bill. Indonesia Handbook. Moon Publications, 1995. Arguably the best "all-in-one" travel guide to Indonesia. Especially good for travel to remote destinations and budget travel.

Turner, Peter. Lonely Planet Guide to Indonesia. Lonely Planet Publications, 1997.

Smith, Holly. Adventuring in Indonesia: Exploring the Natural Areas of the Pacific's Ring of Fire. Sierra Club Books, 1997. Great information on trekking, biking, and other outdoor pursuits with a special emphasis on environmentally friendly activities

views updated

INDONESIA

Compiled from the May 2005 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Indonesia


PROFILE

Geography

Area:

2 million sq. km. (736,000 sq. mi.), about three times the size of Texas; maritime area: 7,900,000 sq. km.

Cities:

Capital—Jakarta (est. 8.8 million). Other cities—Surabaya 3.0 million, Medan 2.5 million, Bandung 2.5 million plus an additional 3 million in the surrounding area.

Terrain:

More than 17,000 islands; 6,000 are inhabited; 1,000 of which are permanently settled. Large islands consist of coastal plains with mountainous interiors.

Climate:

Equatorial but cooler in the highlands.

People

Nationality:

Noun and adjective—Indonesian(s).

Population (2004):

224 million.

Annual population growth rate (2004):

1.9%.

Ethnic groups:

Javanese 45%, Sundanese 14%, Madurese 7.5%, coastal Malays 7.5%, others 26%.

Religion:

Islam 87%, Protestant 6%, Catholic 3%, Hindu 2%, Buddhist and other 1%.

Language:

Indonesian (official), local languages, the most important of which is Javanese.

Education:

Years compulsory—9. Enrollment—92% of eligible primary school-age children. Literacy—85%.

Health:

Infant mortality rate—63/1,000 live births. Life expectancy at birth—men 60 years, women 64 years.

Work force:

91 million. Agriculture—46.1%, trade and restaurants—18.5%, manufacturing—12.0%, public services—10.7% (2003 data).

Government

Type:

Independent republic.

Independence:

August 17, 1945 proclaimed.

Constitution:

1945. Embodies five principles of the state philosophy, called Pancasila, namely monotheism, humanitarianism, national unity, representative democracy by consensus, and social justice.

Branches:

Executive—president (head of government and chief of state) elected by direct popular vote. Legislative—550-member House of Representatives (DPR) elected for a 5-year term. Judicial—Supreme Court.

Suffrage:

17 years of age universal and married persons regardless of age.

Economy

GDP (2004):

$255.9 billion.

Annual growth rate (2004):

5.1%.

Inflation (2004):

6.4%.

Per capita income (2004):

$1,143.

Natural resources (13.6% of GDP):

Oil and gas, bauxite, silver, tin, copper, gold, coal.

Agriculture (17.5% of GDP):

Products—timber, rubber, rice, palm oil, coffee. Land—17% cultivated.

Manufacturing (25.0% of GDP):

Garments, footwear, electronic goods, furniture, paper products.

Trade:

Exports (2004)—$69.4 billion including oil, natural gas, appliances, textiles. Major markets—Japan, China, U.S., Singapore, EU. Imports (2004)—$44.8 billion including food, chemicals, capital goods, consumer goods. Major suppliers—Japan, Singapore, U.S., China, EU.


PEOPLE

Indonesia's approximately 224 million people make it the world's fourth-most populous nation. The island of Java is one of the most densely populated areas in the world, with more than 107 million people living in an area the size of New York State. Indonesia includes numerous related but distinct cultural and linguistic groups, many of which are ethnically Malay. Since independence, Bahasa Indonesia (the national language, a form of Malay) has spread throughout the archipelago and has become the language of most written communication, education, government, and business. Many local languages are still important in many areas, however. English is the most widely spoken foreign language. Education is compulsory for children through grade 9. Although about 92% of eligible children are enrolled in primary school, a much smaller percentage attend full time. About 44% of secondary school-age children attend junior high school, and some others of this age group attend vocational schools.

Constitutional guarantees of religious freedom apply to the five religions recognized by the state, namely Islam (87%), Protestantism (6%), Catholicism (3%), Buddhism (2%), and Hinduism (1%). In some remote areas, animism is still practiced.


HISTORY

By the time of the Renaissance, the islands of Java and Sumatra had already enjoyed a 1,000-year heritage of advanced civilization spanning two major empires. During the 7th-14th centuries, the Buddhist kingdom of Srivijaya flourished on Sumatra. At its peak, the Srivijaya Empire reached as far as West Java and the Malay Peninsula. Also by the 14th century, the Hindu Kingdom of Majapahit had risen in eastern Java. Gadjah Mada, the empire's chief minister from 1331 to 1364, succeeded in gaining allegiance from most of what is now modern Indonesia and much of the Malay archipelago as well. Legacies from Gadjah Mada's time include a codification of law and an epic poem. Islam arrived in Indonesia sometime during the 12th century and, through assimilation, supplanted Hinduism by the end of the 16th century in Java and Sumatra. Bali, however, remains overwhelmingly Hindu. In the eastern archipelago, both Christian and Islamic proselytizing took place in the 16th and 17th centuries, and, currently, there are large communities of both religions on these islands.

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 until 1975. During 300 years of Dutch 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.

The Japanese occupied Indonesia for 3 years during World War II. 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 4 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.

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 made responsible 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), 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, and permitted steps toward self-government and independence.

Negotiations with the Dutch on the incorporation of the territory 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 Irianese 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 Irian Jaya, also known as Papua or West 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 Irian Jaya of a desire for independence from Indonesia.

Unsuccessful rebellions on Sumatra, Sulawesi, West Java, and other islands beginning in 1958, plus a failure by the constituent assembly to develop a new constitution, weakened the parliamentary system. Consequently, in 1959, when President Soekarno unilaterally revived the provisional 1945 constitution, which gave broad presidential powers, he met little resistance. From 1959 to 1965, President Soekarno imposed an authoritarian regime under the label of "Guided Democracy." He also moved Indonesia's foreign policy toward nonalignment, a foreign policy stance supported by other prominent leaders of former colonies who rejected formal alliances with either the Western or Soviet blocs. Under Soekarno's auspices, these leaders gathered in Bandung, West Java, 1955, to lay the groundwork for what became known as the Non-Aligned

Movement. In the late 1950s and early 1960s, President Soekarno moved closer to Asian communist states and toward the Indonesian Communist Party (PKI) in domestic affairs. Though the PKI represented the largest communist party outside the Soviet Union and China, its mass support base never demonstrated an ideological adherence typical of communist parties in other countries.

By 1965, the PKI controlled many of the mass civic and cultural organizations that Soekarno had established to mobilize support for his regime and, with Soekarno's acquiescence, embarked on a campaign to establish a "Fifth Column" by arming its supporters. Army leaders resisted this campaign. Under circumstances that have never been fully explained, on October 1, 1965, PKI sympathizers within the military, including elements from Soekarno's palace guard, occupied key locations in Jakarta and kidnapped and murdered six senior generals. Major General Soeharto, the commander of the Army Strategic Reserve, rallied army troops opposed to the PKI to reestablish control over the city. Violence swept throughout Indonesia in the aftermath of the October 1 events, and unsettled conditions persisted through 1966. Rightist gangs killed tens of thousands of alleged communists in rural areas. Estimates of the number of deaths range between 160,000 and 500,000. The violence was especially brutal in Java and Bali. During this period, PKI members by the tens of thousands turned in their membership cards. The emotions and fears of instability created by this crisis persisted for many years; the communist party remains banned from Indonesia.

Throughout the 1965–66 period, President Soekarno vainly attempted to restore his political position and shift the country back to its pre-October 1965 position. Although he remained President, in March 1966, Soekarno had to transfer key political and military powers to General Soeharto, who by that time had become head of the armed forces. In March 1967, the Provisional People's Consultative Assembly (MPRS) named General Soeharto acting President. Soekarno ceased to be a political force and lived under virtual house arrest until his death in 1970.

President Soeharto proclaimed a "New Order" in Indonesian politics and dramatically shifted foreign and domestic policies away from the course set in Soekarno's final years. The New Order established economic rehabilitation and development as its primary goals and pursued its policies through an administrative structure dominated by the military but with advice from Western-educated economic experts. In 1968, the People's Consultative Assembly (MPR) formally selected Soeharto to a full 5-year term as President, and he was re-elected to successive 5-year terms in 1973, 1978, 1983, 1988, 1993, and 1998. In mid-1997, Indonesia was afflicted by the Asian financial and economic crisis, accompanied by the worst drought in 50 years and falling prices for oil, gas, and other commodity exports. The rupiah plummeted, inflation soared, and capital flight accelerated. Demonstrators, initially led by students, called for Soeharto's resignation. Amidst widespread civil unrest, Soeharto resigned on May 21, 1998, 3 months after the MPR had selected him for a seventh term. Soeharto's hand-picked Vice President, B.J. Habibie, became Indonesia's third President. President Habibie reestablished International Monetary Fund (IMF) and donor community support for an economic stabilization program. He released several prominent political and labor prisoners, initiated investigations into the unrest, and lifted controls on the press, political parties, and labor unions.

In January 1999, Habibie and the Indonesian Government agreed to a process, with UN involvement, under which the people of East Timor would be allowed to choose between autonomy and independence through a direct ballot. The direct ballot was held on August 30, 1999. Some 98% of registered voters cast their ballots, and 78.5% of the voters chose independence over continued integration with Indonesia. Many persons were killed by Indonesian military forces, and military-backed militias, in a wave of violence and destruction after the announcement of the pro-independence vote.

Indonesia's first elections in the post-Soeharto period were held for the national, provincial, and sub-provincial parliaments on June 7, 1999. The elections were contested by 48 political parties. For the national parliament, Partai Demokrasi Indonesia Perjuangan (PDI-P, Indonesian Democratic Party of Struggle led by Megawati Soekarnoputri) won 34% of the vote; Golkar ("Functional Groups" party) 22%; Partai Kebangkitan Bangsa (PKB, National Awakening Party linked to Nadhlatul Ulama and headed by Abdurrahman Wahid) 13%; and Partai Persatuan Pembangunan (PPP, United Development Party led by Hamzah Haz) 11%. The MPR selected Abdurrahman Wahid as Indonesia's fourth President in November 1999 and replaced him with Megawati Soekarnoputri in July 2001.

In 2001 and 2002, the MPR amended the constitution to provide for the direct election, by popular vote, of the president and vice president. In 2004's elections, only parties or coalitions of parties that gained at least 3% of the House of Representatives (DPR) seats or 5% of the vote in national legislative elections were eligible to nominate a presidential and vice presidential ticket. The 2004 legislative elections took place on April 5 and appeared generally free and fair. PDI-P lost its plurality in the House of Representatives, dropping to under 19% of the total vote, while Golkar remained basically at 1999 levels, with 21% of the vote. Five other parties won between 6 and 11% of the national vote. Of the 18 other parties that participated, 9 won small numbers of seats in the DPR. The first direct presidential election was held on July 5, 2004, contested by five tickets. No one candidate won at least 50% of the vote, so a runoff election between the top two candidates, President Megawati Sukarnoputri and retired General Susilo Bambang Yudhoyono, was held on September 20, 2004. In this final round, General Yudhoyono won 60.6% of the vote, a margin of just over 20% greater than his rival. Approximately 76.6% of the eligible voters participated, a total of roughly 117 million people, making Indonesia's the largest and most complex single-day election in the world. The Carter Center issued a statement congratulating "the people and leaders of Indonesia for the successful conduct of the presidential election and the peaceful atmosphere that has prevailed throughout the ongoing democratic transition."


GOVERNMENT AND POLITICAL CONDITIONS

Indonesia is a republic based on the 1945 constitution providing for a limited separation of executive, legislative, and judicial power. Substantial restructuring has occurred since President Soeharto's resignation and the short, transitional Habibie administration which followed. The Habibie government fashioned political reform legislation that—without changing the 1945 Indonesian constitution—formally set up new rules for the electoral system, the House of Representatives (DPR), the People's Consultative Assembly (MPR), and political parties. An MPR decree adopted in November 1998 limits the president to two terms in office.

The president, elected for a 5-year term, is the dominant government and political figure. The president and the vice president were elected by popular vote for the first time on September 20, 2004. Previously, the MPR selected Indonesia's president. In 1999, the MPR selected Abdurrahman Wahid, also known as Gus Dur, as the fourth President. Wahid proved unable to govern effectively and the MPR impeached him in July 2001, immediately appointing then-Vice President Megawati Soekarnoputri as the fifth President. Although Megawati brought a certain amount of stability back to the country, her progress in combating corruption and improving the economy were not enough to satisfy the electorate, and in September 2004 Susilo Bambang Yudhoyono was elected as her replacement.

The president, assisted by a cabinet that he appoints, has the authority to conduct the administration of the government and is accountable only to the MPR. President Yudhoyono's Democratic Party (PD), holds only 55 seats out of 550 seats in the People's Representative Assembly (DPR), making it the fifth-largest in the legislature the effectiveness of his administration is could hinge on his ability to forge a successful coalition or working relationship with the other factions. The 38 appointed seats previously reserved in the DPR for the armed forces (TNI) have been phased out. The new People's Consultative Assembly (MPR) has 678 members, consisting of the 550 members of the DPR and the 128 representatives of the newly-formed Regional Representative Council (DPD), which includes four members from each of Indonesia's 32 provinces.

The armed forces shaped and provided leadership for Soeharto's New Order from the time it came to power in the wake of the abortive 1965 uprising. Military officers, especially from the army, were key advisers to Soeharto and Habibie and had considerable influence on policy. Under the dual function concept ("dwifungsi"), the military asserted a continuing role in socio-political affairs. This concept was used to justify placement of officers to serve in the civilian bureaucracy at all government levels. Although the military still has great influence and is perhaps the only truly national institution, dwifungsi has been abolished, ending its formal involvement in government administration. Military officers must now resign from the armed forces before taking a civilian government position or political office. The police have been separated from the military, further reducing the military's direct role in governmental matters.

Principal Government Officials

Last Updated: 1/3/2006

President: Susilo Bambang YUDHOYONO
Vice President: Muhammad Yusuf KALLA
Coordinating Min. for Economic Affairs: BOEDIONO
Coordinating Min. for the People's Welfare: Aburizal BAKRIE
Coordinating Min. for Political, Legal, & Security Affairs: WIDODO Adi Sutjipto
Min. of Agriculture: Anton APRIYANTONO
Min. for Communication & Information: Sofyan A. DJALIL
Min. for Cooperatives & Small & Medium Enterprises: Suryadharma ALI
Min. of Culture & Tourism: Jero WACIK
Min. of Defense: Juwono SUDARSONO
Min. for the Development of Disadvantaged Regions: SYAIFULLAH Yusuf
Min. of Education: Bambang SUDIBYO
Min. for Energy & Mineral Resources: PURNOMO Yusgiantoro
Min. for the Environment: Rachmat WITOELAR
Min. of Finance: SRI MULYANI Indrawati
Min. of Foreign Affairs: Noer Hasan WIRAJUDA
Min. of Forestry: M. S. KABAN
Min. of Health: Siti Fadilah SUPARI
Min. of Home Affairs: Muhammad MA'RUF
Min. of Industry: Andung NITIMIHARJA
Min. of Justice & Human Rights: HAMID Awaluddin
Min. of Manpower & Transmigration: Fahmi IDRIS
Min. of Maritime Affairs & Fisheries: Freddy NUMBERI
Min. for National Development Planning: Paskah SUZETTA
Min. for People's Housing: Mohammad Yusuf ASYARI
Min. of Public Works: Joko KIRMANTO
Min. of Religion: Muhammad Maftuh BASYUNI
Min. of Research & Technology: KUSMAYANTO Kadiman
Min. of Social Affairs: Bachtiar CHAMSYAH
Min. for State Apparatus Reform: Taufiq EFFENDI
Min. for State-Owned Enterprises: SUGIHARTO
Min. of Trade: Mari Elka PANGESTU
Min. of Transportation: Hatta RAJASA
Min. for Women's Empowerment: Meutia Farida HATTA Swasono
Min. for Youth & Sports: Adhyaksa DAULT
Attorney General: Abdul Rahman SALEH
Cabinet Secretary: Sudi SILALAHI
State Secretary: Yusril Izha MAHENDRA
Director, State Intelligence Agency (BIN) (Acting): Said Ali AS'AT
Governor, Bank Indonesia: Burhanuddin ABDULLAH
Ambassador to the US: SOEMADI Brotodiningrat
Permanent Representative to the UN, New York: Rezlan Ishar JENIE

The embassy of Indonesia is at 2020 Massachusetts Avenue NW, Washington, DC 20036 (tel. 202-775-5200-5207; fax: 202-775-5365). Consulates General are in New York (5 East 68th Street, New York, NY 10021, tel. 212-879-0600/0615; fax: 212-570-6206); Los Angeles (3457 Wilshire Blvd., Los Angeles, CA 90010; tel. 213-383-5126; fax: 213-487-3971); Houston (10900 Richmond Ave., Houston, TX 77042; tel. 713-785-1691; fax: 713-780-9644). Consulates are in San Francisco (1111 Columbus Avenue, San Francisco, CA 94133; tel. 415-474-9571; fax: 415-441-4320); and Chicago (2 Illinois Center, Suite 1422233 N. Michigan Avenue, Chicago, IL 60601; tel. 312-938-0101/4; 312-938-0311/0312; fax: 312-938-3148).


ECONOMY

Indonesia has a market-based economy in which the government plays a significant role. It owns 158 state-owned enterprises and 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: in 1998 Indonesia experienced negative GDP growth of 13.7% 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 through acquisition of non-performing bank loans and corporate assets through the debt restructuring process, but subsequently disposed of most of the assets averaging 29% return on the assets received. Indonesia has since recovered—albeit slower than some of its neighbors—and has recapitalized its banking sector, improved oversight of capital markets, and taken steps to stimulate growth and investment, particularly in infrastructure. GDP growth was 4.3% in 2002, 4.5% in 2003, and 5.1% in 2004.

Economic Policy

After President Yudhoyono took office on October 20, 2004, he moved quickly to implement a "pro-growth, pro-poor, pro-employment" economic program. He appointed a strong group of economic ministers who announced a "100-Day Agenda" of short-term policy actions designed to energize the bureaucracy. President Yudhoyono announced an ambitious anti-corruption plan December 2004. The State Ministry of National Development Planning (BAPPENAS) released in early 2005 a Medium Term Plan focusing on four broad objectives: creating a safe and peaceful Indonesia, creating a just and democratic Indonesia, creating a prosperous Indonesia, and establishing a stable macroeconomic framework for development.

President Yudhoyono and his team have targeted average growth of 6.6% from 2004–2009 to reduce unemployment and poverty significantly. Indonesia's overall macroeconomic picture is stable and improving, although GDP growth rates have not yet returned to pre-crisis levels. Indonesia's 4th quarter 2004 GDP growth was 6.1%, its highest level since the 1997–98 financial crisis, and full year growth in 2004 was 5.1%. Per capita income rose to $1,143, topping the pre-crisis level. Domestic consumption continued to account for the largest portion of GDP, at about 66.5%, followed by investment at 20.9%, and net exports at 12.6%. In evidence of an accelerating economy, investment grew 15% in the second half of 2004, a significant shift from investment growth in 2003 of only 1.9%. Capital goods imports increased 41.3% in 2004, a further indication of a strengthening economy. The government's success in pushing forward its ambitious reform plan will determine whether Indonesia's GDP growth rates can recover to pre-crisis levels, and whether Indonesia will again become a favored destination for foreign investors.

Fuel Prices and Inflation

The government raised fuel prices by an average of 29% on March 1, 2005 in an effort to reduce Indonesia's fuel subsidy burden (projected to reach Rp 63 trillion in 2005 or 3% of GDP before the price hikes). Most economists expect the fuel price hikes to lead to a 0.8-1.2% rise in Indonesia's 2005 average inflation rate, and the Government of Indonesia's revised FY 2005 budget projects an inflation rate of 7.0%. The Government of Indonesia is now discussing a compensation package with parliament that would provide a range of benefits for low-income families including subsidized rice, improved health and social services, housing subsidies, microcredit and family planning programs.

Banking Sector

Indonesia's commercial banking sector is set to undergo a period of significant change over the next five years. Bank Indonesia (BI) announced plans in January 2005 to strengthen the banking sector by encouraging consolidation and improving prudential banking and supervision. BI hopes to encourage small banks with less than approximately Rp 100 billion (about US $11 million) in capital to either raise more capital or merge with healthier "anchor banks" before 2009. It plans to announce the criteria for anchor banks by July 2005. BI is also encouraging consolidation by removing the former 10% limit on the capital that one bank could inject into another.

BI plans to adopt Basel II standards beginning in 2008, and is establishing a credit bureau to centralize data on borrowers. Another important reform is the Government of Indonesia's decision to gradually reduce the blanket guarantee on bank third-party liabilities beginning in 2006. BI and the Government of Indonesia will replace the blanket guarantee with a deposit insurance scheme run by an independent "Indonesian Deposit Insurance Agency." The new deposit insurance scheme, which will begin operations in September 2005, will cover deposits in all foreign, commercial, state-owned, rural, and shariah banks.

Indonesia currently has 134 private banks, 52 of which have capital under IDR 100 billion (US$10.8 million) and control less than 0.2% market share. Four state-owned banks (Bank Mandiri, BNI, BRI, BTN) continue to dominate the sector with approximately 40% of assets. In late 2004, the Government of Indonesia sold approximately $520 million in shares of several banks formerly owned by the Indonesian Bank Restructuring Agency (IBRA). The Government of Indonesia plans to sell more shares of ex-IBRA banks in 2005 but has no plans to privatize state-owned banks. Three small banks representing less than 0.6% of combined market share failed in 2004, apparently due to owner malfeasance. The three—Bank Dagang Bali, Bank Asiatic and Bank Global—presented no systemic risk, but nevertheless highlighted continuing weaknesses in both bank management and BI's supervision and examination regimes.

Exchange Rate

After reaching an average monthly low of IDR 14,900 Rupiah/U.S. $1 in June 1998 (during the financial crisis and after the resignation of Soeharto in May of that year) the Rupiah has been relatively stabile since mid-2002, trading around Rp 9500/U.S. $1 in early 2005. However, high levels of government debt, ongoing investment climate problems, and higher inflation in early 2005 mean exchange rate risk continues to be a concern for investors.

Earthquake and Tsunami Impact on Economy

The December 26, 2004 tsunami, and March 28, 2005 Nias earthquake, did not significantly change Indonesia's macroeconomic outlook. However, the impact in Aceh province was severe and according to the World Bank's damage and loss estimate, amounted to about $4.5 billion or 97% of Aceh's GDP. The overall impact on the national economy, however, is expected to be small, only 0.1-0.4% of GDP. Some economists even believe that the large amount of assistance and the beginning of reconstruction may even contribute to additional GDP growth of up to 0.5% in 2005. The large amount of donor funds from both private and public sources is still being calculated, but it is hoped that it will cover a large proportion of Aceh's reconstruction needs as the government implements its plans. Overall GDP growth for 2005 is expected to be between 5-6%, with steady increases in exports and investment.

Exports and Trade

Indonesia's exports grew to a record $69.7 billion in 2004, an increase of 11.49% from 2003. Strong sales in non-oil and gas commodities such as electronics, palm oil, clothing, coal and tin drove the growth in exports. Japan, the United States, Singapore and China accounted for 42.5% of Indonesia's total non-oil and gas exports last year, with the U.S. contributing 13.9%. Meanwhile, total imports jumped by almost 40% in 2004 to $46.2 billion, with oil and gas imports surging 52.4% to $11.6 billion and non-oil and gas imports increasing 35.7% to $34.5 billion. U.S.-Indonesia trade grew 12% in 2004 to $13.48 billion, while our trade deficit increased 16.3% to $8.14 billion ($2.67 billion in exports vs. $10.81 billion in imports).

Oil and Minerals Sector

Indonesia, the only Asian member of the Organization of Petroleum Exporting Countries (OPEC), ranks 17th among world oil producers, with about 1.8% of world production. Crude and condensate output averaged 1.09 million barrels per day (b/d) in 2004. In the 2003 calendar year the oil and gas sector, including refining, contributed $13.6 billion or 21.6% of total export earnings and about 24% of government revenues, a greater percentage than recent years due to high world oil prices. U.S. companies have invested heavily in the petroleum sector. Due to limited refining capacity and growing domestic demand for petroleum fuels, Indonesia became a net oil importer in 2003. Indonesia, which ranks sixth in world gas production, is still the world's number one exporter of liquefied natural gas (LNG), though its world market share has declined from 32% in 1998 to approximately 20% in 2004. Despite the declining trends, Indonesia's oil and gas trade balance remains positive at $6.5 billion in 2004 and a forecast $9.8 billion for 2005.

The state owns all oil and mineral rights. Foreign firms participate through production sharing and work contracts. The Indonesian Government passed a petroleum law in October 2001 that deregulated the upstream and downstream sectors. The law and follow-on implementing regulations transformed Pertamina into a state-owned enterprise, and eliminates the distinction between foreign and domestic oil and gas companies. Pertamina's monopoly over downstream oil distribution and marketing of fuel products will end in 2005. Management of Production Sharing Contracts (PSCs), which authorize investors to produce oil and gas, has shifted from Pertamina to an executive body within the central government that reports directly to the President, though the Energy Minister is regularly consulted. A new downstream regulatory body has assumed the role of Pertamina in controlling downstream activities. Oil and gas contractors are required to finance all exploration, production, and development costs in their contract areas; they are entitled to recover operating, exploration, and development costs out of the oil and gas produced.

Although minerals production traditionally centered on bauxite, silver, and tin production, Indonesia is expanding its copper, nickel, gold, and coal output for export markets. In mid-1993, the Energy Ministry reopened the coal sector to foreign investment. Total coal production reached 127 million metric tons in 2004, including exports of 105.6 million tons. The Indonesian Government hopes to export 115 million metric tons of coal in 2005, which would surpass Australia and make Indonesia the world's largest thermal coal exporter. Two U.S. firms operate three copper/gold mines in Indonesia, with a Canadian and U.K. firm holding significant other investments in nickel and gold, respectively. Indonesian gold production in 2004 was 112 tons, down from a peak of 180 tons in 2001. The primary reason for the slump in production was decreased output at Grasberg following a late 2003 pit wall failure. Freeport's Grasberg mine is the country's and world's biggest gold producing mine. Indonesia's share of global exploration spending has dropped from 3% to 1% – since 1998 only three new gold mines have opened. This does not reflect Indonesia's mineral prospectivity, which is high; rather the decline reflects uncertainty over mining laws and regulations, low competitiveness in the tax and royalty system, and investor concerns over divestment policies and the sanctity of contracts.

Investment

Since the late 1980s, Indonesia has made significant changes to its regulatory framework to encourage economic growth. This growth was financed largely from private investment, both foreign and domestic. U.S. investors dominated the oil and gas sector and undertook some of Indonesia's largest mining projects. In addition, the presence of U.S. banks, manufacturers, and service providers expanded, especially after the industrial and financial sector reforms of the 1980s. While the petroleum and mining investors remained after the 1997 crisis, the numbers of U.S. investors in other sectors declined. Other major foreign investors include Japan, the United Kingdom, Singapore, the Netherlands, Hong Kong, Taiwan, and South Korea. Infrastructure investment declined steadily after the financial crisis and has not yet recovered.

President Yudhoyono and his economic ministers have stated repeatedly their intention since taking office in October 2004, to improve the climate for private sector investment in order to raise the level of GDP growth and reduce unemployment. Though investment grew 15% in the second half of 2004, a significant shift from investment growth in 2003 of only 1.9%, many challenges remain. In addition to general corruption and legal uncertainty, businesses have cited a number of specific factors that have reduced the competitiveness of Indonesia's investment climate, including corrupt and inefficient customs services; non-transparent and arbitrary tax administration; inflexible labor markets that have reduced Indonesia's advantage in labor-intensive manufacturing; increasing infrastructure bottlenecks; and uncompetitive investment laws and regulations. By early 2005, significant reform efforts were underway in many of these areas. With the passage of a new copyright law in July 2002, and accompanying optical disc regulations in 2004, Indonesia's intellectual property rights regime was greatly strengthened. However, the lack of effective enforcement remains a major concern to U.S. intellectual property holders and foreign investors particularly in the high-technology sector.


NATIONAL SECURITY

Indonesia's armed forces (Tentara Nasional Indonesia, or TNI, formerly ABRI) total about 350,000 members, including the army, navy, marines, and air force. The army is by far the largest, with about 280,000 active-duty personnel. Defense spending in the national budget is only 1.8% of GDP but is supplemented by revenue from many military businesses and foundations.

The Indonesian National Police were for many years a branch of the armed forces. The police were formally separated from the military in April 1999, a process that was formally completed in July 2000. With 250,000 personnel, the police represent a much smaller portion of the population than in most nations.

Indonesia is at peace with its neighbors. Without a credible external threat in the region, the military historically viewed its prime mission as assuring internal security. Military leaders now say they wish to transform the military to a professional, external security force but insist that the armed forces will continue to play an internal security role for some time.

Throughout Indonesian history the military maintained a prominent role in the nation's political and social affairs. Traditionally a significant number of cabinet members had military backgrounds, while active duty and retired military personnel occupied a large number of seats in the parliament. Commanders of the various territorial commands played influential roles in the affairs of their respective regions. With the inauguration of the newly-elected national parliament in October 2004, the military no longer has a formal political role, although it retains important political influence.


FOREIGN RELATIONS

Since independence, Indonesia has espoused a "free and active" foreign policy, seeking to play a role in regional affairs commensurate with its size and location but avoiding involvement in conflicts among major powers. Indonesian foreign policy under the "New Order" government of President Soeharto moved away from the stridently anti-Western, anti-American posturing that characterized the latter part of the Soekarno era. Following Soeharto's ouster in 1998, Indonesia's Presidents have preserved the broad outlines of Soeharto's independent, moderate foreign policy. The traumatic separation of East Timor from Indonesia after an August 1999 East Timor referendum, and subsequent events in East and West Timor, strained Indonesia's relations with the international community.

A cornerstone of Indonesia's contemporary foreign policy is its participation in the Association of Southeast Asian Nations (ASEAN), of which it was a founding member in 1967 with Thailand, Malaysia, Singapore, and the Philippines. Since then, Brunei, Vietnam, Laos, Burma, and Cambodia also have joined ASEAN. While organized to promote common economic, social, and cultural goals, ASEAN acquired a security dimension after Vietnam's invasion of Cambodia in 1979; this aspect of ASEAN expanded with the establishment of the ASEAN Regional Forum in 1994, which comprises 22 countries, including the U.S. Indonesia's continued domestic troubles have distracted it from ASEAN matters and consequently lessened its influence within the organization.

Indonesia also was one of the founders of the Non-Aligned Movement (NAM) and has taken moderate positions in its councils. As NAM Chairman in 1992–95, it led NAM positions away from the rhetoric of North-South confrontation, advocating instead the broadening of North-South cooperation in the area of development. Indonesia continues to be a prominent, and generally helpful, leader of the Non-Aligned Movement.

Indonesia has the world's largest Muslim population, though it is a secular state, and is a member of the Organization of the Islamic Conference (OIC). It carefully considers the interests of Islamic solidarity in its foreign policy decisions but generally has been an influence for moderation in the OIC. President Wahid, for example, pursued better relations with Israel.

After 1966, Indonesia welcomed and maintained close relations with the donor community, particularly the United States, Western Europe, Australia, and Japan, through the Intergovernmental Group on Indonesia (IGGI) and its successor, the Consultative Group on Indonesia (CGI), which have provided substantial foreign economic assistance. Donors remain committed to helping Indonesia reform, but express increasing frustration with poor governance and implementation.

Indonesia has been a strong supporter of the Asia-Pacific Economic Cooperation (APEC) forum. Largely through the efforts of President Soeharto at the 1994 meeting in Bogor, Indonesia, APEC members agreed to implement free trade in the region by 2010 for industrialized economies and 2020 for developing economies.


U.S.-INDONESIAN RELATIONS

The United States has important economic, commercial, and security interests in Indonesia. Indonesia remains a linchpin of regional security due to its strategic location astride a number of key international maritime straits. Relations between Indonesia and the U.S. are good. The U.S. played an important role in Indonesian independence in the late 1940s and appreciated Indonesia's role as a staunch anti-communist bulwark during the Cold War. Cordial and cooperative relations are maintained today, although any formal security treaties do not bind the two countries. The United States and Indonesia share the common goal of maintaining peace, security, and stability in the region and engaging in a dialogue on threats to regional security. Cooperation between the U.S. and Indonesia on counter-terrorism has increased since 2002, as terrorist attacks in Bali (October 2002) and Jakarta (August 2003) demonstrated the presence of terrorist organizations, principally Jemaah Islamiyah, in Indonesia. The United States has welcomed Indonesia's contributions to regional security, especially its leading role in helping restore democracy in Cambodia and in mediating among the many territorial claimants in the South China Sea.

The U.S. is committed to assisting Indonesia's democratic transition and supports the territorial integrity of the country. There are, nonetheless, friction points in the bilateral political relationship. These have centered primarily on human rights, as well as on differences in our respective foreign policy orientations. The U.S. Congress cut off grant military training assistance (International Military Education and Training—IMET) to Indonesia in 1992 in response to a November 12, 1991, incident in East Timor in which Indonesian security forces shot and killed East Timorese demonstrators. This restriction was partially lifted in 1995. Military assistance programs were again suspended, however, in the aftermath of the violence and destruction in East Timor following the August 30, 1999 referendum favoring separation from Indonesia. Separately, the U.S. has also urged the Indonesian Government to identify and bring to justice the perpetrators of the August 2002 ambush murders of two U.S. citizen teachers near Timika in the Papua province. In 2005, the Secretary of State certified that Indonesian cooperation in the investigation had met the conditions set by Congress, enabling the resumption of full IMET. Congress in FY 05 also provided limited and conditioned Foreign Military Financing (FMF) for the Indonesian Navy for maritime security. Indonesia continues to align itself with Non-Aligned Movement (NAM) and Group of 77 (G-77) foreign policy views, often taking unhelpful positions on issues of international human rights concern. In May 2005, the Yudhoyono administration, in a major effort to reinvigorate its leadership of the NAM and reset the movement's future course, hosted an Asia-Africa Summit to commemorate the founding of the NAM in Bandung, Indonesia in 1955.

On worker rights, Indonesia was the target of several petitions filed under the Generalized System of Preferences (GSP) legislation arguing that Indonesia did not meet internationally recognized labor standards. A formal GSP review was suspended in February 1994 without terminating GSP benefits for Indonesia. Since 1998, Indonesia has ratified all eight International Labor Organization core conventions on protecting internationally recognized worker rights and allowed trade unions to organize. However, enforcement of labor laws and protection of workers rights remains inconsistent and weak in some areas. Indonesia's slow economic recovery has pushed more workers into the informal sector, with less legal protection, including child labor.

USAID Programs in Indonesia in the political area include assistance for the following:

Democracy Reform:

The USAID Democracy and Reform objective aims to further democratic reforms in the world's largest Muslim country by deepening competitive political processes for Indonesia's 2004 elections, strengthening civil society by increasing citizen participation and promoting religious tolerance, conflict prevention, respect for human rights, and further justice sector reforms.

Decentralizing/Strengthening Local Government:

This program plays a critical role in strengthening the capacity of local governments to respond to the challenges posed by the deep and broad devolution of management and fiscal authority initiated by the central government in January 2001. The program aims to improve and monitor the effectiveness of decentralization policies, build local government capacity in budget development, financial management, and delivery of key services such as water and education.

Humanitarian Assistance and Crisis Mitigation:

This cross-cutting objective serves as USAID's primary mechanism for taking advantage of opportunities to stabilize conflict situations in Aceh, Papua and other strategic parts of Indonesia, as well as for delivering food assistance to improve food security for urban and rural poor.

Economic Relations with the United States

U.S. exports to Indonesia in 2004 totaled $3.2 billion, still down significantly from $4.5 billion in 1997. Indonesia is currently the 35th-largest export market for U.S. goods. The main exports were construction equipment, machinery, aviation parts, chemicals, and agricultural products. U.S. imports from Indonesia in 2004 totaled $8.7 billion and consisted primarily of clothing, natural rubber, footwear, machineries and sound recorders. The stock of U.S. foreign direct investment (FDI) in Indonesia in 2004 was $133.2 million and is concentrated largely in energy and mining sector. Economic assistance to Indonesia is coordinated through the Consultative Group on Indonesia (CGI), formed in 1989. It includes 19 donor countries and 13 international organizations that meet annually to coordinate donor assistance.

The U.S. Agency for International Development (USAID) has provided development assistance to Indonesia since 1950. Initial assistance focused on the most urgent needs of the new republic, including food aid, infrastructure rehabilitation, health care, and training. Through the 1970s, a time of great economic growth in Indonesia, USAID played a major role in helping the country achieve self-sufficiency in rice production and in reducing the birth rate.

Currently, USAID has identified priority program areas to strengthen a moderate, stable, and productive Indonesia. Resulting from President Bush's October 12, 2003 announcement, a major new initiative seeks to improve the quality of basic education. A newly integrated approach to community-driven development and government service delivery will improve the quality of basic human services. In a sector where USAID is already the leading donor in Indonesia, assistance will be provided for effective democratic and decentralized governance. Supporting Indonesia's economic stabilization efforts, assistance will strengthen economic growth and employment creation. Current USAID programs in the economic area include:

Economic Growth and Reform:

USAID's economic growth program is helping accelerate Indonesia's economic recovery and strengthen the capacity of key institutions and policy-makers, encourage sound polices, create a market-oriented legal and regulatory environment that also reflects new counter terrorism priorities, and foster competition as well as small and medium enterprises (SMEs).

Health, Population and Nutrition:

USAID's health, population, and nutrition program focuses on strengthening public sector commitment for reproductive and child health, improving access, quality and sustainability of basic health services, and empowering women, families and communities to take responsibility for improving health.

Natural Resource Management:

This program strengthens local management of Indonesia's forests, protected areas, coastal zones, and mineral resources. USAID's program aims to improve protected forest management and agro-forestry practices, establish effective community-based coastal management, promote orangutan habitat protection and improve mining regulation and coal seam fire suppression.

Energy Sector Reform:

The energy sector is a major component of the Indonesian economy, but the sector is plagued by corruption, weak policies, monopolistic and inefficient production, and wasteful consumption. USAID's program aims to improve the efficiency and transparency of the energy sector.

Disaster Relief:

USAID and other U.S. Government agencies have worked closely with the Government of Indonesia to provide relief and other assistance to those affected by the earthquake and tsunami. By April 2005, USAID had provided more than $52.1 million in emergency food assistance, relief supplies, shelter, water and sanitation, health, livelihoods and other support for affected communities in Aceh and North Sumatra.

Principal U.S. Embassy Officials

JAKARTA (E) Address: Medan Merdeka Selatan 5; APO/FPO: Box 8129, FPO, AP 96520-8129; Phone: (62-21) 3435-9000; Fax: (62) (21) 386-2259; INMARSAT Tel: 683-142-927; Work-week: M-F 7:30 a.m.-4:00 p.m.; Website: www.usembassyjakarta.org

AMB:Ambassador B. Lynn Pascoe
AMB OMS:Karen Davis
DCM:W. Lewis Amselem
CG:Mary Grandfield
POL:Marc Desjardins
CON:Mary Grandfield
MGT:Lawrence Mandel
AFSA:Ruth Hall
AGR:Fred Kessel
AID:William Frej
CLO:Jennifer Turner/Rena Hansen
DAO:Col. Joseph Judge (USA)
ECO:William Heidt
EEO:Max Kwak
EST:Anthony Woods
FCS:Richard Rothman
FMO:Ralph Hamilton
GSO:Wade Leahy
ICASS Chair:Fred Kessel
IMO:David Yeutter
IPO:Timmie Chatelain
ISO:Ron Lay
ISSO:Ron Lay
LAB:Mark D. Clark
PAO:Charles Silver
RSO:Earl R. Miller
State ICASS:Charles Silver
Last Updated: 1/11/2006

TRAVEL

Consular Information Sheet

December 28, 2005

Country Description:

Indonesia is an independent republic consisting of more than 16,500 islands spread over 3,000 miles. Indonesia's economy is developing, and tourist services are plentiful in the major tourist areas.

Entry Requirements:

A passport valid for at least six months from the date of arrival in Indonesia and an onward/return ticket are required. Indonesian authorities regularly deny entry to Americans who arrive with less than six months validity on their passports. The U.S. Embassy cannot obtain entry permission for Americans in this situation. Travelers will be required to depart for Singapore or a nearby country to obtain a new U.S. passport.

American citizens are required to have a visa to enter Indonesia. U.S. citizens may apply for a visa on arrival at the airports in Jakarta, Bali, Surabaya, Medan and a few other cities. Visas on arrival are available at a limited number of seaports. Visas on arrival are not available at any land border crossing. Travelers should check carefully when planning travel between Indonesia and other countries in the region to be sure their return to Indonesia is through a designated visa on arrival port or airport. Travelers will not be allowed to enter or return to Indonesia at an entry that does not have visa on arrival facilities. All airline passengers, including children, are subject to a rupiah-denominated departure tax, which must be paid by cash. The international departure tax as of July 2005 is 100,000 rupiah; domestic departure taxes are lower and vary by airport.

Visitors may be granted a 3-day visa on arrival for a fee of $10 or a 30-day visa on arrival for a fee of $25. Both visas are non-extendable, and travelers must exit the country to be able to purchase another 3-day or 30-day visa on arrival. U.S. citizens may also apply for a visa at the Indonesian Embassy in Washington, DC or at an Indonesian Consulate in the U.S. A visitor's visa for business purposes and social/cultural stays of longer duration require a letter of intent/sponsorship from the employer and/or sponsor. For up-to-date information, travelers may contact the Embassy of the Republic of Indonesia: 2020 Massachusetts Ave., N.W., Washington, D.C. 20036 (202) 775-5200; or via Internet, www.embassyofindonesia.org. Indonesian Consulates are located in Los Angeles (213) 383-5126, San Francisco (415) 474-9571, Chicago (312) 595-1777, New York (212) 879-0600, and Houston (713) 785-1691.

Indonesia strictly enforces its immigration/visa requirements. Several Westerners, including Americans, have been jailed for visa violations. Violators may also be subject to substantial fines.

Safety and Security:

The Department of State continues to urge Americans to defer all non-essential travel to Indonesia. The Department urges Americans who choose to travel to Indonesia despite this warning to observe vigilant personal security precautions and to remain aware of the continued potential for terrorist attacks against Americans, U.S. or other Western interests throughout Indonesia.

The terrorist threat in Indonesia remains high. Attacks could occur at any time and could be directed against any location, including those frequented by foreigners and identifiably American or other Western facilities or businesses in Indonesia. Such targets could include, but are not limited to places where Americans and other Westerners live, congregate, shop, or visit, including hotels, clubs, restaurants, shopping centers, identifiably Western businesses, housing compounds, transportation systems, places of worship, schools, or public recreation events. Attacks could include the targeting of individual American citizens.

The terrorist organization Jemaah Islamiah has cells in several Southeast Asian countries, including Indonesia, and connections with Al Qaeda. A terrorist bombing outside the Australian Embassy in Jakarta on September 9, 2004, killed eleven and injured more than 180 people. An August 2003 terrorist bombing at a major international hotel in Jakarta injured several American citizens, and seven Americans were among over 200 persons killed in a terrorist attack in Bali in October 2002.

The U.S. Mission in Indonesia restricts U.S. government employees' travel to certain areas of the country and, at times, denies them permission to travel to Indonesia. For the latest security information, contact a U.S. Mission consular office. The U.S. Mission can occasionally suspend service to the public, or close, because of security concerns; in these situations, it will continue to provide emergency services to American citizens.

Sectarian, ethnic, communal and separatist violence continue to threaten personal safety and security in several areas. Over the past three years, domestically targeted bombings have struck religious, political and business targets. In 2003, the Jakarta international airport, an open-air concert in Aceh, and other Indonesian government facilities were bombed.

Americans should avoid travel to Aceh. Northern parts of the island of Sumatra and particularly the province of Aceh, suffered severe damage following an earthquake and series of tsunami waves in December 2004. While reconstruction efforts are underway, communications infrastructure, roads, medical care and tourist facilities on the western and northern coasts of Sumatra, and on coastal islands off Sumatra, were seriously damaged and have not yet been fully restored. Infrastructure on the island of Nias was seriously damaged in an earthquake on March 28, 2005. Adequate lodging facilities are difficult to find in Aceh and Nias. Regulations regarding entry into and permission to remain in Aceh can change at any time. As of March 2005, all foreigners wishing to travel to Aceh require written permission from the Indonesian authorities. Humanitarian workers should be cautious of their security when traveling in Aceh due to the continuing potential for separatist and terrorist violence, which could be directed against American humanitarian assistance workers.

Americans should not travel to Aceh to participate in humanitarian relief efforts except under the auspices of a recognized assistance organization that has permission to operate in Indonesia. Americans participating in relief efforts should make sure that their organization has facilities in place to accommodate and feed staff and a security plan approved by Indonesian authorities. All travelers to Aceh should follow health precautions for travelers to the tsunami area from the U.S. Centers for Disease Control at http://www.cdc.gov/travel.

Americans considering travel to the province of Papua should exercise extreme caution because of sectarian, ethnic, communal and separatist strife. Papua's on-going separatist conflict has the potential to become violent. In August 2002, two Americans were killed in Papua under unresolved circumstances.

Americans should avoid travel to Maluku, in particular the capital city of Ambon. Since April 2004, sectarian violence has killed at least 40 and injured more than 220 people.

Americans should avoid travel to Central, South and Southeast Sulawesi; those considering travel to North Sulawesi should exercise extreme caution. Sporadic violence occurred in Poso and in neighboring areas of Central Sulawesi in 2003 and 2004, resulting in several fatalities. Central Sulawesi's general security situation remains unstable; bombings and killings occurred in late 2004 and 2005 in Poso and Palu. A bombing May 28, 2005 in a public market in Tentana, near Poso, killed 21 people and injured dozens.

The Philippine-based terrorist Abu Sayyaf Group poses an ongoing kidnapping risk/threat in areas near Malaysia and the Philippines.

American travelers and American residents are urged to update their passports and important personal papers in case it becomes necessary to depart Indonesia quickly. Travel distances, poor communications, and the inadequate health care infrastructure make it extremely difficult for the Embassy to respond to U.S. citizen emergencies. Many parts of Indonesia (including many tourist destinations) are isolated and difficult to reach or contact.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Travel Warnings and Public Announcements, including the Worldwide Caution Public Announcement, can be found. Up-to-date information on safety and security also can be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime:

Indonesia has a high crime rate. Credit card and ATM fraud are growing problems, as are robberies. Crimes such as pick pocketing and theft occur throughout the country. Thieves on motorcycles commit "snatch thefts" where they speed up to a victim from behind and snatch a purse, bag or cellular telephone. Thefts and robberies from cars stopped at traffic lights have been reported on occasion. American citizens are advised to keep car doors locked and windows rolled up. Americans in Jakarta and Surabaya are also advised to engage a taxi either from a major hotel queue or by calling a reputable taxi company, rather than hailing one on the street.

Claiming to act in the name of religious or moral standards, certain extremist groups have, on occasion, attacked nightspots and places of entertainment. Most of these attacks have sought to destroy property rather than to injure individuals. These groups have on occasion threatened to mount hunts for Americans and members of certain religious groups to demand they leave the country. International news events can sometimes trigger anti-American or anti-Western demonstrations.

Americans should carry photocopies of their passports at all times. If stopped and detained, Americans should attempt to comply with all instructions from law enforcement officers, but should also make it clear that they are American citizens and that they wish to contact the U.S. Embassy or U.S. Consulate General. Any incidents should be reported to the U.S. Embassy or U.S. Consulate General immediately.

Maritime piracy is a persistent and growing problem in Indonesian waters, targeting primarily commercial vessels. The majority of piracy attacks occur in the Straits of Malacca between the Riau Province and Singapore and in the waters north of Sulawesi and Kalimantan. Before traveling by sea in these areas, passengers are advised to review the current security situation with their local port agent.

U.S. citizens should exercise prudence when scuba diving, surfing and snorkeling, and when visiting remote tourist locations, as every year several Americans die in accidents while participating in such activities. Surfers and divers should be aware that local fishermen in coastal waters off Sumatra may use explosives to facilitate catching quantities of fish, although this practice is illegal in Indonesian waters.

Information for Victims of Crime:

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities:

The general level of sanitation and health care in Indonesia is far below U.S. standards. Some routine medical care is available in all major cities, although most expatriates leave the country for serious medical procedures. Serious medical problems requiring hospitalization and/or medical evacuation to Singapore or Australia, the closest locations with acceptable medical care, or the United States, can cost thousands of dollars. Doctors and hospitals often expect immediate cash payment for health services.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Several cases of polio occurred in western Java in mid-2005; the Indonesian Ministry of Health has begun an extensive vaccination campaign for children in the affected region. Travelers are encouraged to consult their personal physicians and the above websites for additional information.

Medical Insurance:

The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions:

While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Indonesia is provided for reference only. In general, traffic in Indonesia is congested and undisciplined. The number and variety of vehicles on the road far exceed the capacity of existing roadways to handle the traffic. Road conditions vary from good (in the case of toll roads and major city roads) to dangerously poor.

Generally, road safety awareness is very low in Indonesia, although it is increasing. Buses and trucks are often dangerously overloaded and tend to travel at high speeds. Most roads outside major urban areas have a single lane of traffic in each direction, making passing dangerous. Most Indonesian drivers do not maintain a safe following distance in a manner familiar to U.S. drivers and tend to pass or maneuver with considerably less margin for error than in the United States. Although traffic in Indonesia moves on the left side of the road, drivers tend to pass on both sides and may use the shoulder for this purpose. It is common for drivers to create extra lanes regardless of the lane markings painted on the roads. Throughout the country, motor vehicles share the roads with other forms of transportation such as bicycle pedicabs, horse and ox carts, and pushcarts.

Although Indonesia requires the use of seat belts in front seats, most Indonesian automobiles do not have seat belts in the rear passenger seats. The use of infant and child car seats is not common, and it can be very difficult to rent a car seat for temporary use. Helmets are required on motorcycles, but this law is inconsistently enforced. Passengers rarely wear helmets. Accidents on rented motorcycles constitute the largest cause of death and serious accident among foreign visitors to Bali.

Expatriates and affluent Indonesians often use professional drivers. All car rental firms provide drivers for a nominal additional fee. Travelers unfamiliar with Indonesian driving conditions are strongly encouraged to hire drivers.

Driving at night can be extremely dangerous outside of major urban areas. Drivers often refuse to use their lights, and most rural roads are unlit. Sometimes, residents in rural areas use road surfaces as public gathering areas, congregating on them after dark.

When an accident involving personal injury occurs, Indonesian law requires both drivers to await the arrival of a police officer to report the accident. Although Indonesian law requires third party insurance, most Indonesian drivers are uninsured, and even when a vehicle is insured, it is common for insurance companies to refuse to pay damages. Drivers should be aware that ambulance service in Indonesia is unreliable, and that taxis or private cars are often used to transport the injured to a medical facility. In cases of serious injury to a pedestrian, the driver of the vehicle could be required to help transport the injured person to the hospital. When an accident occurs outside a major city, before stopping, it may be advisable to drive to the nearest police station to seek assistance.

Aviation safety and security oversight:

The U.S. Federal Aviation Administration (FAA) has assessed the Government of Indonesia as being in compliance with ICAO international aviation safety standards for oversight of Indonesia's air carrier operations. For more information, travelers may visit the FAA's Internet web site at www.faa.gov/avr/iasa/index.cfm.

On December 23, 2005, the Transportation Security Administration (TSA) announced that the Bandara Ngurah Rai International Airport in Bali, Indonesia does not meet international security standards. The U.S. carrier that flies directly between the United States and Indonesia is temporarily providing additional security measures that counter the deficiencies identified at the airport. TSA representatives will continue to work with Indonesia and to assist local authorities with correcting security deficiencies at the airport as quickly as possible. For more information regarding this action, travelers may visit the DHS Internet web site at www.dhs.gov/dhspublic/theme_home8.jsp.

Special Circumstances:

U.S. citizens involved in commercial or property matters should be aware that the business environment is complex, and dispute settlement mechanisms are not highly developed. Local and foreign businesses often cite corruption and ineffective courts as serious problems. Business and regulatory disputes, which would be generally considered administrative or civil matters in the U.S., may be treated as criminal cases in Indonesia. It is often difficult to resolve trade disputes. U.S. citizens frequently experience difficulties when purchasing goods by Internet from Indonesian suppliers with whom the buyer has not met personally. For more information, please refer to the 2003 Country Commercial Guide for Indonesia at http://www.usembassyjakarta.org/ccg/ccg.html.

Counterfeit currency is a problem in Indonesia. Banks, exchange facilities and most commercial establishments do not accept U.S. currency that is worn, defaced, torn or issued before 1996.

U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times, so that, if questioned by local officials, proof of identity and U.S. citizenship are readily available. When U.S. citizens are arrested or detained, formal notification of the arrest is normally provided to the U.S. Embassy in Jakarta in writing, a process that can take several weeks. If detained, U.S. citizens should telephone the nearest U.S. consular office.

Indonesian law does not recognize dual nationality. Because of this, U.S. citizens who are also documented as Indonesian nationals may experience difficulties with immigration formalities in Indonesia. Holding dual citizenship may also hamper the U.S. Embassy or Consulate's ability to provide consular protection to Americans. In addition to being subject to all Indonesian laws affecting U.S. citizens, dual nationals may also be subject to other laws that impose special obligations on Indonesian citizens.

Customs Regulations:

Indonesian customs authorities have strict regulations concerning temporary importation into or export from Indonesia of items such as prescription medicines and foreign material or videotapes. Americans are encouraged to contact the Embassy of Indonesia in Washington or one of Indonesia's consulates in the United States for specific information about customs requirements. In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines.

Criminal Penalties:

Indonesia strictly enforces visa regulations. Immigration officials have detained people for conducting business, academic, or other non-tourist activities while in tourist visa status. Penalties for such immigration/visa violations incur a prison sentence of up to 5 years and a fine of 25 million Rp. Travelers are encouraged to contact an Indonesian consular office to determine the appropriate visa category before traveling to Indonesia.

While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Indonesia's laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Indonesia are severe, and convicted offenders can expect long jail sentences and heavy fines. The death sentence can be given in cases of drug trafficking; several foreigners have been sentenced to death in recent years. One U.S. citizen was given a life sentence for trafficking. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues:

For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://www.travel.state.gov/family/family_1732.html.

Registration/Embassy and Consulate Locations:

Americans living in or visiting Indonesia are encouraged to register at the Consular Section of the U.S. Embassy in Indonesia and obtain updated information on travel and security within Indonesia. The U.S. Embassy is located in Jakarta at Medan Merdeka Selatan 5; telephone: (62)(21) 3435-9000; fax (62)(21) 385-7189. The Embassy's web site is http://jakarta.usembassy.gov. The consular section can be reached by e-mail at [email protected] U.S. citizens can register online at http://jakarta.usembassy.gov/consular/onlinereg.html. To subscribe to the U.S. Embassy Emergency Notification System, please register at http://jakarta.usembassy.gov/consular/Mailwarden.html.

The U.S. Consulate General in Surabaya is at Jalan Raya Dr. Sutomo 33; telephone: (62)(31) 568-2287/8; fax (62)(31) 567-4492; e-mail: [email protected] The consulate should be the first point of contact for Americans needing assistance who are present or residing in the Indonesian provinces of: East and Central Java, Yogyakarta, Nusa Tenggara Timor, Nusa Tenggara Barat, all of Sulawesi and North and South Maluku.

There is a Consular Agency in Bali at Jalan Hayam Wuruk 188, Denpasar, Bali; telephone: (62)(361) 233-605; fax (62)(361) 222-426; e-mail: [email protected] The U.S. Consulate in Surabaya is an alternate contact for American Citizens in Bali.

As of June 2005 the U.S. Embassy is in the process of opening an American Presence Post (APP) in Medan, North Sumatra. This office, once officially opened, will provide only emergency assistance to U.S. citizens. Americans citizens needing consular assistance in Sumatra should contact the U.S. Embassy in Jakarta.

Travel Warning

November 18, 2005

This Travel Warning is being issued to remind U.S. citizens of ongoing security concerns in Indonesia. This Travel Warning supersedes the May 10, 2005 Travel Warning for Indonesia.

Due to ongoing concerns about the possibility of terrorist attacks directed against American or other western citizens and interests, the Department of State continues to warn U.S. citizens to defer non-essential travel to Indonesia. The October 1, 2005 terrorist attacks in Bali in which three simultaneous bombs exploded, killing 23 people and injuring more than 100, are a reminder that terrorists remain active in Indonesia. The possibility remains that terrorists will carry out additional attacks in Bali, Jakarta or other areas of Indonesia in the near future.

The Department urges Americans who choose to travel to Indonesia despite this Travel Warning to observe vigilant personal security precautions and to remain aware of the continued potential for terrorist attacks against American or other Western interests. Americans should monitor local news broadcasts, be aware of their surroundings at all times, vary their routes and times in carrying out daily activities, and consider the level of preventive security when visiting public places in Indonesia. Americans considering nonessential travel to popular tourist and vacation areas in Indonesia, such as Bali, despite this Travel Warning should consider the level of security provided by hotels, restaurants, beaches and other entertainment and recreation areas when planning their trips.

Terrorist attacks could occur at any time and could be directed against any location, including those frequented by foreigners and identifiably American or other western facilities or businesses in Indonesia. Such targets could include but are not limited to places where Americans and other Westerners live, congregate, shop or visit, including hotels, clubs, restaurants, shopping centers, identifiably Western businesses, housing compounds, transportation systems, places of worship, schools, or public recreation events. Reports suggest attacks could include targeting individual American citizens.

In addition to the October 1, 2005 bombings in Bali, several other serious terrorist incidents occurred in Indonesia in recent years. A terrorist bombing outside the Australian Embassy in Jakarta on September 9, 2004, killed eleven and injured more than 180 people. An August 2003 terrorist bombing at a major international hotel in Jakarta killed 12 persons and injured scores, including several American citizens. A terrorist attack in Bali in October 2002 killed 202 people, including seven Americans. Suicide bombers wearing explosives in vests or backpacks carried out the October 1, 2005 bombings in Bali. Prior terrorist attacks involved the use of vehicle-borne explosives.

The U.S. Mission in Indonesia restricts U.S. government employees' travel to certain areas of the country and, at times, denies them permission to travel to Indonesia. For the latest security information, contact a U.S. Mission consular office. The U.S. Mission can occasionally suspend service to the public, or close, because of security concerns; in these situations, it will continue to provide emergency services to American citizens. Sectarian, ethnic, communal and separatist violence continue to threaten personal safety and security in several areas. Over the past three years, domestically targeted bombings have struck religious, political, and business targets. In 2003, the Jakarta international airport, an open-air concert in Aceh, and other Indonesian government facilities were bombed.

Americans should avoid travel to Aceh. Northern parts of the island of Sumatra, and particularly the province of Aceh, suffered severe damage following an earthquake and series of tsunami waves on December 26, 2004. While reconstruction efforts are underway, communications infrastructure, roads, medical care and tourist facilities on the western and northern coasts of Sumatra, and on coastal islands off Sumatra, were seriously damaged and have not yet been fully restored. Infrastructure on the island of Nias was seriously damaged in an earthquake on March 28, 2005. Adequate lodging facilities are difficult to find in Aceh and Nias.

Americans should not travel to Aceh to participate in humanitarian relief efforts except under the auspices of a recognized assistance organization that has permission to operate in Indonesia. The Government of Indonesia and the Free Aceh Movement (GAM) signed a peace accord on August 15, 2005, officially ending armed hostilities. However, the over all security situation in Aceh remains unsettled. Humanitarian workers should be cautious of their security when traveling in Aceh due to the continuing potential for separatist and terrorist violence, which could be directed against American or other western humanitarian assistance workers.

Americans participating in relief efforts should make sure that their organization has facilities in place to accommodate and feed staff, and a security plan coordinated with Indonesian authorities. Travel by road after dark is particularly dangerous. All travelers to Aceh should follow health precautions for travelers to the tsunami area from the U.S. Centers for Disease Control at http://www.cdc.gov/travel.

Americans considering travel to the province of Papua should exercise extreme caution because of sectarian, ethnic, communal and separatist strife. Papua's on-going separatist conflict has the potential to become violent. In August 2002, two Americans were killed in Papua under as yet unresolved circumstances.

Americans should avoid travel to Maluku, in particular the capital city of Ambon. Since April 25, 2004, sectarian violence has killed at least 40 and injured more than 220 people.

Americans should avoid travel to Central, South and Southeast Sulawesi; those considering travel to North Sulawesi should exercise extreme caution. Sporadic violence occurred in Poso and in neighboring areas of Central Sulawesi in 2003 and 2004, resulting in several fatalities. Central Sulawesi's general security situation remains unstable; bombings and killings occurred in late 2004 and 2005 in Poso and Palu. A terrorist explosion at Tentana Market in Poso, Central Sulawesi on May 28, 2005 killed 22 people.

The Philippine-based terrorist Abu Sayyaf Group poses an ongoing kidnapping risk/threat in areas near Malaysia and the Philippines.

Americans who travel to Indonesia despite this Travel Warning should obtain up to date health information before departing the U.S. The websites of the U.S. Centers for Disease Control at http://www.cdc.gov/travel and the World Health Organization at http://www.who.int have up to date information on outbreaks of contagious and tropical diseases. Americans considering travel to Indonesia should read the Department of State's Fact Sheet on Avian Influenza dated August 3, 2005, and should consult with their personal physicians concerning avian flu.

Americans living and traveling in Indonesia are urged to register and update their contact information with U.S. Embassy Jakarta, U.S. Consulate General Surabaya or the U.S. Consular Agent in Bali. Registration facilitates the U.S. Mission's contact with Americans in emergency situations, and may be done on line and in advance of travel. Information on registering can be found at the Department of State's Consular Affairs website: https://travelregistration.state.gov. Registration information and recent warden messages are also available on the U.S. Embassy Jakarta website at http://jakarta.usembassy.gov.

Americans can obtain information on travel and security in Indonesia from the Department of State by calling 1-888-407-4747 within the United States; or 1-202-501-4444 from outside the United States and Canada. Americans also can call the Embassy in Jakarta at (62)(21) 3435-9000, the Consulate General in Surabaya at (62) (31) 295-6400, and the Consular Agent in Bali at (62) (361) 233-605. American citizens should read the Department of State's Consular Information Sheet for Indonesia and latest Worldwide Caution Public Announcement, both available at http://travel.state.gov.

International Parental Child Abduction

January 2006

The information below has been edited from the report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Child Abduction section of this book and review current reports online at travel.state.gov.

Disclaimer:

The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and our current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

General Information:

Indonesia is not a party to the Hague Convention on the Civil Aspects of International Child Abduction, nor are there any international or bilateral treaties in force between Indonesia and the United States dealing with international parental child abduction. Therefore, there is no treaty remedy by which the left-behind parent would be able to pursue recovery of the child/ren should they be abducted or wrongfully retained in Indonesia. Once in Indonesia, the child/ren would be completely subject to Indonesian law for all matters including custody. The United States is not a party to any treaty or convention on the enforcement of court orders. A custody decree issued by a court in the U.S. has no binding legal force abroad, although it may have a persuasive force in some countries. Furthermore, a U.S. custody decree may be considered by foreign courts and authorities as evidence and, in some cases, foreign courts may voluntarily recognize and enforce it on the basis of comity (the voluntary recognition by courts of one jurisdiction of the laws and judicial decisions of another).

Custody Disputes:

Parental child abduction is not a crime under Indonesian law. Custody disputes are considered civil legal matters that must be resolved between the concerned parties or through the courts in Indonesia. The district/religious courts will hear and process child custody cases only as part of a divorce petition. Family issues and custody disputes are adjudicated based on Indonesian's Civil Code ("Kitab Undang-undang Hukum Perdata"). In order to bring a case/petition before the local court, the left-behind parent will require the assistance of an attorney licensed to practice in Indonesia. Ideally, these orders and proceedings ensure due process under the local laws as well as providing protection for the child/ren. The court will also consider a child's relationship with each of the disputing parties and will evaluate each parent's ability to provide education and general living conditions and welfare for the child/ren.

Although there is no treaty in force between the United States and Indonesia on enforcement of judgments, the Indonesia courts will also take into consideration child custody decrees issued by foreign courts in deciding disputes regarding children residing in Indonesia. Domestic law does not provide visitation rights to the non-custodian parent unless the parent(s) ask the court to incorporate visitation orders before the final divorce decree is issued. Indonesian authorities advise the U.S. Embassy in Jakarta that non-compliance or violation of a local court order can result in a prison sentence. It should also be noted that Indonesian police or local law enforcement are reluctant to get involved in custody disputes and could not be counted on to enforce custody decrees issued by the Indonesian courts. Indonesia is an independent republic based on the 1945 constitution providing for a separation of executive, legislative, and judicial power. While it is the world's third most populous democracy and has the largest Muslim population, it is a secular state. Its Muslim population is by no means a homogeneous community; rather its members range from strict to nominal adherents of Islam. Indonesia also has important Christian, Hindu, Buddhist, and other religious minorities. Indonesia includes approximately 500 distinct cultural and linguistic groups. Javanese make up the largest segment of Indonesia's population, followed by Sudanese, Madurese, Minangkabau, Buginese, Batak, and Balinese. There are numerous other ethnic groups stretching from Aceh to Papua. The district and religious courts have jurisdiction on civil law cases, including child custody disputes. Indonesia does not have an official religion. However, the constitution enshrines belief in one God and officially "embraces" five specific religions (Islam, Catholicism, Protestantism, Buddhism, and Hinduism), though other religions are permitted. For Muslims, Islamic (Sharia) law can apply in family and religious matters. Questions on specific Islamic laws as they pertain to custody rights should be addressed to a lawyer licensed to practice in Indonesia.

U.S. consular officers are prohibited by U.S. federal regulations from providing legal advice, from taking custody of a child, from forcing a child to be returned to the United States, from providing assistance or refuge to parents attempting to violate local law, or from initiating or attempting to influence child custody proceedings in foreign courts. The American Citizen Services division of the Consular Section at the U.S. Embassy can assist in locating children believed to be in Indonesia and in verifying the child's welfare. If a child is in danger or if there is evidence of abuse, consular officers will request assistance from the local authorities in safeguarding the child's welfare. Consular officers maintain lists of attorneys practicing in the particular areas of Indonesia, as well as general information regarding child custody practices.

Deportation:

There is no extradition treaty between the United States and Indonesia. However, if the taking parent is a U.S. citizen whose U.S. passport has been revoked due to an outstanding federal Unlawful Flight to avoid Prosecution (UFAP) warrant or indictment on charges of International Parental Kidnapping (IPKCA) in violation of 18 USC Section 1204, Indonesian authorities may consider deportation based on lack of a valid travel document. Exit permits are required for foreigners who stay in Indonesia for more than six months. Exit/re-entry permits are given to foreigners who are holding "KITAS" (temporary stay permit).

Dual Nationality:

A child with a parent who was born outside of the U.S. or who has acquired a second nationality through naturalization in another country may have a claim to citizenship in that country. There is no requirement that a U.S. citizen parent consent to the acquisition by his/her child of another nationality and in many cases a parent is unaware that his/her child may have dual citizenship. The Embassy of Indonesia in Washington D.C. will be able to provide more detailed information on whether your child has a claim.

Initiating Foreign Enforcement Proceedings Under Local Law:

If a country is not a signatory to the Hague Convention on the Civil Aspects of International Child Abduction, it may be necessary for you to initiate a child custody action in the courts in the foreign country. This usually will require retaining the services of an attorney abroad (see below). The Department of State, Office of Children's Issues is not a repository for foreign laws. However, selected information may be available concerning general procedures on child custody in particular countries. Contact the Office of Children's Issues to see if such information is available.

Retaining a Foreign Attorney:

A list of English-speaking attorneys is available from the U.S. State Department, Office of American Citizens Services.

Criminal Remedies:

Foreign countries may not recognize parental abduction as a crime. Please note that the extradition process applies only to the abducting adult/fugitive and not the child. The proper channel for the return of the child is through civil mechanisms or voluntary return arrangements. Additional information is also available on the Internet at the web site of the U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention (OJJDP) at http://www.ojjdp.ncjrs.org.

For further information on international parental child abduction, contact the Office of Children's Issues at 202-736-7000, visit the State Department website on the Internet at http://travel.state.gov, or send a nine-by-twelve-inch, self-addressed envelope to: Office of Children's Issues, SA-29, U.S. Department of State, 2201 C Street, NW, Washington, DC 20520-2818; Phone: (202) 736-9090; Fax: (202) 312-9743.

views updated

INDONESIA

Compiled from the October 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Indonesia


PROFILE

Geography

Area: 2 million sq. km. (736,000 sq. mi.), about three times the size of Texas; maritime area: 7,900,000 sq. km.

Cities: Capital—Jakarta (est. 8.8 million). Other cities—Surabaya 3.0 million, Medan 2.5 million, Bandung 2.5 million plus an additional 3 million in the surrounding area.

Terrain: More than 17,000 islands; 6,000 are inhabited; 1,000 of which are permanently settled. Large islands consist of coastal plains with mountainous interiors.

Climate: Equatorial but cooler in the highlands.

People

Nationality: Noun and adjective—Indonesian(s).

Population: (2001) 210 million.

Annual growth rate: (2001) 1.6%.

Ethnic groups: Javanese 45%, Sundanese 14%, Madurese 7.5%, coastal Malays 7.5%, others 26%.

Religions: Islam 87%, Protestant 6%, Catholic 3%, Hindu 2%, Buddhist and other 1%.

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

Education: Years compulsory—9. Enrollment—92% of eligible primary school-age children. Literacy—85%.

Health: Infant mortality rate—63/1,000 live births. Life expectancy at birth—men 60 years, women 64 years.

Work force: 90 million. Agriculture—41.2%, trade and restaurants—19.8%, public services—13.7%, manufacturing—12.9% (1997 data).

Government

Type: Independent republic.

Independence: August 17, 1945 proclaimed.

Constitution: 1945. Embodies five principles of the state philosophy, called Pancasila, namely monotheism, humanitarianism, national unity, representative democracy by consensus, and social justice.

Branches: Executive—president (head of government and chief of state) elected by direct popular vote. Legislative—550 member House of Representatives (DPR) elected for a 5-year term. Judicial—Supreme Court.

Suffrage: 17 years of age universal and married persons regardless of age.

Economy

GDP: (2002) $172.9 billion

Annual growth rate: (2002) 3.7%.

Per capita income: (2002) $796.

Natural resources: (13.6% of GDP) Oil and gas, bauxite, silver, tin, copper, gold, coal.

Agriculture: (17.5% of GDP) Products—timber, rubber, rice, palm oil, coffee. Land—17% cultivated.

Manufacturing: (25.0% of GDP) Garments, footwear, electronic goods, furniture, paper products.

Trade: Exports (2002)—$59.1 billion including oil, natural gas, appliances, textiles. Major markets—Japan, EU, U.S., Singapore. Imports (2002)—$35.6 billion including food, chemicals, capital goods, consumer goods. Major suppliers—Japan, Singapore, EU, U.S., China.


PEOPLE

Indonesia's 210 million people make it the world's fourth-most populous nation. The island of Java is one of the most densely populated areas in the world, with more than 107 million people living in an area the size of New York State. Indonesia includes numerous related but distinct cultural and linguistic groups, many of which are ethnically Malay. Since independence, Bahasa Indonesia (the national language, a form of Malay) has spread throughout the archipelago and has become the language of most written communication, education, government, and business. Many local languages are still important in many areas, however. English is the most widely spoken foreign language. Education is compulsory for children through grade 9. Although about 92% of eligible children are enrolled in primary school, a much smaller percentage attend full time. About 44% of secondary school-age children attend junior high school, and some others of this age group attend vocational schools.

Constitutional guarantees of religious freedom apply to the five religions recognized by the state, namely Islam (87%), Protestantism (6%), Catholicism (3%), Buddhism (2%), and Hinduism (1%). In some remote areas, animism is still practiced.


HISTORY

By the time of the Renaissance, the islands of Java and Sumatra had already enjoyed a 1,000-year heritage of advanced civilization spanning two major empires. During the 7th-14th centuries, the Buddhist kingdom of Srivijaya flourished on Sumatra. At its peak, the Srivijaya Empire reached as far as West Java and the Malay Peninsula. Also by the 14th century, the Hindu Kingdom of Majapahit had risen in eastern Java. Gadjah Mada, the empire's chief minister from 1331 to 1364, succeeded in gaining allegiance from most of what is now modern Indonesia and much of the Malay archipelago as well. Legacies from Gadjah Mada's time include a codification of law and an epic poem. Islam arrived in Indonesia sometime during the 12th century and, through assimilation, supplanted Hinduism by the end of the 16th century in Java and Sumatra. Bali, however, remains overwhelmingly Hindu. In the eastern archipelago, both Christian and Islamic proselytizing took place in the 16th and 17th centuries, and, currently, there are large communities of both religions on these islands.

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 until 1975. During 300 years of Dutch 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.

The Japanese occupied Indonesia for 3 years during World War II. 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 4 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.

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 made responsible 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), 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, and permitted steps toward self-government and independence.

Negotiations with the Dutch on the incorporation of the territory 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 Irianese 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 Irian Jaya, also known as Papua or West 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 Irian Jaya of a desire for independence from Indonesia.

Unsuccessful rebellions on Sumatra, Sulawesi, West Java, and other islands beginning in 1958, plus a failure by the constituent assembly to develop a new constitution, weakened the parliamentary system. Consequently, in 1959, when President Soekarno unilaterally revived the provisional 1945 constitution, which gave broad presidential powers, he met little resistance. From 1959 to 1965, President Soekarno imposed an authoritarian regime under the label of "Guided Democracy." He also moved Indonesia's foreign policy toward nonalignment, a foreign policy stance supported by other prominent leaders of former colonies who rejected formal alliances with either the Western or Soviet blocs. Under Soekarno's auspices, these leaders gathered in Bandung, West Java, 1955, to lay the groundwork for what became known as the Non-Aligned Movement. In the late 1950s and

early 1960s, President Soekarno moved closer to Asian communist states and toward the Indonesian Communist Party (PKI) in domestic affairs. Though the PKI represented the largest communist party outside the Soviet Union and China, its mass support base never demonstrated an ideological adherence typical of communist parties in other countries.

By 1965, the PKI controlled many of the mass civic and cultural organizations that Soekarno had established to mobilize support for his regime and, with Soekarno's acquiescence, embarked on a campaign to establish a "Fifth Column" by arming its supporters. Army leaders resisted this campaign. Under circumstances that have never been fully explained, on October 1, 1965, PKI sympathizers within the military, including elements from Soekarno's palace guard, occupied key locations in Jakarta and kidnapped and murdered six senior generals. Major General Soeharto, the commander of the Army Strategic Reserve, rallied army troops opposed to the PKI to reestablish control over the city. Violence swept throughout Indonesia in the aftermath of the October 1 events, and unsettled conditions persisted through 1966. Rightist gangs killed tens of thousands of alleged communists in rural areas. Estimates of the number of deaths range between 160,000 and 500,000. The violence was especially brutal in Java and Bali. During this period, PKI members by the tens of thousands turned in their membership cards. The emotions and fears of instability created by this crisis persisted for many years; the communist party remains banned from Indonesia.

Throughout the 1965-66 period, President Soekarno vainly attempted to restore his political position and shift the country back to its pre-October 1965 position. Although he remained President, in March 1966, Soekarno had to transfer key political and military powers to General Soeharto, who by that time had become head of the armed forces. In March 1967, the Provisional People's Consultative Assembly (MPRS) named General Soeharto acting President. Soekarno ceased to be a political force and lived under virtual house arrest until his death in 1970.

President Soeharto proclaimed a "New Order" in Indonesian politics and dramatically shifted foreign and domestic policies away from the course set in Soekarno's final years. The New Order established economic rehabilitation and development as its primary goals and pursued its policies through an administrative structure dominated by the military but with advice from Western-educated economic experts. In 1968, the People's Consultative Assembly (MPR) formally selected Soeharto to a full 5-year term as President, and he was re-elected to successive 5-year terms in 1973, 1978, 1983, 1988, 1993, and 1998. In mid-1997, Indonesia was afflicted by the Asian financial and economic crisis, accompanied by the worst drought in 50 years and falling prices for oil, gas, and other commodity exports. The rupiah plummeted, inflation soared, and capital flight accelerated. Demonstrators, initially led by students, called for Soeharto's resignation. Amidst widespread civil unrest, Soeharto resigned on May 21, 1998, 3 months after the MPR had selected him for a seventh term. Soeharto's hand-picked Vice President, B.J. Habibie, became Indonesia's third President. President Habibie reestablished International Monetary Fund (IMF) and donor community support for an economic stabilization program. He released several prominent political and labor prisoners, initiated investigations into the unrest, and lifted controls on the press, political parties, and labor unions.

In January 1999, Habibie and the Indonesian Government agreed to a process, with UN involvement, under which the people of East Timor would be allowed to choose between autonomy and independence through a direct ballot. The direct ballot was held on August 30, 1999. Some 98% of registered voters cast their ballots, and 78.5% of the voters chose independence over continued integration with Indonesia. Many persons were killed by Indonesian military forces, and military-backed militias, in a wave of violence and destruction after the announcement of the pro-independence vote.

Indonesia's first elections in the post-Soeharto period were held for the national, provincial, and sub-provincial parliaments on June 7, 1999. The elections were contested by 48 political parties. For the national parliament, Partai Demokrasi Indonesia Perjuangan (PDI-P, Indonesian Democratic Party of Struggle led by Megawati Soekarnoputri) won 34% of the vote; Golkar ("Functional Groups" party) 22%; Partai Kebangkitan Bangsa (PKB, National Awakening Party linked to Nadhlatul Ulama and headed by Abdurrahman Wahid) 13%; and Partai Persatuan Pembangunan (PPP, United Development Party led by Hamzah Haz) 11%. The MPR selected Abdurrahman Wahid as Indonesia's fourth President in November 1999 and replaced him with Megawati Soekarnoputri in July 2001.

In 2001 and 2002, the MPR enacted laws to provide for the direct election, by popular vote, of the president and vice president. Only parties that gain at least 3% of the House of Representatives (DPR) seats or 5% of the vote in national legislative elections are eligible to nominate a presidential and vice presidential ticket. This provision requires that legislative elections be held prior to the direct presidential election. The 2004 legislative elections took place on April 5. The first presidential election under this provision was held on July 5, 2004. No one candidate won at least 50% of the vote, so a runoff election between the top two candidates, President Megawati Sukarnoputri and retired General Susilo Bambang Yudhoyono, was held on September 20, 2004. In this final round, General Yudhoyono won 60.6% of the vote, a margin of just over 20% greater than his rival. Approximately 76.6% of the eligible voters participated, a total of roughly 117 million people, making Indonesia's the largest and most complex single-day election in the world. The Carter Center issued a statement congratulating "the people and leaders of Indonesia for the successful conduct of the presidential election and the peaceful atmosphere that has prevailed throughout the ongoing democratic transition."


GOVERNMENT AND POLITICAL CONDITIONS

Indonesia is a republic based on the 1945 constitution providing for a limited separation of executive, legislative, and judicial power. Substantial restructuring has occurred since President Soeharto's resignation and the short, transitional Habibie administration which followed. The Habibie government fashioned political reform legislation that—without changing the 1945 Indonesian constitution—formally set up new rules for the electoral system, the House of Representatives (DPR), the People's Consultative Assembly (MPR), and political parties. An MPR decree adopted in November 1998 limits the president to two terms in office.

The president, elected for a 5-year term, is the dominant government and political figure. The president and the vice president were elected by popular vote for the first time on September 20, 2004. Previously, the MPR selected Indonesia's president. In 1999, the MPR selected Abdurrahman Wahid, also known as Gus Dur, as the fourth President. Wahid proved unable to govern effectively and the MPR impeached him in July 2001, immediately appointing then-Vice President Megawati Soekarnoputri as the fifth President. Although Megawati brought a certain amount of stability back to the country, her progress in combating corruption and improving the economy were not enough to satisfy the electorate, and in September 2004 Susilo Bam-bang Yudhoyono was elected as her replacement.

The President, assisted by a cabinet that he appoints, has the authority to conduct the administration of the government and is accountable only to the MPR. President Yudhoyono's Democratic Party (PD), with only 57 seats out of 550 seats in the People's Representative Assembly (DPR), is one of the smallest in the legislature; the effectiveness of his administration is likely to hinge on his ability to forge a successful coalition or working relationship with the other factions. The 38 appointed seats previously reserved in the DPR for the armed forces (TNI) have been phased out. The new People's Consultative Assembly (MPR) has 678 members, consisting of the 550 members of the DPR and the 128 representatives of the newly-formed Regional Representative Council (DPD), which includes four members from each of Indonesia's 32 provinces.

The armed forces shaped and provided leadership for Soeharto's New Order from the time it came to power in the wake of the abortive 1965 uprising. Military officers, especially from the army, were key advisers to Soeharto and Habibie and had considerable influence on policy. Under the dual function concept ("dwifungsi"), the military asserted a continuing role in socio-political affairs. This concept was used to justify placement of officers to serve in the civilian bureaucracy at all government levels. Although the military still has great influence and is perhaps the only truly national institution, dwifungsi has largely disappeared. Military officers must now resign from the armed forces before taking a civilian government position. The police have been separated from the military, further reducing the military's direct role in governmental matters.

Principal Government Officials

Last Updated: 2/11/05

President: Susilo Bambang YUDHOYONO
Vice President: Muhammad Yusuf KALLA
Coordinating Min. for Economic Affairs: Aburizal BAKRIE
Coordinating Min. for People's Welfare: Alwi SHIHAB
Coordinating Min. for Political, Legal, & Security Affairs: WIDODO Adi Sutjipto
Min. of Agriculture: Anton APRIYANTONO
Min. for Communication & Information: Sofyan A. DJALIL
Min. for Cooperatives & Small & Medium Enterprises: Suryadharma ALI
Min. of Culture & Tourism: Jero WACIK
Min. of Defense: Juwono SUDARSONO
Min. for the Development of Disadvantaged Regions: SYAIFULLAH Yusuf
Min. of Education: Bambang SUDIBYO
Min. for Energy & Mineral Resources: PURNOMO Yusgiantoro
Min. for the Environment: Rachmat WITOELAR
Min. of Finance: Yusuf ANWAR
Min. of Foreign Affairs: Noer Hasan WIRAJUDA
Min. of Forestry: M. S. KABAN
Min. of Health: Siti Fadilah SUPARI
Min. of Home Affairs: Muhammad MA'RUF
Min. of Industry: Andung NITIMIHARJA
Min. of Justice & Human Rights: HAMID Awaluddin
Min. of Manpower & Transmigration: Fahmi IDRIS
Min. of Maritime Affairs & Fisheries: Freddy NUMBERI
Min. for People's Housing: Mohammad Yusuf ASYARI
Min. of Public Works: Joko KIRMANTO
Min. of Religion: Muhammad Maftuh BASYUNI
Min. of Research & Technology: KUSMAYANTO Kadiman
Min. of Social Affairs: Bachtiar CHAMSYAH
Min. for State Apparatus Reform: Taufiq EFFENDI
Min. for State-Owned Enterprises: SUGIHARTO
Min. of Trade: Mari Elka PANGESTU
Min. of Transportation: Hatta RAJASA
Min. for Women's Empowerment: Meutia Farida HATTA Swasono
Min. for Youth & Sports: Adhyaksa DAULT
Attorney General: Abdul Rahman SALEH
Cabinet Secretary: Sudi SILALAHI
State Secretary: Yusril Izha MAHENDRA
Director, State Intelligence Agency (BIN) (Acting): Said Ali AS'AT
Chairwoman, National Development Planning Board: Sri MULYANI Indrawati
Governor, Bank Indonesia: Burhanuddin ABDULLAH
Ambassador to the US: SOEMADI Brotodiningrat
Permanent Representative to the UN, New York: Rezlan Ishar JENIE

The embassy of Indonesia is at 2020 Massachusetts Avenue NW., Washington, DC 20036 (tel. 202-775-5200-5207; fax: 202-775-5365). Consulates General are in New York (5 East 68th Street, New York, NY 10021, tel. 212-879-0600/0615; fax: 212-570-6206); Los Angeles (3457 Wilshire Blvd., Los Angeles, CA 90010; tel. 213-383-5126; fax: 213-487-3971); Houston (10900 Richmond Ave., Houston, TX 77042; tel. 713-785-1691; fax: 713-780-9644). Consulates are in San Francisco (1111 Columbus Avenue, San Francisco, CA 94133; tel. 415-474-9571; fax: 415-441-4320); and Chicago (2 Illinois Center, Suite 1422233 N. Michigan Avenue, Chicago, IL 60601; tel. 312-938-0101/4; 312-938-0311/0312; fax: 312-938-3148).


ECONOMY

Indonesia has a market-based economy in which the government plays a significant role. It owns 160 state-owned enterprises and administers prices on several basic goods, including fuel, rice, and electricity. The government has made some progress on privatization and removal of fuel subsidies, but change has been politically controversial, so has proceeded slowly. In the aftermath of the 1997-98 financial crisis, the government took custody of a significant portion of private sector assets through acquisition of non-performing bank loans and corporate assets through the debt restructuring process, but subsequently disposed of most of the assets averaging 29% return on the assets received.

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 Indonesia's political and economic landscape. Since 1997, Indonesia has had four Presidents and as of mid-2002, its economy was only just recovering to pre-1997 levels. Seven percent GDP growth is the level most economists consider necessary just to absorb new job seekers, but the Indonesian Government estimates growth in 2004 of 4.5%. The number of unemployed and underemployed (working less than 15 hrs/week) is currently estimated at 40 million.

President Megawati Soekarnoputri made important strides in her first 2 years in reducing political instability, strengthening Indonesia's relationship with the International Monetary Fund (IMF), and reinvigorating the country's economic reform program. The Indonesian Government exited its IMF program at year-end 2003, having met or exceeded most macroeconomic targets, including those on reducing inflation and reducing the government budget deficit. Megawati's administration spawned a sustained increase in market sentiment during 2002 and 2003, with both the rupiah and Jakarta Stock Exchange performing strongly. Consumer confidence and exports have begun to rise from their very low levels of late 2001. It will be up to President Yudhoyono's administration to generate the growth that will produce the jobs needed to satisfy the Indonesian constituency.

The rupiah has strengthened significantly from trading at the rupiah (Rp) 11,440/U.S.$1 (USD) level in July 2001 when former President Megawati took office. It has strengthened slowly to the Rp 8,600/USD level, an increase of 25%. Previously, the value of the rupiah was very volatile ranging from Rp 2,500/USD prior to the Asian financial crisis to a low of Rp 17,000/USD after President Soeharto resigned in May 1998. Although the stability of the rupiah has returned, slower economic growth combined with high levels of debt make exchange rate risk a major concern of investors.

The Megawati administration made much less progress in improving Indonesia's troubled investment climate, and several adverse court rulings against foreign companies have brought investment issues to the forefront of government policymaking in recent years. Besides the lack of legal certainty, existing and potential investors cite a number of concerns with respect to Indonesia's investment climate, including security, confusion over regional autonomy policies and fiscal decentralization, deteriorating infrastructure, and tax and labor issues.

Indonesia's official debt burden increased from 27% of GDP prior to the 1997 financial crisis to approximately 100% of GDP at the end of 2000. Virtually all of the increase came in the form of $74.8 billion in bonds the government issued to domestic banks and the Bank of Indonesia to cover the costs of Indonesia's banking sector bailout. As a result of asset sales and the rupiah appreciation, public debt has declined to 65% of GDP, but the budgetary burden of Indonesia's debt service payments remains heavy: the government estimated that total interest payments accounted for almost 35% of central government expenditures in 2003. Banks have significantly reduced non-performing loans from over 50% in 1998 to less than 10% in 2003. Debtors and creditors have reached agreement on a substantial number of restructuring terms sheets through the Indonesian Bank Restructuring Agency (IBRA) and the Jakarta Initiative Task Force. Nevertheless, banks remain reluctant to lend to corporations due to unfavorable judicial rulings and the lack of credit risk agencies.

Oil and Minerals Sector

Indonesia, the only Asian member of the Organization of Petroleum Exporting Countries (OPEC), ranks 17th among world oil producers, with about 1.8% of world production. Crude and condensate output averaged 1.01 million barrels per day (b/d) in 2003. In the 2002 calendar year the oil and gas sector, including refining, contributed $12.1 billion or 21.2% of total export earnings and about 25% of government revenues, a greater percentage than recent years due to high world oil prices. U.S. companies have invested heavily in the petroleum sector. Due to limited refining capacity and growing domestic demand for petroleum fuels, Indonesia became a net importer in 2003. Indonesia, which ranks sixth in world gas production, is still the world's number one exporter of liquefied natural gas (LNG). In 2003, Indonesian imports of crude oil and petroleum products totaled $7.5 billion while Indonesian exports of crude oil, and oil products, natural gas, and LNG totaled $13.6 billion.

The state owns all oil and mineral rights. Foreign firms participate through production sharing and work contracts. The Indonesian Government passed a new petroleum law in October 2001 that deregulates the upstream and downstream sectors in 2 years. The law removes Pertamina's monopoly over downstream oil distribution and marketing of fuel products in 2005, and makes no procedural distinction between foreign and domestic oil and gas companies. Pertamina's responsibility to manage Production Sharing Contracts (PSCs), which authorize investors to produce oil and gas, shifted to an executive body within the central government that reports directly to the President, though the Energy Minister is regularly consulted. Oil and gas contractors are required to finance all exploration, production, and development costs in their contract areas; they are entitled to recover operating, exploration, and development costs out of the oil and gas produced.

Although minerals production traditionally centered on bauxite, silver, and tin production, Indonesia is expanding its copper, nickel, gold, and coal output for export markets. In mid-1993, the Department of Mines and Energy reopened the coal sector to foreign investment, with the result that the leading Indonesian coal producer now is a joint venture between U.K. firms BP and Rio Tinto. Total coal production reached 114.6 million metric tons in 2003, including exports of 85.7 million tons. The Indonesian Government hopes to surpass 120 million metric tons of coal production in 2005. Two U.S. firms operate three copper/gold mines in Indonesia, with a Canadian and U.K. firm holding significant other investments in nickel and gold, respectively. In 2002, the value of Indonesian mining exports generated $4.2 billion, with receipts from copper and coal accounting for 75% of the total.

Investment

Since the late 1980s, Indonesia has made significant changes to its regulatory framework to encourage economic growth. This growth was financed largely from private investment, both foreign and domestic. U.S. investors dominated the oil and gas sector and undertook some of Indonesia's largest mining projects. In addition, the presence of U.S. banks, manufacturers, and service providers expanded, especially after the industrial and financial sector reforms of the 1980s. While the petroleum and mining investors remained after the 1997 crisis, the numbers of U.S. investors in other sectors declined. Other major foreign investors include Japan, the United Kingdom, Singapore, the Netherlands, Hong Kong, Taiwan, and South Korea.

Despite improvements in political stability, incomplete reform in other sectors has slowed foreign investment growth. From a record high of $33.8 billion in 1997, approvals fell 73% to roughly $9.8 billion in 2002. New foreign investment approvals for 2003 increased 40% to $13.6 billion over 2002. This figure, however, reflects the government's sale of Indosat and other "change of status" investments from domestic to foreign, rather than new, investment. (Note: The data does not include investments in oil and gas, finance, banking, non-bank finance, insurance, and leasing. Government approval reports should be treated cautiously, and used as no more than an indicator of possible trends because they represent applications to invest and not actual projects or money, which tend to be a fraction of the approvals.) In 2002, the commercial court's Manulife bankruptcy ruling brought to light the judicial system's serious weaknesses. Similar subsequent rulings against foreigners have made investors increasingly reluctant to invest prior to the establishment of a better functioning legal and judicial system, greater adherence to transparent and competitive processes, and improvements in security. With the passage of a new copyright law in July 2002, Indonesia's intellectual property rights regime was strengthened; however, the lack of effective enforcement remains a major concern. Indonesia has started losing international manufacturers concerned by rapidly rising wages and other benefits to labor, which threaten Indonesia's competitiveness in labor-intensive industries.


NATIONAL SECURITY

Indonesia's armed forces (Tentara Nasional Indonesia, or TNI, formerly ABRI) total about 350,000 members, including the army, navy, marines, and air force. The army is by far the largest, with about 280,000 active-duty personnel. Defense spending in the national budget is only 1.8% of GDP but is supplemented by revenue from many military businesses and foundations.

The Indonesian National Police were for many years a branch of the armed forces. The police were formally separated from the military in April 1999, a process that was formally completed in July 2000. With 250,000 personnel, the police represent a much smaller portion of the population than in most nations.

Indonesia is at peace with its neighbors. Without a credible external threat in the region, the military historically viewed its prime mission as assuring internal security. Military leaders now say they wish to transform the military to a professional, external security force but acknowledge that the armed forces will continue to play an internal security role for some time.

Throughout Indonesian history the military maintained a prominent role in the nation's political and social affairs. Traditionally a significant number of cabinet members had military backgrounds, while active duty and retired military personnel occupied a large number of seats in the parliament. Commanders of the various territorial commands played influential roles in the affairs of their respective regions. With the inauguration of the newly-elected national parliament in October 2004, the military will no longer have a formal political role, although it retains important political influence.


FOREIGN RELATIONS

Since independence, Indonesia has espoused a "free and active" foreign policy, seeking to play a role in regional affairs commensurate with its size and location but avoiding involvement in conflicts among major powers. Indonesian foreign policy under the "New Order" government of President Soeharto moved away from the stridently anti-Western, anti-American posturing that characterized the latter part of the Soekarno era. Following Soeharto's ouster in 1998, Presidents Habibie and Wahid have preserved the broad outlines of Soeharto's independent, moderate foreign policy. The traumatic separation of East Timor from Indonesia after an August 1999 East Timor referendum, and subsequent events in East and West Timor, strained Indonesia's relations with the international community.

A cornerstone of Indonesia's contemporary foreign policy is its participation in the Association of Southeast Asian Nations (ASEAN), of which it was a founding member in 1967 with Thailand, Malaysia, Singapore, and the Philippines. Since then, Brunei, Vietnam, Laos, Burma, and Cambodia also have joined ASEAN. While organized to promote common economic, social, and cultural goals, ASEAN acquired a security dimension after Vietnam's invasion of Cambodia in 1979; this aspect of ASEAN expanded with the establishment of the ASEAN Regional Forum in 1994, which comprises 22 countries, including the U.S. Indonesia's continued domestic troubles have distracted it from ASEAN matters and consequently lessened its influence within the organization.

Indonesia also was one of the founders of the Non-Aligned Movement (NAM) and has taken moderate positions in its councils. As NAM Chairman in 1992-95, it led NAM positions away from the rhetoric of North-South confrontation, advocating instead the broadening of North-South cooperation in the area of development. Indonesia continues to be a prominent, and generally helpful, leader of the Non-Aligned Movement.

Indonesia has the world's largest Muslim population, though it is a secular state, and is a member of the Organization of the Islamic Conference (OIC). It carefully considers the interests of Islamic solidarity in its foreign policy decisions but generally has been an influence for moderation in the OIC. President Wahid, for example, pursued better relations with Israel.

After 1966, Indonesia welcomed and maintained close relations with the donor community, particularly the United States, Western Europe, Australia, and Japan, through the Inter-governmental Group on Indonesia (IGGI) and its successor, the Consultative Group on Indonesia (CGI), which have provided substantial foreign economic assistance. Donors remain committed to helping Indonesia reform, but express increasing frustration with poor governance and implementation.

Indonesia has been a strong supporter of the Asia-Pacific Economic Cooperation (APEC) forum. Largely through the efforts of President Soeharto at the 1994 meeting in Bogor, Indonesia, APEC members agreed to implement free trade in the region by 2010 for industrialized economies and 2020 for developing economies.


U.S.-INDONESIAN RELATIONS

The United States has important economic, commercial, and security interests in Indonesia. Indonesia remains a linchpin of regional security due to its strategic location astride a number of key international maritime straits. Relations between Indonesia and the U.S. are good. The U.S. played an important role in Indonesian independence in the late 1940s and appreciated Indonesia's role as a staunch anti-communist bulwark during the Cold War. Cordial and cooperative relations are maintained today, although any formal security treaties do not bind the two countries. The United States and Indonesia share the common goal of maintaining peace, security, and stability in the region and engaging in a dialogue on threats to regional security. Cooperation between the U.S. and Indonesia on counter-terrorism has increased since 2002, as terrorist attacks in Bali (October 2002) and Jakarta (August 2003) demonstrated the presence of terrorist organizations, principally Jemaah Islamiyah, in Indonesia. The United States has welcomed Indonesia's contributions to regional security, especially its leading role in helping restore democracy in Cambodia and in mediating among the many territorial claimants in the South China Sea.

The U.S. is committed to assisting Indonesia's democratic transition and supports the territorial integrity of the country. There are, nonetheless, friction points in the bilateral political relationship. These have centered primarily on human rights, as well as on differences in our respective foreign policy orientations. The U.S. Congress cut off grant military training assistance (International Military Education and Training—IMET) to Indonesia in 1992 in response to a November 12, 1991, incident in East Timor in which Indonesian security forces shot and killed East Timorese demonstrators. This restriction was partially lifted in 1995. Military assistance programs were again suspended, however, in the aftermath of the violence and destruction in East Timor following the August 30, 1999 referendum favoring separation from Indonesia. Separately, the U.S. has also urged the Indonesian Government to identify and bring to justice the perpetrators of the August 2002 ambush murders of two U.S. citizen teachers near Timika in the Papua province. Indonesia continues to align itself with Non-Aligned Movement and Group of 77 (G-77) foreign policy views, often taking unhelpful positions on issues of international human rights concern.

On worker rights, Indonesia was the target of several petitions filed under the Generalized System of Preferences (GSP) legislation arguing that Indonesia did not meet internationally recognized labor standards. A formal GSP review was suspended in February 1994 without terminating GSP benefits for Indonesia. Since 1998, Indonesia has ratified all eight International Labor Organization core conventions on protecting internationally recognized worker rights and allowed trade unions to organize. However, enforcement of labor laws and protection of workers rights remains inconsistent and weak in some areas. Indonesia's weak economic recovery has pushed more workers into the informal sector, with less legal protection, including child labor.

Economic Relations with the United States

U.S. exports to Indonesia in 2003 totaled $2.5 billion, still down significantly from $4.5 billion in 1997. Indonesia is currently the 35th-largest export market for U.S. goods. The main exports were construction equipment, machinery, aviation parts, chemicals, and agricultural products. U.S. imports from Indonesia in 2003 totaled $9.5 billion and consisted primarily of clothing, machinery and transportation equipment, petroleum, natural rubber, and footwear. The stock of U.S. foreign direct investment (FDI) in Indonesia in 2001 was $8.8 billion and is concentrated largely in petroleum and mining. Economic assistance to Indonesia is coordinated through the Consultative Group on Indonesia (CGI), formed in 1989. It includes 19 donor countries and 13 international organizations that meet annually to coordinate donor assistance.

The U.S. Agency for International Development (USAID) has provided development assistance to Indonesia since 1950. Initial assistance focused on the most urgent needs of the new republic, including food aid, infrastructure rehabilitation, health care, and training. Through the 1970s, a time of great economic growth in Indonesia, USAID played a major role in helping the country achieve self-sufficiency in rice production and in reducing the birth rate.

Currently, USAID has identified priority program areas to strengthen a moderate, stable, and productive Indonesia. Resulting from President Bush's October 12, 2003 announcement, a major new initiative seeks to improve the quality of basic education. A newly integrated approach to community-driven development and government service delivery will improve the quality of basic human services. In a sector where USAID is already the leading donor in Indonesia, assistance will be provided for effective democratic and decentralized governance. Supporting Indonesia's economic stabilization efforts, assistance will strengthen economic growth and employment creation.

Principal U.S. Embassy Officials

JAKARTA (E) Address: Medan Merdeka Selatan 5; APO/FPO: Box 8129, FPO, AP 96520-8129; Phone: (62-21) 3435-9000; Fax: (62) (21) 386-2259; INMARSAT Tel: 683-142-927; Workweek: M–F 7:30 a.m.-4:00 p.m.; Website: www.usembassyjakarta.org

AMB:Ambassador B. Lynn Pascoe
DCM:W. Lewis Amselem
CG:Mary Grandfield
POL:Marc Desjardins
COM:Margaret Keshishian
CON:Mary Grandfield
MGT:J. Patrick Truhn
AGR:Fred Kessel
AID:William Frej
CLO:Carol Stephens
DAO:Col. Joseph Judge (USA)
ECO:William Heidt
EEO:Max Kwak
EST:Anthony Woods
FCS:Margaret Keshishian
FMO:Ralph Hamilton
GSO:Wade Leahy
ICASS Chair:Margaret Keshishian
IMO:David Yeutter
IPO:Timmie Chatelain
ISO:Ron Lay
ISSO:Ron Lay
LAB:Mark D. Clark
PAO:Charles Silver
RSO:Earl R. Miller
State ICASS:William Heidt
Last Updated: 10/27/2004

SURABAYA (CG) Address: Jl. Dr. Soetomo 33, Surabaya 60264; APO/FPO: Unit 8131, FPO, AP 96520; Phone: 62-31-295-6400; Fax: (62-31) 567-4492; INMARSAT Tel: 383-134-370; Workweek: M–F 7:30 a.m to 4:00 p.m.; Website: www.usconsulatesurabaya.us

PO:Phillip L. Antweiler
POL:Steven J. Whitaker
POL/ECO:Mara A. Kaplan
CON:Antone C. Greubel
MGT:Susan Cheatham
ECO:vacant
GSO:Cheryl Hepburn
PAO:vacant
Last Updated: 10/26/2004

TRAVEL

Consular Information Sheet

July 9, 2004

Country Description: Indonesia is an independent republic consisting of more than 16,500 islands spread over 3,000 miles. Indonesia's economy is developing, and tourist services are plentiful in the major tourist areas.

Entry/Exit Requirements: A passport valid for at least six months and an onward/return ticket are required. As of February 1, 2004 all American visitors to Indonesia will need to obtain a visa. Travelers may apply for a visa at the Indonesian Embassy in Washington, D.C. or at the airport upon arrival. Visitors may be granted a 3-day visa for a fee of $3 or a 30-day visa for a fee of $25. Both visas are non-extendable, and travelers must exit the country for at least two weeks before they can return. A visitor's visa for business purposes and social/cultural stays of longer duration require a letter of intent/sponsorship from the employer and/or sponsor. For up-to-date information, contact the Embassy of the Republic of Indonesia: 2020 Massachusetts Ave., N.W., Washington, D.C. 20036 (202/775-5200; Internet, www.embassyofindonesia.org. You may also contact the nearest Indonesian Consulate General: CA (213) 383-5126 or (415)474-9571, IL (312) 595-1777, NY (212)879-0600 or TX (713)785-1691.

Indonesia strictly enforces its immigration/visa requirements. Several Westerners, including Americans, have been jailed for visa violations. Violators may also be subject to substantial fines.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian if not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

Dual Nationality: Indonesian law does not recognize dual nationality. Because of this, U.S. citizens who are also documented as Indonesian nationals may experience difficulties with immigration formalities in Indonesia. Holding dual citizenship may also hamper the U.S. Embassy or Consulate's ability to provide consular protection to Americans. In addition to being subject to all Indonesian laws affecting U.S. citizens, dual nationals may also be subject to other laws that impose special obligations as Indonesian citizens. For additional information, consult the Consular Affairs Bureau's web site at http://travel.state.gov for our Dual Nationality flyer.

Safety and Security: The Department of State continues to recommend that Americans defer all non-essential travel to Indonesia. The Department of State urges Americans who choose to travel to Indonesia despite this Travel Warning to observe vigilant personal security precautions; to remain aware of the continued potential for terrorist attacks against Americans, U.S.- or other Western interests in Indonesia; and to register with U.S. Embassy Jakarta, U.S. Consulate General Surabaya or the U.S. Consular Agent in Bali. Registration facilitates the U.S. Mission's contact with Americans in emergency situations. Americans in Indonesia should maintain a low profile, vary daily routines, avoid crowds and demonstrations, and keep abreast of current Indonesian events.

The U.S. Mission in Indonesia restricts U.S. government employees' travel to certain areas of the country and, at times, denies them permission to travel to Indonesia. For the latest security information, contact a U.S. Mission consular office. The U.S. Mission can occasionally suspend service to the public, or close, because of security concerns; in these situations, it will continue to provide emergency services to American citizens.

Indonesia will hold a presidential runoff election on September 20, 2004. Election-related violence is possible. Americans should avoid demonstrations and large gatherings, which could turn violent or cause unexpected traffic disruptions. The Jemaah Islamiyah (JI) and other similar terrorist groups might use these elections as opportune occasions to conduct attacks.

The potential remains for violence and terrorist actions against U.S. citizens and interests throughout the country. The JI has cells in several Southeast Asian countries, including Indonesia, and connections with al-Qaeda. Terrorist bombings killed or injured American citizens at a major international hotel in Jakarta in August 2003 and in Bali in October 2002. The U.S. government continues to receive information that JI and other extremist groups might be planning additional attacks against U.S. and other Western interests in Indonesia. Since security has increased at official U.S. facilities, terrorists could seek "softer" targets, including but not limited to where Americans and other Westerners live, congregate, shop or visit, including hotels, clubs, restaurants, shopping centers, identifiably Western businesses, housing compounds, transportation systems, places of worship, schools, or public recreation events.

Sectarian, ethnic, communal and separatist violence continue to threaten personal safety and security in several areas. Over the past three years, domestically targeted bombings have struck religious, political, and business targets. In 2003, the Jakarta international airport, an open-air concert in Aceh, and other Indonesian government facilities were bombed.

Americans should avoid travel to Aceh. Indonesia restricts foreigners' travel to that province; one foreigner was killed and another wounded in Aceh by security forces in the past year. Although Indonesia replaced martial law in Aceh with a state of civil emergency on May 19, 2004, Aceh's security situation remains highly uncertain.

Americans considering travel to the provinces of Papua and West Timor should exercise extreme caution because of sectarian, ethnic, communal and separatist strife. Papua's ongoing separatist conflict has the potential to become violent. In August 2002, two Americans were killed in Papua under as yet unresolved circumstances.

Americans should avoid travel to Maluku, in particular the capital city of Ambon. Since April 25, 2004, sectarian violence has killed at least 40 and injured more than 220 people.

Americans should avoid travel to Central, South and Southeast Sulawesi; those considering travel to North Sulawesi should exercise extreme caution. Violence in Poso and in neighboring areas of Central Sulawesi during October-November 2003 produced 19 fatalities. Central Sulawesi's general security situation remains unstable. A specific, credible terrorist threat to Western interests in areas of Central, Southern and Southwestern Sulawesi in May 2004 led many Westerners to evacuate those areas.

The Philippine-based terrorist Abu Sayyaf Group poses an ongoing kidnapping risk/threat in areas near Malaysia and the Philippines.

American travelers and American residents are urged to update their passports and important personal papers in case it becomes necessary to depart Indonesia quickly. Travel distances, poor communications, and the health care infrastructure make it extremely difficult for the Embassy to respond to U.S. citizen emergencies. In addition, many parts of Indonesia (including many tourist destinations) are isolated and difficult to reach via available transportation modes and/or communication links.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found. Up to date information on security can also be obtained by calling 1-888-407-4747 toll free in the United States, or, for callers outside the United States and Canada, a regular toll line at 1-317-472-2328. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Standard Time, Monday through Friday (except U.S. federal holidays)

Crime: Indonesia has a high crime rate. Credit card fraud is a growing problem as are robberies. Minor crimes, such as pick pocketing and theft, occur in popular tourist sites throughout the country. A common criminal technique is to puncture automobile tires so that the occupants can be robbed while changing the tire. Thefts and robberies from cars stopped at traffic lights have been reported on occasion. American citizens are advised to keep car doors locked and windows rolled up. Americans in Jakarta and Surabaya are also advised to engage a taxi either from a major hotel queue or by calling a taxi company, rather than hailing one on the street. Poachers and illegal loggers operating in Indonesian parks and nature preserves have threatened researchers, tourists and others in order to discourage foreign presence in those areas.

Claiming to act in the name of religious or moral standards, certain extremist groups have, on occasion, attacked nightspots and places of entertainment. Most of these attacks have been aimed at property destruction rather than injury to individuals. However, in November 2000 similar groups attacked an international HIV/AIDS conference in Yogyakarta, injuring 25, including two foreigners. These groups have on occasion threatened hunts for Americans and members of certain religious groups to demand they leave the country.

Americans should carry photocopies of their passports at all times. If stopped and detained, Americans should attempt to comply with all instructions from law enforcement officers, but also make it clear that they are American citizens and that they wish to contact the U.S. Embassy or U.S. Consulate General. Any incidents should be reported to the U.S. Embassy or U.S. Consulate General immediately.

Maritime piracy is a persistent and growing problem in Indonesian waters, targeting primarily commercial vessels. The majority of piracy attacks occur in the Straits of Malacca between the Riau Province and Singapore and in the waters north of Sulawesi and Kalimantan. Before traveling by ship in these areas, passengers are advised to review the current security situation with their local agent.

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

U.S. citizens should exercise prudence when scuba diving, surfing and snorkeling, and when visiting remote tourist locations, as every year several Americans die in accidents while participating in such activities.

U.S. citizens may refer to the Department of State's pamphlet A Safe Trip Abroad for ways to promote a trouble-free journey. The pamphlet is available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, and via the Internet at http://www.gpoaccess.gov/index.html, or via the Bureau of Consular Affairs web page at http://travel.state.gov.

Medical Facilities: The general level of sanitation and health care in Indonesia is far below U.S. standards. Some routine medical care is available in all major cities, although most expatriates leave the country for serious medical procedures. Serious medical problems requiring hospitalization and/or medical evacuation to Singapore or Australia, the closest locations with acceptable medical care, or the United States, can cost thousands of dollars. Doctors and hospitals often expect immediate cash payment for health services.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost well in excess of $50,000. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or if you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs' web site.

Other Health Information: Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP(1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Indonesia is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Safety of Public Transportation: Poor
Urban Road Conditions/Maintenance: Good to Fair
Rural Road Conditions/Maintenance: Fair to Poor
Availability of Roadside Assistance: Poor to Non-existent

In general, traffic in Indonesia is congested and undisciplined. The number and variety of vehicles on the road far exceed the capacity of existing roadways to handle the traffic. Road conditions vary from good (in the case of toll roads and major city roads) to dangerously poor.

Generally, awareness of road safety awareness is very low in Indonesia, although it is increasing. Buses and trucks are often dangerously over-loaded and tend to travel at high speeds. Most roads outside major urban areas have a single lane of traffic in each direction, making passing dangerous. Most Indonesian drivers do not maintain a safe following distance in a manner familiar to U.S. drivers and tend to pass or maneuver with considerably less margin for error than in the United States. Although traffic in Indonesia moves on the left side of the road, drivers tend to pass on both sides and may use the shoulder for this purpose. It is common for drivers to create extra lanes regardless of the lane markings painted on the roads. Throughout the country, motor vehicles share the roads with other forms of transportation such as bicycle pedicabs, horse and ox carts, and pushcarts.

Although Indonesia has a seat belt law requiring the use of seat belts in front seats, most Indonesian automobiles do not have seat belts in the rear passenger seats. The use of infant and child car seats is not common, and it can be very difficult to rent a car seat for temporary use. Helmets are required on motorcycles, but this law is inconsistently enforced. Passengers rarely wear helmets. Accidents on rented motorcycles constitute the largest cause of death and serious accident among foreign visitors to Bali.

Expatriates and upper class Indonesians often use professional drivers. All car rental firms provide drivers for a nominal additional fee.

Driving at night can be extremely dangerous outside of major urban areas. Drivers often refuse to use their lights, and most rural roads are unlit. Sometimes, residents in rural areas use road surfaces as public gathering areas, congregating on them after dark. At least one American citizen was involved in a fatal accident when his car hit a group lying on an unlit stretch of road.

When an accident occurs, Indonesian law requires both drivers to await the arrival of a police officer to report the accident. Although Indonesian law requires third party insurance, most Indonesian drivers are uninsured, and even when a vehicle is insured, it is common for insurance companies to refuse to pay damages. If a pedestrian is injured, the driver of the vehicle is normally expected to assist in transporting the injured party to the hospital because Indonesian ambulance services are unreliable. In cases of traffic accidents resulting in death, it is not uncommon for bystanders to attack the driver perceived to be responsible. This is more common in rural areas and in accidents involving Indonesian drivers, but crowds at the scene of an accident have occasionally attacked expatriate drivers. When an accident occurs outside a major city, it may be advisable to drive to the nearest police station before stopping.

For additional general information about road safety, including links to foreign government sites, please see the Bureau of Consular Affairs' web site, http://travel.state.gov/road_safety.html. For specific information concerning Indonesian driving permits, vehicle inspection, road tax and mandatory insurance, please contact the Indonesian National Tourist Organization via the Internet at http://www.indonesia-tourism.com. Please see also road safety information from the U.S. Embassy home page at http://jakarta.usembassy.gov.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Indonesia's civil aviation authority as Category 1–-in compliance with international aviation safety standards for oversight of Indonesia's air carrier operations. For further information, travelers may contact the Department of Transportation within the U.S. at 1-800-322-7873, or visit the FAA's Internet website at http://www.faa.gov/avr/iasa/index.cfm.

Customs Regulations: Indonesian customs authorities have strict regulations concerning temporary importation into or export from Indonesia of items such as prescription medicines and foreign material or videotapes. American are encouraged to contact the Embassy of Indonesia in Washington or one of Indonesia's consulates in the United States for specific information about customs requirements. In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines. A current list of those countries with serious problems in this regard can be found at www.ustr.gov/reports/2003/special301.htm.

Criminal Penalties: With regard to visa violations, the Indonesians have detained people for conducting business, academic, or other non-tourist activities while in tourist visa status. Penalties for such immigration/visa violations incur a prison sentence of up to 5 years and a fine of 25 million Rp. We encourage you to contact the Embassy or Consulate General of Indonesia, whichever is nearest to you, should you have visa questions.

While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Indonesian laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Indonesia are strict and convicted offenders can expect jail sentences and heavy fines. The death sentence can be given in cases of drug trafficking, and one U.S. citizen was given a life sentence for trafficking.

Under the PROTECT Act of April 2003, it is a crime, prosecutable in the United States, for a U.S. citizen or permanent resident alien, to engage in illicit sexual conduct in a foreign country with a person under the age of 18, whether or not the U.S. citizen or lawful permanent resident alien intended to engage in such illicit sexual conduct prior to going abroad. For purposes of the PROTECT Act, illicit sexual conduct includes any commercial sex act in a foreign country with a person under the age of 18. The law defines a commercial sex act as any sex act, on account of which anything of value is given to or received by a person under the age of 18.

Under the Protection of Children from Sexual Predators Act of 1998, it is a crime to use the mail or any facility of interstate or foreign commerce, including the Internet, to transmit information about a minor under the age of 16 for criminal sexual purposes that include, among other things, the production of child pornography. This same law makes it a crime to use any facility of interstate or foreign commerce, including the Internet, to transport obscene materials to minors under the age of 16.

Consular Access: U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times, so that, if questioned by local officials, proof of identity and U.S. citizenship are readily available. When U.S. citizens are arrested or detained, formal notification of the arrest is normally provided to the U.S. Embassy in Jakarta in writing, a process that can take several weeks. If detained, U.S. citizens should telephone the nearest U.S. consular office.

Special Circumstances: U.S. citizens involved in commercial or property matters should be aware that the business environment is complex and dispute settlement mechanisms are not highly developed. Local and foreign businesses often cite corruption and ineffective courts as serious problems. In many cases, it is difficult to resolve trade disputes. For more information, please refer to the 2003 Country Commercial Guide for Indonesia at http://www.usembassyjakarta.org/ccg/ccg.html.

Disaster Preparedness: Indonesia is located in an area of high seismic and volcanic activity. During the rainy season, roughly October-April, there may be flash floods and landslides throughout the country. In November 2003 over 100 people, including several foreigners, were killed in a flood near Bukit Lawang, a tourist area in North Sumatra. In January 2002, floods crippled Jakarta for several days and killed over 50 people, and in February 2003 the city flooded again but without casualties. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov/.

Children's Issues: For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/children's_issues.html or telephone the Overseas Citizens Services at 1-888-407-4747. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.

Registration/Embassy and Consulate Locations: Americans living in or visiting Indonesia are encouraged to register at the Consular Section of the U.S. Embassy in Indonesia and obtain updated information on travel and security within Indonesia. The U.S. Embassy is located in Jakarta at Medan Merdeka Selatan 5; telephone: (62)(21) 3435-9000; fax (62)(21) 385-7189. The Embassy's web site is http://jakarta.usembassy.gov. The consular section can be reached by e-mail at [email protected] U.S. citizens can register online at http://jakarta.usembassy.gov/consular/onlinereg.html. To subscribe to the U.S. Embassy Emergency Notification System, please register at http://jakarta.usembassy.gov/consular/Mailwarden.html

The U.S. Consulate General in Surabaya is at Jalan Raya Dr. Sutomo 33; telephone: (62)(31) 568-2287/8; fax (62)(31) 567-4492; e-mail: [email protected] The consulate should be the first point of contact for Americans needing assistance who are present or residing in the Indonesian provinces of: East and Central Java, Yogyakarta, Nusa Tenggara Timor, Nusa Tenggara Barat, all of Sulawesi and North and South Maluku.

There is a Consular Agency in Bali at Jalan Hayam Wuruk 188, Denpasar, Bali; telephone: (62)(361) 233-605; fax (62)(361) 222-426; e-mail: [email protected] The U.S. Consulate in Surabaya is an alternate contact for Amcits in Bali.

The U.S. Consulate in Medan closed in May 1996. American citizens needing assistance in Sumatra should contact the U.S. Embassy in Jakarta.

Travel Warning

January 13, 2005

This Travel Warning strongly urges American Citizens to avoid tsunami-damaged areas of Indonesia, provides information for humanitarian workers considering travel to Indonesia, updates information on the security situation, and reminds travelers of the ongoing terrorist threat for Indonesia. The Department of State continues to recommend that Americans defer all non-essential travel to Indonesia. This warning supersedes the December 17, 2004, Travel Warning and the December 27, 2004 Public Announcement for Indonesia.

The Department urges Americans who choose to travel to Indonesia despite this Travel Warning to observe vigilant personal security precautions; to remain aware of the continued potential for terrorist attacks against Americans, U.S. or other Western interests in Indonesia; and to register with U.S. Embassy Jakarta, U.S. Consulate General Surabaya or the U.S. Consular Agent in Bali. Registration facilitates the U.S. Mission's contact with Americans in emergency situations. Americans in Indonesia should maintain a low profile, vary daily routines, avoid crowds and demonstrations, and keep abreast of local news and developments that may affect the security situation.

The Department reminds Americans that the terrorist threat in Indonesia continues. Reports indicate that terrorists are planning attacks against a wide variety of targets. These attacks could occur at any time and could be directed against any location, including those frequented by foreigners and identifiably American or other western facilities or businesses in Indonesia. The potential remains for violence and terrorist actions against U.S. citizens and interests throughout the country. The Jemaah Islamiyah (JI) terrorist group has cells in several Southeast Asian countries, including Indonesia, and connections with al-Qaeda. A terrorist bombing outside the Australian Embassy in Jakarta on September 9, 2004, killed eleven and injured more than 180 people. An August 2003 terrorist bombing at a major international hotel in Jakarta injured several American citizens, and seven Americans died in a terrorist attack in Denspasar, Bali in October 2002. The U.S. government continues to receive information that JI and other extremist groups might be planning additional attacks against U.S. and other Western interests in Indonesia.

Travelers should be aware that since security has increased at official U.S. facilities, terrorists could seek "softer" targets. Such targets could include but are not limited to places where Americans and other Westerners live, congregate, shop or visit, including hotels, clubs, restaurants, shopping centers, identifiably Western businesses, housing compounds, transportation systems, places of worship, schools, or public recreation events.

The U.S. Mission in Indonesia restricts U.S. government employees' travel to certain areas of the country and, at times, denies them permission to travel to Indonesia. For the latest security information, contact a U.S. Mission consular office. The U.S. Mission can occasionally suspend service to the public, or close, because of security concerns; in these situations, it will continue to provide emergency services to American citizens.

Sectarian, ethnic, communal and separatist violence continue to threaten personal safety and security in several areas. Over the past three years, domestically targeted bombings have struck religious, political, and business targets. In 2003, the Jakarta international airport, an open-air concert in Aceh, and other Indonesian government facilities were bombed.

Americans should avoid travel to Aceh. Northern parts of the Indonesian island of Sumatra, and particularly the province of Aceh, suffered severe damage following an earthquake and series of tsunami waves on December 26, 2004. The Government of Indonesia has declared a National Disaster and has mobilized civilian and military assistance to the affected areas. Communications infrastructure, roads, medical care and tourist facilities on the western and northern coasts of Sumatra, and on coastal islands off Sumatra, have been damaged and in some cases completely destroyed. Indonesia restricts foreigners' travel to Aceh. Indonesia replaced martial law in Aceh with a state of civil emergency on May 19, 2004, however, Aceh's security situation remains highly uncertain. Humanitarian workers should be cautious of their security when traveling in Aceh due to the continuing potential for separatist violence.

Americans should not travel to Aceh to participate in humanitarian relief efforts except under the auspices of a recognized assistance organization that has permission to operate in Indonesia. Americans participating in relief efforts should make sure that their organization has facilities in place to accommodate and feed staff and a security plan approved by Indonesian authorities. All travelers to Aceh should follow health precautions for travelers to the tsunami area from the U.S. Centers for Disease Control at http://www.cdc.gov/travel.

Americans considering travel to the province of Papua should exercise extreme caution because of sectarian, ethnic, communal and separatist strife. Papua's on-going separatist conflict has the potential to become violent. In August 2002, two Americans were killed in Papua under as yet unresolved circumstances.

Americans should avoid travel to Maluku, in particular the capital city of Ambon. Since April 25, 2004, sectarian violence has killed at least 40 and injured more than 220 people.

Americans should avoid travel to Central, South and Southeast Sulawesi; those considering travel to North Sulawesi should exercise extreme caution. Sporadic violence occurred in Poso and in neighboring areas of Central Sulawesi in 2003 and 2004, resulting in several fatalities. Central Sulawesi's general security situation remains unstable; bombings and killings occurred in late 2004 in Poso and Palu.

The Philippine-based terrorist Abu Sayyaf Group poses an ongoing kidnapping risk/threat in areas near Malaysia and the Philippines.

Americans can obtain information on travel and security in Indonesia from the Department of State by calling 1-888-407-4747 within the United States; or 1-317-472-2328 from overseas. Americans also can call the Embassy in Jakarta at (62)(21) 3435-9000, the Consulate General in Surabaya at (62) (31) 295-6400, and the Consular Agent in Bali at (62) (361) 233-605. American citizens should read the Department of State's Consular Information Sheet for Indonesia and latest Worldwide Caution Public Announcement, both available at http://travel.state.gov.

International Parental Child Abduction

January 2005

The information below has been edited from the report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Parental Child Abduction section of this book and review current reports online at travel.state.gov

Disclaimer: The information in this circular relates to the legal requirements of specific foreign countries. It is provided for general information only. Questions involving interpretation of specific foreign laws should be addressed to foreign counsel.

General Information: Indonesia is not a party to the Hague Convention on the Civil Aspects of International Child Abduction, nor are there any international or bilateral treaties in force between Indonesia and the United States dealing with international parental child abduction. Therefore, there is no treaty remedy by which the left-behind parent would be able to pursue recovery of the child/ren should they be abducted or wrongfully retained in Indonesia. Once in Indonesia, the child/ren would be completely subject to Indonesian law for all matters including custody.

Custody Disputes: Parental child abduction is not a crime under Indonesian law. Custody disputes are considered civil legal matters that must be resolved between the concerned parties or through the courts in Indonesia. The district/religious courts will hear and process child custody cases only as part of a divorce petition. Family issues and custody disputes are adjudicated based on Indonesian's Civil Code ("Kitab-Undung Hukum Perdata") Appendix I Chapter 3 Article 7.

Indonesian authorities advise the U.S. Embassy in Jakarta that noncompliance or violation of a local court order can result in a prison sentence. It should also be noted that Indonesian police or local law enforcement are reluctant to get involved in custody disputes and could not be counted on to enforce custody decrees issued by the Indonesian courts.

For Muslims, Islamic (Sharia) law can apply in family and religious matters. Questions on specific Islamic laws as they pertain to custody rights should be addressed to a lawyer licensed to practice in Indonesia. Additional general information on Islamic Family Law is also available on the Internet at children's_issues.html.

Deportation: There is no extradition treaty between the United States and Indonesia. However, if the taking parent is a U.S. citizen whose U.S. passport has been revoked due to an outstanding federal Unlawful Flight to avoid Prosecution (UFAP) warrant or indictment on charges of International Parental Kidnapping (IPKCA) in violation of 18 USC Section 1204, Indonesian authorities may consider deportation based on lack of a valid travel document. Exit permits are required for foreigners who stay in Indonesia for more than six months. Exit/re-entry permits are given to foreigners who are holding "KITAS" (temporary stay permit).

Dual Nationality: A child with a parent who was born outside of the U.S. or who has acquired a second nationality through naturalization in another country may have a claim to citizenship in that country. There is no requirement that a U.S. citizen parent consent to the acquisition by his/her child of another nationality and in many cases a parent is unaware that his/her child may have dual citizenship. The Embassy of Indonesia in Washington D.C. will be able to provide more detailed information on whether your child has a claim. For additional information, see the Consular Affairs home page on the Internet at http://travel.state.gov for our Dual Nationality flyer.

Initiating Foreign Enforcement Proceedings Under Local Law: If a country is not a signatory to the Hague Convention on the Civil Aspects of International Child Abduction, it may be necessary for you to initiate a child custody action in the courts in the foreign country. This usually will require retaining the services of an attorney abroad (See below). The Department of State, Office of Children's Issues is not a repository for foreign laws. However, selected information may be available concerning general procedures on child custody in particular countries. Contact the Office of Children's Issues to see if such information is available. For additional information, see judicial assistance for Indonesia on the Internet at http://caweb/cainternet/indonesia_legal.html. can be accessed via the Consular Affairs home page on the Internet at http://travel.state.gov.

Retaining a Foreign Attorney: A list of English speaking attorneys is available from the U.S. State Department Office of American Citizens Services. (See also our general information flyer, Retaining A Foreign Attorney or via our home page on the Internet under Judicial Assistance at http://caweb/cainternet/judicial_assistance.html#attorneys.) See also the Martindale-Hubbell Law Directory available in law libraries. It may be helpful to provide your foreign attorney with copies of any state laws concerning child custody orders and their enforcement in the U.S.

Legal Aid: Some countries provide legal aid services in child custody cases. The National Center for Missing and Exploited Children maintains a list of attorneys interested in Hague Convention and International Child Custody cases. You may obtain additional information about the attorney program at the National Center by calling 1-800-843-5678 or 703-274-3900. The Internet home page for the National Center can be reached directly at http://www.missingkids.org. See also the US Department of State flyer Retaining a Foreign Attorney, available via our home page on the Internet for other reference sources on legal aid.

Authentication and Translation of Documents: It may be necessary for you to provide foreign authorities or your attorney with authenticated, translated copies of your child custody order and any other pertinent documents. Consult your foreign attorney before going to this expense. An information flyer explaining the authentication process is available from the Office of American Citizens Services, through our automated fax system or via our home page.

Service of Process: If you need to serve process on a person abroad in connection with a child custody case, you may obtain copies of our country specific judicial assistance flyers on this subject through via our home page on the Internet at http://caweb/cainternet/judicial_assistance.html. See also, Service of Process Abroad, Hague Service Convention, Inter-American Letters Rogatory Service Convention, and Preparation of Letters Rogatory.

Criminal Remedies: The Department of Justice, Office of International Affairs works with US prosecuting attorneys, the Federal Bureau of Investigation and with Interpol (an international police agency) in a joint cooperative effort to return persons charged with US crimes from foreign countries. Extradition of the abducting adult may not result in the return of the child. Foreign countries may refuse to extradite a person to the US if that person is also a citizen of the foreign country. Foreign countries may not recognize parental abduction as a crime. Please note that the extradition process applies only to the abducting adult/fugitive and not the child. The proper channel for the return of the child is through civil mechanisms or voluntary return arrangements. Additional information is also available on the Internet at the web site of the U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention (OJJDP) at http://www.ojjdp.ncjrs.org..

views updated

INDONESIA

Compiled from the October 2003 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.




Official Name:
Republic of Indonesia




PROFILE
PEOPLE
HISTORY
GOVERNMENT AND POLITICAL CONDITIONS
ECONOMY
FOREIGN RELATIONS
NATIONAL SECURITY
U.S.-INDONESIAN RELATIONS
TRAVEL


PROFILE


Geography

Area: 2 million sq. km. (736,000 sq. mi.), about three times the size of Texas; maritime area: 7,900,000 sq. km.

Cities: Capital—Jakarta (est. 8.8 million). Other cities—Surabaya 3.0 million, Medan 2.5 million, Bandung
2.5 million, plus an additional 3 million in the surrounding area.

Terrain: More than 17,000 islands; 6,000 are inhabited, 1,000 of which are permanently settled. Large islands consist of coastal plains with mountainous interiors.

Climate: Equatorial but cooler in the highlands.


People

Nationality: Noun and adjective—Indonesian(s).

Population: (2001) 210 million.

Annual growth rate: (2001) 1.6%.

Ethnic groups: Javanese 45%, Sundanese 14%, Madurese 7.5%, coastal Malays 7.5%, others 26%.

Religions: Islam 87%, Protestant 6%, Catholic 3%, Hindu 2%, Buddhist and other 1%.

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

Education: Years compulsory—9. Enrollment—92% of eligible primary school-age children. Literacy—85%.

Health: Infant mortality rate—63/1,000 live births. Life expectancy at birth —men 60 years, women 64 years.

Work force: (90 million) Agriculture —41.2%; trade and restaurants—19.8%, public services—13.7%; manufacturing—12.9% (1997 data).


Government

Type: Independent republic.

Independence: August 17, 1945 proclaimed.

Constitution: 1945. Embodies five principles of the state philosophy, called Pancasila, namely monotheism, humanitarianism, national unity, representative democracy by consensus, and social justice.

Branches: Executive—president (head of government and chief of state) chosen for a 5-year term by the 700-member People's Consultative Assembly (MPR). Legislative—500-member House of Representatives (DPR) elected for a 5-year term. Judicial—Supreme Court.

Suffrage: 17 years of age universal and married persons regardless of age.


Economy

GDP: (2001) $144.8 billion.

Annual growth rate: (2001) 3.3%.

Per capita income: (2001) $683.

Natural resources: (13.6% of GDP) Oil and gas, bauxite, silver, tin, copper, gold, coal.

Agriculture: (16.4% of GDP) Products—timber, rubber, rice, palm oil, coffee. Land—17% cultivated.

Manufacturing: (26.1% of GDP) Garments, footwear, electronic goods, furniture, paper products.

Trade: Exports (2001)—$56.3 billion including oil, natural gas, plywood, manufactured goods. Major markets—Japan, Singapore, Taiwan, Korea, EU, and U.S. Imports (2001)—$31.0 billion, including food, chemicals, capital goods, consumer goods. Major suppliers—Japan, U.S., Thailand.




PEOPLE

Indonesia's 210 million people make it the world's fourth-most populous nation. The island of Java is one of the most densely populated areas in the world, with more than 107 million people living in an area the size of New York State. Indonesia includes numerous related but distinct cultural and linguistic groups, many of which are ethnically Malay. Since independence, Bahasa Indonesia (the national language, a form of Malay) has spread throughout the archipelago and has become the language of most written communication, education, government, and business. Many local languages are still important in many areas, however. English is the most widely spoken foreign language. Education is free and compulsory for children through grade 9. Although about 92% of eligible children are enrolled in primary school, a much smaller percentage attend full time. About 44% of secondary schoolage children attend junior high school, and some others of this age group attend vocational schools.


Constitutional guarantees of religious freedom apply to the five religions recognized by the state, namely Islam (87%), Protestantism (6%), Catholicism (3%), Buddhism (2%), and Hinduism (1%). In some remote areas, animism is still practiced.




HISTORY

By the time of the Renaissance, the islands of Java and Sumatra had already enjoyed a 1,000-year heritage of advanced civilization spanning two major empires. During the 7th-14th centuries, the Buddhist kingdom of Srivijaya flourished on Sumatra. At its peak, the Srivijaya Empire reached as far as West Java and the Malay Peninsula. Also by the 14th century, the Hindu Kingdom of Majapahit had risen in eastern Java. Gadjah Mada, the empire's chief minister from 1331 to 1364, succeeded in gaining allegiance from most of what is now modern Indonesia and much of the Malay archipelago as well. Legacies from Gadjah Mada's time include a codification of law and an epic poem. Islam arrived in Indonesia sometime during the 12th century and, through assimilation, supplanted Hinduism by the end of the 16th century in Java and Sumatra. Bali, however, remains overwhelmingly Hindu. In the eastern archipelago, both Christian and Islamic proselytizing took place in the 16th and 17th centuries, and, currently, there are large communities of both religions on these islands.


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 until 1975. During 300 years of Dutch 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.


The Japanese occupied Indonesia for 3 years during World War II. On August 17, 1945, 3 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 4 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.


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 made responsible 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 while some Muslim groups preferred either an Islamic state or a constitution which included 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, and permitted steps toward self-government and independence.


Negotiations with the Dutch on the incorporation of the territory 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 Irianese 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 Irian Jaya, also known as Papua or West Papua, gave rise to smallscale 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 Irian Jaya of a desire for independence from Indonesia.


From 1524 to 1975, East Timor was a Portuguese colony on the island of Timor, separated from Australia's north coast by the Timor Sea. As a result of political events in Portugal, Portuguese authorities abruptly withdrew from Timor in 1975, exacerbating power struggles among several Timorese political factions. An avowedly Marxist faction called "Fretilin" achieved military superiority. Fretilin's ascent in an area contiguous to Indonesian territory alarmed the Indonesian Government, which regarded it as a threatening movement. Following appeals from some of Fretilin's Timorese opponents, Indonesian military forces intervened in East Timor and overcame Fretilin's regular forces in 1975-76. Smallscale guerrilla activity persisted after Indonesia declared East Timor its 27th province in 1976, following a petition by a provisional government for incorporation into Indonesia. The UN never recognized Indonesia's


incorporation of East Timor and later brokered negotiations between Indonesia and Portugal on the territory's status. In January 1999, the Indonesian Government agreed to a process, with UN involvement, under which the people of East Timor would be allowed to choose between autonomy and independence through a direct ballot.


The direct ballot was held on August 30, 1999. Some 98% of registered voters cast their ballots, and 78.5% of the voters chose independence over continued integration with Indonesia. Many persons were killed in a wave of violence and destruction after the announcement of the pro-independence vote. In October 1999, the People's Consultative Assembly (MPR) revoked the 1978 decree that annexed East Timor, and the UN Transitional Authority in East Timor (UNTAET) assumed responsibility for administering East Timor until it became independent on May 20, 2002.

Unsuccessful rebellions on Sumatra, Sulawesi, West Java, and other islands beginning in 1958, plus a failure by the constituent assembly to develop a new constitution, weakened the parliamentary system. Consequently, in 1959, when President Soekarno unilaterally revived the provisional 1945 constitution, which gave broad presidential powers, he met little resistance. From 1959 to 1965, President Soekarno imposed an authoritarian regime under the label of "Guided Democracy." He also moved Indonesia's foreign policy toward nonalignment, a foreign policy stance supported by other prominent leaders of former colonies who rejected formal alliances with either the Western or Soviet blocs. Under Soekarno's auspices, these leaders gathered in Bandung, West Java, 1955, to lay the groundwork for what became known as the Non-Aligned Movement. In the late 1950s and early 1960s, President Soekarno moved closer to Asian communist states and toward the Indonesian Communist Party (PKI) in domestic affairs. Though the PKI represented the largest communist party outside the Soviet Union and China, its mass support base never demonstrated an ideological adherence typical of communist parties in other countries.

By 1965, the PKI controlled many of the mass civic and cultural organizations that Soekarno had established to mobilize support for his regime and, with Soekarno's acquiescence, embarked on a campaign to establish a "Fifth Column" by arming its supporters. Army leaders resisted this campaign. Under circumstances that have never been fully explained, on October 1, 1965, PKI sympathizers within the military, including elements from Soekarno's palace guard, occupied key locations in Jakarta and kidnapped and murdered six senior generals. Major General Soeharto, the commander of the Army Strategic Reserve, rallied army troops opposed to the PKI to reestablish control over the city. Violence swept throughout Indonesia in the aftermath of the October 1 events, and unsettled conditions persisted through 1966. Rightist gangs killed tens of thousands of alleged communists in rural areas. Estimates of the number of deaths range between 160,000 and 500,000. The violence was especially brutal in Java and Bali. During this period, PKI members by the tens of thousands turned in their membership cards. The emotions and fears of instability created by this crisis persisted for many years; the communist party remains banned from Indonesia.


Throughout the 1965-66 period, President Soekarno vainly attempted to restore his political position and shift the country back to its pre-October 1965 position. Although he remained president, in March 1966, Soekarno had to transfer key political and military powers to General Soeharto, who by that time had become head of the armed forces. In March 1967, the Provisional People's Consultative Assembly (MPRS) named General Soeharto acting president. Soekarno ceased to be a political force and lived under virtual house arrest until his death in 1970.


President Soeharto proclaimed a "New Order" in Indonesian politics and dramatically shifted foreign and domestic policies away from the course set in Soekarno's final years. The New Order established economic rehabilitation and development as its primary goals and pursued its policies through an administrative structure dominated by the military but with advice from Western-educated economic experts.

In 1968, the People's Consultative Assembly (MPR) formally selected Soeharto to a full 5-year term as president, and he was re-elected to successive 5-year terms in 1973, 1978, 1983, 1988, 1993, and 1998. In mid-1997, Indonesia was afflicted by the Asian financial and economic crisis, accompanied by the worst drought in 50 years and falling prices for oil, gas, and other commodity exports. The rupiah plummeted, inflation soared, and capital flight accelerated. Demonstrators, initially led by students, called for Soeharto's resignation. Amidst widespread civil unrest, Soeharto resigned on May 21, 1998, 3 months after the MPR had selected him for a seventh term. Soeharto's hand-picked Vice President, B. J. Habibie, became Indonesia's third president.


President Habibie reestablished International Monetary Fund (IMF) and donor community support for an economic stabilization program. He released several prominent political and labor prisoners, initiated investigations into the unrest and lifted controls on the press, political parties, and labor unions. A special session of the MPR held in November 1998 advanced the date of parliamentary elections to June 1999 and the lower house of parliament (DPR) rewrote the laws governing the elections.


Elections for the national, provincial, and subprovincial parliaments were held on June 7, 1999, in which 48 parties competed. International and domestic observers and monitors declared that the elections, while not problem-free, had been free and fair. In early August, President Habibie ratified the poll count. For the national parliament, Parti Demokrasi Indonesia Perjuangan (PDI-P, Indonesian Democratic Party of Struggle led by Megawati Soekarnoputri) won 34% of the vote; Golkar ("functional groups" party of the government) 22%; Partai Persatuan Pembangunan (PPP, United Development Party led by Hamzah Haz) 12%; and Partai Kebangkitan Bangsa (PKB, National Awakening Party led by Nadhlatul Ulama, headed by Abdurrachman Wahid) 10%. Parliamentary seats were to be allocated according to new regulations and the 200 additional members of the MPR chosen. As described below, the MPR selected Abdurrahman Wahid as Indonesia's fourth President in November 1999 and replaced him with Megawati Soekarnoputri in July 2001.




GOVERNMENT AND POLITICAL CONDITIONS

Indonesia is a republic based on the 1945 constitution providing for a limited separation of executive, legislative, and judicial power. Substantial restructuring has occurred since President Soeharto's resignation and the short, transitional Habibie administration which followed. The Habibie government fashioned political reform legislation that- without changing the 1945 Indonesian constitution—formally set up new rules for the electoral system, the House of Representatives (DPR), the People's Consultative Assembly (MPR), and political parties. An MPR decree adopted in November 1998 limits the president to two terms in office.


The president, elected for a 5-year term, is the dominant government and political figure. The president and the vice president are selected by the MPR, although legislation is being considered to provide for direct election of the president in the next election in 2004. The election in June 1999 produced no majority, and the MPR selected Abdurrahman Wahid, also known as Gus Dur, as the fourth president. Wahid proved unable to govern effectively, and the MPR impeached him in July 2001, immediately appointing then-Vice President Megawati Soekarnoputri as the fifth, and current, president. Although Megawati is the daughter of Indonesia's first president, Soekarno, and owes her early political prominence to him, she has achieved her own political power base and operates independently of her father. The President, assisted by a cabinet that she appoints, has the authority to conduct the administration of the government and is accountable only to the MPR. Although President Megawati's PDI-P party is the largest in parliament, she does not have a majority. She has formed a coalition government; her Vice President, Hamzah Haz, for instance, represents an Islamic party.


Under the political laws enacted in January 1999, the House of Representatives (DPR) has 500 members, of which 462 are elected and 38 appointed seats are reserved for the armed forces (TNI). The TNI seats are to be phased out. The People's Consultative Assembly (MPR), which elects the president and vice president, has 700 members, consisting of the 500 members of the DPR, 135 provincial representatives selected by provincial assemblies, and 65 representatives appointed by social and community groups. The armed forces shaped and provided leadership for Soeharto's New Order from the time it came to power in the wake of the abortive 1965 uprising. Military officers, especially from the army, were key advisers to Soeharto and Habibie and had considerable influence on policy. Under the dual function concept ("dwifungsi"), the military asserted a continuing role in sociopolitical affairs. This concept was used to justify placement of officers to serve in the civilian bureaucracy at all government levels. Although the military still has great influence and is perhaps the only truly national institution, dwifungsi has largely disappeared. Military officers must now resign from the armed forces before taking a civilian government position. The police have been separated from the military, further reducing the military's direct role in governmental matters.


Principal Government Officials
Last Updated: 9/11/03


President: MEGAWATI Sukarnoputri,

Vice President: Hamzah HAZ,

Coordinating Min. for Economy, Finance, & Industry: DORODJATUN Kuntjoro-Jakti,

Coordinating Min. for People's Welfare: Muhammad Yusuf KALLA,

Coordinating Min. for Political & Security Affairs: Susilo Bambang YUDHOYONO, Lt. Gen. (Ret.)

Min. for Agriculture: Bungaran SARAGIH,

Min. of Defense: MATORI Abdul Djalil,

Min. of Energy & Mineral Resources: PURNOMO Yusgiantoro,

Min. of Finance: BOEDIONO,

Min. of Maritime Affairs & Fisheries: ROKHMIN Dahuri,

Min. of Foreign Affairs: Noer Hasan WIRAJUDA,

Min. of Forestry: Mohamad PRAKOSA,

Min. of Health: Achmad SUJUDI, M.D.

Min. of Home Affairs: Hari SABARNO, Lt. Gen. (Ret.)

Min. of Justice & Human Rights: Yusril Ihza MAHENDRA,

Min. of Manpower & Transmigration: Jacob NUWA WEA,

Min. of National Education: Abdul Malik FADJAR,

Min. of Religious Affairs: Said Agil Hussein al MUNAWAR,

Min. of Resettlement & Regional Infrastructure: SOENARNO,

Min. of Social Affairs: Bachtiar CHAMSYAH,

Min. of Industry & Trade: Rini Mariani Sumarno SUWANDI,

Min. of Transportation: Agum GUMELAR, Lt. Gen. (Ret.)

State Min. for Accelerating Development in Eastern Indonesia: Manuel KAISIEPO,

State Min. of Administrative Reform: Feisal TAMIN,

State Min. of Communication & Information: H. Syamsul MUARIF,

State Min. of Cooperatives & Small & Medium-Sized Enterprises: Alimarwan HANAN,

State Min. of Culture & Tourism: I Gede ARDIKA,

State Min. of Environmental Affairs: Nabiel MAKARIM,

State Min. of Research & Technology: M. Hatta RAJASA,

State Min. of Revenues & State-Owned Enterprises: LAKSAMANA Sukardi,

State Min. for Women's Empowerment: Sri Redjeki SOEMARJOTO,

State Min. for Planning National Development: Head, National Development Board KWIK Kian Gie, :

State Sec. & Cabinet Sec.: Bambang KESOWO,

Attorney General: Muhammad Abdul RACHMAN,

Chief, State Intelligence Agency (BIN): Abdullah Machmud HENDROPRIYONO, Lt. Gen. (Ret.)

Cdr., Armed Forces: Endriartono SUTARTO, Gen.

Governor, Bank Indonesia: Burhanuddin ABDULLAH,

Ambassador to the US: SOEMADI Brotodiningrat,

Permanent Representative to the UN, New York: Slamet HIDAYAT,



The Embassy of Indonesia is at 2020 Massachusetts Avenue NW., Washington, DC 20036 (tel. 202-775-5200-5207; FAX: 202-775-5365). Consulates General are in New York (5 East 68th Street, New York, NY 10021, tel. 212-879-0600/0615; FAX: 212-570-6206); Los Angeles (3457 Wilshire Blvd., Los Angeles, CA 90010; tel. 213-383-5126; FAX: 213-487-3971); Houston (10900 Richmond Ave., Houston, TX 77042; tel. 713-785-1691; FAX: 713-780-9644). Consulates are in San Francisco (1111 Columbus Avenue, San Francisco, CA 94133; tel. 415-474-9571; FAX: 415-441-4320); and Chicago (2 Illinois Center, Suite 1422233 N. Michigan Avenue, Chicago, IL 60601; tel. 312-938-0101/4; 312-938-0311/0312; FAX: 312-938-3148).




ECONOMY

Indonesia has a market-based economy in which the government plays a significant role. It owns more than 164 state-owned enterprises and administers prices on several basic goods, including fuel, rice, and electricity. In the aftermath of the 1997-98 financial crisis, the government took custody of significant portion of private sector assets through acquisition of non-performing bank loans and corporate assets through the debt restructuring process.


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 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 Indonesia's political and economic landscape. Since 1997, Indonesia has had three presidents, and as of mid-2002, its economy is only just recovering to pre-1997 levels. Seven percent GDP growth is the level most economists consider necessary just to absorb new job seekers, but the Indonesian Government estimates growth in 2002 of 4% and in 2003 of less than 5%. The number of unemployed and underemployed (working less than 15 hrs/week) is currently estimated at 40 million.


President Megawati Soekarnoputri has made important strides in her first year in reducing political instability, strengthening Indonesia's relationship with the International Monetary Fund (IMF), and reinvigorating the country's economic reform program. The government has completed four quarterly IMF reviews since September 2001. However, a sharp rise in anti-IMF sentiment among Jakarta politicians and commentators in mid-2002 has called into question the degree of political support for further reforms. Megawati's administration spawned a sustained increase in market sentiment during the first half of 2002, with both the rupiah and Jakarta Stock Exchange performing strongly. Consumer confidence and exports have begun to rise from their very low levels of late 2001.


The rupiah has stabilized significantly from trading at the Rp 11,440/USD level in July 2001 when President Megawati took office. After an initial surge following Megawati's election, the rupiah weakened again in the last half of 2001. Since then it has strengthened slowly to the Rp 8,800/USD level, an increase of 23%. Previously, the value of the Rupiah was very volatile ranging from Rp 2,500/USD prior to the Asian Financial Crisis to a low of Rp 17,000/USD after President Soeharto resigned in June 1998. Although the stability of the rupiah has returned, the approach of elections in 2004 and slower economic growth combined with high levels of debt have made exchange rate risk a major concern of investors.

The Megawati administration has made much less progress in improving Indonesia's troubled investment climate, and several adverse court rulings against foreign companies brought investment issues to the forefront of government policy making in 2002. Besides the lack of legal certainty, existing and potential investors cite a number of concerns with respect to Indonesia's investment climate, including security, confusion over regional autonomy policies and fiscal decentralization, uneven implementation of economic reform commitments, and tax and labor issues.


Indonesia's public sector external debt rose from $54.2 billion in March 1998 to about $76 billion by the end of 2001. Private sector external debt stood at approximately $60 billion. The large amount of non-performing corporate debt, estimated in late 2000 at U.S. $65 billion, is a major factor limiting capital markets growth in Indonesia. Although debtors and creditors have reached agreement on a substantial number of restructuring terms sheets through IBRA and the Jakarta Initiative Task Force, most of these agreements have yet to reach legal closing. As a result, few of Indonesia's largest corporations are creditworthy.


Oil and Minerals Sector

Indonesia, the only Asian member of the Organization of Petroleum Exporting Countries (OPEC), ranks 17th among world oil producers, with about 1.9% of world production. Crude and condensate output averaged 1.4 million barrels per day (b/d) in 2001. In the 2001 calendar year the oil and gas sector, including refining, contributed approximately 13.7% to GDP and provided 35% to domestic revenues. The sector's share of export earnings was 22.4% in 2001, a greater percentage than recent years due to high world oil prices. U.S. companies have invested heavily in the petroleum sector. With domestic demand for petroleum fuels expanding, Indonesia will become a net importer of oil by the next decade unless new reserves are found. In 2001, Indonesian imports of crude oil and petroleum products totaled $5.4 billion while Indonesian exports of crude oil and oil products and LNG totaled $12.7 billion.

The state owns all oil and mineral rights. Foreign firms participate through production sharing and work contracts. The Indonesian Government passed a new petroleum law in October 2001 that deregulates the upstream and downstream sectors in 2 years. The law removes Pertamina's monopoly over downstream oil distribution and marketing of fuel products and makes no procedural distinction between foreign and domestic oil and gas companies. Pertamina's responsibility to manage Production Sharing Contracts (PSCs), which authorize investors to produce oil and gas, will shift to the central government. Oil and gas contractors are required to finance all exploration, production, and development costs in their contract areas; they are entitled to recover operating, exploration, and development costs out of the oil and gas produced.


Although minerals production traditionally centered on bauxite, silver, and tin production, Indonesia is expanding its copper, nickel, gold, and coal output for export markets. In mid-1993, the Department of Mines and Energy reopened the coal sector to foreign investment, with the result that the leading Indonesian coal producer now is a joint venture between U.K. firms BP and Rio Tinto. Total coal production reached 92.5 million metric tons in 2001, including exports of 66.5 million tons. The Indonesian Government hopes to surpass 120 million metric tons of coal production in 2005. Two U.S. firms operate three copper/gold mines in Indonesia, with a Canadian and U.K. firm holding significant other investments in nickel and gold, respectively. In 2001, the value of Indonesian mining exports generated $3.6 billion, with receipts from copper and coal accounting for 89.7% of the total.

Investment

Since the late 1980s, Indonesia has made significant changes to its regulatory framework to encourage economic growth. This growth was financed largely from private investment, both foreign and domestic. U.S. investors dominated the oil and gas sector and undertook some of Indonesia's largest mining projects. In addition, the presence of U.S. banks, manufacturers, and service providers expanded, especially after the industrial and financial sector reforms of the 1980s. Other major foreign investors included Japan, the United Kingdom, Singapore, the Netherlands, Hong Kong, Taiwan, and South Korea.


Despite improvements in political stability, incomplete reform in other sectors has slowed foreign investment growth. New foreign investment approvals for the first 5 months of 2002 fell by 58% to U.S.$1.67 billion from U.S.$3.97 billion over the same period in 2001. From a record high of U.S. $33.8 billion in 1997, approvals fell 73% to roughly $9 billion in 2001. (Note: The data does not include investments in oil and gas, finance, banking, non-bank finance, insurance, and leasing. Government approval reports should be treated cautiously, and used as no more than an indicator of possible trends because they represent applications to invest and not actual projects or money.) The recent commercial court Manulife bankruptcy ruling brought to light serious weaknesses in the judicial system. Foreign businessmen have expressed reluctance to increase investments prior to the establishment of a better functioning legal and judicial system, greater adherence to transparent and competitive processes, and improvements in security. With the passage of a new copyright law in July 2002, Indonesia's intellectual property rights regime was strengthened; however, the lack of effective enforcement remains a major concern. Investors in the manufacturing sector also are concerned by rapidly rising wages, which threaten Indonesia's competitiveness in labor-intensive industries.


FOREIGN RELATIONS

Since independence, Indonesia has espoused a "free and active" foreign policy, seeking to play a role in regional affairs commensurate with its size and location but avoiding involvement in conflicts among major powers. Indonesian foreign policy under the "New Order" government of President Soeharto moved away from the stridently anti-Western, anti-American posturing that characterized the latter part of the Soekarno era. Following Soeharto's ouster in 1998, Presidents Habibie and Wahid have preserved the broad outlines of Soeharto's independent, moderate foreign policy. Preoccupation with domestic problems has not prevented President Wahid from frequently traveling abroad and continuing to participate vigorously, though peripatetically, in many international fora. The traumatic separation of East Timor from Indonesia after an August 1999 East Timor referendum, and subsequent events in East and West Timor, strained Indonesia's relations with the international community.


A cornerstone of Indonesia's contemporary foreign policy is its participation in the Association of Southeast Asian Nations (ASEAN), of which it was a founding member in 1967 with Thailand, Malaysia, Singapore, and the Philippines. Since then, Brunei, Vietnam, Laos, Burma, and Cambodia also have joined ASEAN. While organized to promote common economic, social, and cultural goals, ASEAN acquired a security dimension after Vietnam's invasion of Cambodia in 1979; this aspect of ASEAN expanded with the establishment of the ASEAN Regional Forum in 1994, which comprises 22 countries, including the United States. Indonesia's continued domestic troubles have distracted it from ASEAN matters and consequently lessened its influence within the organization.


Indonesia also was one of the founders of the Non-Aligned Movement (NAM) and has taken moderate positions in its councils. As NAM Chairman in 1992-95, it led NAM positions away from the rhetoric of North-South confrontation, advocating instead the broadening of North-South cooperation in the area of development. Indonesia continues to be a prominent, and generally helpful, leader of the Non-Aligned Movement.

Indonesia has the world's largest Muslim population, though it is a secular state, and is a member of the Organization of the Islamic Conference (OIC). It carefully considers the interests of Islamic solidarity in its foreign policy decisions but generally has been an influence for moderation in the OIC. President Wahid has pursued better relations with Israel, and in August 2000 he met with former Israeli Prime Minister Peres.


After 1966, Indonesia welcomed and maintained close relations with the donor community, particularly the United States, western Europe, Australia, and Japan, through the Inter-governmental Group on Indonesia (IGGI) and its successor, the Consultative Group on Indonesia (CGI), which have provided substantial foreign economic assistance. Problems in Timor and Indonesia's reluctance to implement economic reform, have complicated Indonesia's relationship with donors.


Indonesia has been a strong supporter of the Asia-Pacific Economic Cooperation (APEC) forum. Largely through the efforts of President Soeharto at the 1994 meeting in Bogor, Indonesia, APEC members agreed to implement free trade in the region by 2010 for industrialized economies and 2020 for developing economies.




NATIONAL SECURITY

Indonesia's Armed Forces (Tentara Nasional Indonesia, or TNI, formerly ABRI) total about 250,000 members, including the army, navy, marines, and air force. The army is by far the largest, with about 196,000 activeduty personnel. Defense spending in the national budget is only 1.8% of GDP but is supplemented by revenue from many military businesses and foundations.


The Indonesian National Police were for many years a branch of the armed forces. The police were formally separated from the military in April 1999, a process that was formally completed in July 2000. With 150,000 personnel, the police form a much smaller portion of the population than in most nations.


Indonesia is at a relative peace with its neighbors, although competing South China Sea claims, where Indonesia has large natural gas reserves, concern the Indonesian Government. Without a credible external threat in the region, the military historically viewed its prime mission as assuring internal security. Military leaders now say they wish to transform the military to a professional, external security force but acknowledge that the armed forces will continue to play an internal security role for some time.


Throughout Indonesian history the military maintained a prominent role in the nation's political and social affairs. Traditionally a significant number of cabinet members had military backgrounds, while active duty and retired military personnel occupied a large number of seats in the parliament. Commanders of the various territorial commands played influential roles in the affairs of their respective regions. In the post-Soeharto period, civilian and military leaders have advocated removing the military from politics (for example, the military's representatives in parliament have been much reduced), but the military's political influence remains extensive.




U.S.-INDONESIAN RELATIONS

The United States has important economic, commercial, and security interests in Indonesia. Indonesia remains a linchpin of regional security due to its strategic location astride a number of key international maritime straits. Relations between Indonesia and the United States are good. The United States played an important role in Indonesian independence in the late 1940s and appreciated Indonesia's role as a staunch anti-communist bulwark during the Cold War. Cordial and cooperative relations are maintained today, although any formal security treaties do not bind the two countries. The United States and Indonesia share the common goal of maintaining peace, security, and stability in the region and engaging in a dialogue on threats to regional security. The United States has welcomed Indonesia's contributions to regional security, especially its leading role in helping restore democracy in Cambodia and in mediating among the many territorial claimants in the South China Sea.

The United States is committed to assisting Indonesia's democratic transition and supports the territorial integrity of the country. There are, nonetheless, friction points in the bilateral political relationship. These have centered primarily on East Timor and human rights, as well as on differences in our respective foreign policy orientations. The U.S. Congress cut off grant military training assistance (IMET) to Indonesia in 1992 in response to a November 12, 1991, incident in East Timor in which Indonesian security forces shot and killed East Timorese demonstrators. This restriction was partially lifted in 1995. Military assistance programs were again suspended, however, in the aftermath of the violence and destruction in East Timor following the August 30, 1999 referendum favoring separation from Indonesia. Indonesia continues to align itself with Non-Aligned Movement and G-77 foreign policy views, often taking unhelpful positions on issues of international human rights concern.


On worker rights, Indonesia was the target of several petitions filed under the Generalized System of Preferences (GSP) legislation arguing that Indonesia did not meet internationally recognized labor standards. A formal GSP review was suspended in February 1994 without terminating GSP benefits for Indonesia. Since 1998, Indonesia has ratified all eight International Labor Organization core conventions on protecting internationally recognized worker rights and allowed trade unions to organize. However, enforcement of labor laws and protection of workers rights remains inconsistent and weak in some areas. Continuing economic malaise has increased difficulties for workers and caused an increase in child labor (10-14 years old).


Economic Relations With the United States

U.S. exports to Indonesia in 1999 totaled $2.0 billion, down significantly from $4.5 billion in 1997. The main exports were construction equipment, machinery, aviation parts, chemicals, and agricultural products. U.S. imports from Indonesia in 1999 totaled $9.5 billion and consisted primarily of clothing, machinery and transportation equipment, petroleum, natural rubber, and foot wear. Economic assistance to Indonesia is coordinated through the Consultative Group on Indonesia (CGI), formed in 1989. It includes 19 donor countries and 13 international organizations that meet annually to coordinate donor assistance. The 2000 CGI meeting is to be held October 17-18 in Tokyo.


The U.S. Agency for International Development (USAID) has provided development assistance to Indonesia since 1950. Initial assistance focused on the most urgent needs of the new republic, including food aid, infrastructure rehabilitation, health care, and training. Through the 1970s, a time of great economic growth in Indonesia, US AID played a major role in helping the country achieve self-sufficiency in rice production and in reducing the birth rate.


US AID's current program aims to support Indonesia as it recovers from the financial crisis by providing food aid, employment generating activities, and maintaining critical public health services. USAID also is providing technical advisers to help the Indonesian Government implement economic reforms and fiscal decentralization and is supporting democratization and civil society development activities through non-governmental organizations.


Principal U.S. Embassy Officials

Jakarta (E), J1. Medan Merdeka Selatan 5 • Unit 8129, Box 1, FPO AP 96520, Tel [62] (21) 3435-9000, Fax 386-2259; PAO Fax 381-0243; COM Fax 526-2855; AID Fax 380-6694; AGR Fax 3435-9920; ODC Fax 384-3339.

AMB: Ralph Boyce
AMB OMS: Phuong Handler
DCM: Stephen Mull
POL: Brian Nichols
ECO: Shari Villarosa
COM: Margeret Keshishian
CON: Youngeun Anderson
MGT: J. Patrick Truhn
RSO: Jacob Wohlman
PAO: Greta Morris
IRM: Barry Peterson
AID: Desaix Meyers
AGR: Charles Alexander
LAB: Mark Clark
EST: Whitney Witteman
GSO: Geraldine Kam
DAO: COL Joseph Daves, USA
ODC: COL Joseph Judge III, USA
FAA: Elizabeth Erickson (res. Singapore)
CUS: Peter Darvas (res. Singapore)
IRS: Dennis Melton (res. Singapore)
DEA: Stephen Marchini (res. Singapore)

Surabaya (CG), J1. Dr. Sutomo 33, Surabaya 60664; Am Con Gen • Box 1, Unit 8131, FPO AP 96520-0002, Tel [62] (31) 568-2287 or 567-6880, Fax 567-4492; E-mail: [email protected]

CG: Phillip Antweiler
POL/ECO: Andrew Nissen
ADM/CON: Craig Hall

Bali (CA), J1. Hayam Wuruk 188, Denpasar 80235, Tel. [62] (361) 233-605, Fax 222-426. E-mail: [email protected]

CA: Andrew Toth

Last Modified: Wednesday, September 24, 2003


TRAVEL


Consular Information Sheet
January 13, 2004


Country Description: Indonesia is an independent republic consisting of more than 13,500 islands spread over 3,000 miles. Indonesia's economy is developing, and tourist services are plentiful in the major tourist areas.


Entry Requirements: A passport valid for at least six months and an onward/return ticket are required. As of February 1, 2004 all American visitors to Indonesia will need to obtain a visa. Travelers may apply for a visa at the Indonesian Embassy in Washington, D.C. or at the airport upon arrival. Visitors may be granted a 3-day visa for a fee of $3 or a 30-day visa for a fee of $25. Both visas are non-extendable, and travelers must exit the country for at least two weeks before they can return. A visitor's visa for business purposes and social/cultural stays of longer duration require a letter of intent/sponsorship from the employer and/or sponsor. For up-to-date information, contact the Embassy of the Republic of Indonesia: 2020 Massachusetts Ave., N.W., Washington, D.C. 20036 (202/775-5200; Internet, www.embassyofindonesia.org. You may also contact the nearest Indonesian Consulate General: CA (213) 383-5126 or (415)474-9571, IL (312) 595-1777, NY (212)879-0600 or TX (713)785-1691.


Indonesia strictly enforces its immigration/visa requirements. Several Westerners, including Americans, have been jailed for visa violations. Violators may also be subject to substantial fines. Please consult the Criminal Penalties section below for further information.


In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian if not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

Dual Nationality: Indonesian law does not recognize dual nationality. Because of this, U.S. citizens who are also documented as Indonesian nationals may experience difficulties with immigration formalities in Indonesia. Holding dual citizenship may also hamper the U.S. Embassy or Consulate's ability to provide consular protection to Americans. In addition to being subject to all Indonesian laws affecting U.S. citizens, dual nationals may also be subject to other laws that impose special obligations as Indonesian citizens. For additional information, consult the Consular Affairs Bureau's website at http://travel.state.gov for our Dual Nationality flyer.


Safety and Security: Indonesia is experiencing an ongoing terrorist threat. A series of bombings over the past two years has struck religious, political, and business targets in a variety of locations in Indonesia. The potential remains throughout Indonesia for violence and terrorist actions against U.S. citizens and interests; the Marriott Hotel in Jakarta on August 5, 2003 and a tourist area of Bali on October 12, 2002, were the scenes of major terrorist attacks. U.S. citizens were injured or killed in both of these incidents.


The Jemaah Islamiyah organization, designated as a Foreign Terrorist Organization, is an extremist group known to have cells operating in Southeast Asia, including Indonesia, and is known to have connections with al-Qaeda. The terrorist attacks in Jakarta and Bali, which took place in areas with large numbers of foreign tourists and expatriates, clearly indicate that a security threat extends to private citizens. The U.S. Government believes extremist elements may be planning additional attacks targeting U.S. interests in Indonesia, particularly U.S. Government officials and facilities.

As security is increased at official U.S. facilities, terrorists will seek softer targets. These may include facilities where Americans and Westerners are known to live, congregate, shop, or visit, especially hotels, clubs, restaurants, shopping centers, housing compounds, transportation systems, places of worship, schools, or outdoor recreation events. Bombings have been an ongoing problem over the past two and a half years and have struck religious, political, and business targets. In April 2003, a bomb exploded at the Jakarta international airport. Americans should avoid political demonstrations, which have the potential to turn violent.


On May 19, 2003, the Indonesian government declared martial law in Aceh and launched significant military operations in response to the ongoing separatist conflict between the Indonesian military and the Free Aceh Movement (GAM). The Indonesian government has warned all foreigners to leave Aceh and gave notice that this conflict could result in terrorist attacks outside Aceh, particularly in urban areas where security forces are on a higher state of alert. Because of the hostilities, at least one foreigner was killed and one wounded by security forces. American citizens are strongly urged to avoid traveling to Aceh, and those already present should leave immediately.


There is a risk of kidnappings by the Abu Sayyaf Group, a terrorist/criminal organization, in the border areas of Indonesia near Malaysia and the Philippines. The Abu Sayyaf Group has previously carried out kidnappings in Malaysia and the Philippines, and the group also has the operational capability to do so in Indonesia.


In addition to terrorism, there is potential for violence and unrest; both can erupt without warning. Sectarian, ethnic, communal (inter-intra group) and separatist strife, and violence are ongoing threats to personal safety and security in various areas, including Maluku, North Maluku, Central Sulawesi, Papua and West Timor. Papua's separatist conflict can become violent. In August 2002, two U.S. citizens were killed near Timika in circumstances that have raised suspicions of official involvement.

Americans who travel to Indonesia should keep a low profile, varying times and routes for all required travel, remaining acutely aware of their immediate environment. The U.S. Mission in Indonesia may occasionally suspend service to the public, or close, because of security concerns. In these situations, the Embassy and Consulate will continue to provide emergency services to American citizens.


American travelers and American residents are urged to update their passports and important personal papers in case it becomes necessary to depart Indonesia quickly. Travel distances, poor communications, and the health care infrastructure make it extremely difficult for the Embassy to respond to U.S. citizen emergencies. In addition, many parts of Indonesia (including many tourist destinations) are isolated and difficult to reach via available transportation modes and/or communication links.


Travelers should consult the most recent Travel Warning for Indonesia for updated information on travel conditions within the country. Public Announcements and Travel Warnings can be found on the Bureau of Consular Affairs' home page at http://travel.state.gov.


Crime: Indonesia has a high crime rate. Credit card fraud is a growing problem as are robberies. Minor crimes, such as pick pocketing and theft, occur in popular tourist sites throughout the country. A common criminal technique is to puncture automobile tires so that the occupants can be robbed while changing the tire. Thefts and robberies from cars stopped at traffic lights have been reported on occasion. American citizens are advised to keep car doors locked and windows rolled up. Americans in Jakarta and Surabaya are also advised to engage a taxi either from a major hotel queue or by calling a taxi company, rather than hailing one on the street. Poachers and illegal loggers operating in Indonesian parks and nature preserves have threatened researchers, tourists and others in order to discourage foreign presence in those areas.

Claiming to act in the name of religious or moral standards, certain extremist groups have, on occasion, attacked nightspots and places of entertainment. Most of these attacks have been aimed at property destruction rather than injury to individuals. However, in November 2000 similar groups attacked an international HIV/AIDS conference in Yogyakarta, injuring 25, including two foreigners. These groups have on occasion threatened hunts for Americans and members of certain religious groups to demand they leave the country.


A number of racially motivated incidents of harassment have occurred over the last several years. Persons of African descent, including American citizens, may be subject to arbitrary stops and questioning by both private and public security officials. There are several credible reports that such incidents have led to harassment and physical abuse. To minimize the risk of an incident with local law enforcement authorities, Americans should carry photocopies of their passports at all times. If stopped and detained, Americans should attempt to comply with all instructions from law enforcement officers, but also make it clear that they are American citizens and that they wish to contact the U.S. Embassy or U.S. Consulate General. Any incidents should be reported to the U.S. Embassy or U.S. Consulate General immediately.


Maritime piracy is a persistent and growing problem in Indonesian waters, targeting primarily commercial vessels. The majority of piracy attacks occur in the Straits of Malacca between the Riau Province and Singapore and in the waters north of Sulawesi and Kalimantan. Before traveling by ship in these areas, passengers are advised to review the current security situation with their local agent.


The loss or theft abroad of a U.S. pass port should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.


U.S. citizens should exercise prudence when scuba diving, surfing and snorkeling, and when visiting remote tourist locations, as every year several Americans die in accidents while participating in such activities.


U.S. citizens may refer to the Department of State's pamphlet A Safe Trip Abroad for ways to promote a trouble-free journey. The pamphlet is available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, and via the Internet at http://www.gpoaccess.gov/, or via the Bureau of Consular Affairs web page at http://travel.state.gov.


Medical Facilities: The general level of sanitation and health care in Indonesia is far below U.S. standards. Some routine medical care is available in all major cities, although most expatriates leave the country for serious medical procedures. Serious medical problems requiring hospitalization and/or medical evacuation to Singapore or Australia, the closest locations with acceptable medical care, or the United States, can cost thousands of dollars. Doctors and hospitals often expect immediate cash payment for health services.


Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost well in excess of $50,000. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or if you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.


Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs' website.


Other Health Information: Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's website at www.who.int/en. Further health information for travelers is available at www.who.int/ith.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Indonesia is provided for general reference only, and may not be totally accurate in a particular location or circumstance.


Safety of Public Transportation: Poor Urban Road Conditions/Maintenance: Good to Fair

Rural Road Conditions/Maintenance: Fair to Poor

Availability of Roadside Assistance: Poor to Non-existent

In general, traffic in Indonesia is congested and undisciplined. The number and variety of vehicles on the road far exceed the capacity of existing roadways to handle the traffic. Road conditions vary from good (in the case of toll roads and major city roads) to dangerously poor.


Generally, awareness of road safety awareness is very low in Indonesia, although it is increasing. Buses and trucks are often dangerously overloaded and tend to travel at high speeds. Most roads outside major urban areas have a single lane of traffic in each direction, making passing dangerous. Most Indonesian drivers do not maintain a safe following distance in a manner familiar to U.S. drivers and tend to pass or maneuver with considerably less margin for error than in the United States. Although traffic in Indonesia moves on the left side of the road, drivers tend to pass on both sides and may use the shoulder for this purpose. It is common for drivers to create extra lanes regardless of the lane markings painted on the roads. Throughout the country, motor vehicles share the roads with other forms of transportation such as bicycle pedicabs, horse and ox carts, and pushcarts.


Although Indonesia has a seat belt law requiring the use of seat belts in front seats, most Indonesian automobiles do not have seat belts in the rear passenger seats. The use of infant and child car seats is not common, and it can be very difficult to rent a car seat for temporary use. Helmets are required on motorcycles, but this law is inconsistently enforced. Passengers rarely wear helmets. Accidents on rented motorcycles constitute the largest cause of death and serious accident among foreign visitors to Bali.


Expatriates and upper class Indonesians often use professional drivers. All car rental firms provide drivers for a nominal additional fee.


Driving at night can be extremely dangerous outside of major urban areas. Drivers often refuse to use their lights, and most rural roads are unlit. Sometimes, residents in rural areas use road surfaces as public gathering areas, congregating on them after dark. At least one American citizen was involved in a fatal accident when his car hit a group lying on an unlit stretch of road.


When an accident occurs, Indonesian law requires both drivers to await the arrival of a police officer to report the accident. Although Indonesian law requires third party insurance, most Indonesian drivers are uninsured, and even when a vehicle is insured, it is common for insurance companies to refuse to pay damages. If a pedestrian is injured, the driver of the vehicle is normally expected to assist in transporting the injured party to the hospital because Indonesian ambulance services are unreliable. In cases of traffic accidents resulting in death, it is not uncommon for bystanders to attack the driver perceived to be responsible. This is more common in rural areas and in accidents involving Indonesian drivers, but crowds at the scene of an accident have occasionally attacked expatriate drivers. When an accident occurs outside a major city, it may be advisable to drive to the nearest police station before stopping.


For additional general information about road safety, including links to foreign government sites, please see the Department of State, Bureau of Consular Affairs home page at http://travel.state.gov/road_safety.html. For specific information concerning Indonesian driving permits, vehicle inspection, road tax and mandatory insurance, please contact the Indonesian National Tourist Organization via the Internet at www.indonesiatourism.com. Please see also road safety information from the U.S. Embassy home page at http://jakarta.usembassy.gov.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Indonesia's civil aviation authority as Category 1 –-in compliance with international aviation safety standards for oversight of Indonesia's air carrier operations. For further information, travelers may contact the Department of Transportation within the U.S. at 1-800-322-7873, or visit the FAA's Internet website at www.faa.gov/avr/iasa/index.cfm.


The U.S. Department of Defense (DOD) separately assesses some foreign air carriers for suitability as official providers of air services. For information regarding the DOD policy on specific carriers, travelers may contact DOD at (618) 229-4801.


Customs Regulations: Indonesian customs authorities have strict regulations concerning temporary importation into or export from Indonesia of items such as prescription medicines and foreign material or videotapes. American are encouraged to contact the Embassy of Indonesia in Washington or one of Indonesia's consulates in the United States for specific information about customs requirements.


Criminal Penalties: With regard to visa violations, the Indonesians have detained people for conducting business, academic, or other non-tourist activities while in tourist visa status. Penalties for such immigration/visa violations incur a prison sentence of up to 5 years and a fine of 25 million Rp. We encourage you to contact the Embassy or Consulate General of Indonesia, whichever is nearest to you, should you have visa questions.


While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Indonesian laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Indonesia are strict and convicted offenders can expect jail sentences and heavy fines. The death sentence can be given in cases of drug trafficking, and one U.S. citizen was given a life sentence for trafficking.

Consular Access: U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times, so that, if questioned by local officials, proof of identity and U.S. citizenship are readily available. When U.S. citizens are arrested or detained, formal notification of the arrest is normally provided to the U.S. Embassy in Jakarta in writing, a process that can take several weeks. If detained, U.S. citizens should telephone the nearest U.S. consular office.


Special Circumstances: U.S. citizens involved in commercial or property matters should be aware that the business environment is complex and dispute settlement mechanisms are not highly developed. In many cases, it is difficult to resolve trade disputes. For more information, please refer to the 2003 Country Commercial Guide for Indonesia at www.usembassy-jakarta.org/ccg/ccg.html.


Disaster Preparedness: Indonesia is located in an area of high seismic and volcanic activity. During the rainy season, roughly October-April, there may be flash floods and landslides throughout the country. In November 2003 over 100 people, including several foreigners, were killed in a flood near Bukit Lawang, a tourist area in North Sumatra. In January 2002, floods crippled Jakarta for several days and killed over 50 people, and in February 2003 the city flooded again but without casualties. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at www.fema.gov/.

Children's Issues: For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/children's_issues.html or telephone the Overseas Citizens Services call center at 1-888-407-4747. The OCS call center can answer general inquiries regarding international adoptions and will forward calls to the appropriate country officer in the Bureau of Consular Affairs. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use tollfree numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.


Registration/Embassy and Consulate Locations: Americans living in or visiting Indonesia are encouraged to register at the Consular Section of the U.S. Embassy in Indonesia and obtain updated information on travel and security within Indonesia. The U.S. Embassy is located in Jakarta at Medan Merdeka Selatan 5; telephone: (62)(21) 3435-9000; fax (62)(21) 385-7189. The Embassy's website is http://jakarta.usembassy.gov. The consular section can be reached by e-mail at [email protected] U.S. citizens can register online at http://jakarta.usembassy.gov/consular/onlinereg.html. To subscribe to the U.S. Embassy Emergency Notification System, please register at http://jakarta.usembassy.gov/consular/Mailwarden.html


The U.S. Consulate General in Surabaya is at Jalan Raya Dr. Sutomo 33; telephone: (62)(31) 568-2287/8; fax (62)(31) 567-4492; e-mail: [email protected] The consulate should be the first point of contact for Americans needing assistance who are present or residing in the Indonesian provinces of: East and Central Java, Yogyakarta, Nusa Tengg ara Timor, Nusa Tenggara Barat, all of Sulawesi and North and South Maluku.


There is a Consular Agency in Bali at Jalan Hayam Wuruk 188, Denpasar, Bali; telephone: (62)(361) 233-605; fax (62)(361) 222-426; e-mail: [email protected] The U.S. Consulate in Surabaya is an alternate contact for Amcits in Bali.

The U.S. Consulate in Medan closed in May 1996. American citizens needing assistance in Sumatra should contact the U.S. Embassy in Jakarta.


International Parental Child Abduction

The information below has been edited from the report of the State Department Bureau of Consular Affairs, American Citizen Services. For more information, please read the Guarding Against International Child Abduction section of this book and review current reports online at travel.state.gov


Disclaimer: The information in this circular relates to the legal requirements of specific foreign countries. it is provided for general information only. questions involving interpretation of specific foreign laws should be addressed to foreign counsel.


General Information: Indonesia is not a party to the Hague Convention on the Civil Aspects of International Child Abduction, nor are there any international or bilateral treaties in force between Indonesia and the United States dealing with international parental child abduction. Therefore, there is no treaty remedy by which the left-behind parent would be able to pursue recovery of the child/ren should they be abducted or wrongfully retained in Indonesia. Once in Indonesia, the child/ren would be completely subject to Indonesian law for all matters including custody.


The United States is not a party to any treaty or convention on the enforcement of court orders. A custody decree issued by a court in the U.S. has no binding legal force abroad, although it may have a persuasive force in some countries. Furthermore, a U.S. custody decree may be considered by foreign courts and authorities as evidence and, in some cases, foreign courts may voluntarily recognize and enforce it on the basis of comity (the voluntary recognition by courts of one jurisdiction of the laws and judicial decisions of another).

Custody Disputes: Parental child abduction is not a crime under Indonesian law. Custody disputes are considered civil legal matters that must be resolved between the concerned parties or through the courts in Indonesia. The district/religious courts will hear and process child custody cases only as part of a divorce petition. Family issues and custody disputes are adjudicated based on Indonesian's Civil Code ("Kitab-Undung Hukum Perdata") Appendix I Chapter 3 Article 7.


In order to bring a case/petition before the local court, the left-behind parent will require the assistance of an attorney licensed to practice in Indonesia. Ideally, these orders and proceedings ensure due process under the local laws as well as providing protection for the child/ren. The court will also consider a child's relationship with each of the disputing parties and will evaluate each parent's ability to provide education and general living conditions and welfare for the child/ren. Although there is no treaty in force between the United States and Indonesia on enforcement of judgments, the Indonesia courts will also take into consideration child custody decrees issued by foreign courts in deciding disputes regarding children residing in Indonesia. Domestic law does not provide visitation rights to the noncustodian parent unless the parent(s) ask the court to incorporate visitation orders before the final divorce decree is issued.


Indonesian authorities advise the U.S. Embassy in Jakarta that noncompliance or violation of a local court order can result in a prison sentence. It should also be noted that Indonesian police or local law enforcement are reluctant to get involved in custody disputes and could not be counted on to enforce custody decrees issued by the Indonesian courts.

The district and religious courts have jurisdiction on civil law cases, including child custody disputes.


For Muslims, Islamic (Sharia) law can apply in family and religious matters. Questions on specific Islamic laws as they pertain to custody rights should be addressed to a lawyer licensed to practice in Indonesia. Additional general information on Islamic Family Law is also available on the Internet at http://travel.state.gov/children's_issues.html.


U.S. consular officers are prohibited by U.S. federal regulations from providing legal advice, from taking custody of a child, from forcing a child to be returned to the United States, from providing assistance or refuge to parents attempting to violate local law, or from initiating or attempting to influence child custody proceedings in foreign courts.


The American Citizen Services division of the Consular Section at the U.S. Embassy can assist in locating children believed to be in Indonesia and in verifying the child's welfare. If a child is in danger or if there is evidence of abuse, consular officers will request assistance from the local authorities in safeguarding the child's welfare. Consular officers maintain lists of attorneys practicing in the particular areas of Indonesia, as well as general information regarding child custody practices.


Reaching the U.S. Embassy or Consulate that serves Indonesia: The U.S. Embassy is located in Jakarta at Medan Merdeka Selatan 5; telephone:(62) (21)3435-9000; fax (62)(21)3435-9922. The fax number for the Consular Section is (62)(21) 385-7189. Additional information is available on the Internet at http://jakarta.state.gov. The consular section can be reached by e-mail to [email protected] The U.S. Consulate General is in Surabaya at Jalan Raya Dr., Sutomo 33; telephone: (62)(31) 567-2287/8; fax (62)(31)567-4492; e-mail to [email protected] There is a Consular Agency in Bali at Jalan Hayam Wuruk 188, Denpasar, Bali; telephone: (62)(361) 233-605; fax (62)(31) 222-426; e-mail to [email protected]

Reaching the Foreign Country's Embassy in the U.S.: For further information contact the Embassy of the Republic of Indonesia, 2020 Mass. Ave., N.W., Washington, D.C. 20036 (202/775-5200) or nearest Consulate: CA (213/383-5126 or 415/474-9571), IL (312/345-9300), NY (212/879-0600) or TX (713/785-1691). Additional information is also available on the Internet at http:[email protected]


Deportation: There is no extradition treaty between the United States and Indonesia. However, if the taking parent is a U.S. citizen whose U.S. passport has been revoked due to an outstanding federal Unlawful Flight to avoid Prosecution (UFAP) warrant or indictment on charges of International Parental Kidnapping (IPKCA) in violation of 18 USC Section 1204, Indonesian authorities may consider deportation based on lack of a valid travel document. Exit permits are required for foreigners who stay in Indonesia for more than six months. Exit/re-entry permits are given to foreigners who are holding "KITAS" (temporary stay permit).


Dual Nationality: A child with a parent who was born outside of the U.S. or who has acquired a second nationality through naturalization in another country may have a claim to citizenship in that country. There is no requirement that a U.S. citizen parent consent to the acquisition by his/her child of another nationality and in many cases a parent is unaware that his/her child may have dual citizenship. The Embassy of Indonesia in Washington D.C. will be able to provide more detailed information on whether your child has a claim. For additional information, see the Consular Affairs home page on the Internet at http://travel.state.gov for our Dual Nationality flyer.


Children's Passport Issuance Alert Program (CPIAP): Separate from the two-parent signature requirement for U.S. passport issuance, parents may also request that their children's names be entered in the U.S. passport name-check system, also known as CPIAP. A parent or legal guardian can be notified by the Department of State's Office of Children's Issues before a passport is issued to his/her minor child. The parent, legal guardian or the court of competent jurisdiction must submit a written request for entry of a child's name into the Passport Issuance Alert Program to the Office of Children's Issues. The CPIAP also provides denial of passport issuance if appropriate court orders are on file with the Office of Children's Issues. Although this system can be used to alert a parent or court when an application for a U.S. passport has been executed on behalf of a minor, it cannot be used to track the use of a passport. If there is a possibility that your child has another nationality, you may want to contact the appropriate embassy or consulate directly to inquire about the possibility of denial of that country's passport. There is no requirement that foreign embassies adhere to U.S. regulations regarding issuance and denial of passports. For more information, contact the office of Children's Issues at 202-312-9700. General passport information is also available on the Office of Children's Issues home page on the Internet at http://travel.state.gov/children's_ issues.html.


Travel Warning
August 28, 2003


This Travel Warning is being issued to update security threat information for Indonesia. The August 5, 2003, bombing at the Marriott Hotel in Jakarta reminds U.S. citizens of ongoing terrorist threats in Indonesia. The Department of State continues to recommend that U.S. citizens defer all non-essential travel to Indonesia. This supersedes the August 8, 2003, Travel Warning for Indonesia.


The potential remains throughout Indonesia for violence and terrorist actions against U.S. citizens and in terests; the Marriott Hotel in Jakarta on August 5, 2003 and a tourist area of Bali on October 12, 2002, were the scenes of major terrorist attacks. U.S. citizens were injured or killed in both of these incidents. The Jemaah Islamiyah organization, designated as a Foreign Terrorist Organization, is an extremist group known to have cells operating in Southeast Asia, including Indonesia, and is known to have connections with Al-Qaeda. The terrorist attacks in Jakarta and Bali, which took place in areas with large numbers of foreign tourists, clearly indicate that a security threat extends to private American citizens. The U.S. Government believes extremist elements may be planning additional attacks targeting U.S. interests in Indonesia, particularly U.S. Government officials and facilities. As security is increased at official U.S. facilities, terrorists will seek softer targets. These may include facilities where Americans and Westerners are known to live, congregate, shop, or visit, especially hotels, clubs, restaurants, shopping centers, housing compounds, transportation systems, places of worship, schools, or outdoor recreation events. Throughout Indonesia, bombings have been an ongoing problem over the past two and a half years and have struck religious, political, and business targets. In April 2003, the Jakarta international airport was bombed. Americans should avoid political demonstrations, which have the potential to turn violent.


On May 19, 2003, the Indonesian government declared martial law in Aceh and launched significant military operations in response to the ongoing separatist conflict between the Indonesian military and the Free Aceh Movement (GAM). The Indonesian government has warned all foreigners to leave Aceh and gave notice that this conflict could result in terrorist attacks throughout Indonesia, particularly in urban areas where security forces are on a higher state of alert. Because of the hostilities, at least one foreigner was killed and one wounded by security forces. American citizens are strongly urged to avoid traveling to Aceh, and those already present should leave immediately.

There is a risk of kidnappings by the Abu Sayyaf terrorist group in the border areas of Indonesia near Malaysia and the Philippines. The Abu Sayyaf has previously carried out kidnappings in Malaysia and the Philippines, and the group has the operational capability to do so in Indonesia, also.


In addition to terrorism, there is potential for violence and unrest; both can erupt without warning. Sectarian, ethnic, communal (inter-intra group) and separatist strife, and violence are ongoing threats to personal safety and security in vario us areas, including Maluku, North Maluku, Sulawesi, Papua and West Timor. Papua's separatist conflict can be come violent. In August 2002, two U.S. citizens were killed near Timika in circumstances that have raised suspicions of official involvement.

Americans who travel to or reside in Indonesia despite this Travel Warning should keep a low profile, varying times and routes for all required travel, remaining acutely aware of their immediate environment. The U.S. Mission in Indonesia may occasionally suspend service to the public, or close, because of security concerns. In these situations, the Embassy and Consulate will continue to provide emergency services to American citizens.


Information on travel and security in Indonesia may be obtained from the Department of State by calling 1-888-407-4747 within the United States; from overseas, call 1-317-472-2328. The U.S. Embassy in Jakarta can be contacted by phone at (62)(21) 3435-9000, the Consulate General in Surabaya's number is (62) (31) 568-2287, and the Consular Agency in Bali's number is (62) (361) 233-605.


U.S. citizens should also read the Department of State's Consular Information Sheet for Indonesia and the World wide Caution Public Announcement. All are available on the Department of State, Bureau of Consular Affairs, website, http://travel.state.gov.

views updated

INDONESIA

Republic of Indonesia

Republik Indonesia

COUNTRY OVERVIEW

LOCATION AND SIZE.

Indonesia is an archipelago (a group of islands) stretching along the equator between the Southeast Asian mainland and Papua New Guinea, with which it shares an island. The country has a total land area of 1,919,440 square kilometers (741,096 square miles), or about 3 times the size of Texas. An additional 3.2 million square kilometers (1,235,520 square miles) of ocean is within Indonesia's borders.

With 17,000 islands (11,000 of them inhabited), Indonesia's coastline stretches 54,716 kilometers (34,000 miles). The country controls important shipping lanes from the Indian Ocean to the Pacific Ocean, in particular the Strait of Malacca lying between the western Indonesian island of Sumatra and Malaysia. Indonesia has territory on some of the world's largest islands, such as New Guinea, Borneo, Sumatra, and Sulawesi.

POPULATION.

The 2000 official census found 203,456,005 Indonesians (though most outside sources estimate 210 million), making Indonesia the world's fourth most populous country. An estimated birth rate of 22.6 per 1,000 people and death rate of 6.31 per 1,000 people means that the population is growing at an annual rate of 1.63 percent. The United Nations Development Program predicts that the population will reach 250.4 million by 2015. Like many developing countries, Indonesia has a young population, with 30.6 percent of its people under the age of 15. In 1998 almost two-fifths of the population lived in urban areas, double the 1975 level.

Indonesia has hundreds of ethnic groups, with the 2 largestJavanese (45 percent) and Sundanese (14 percent)living on the island of Java. One of the most densely populated places in the world, Java is about the size of New York State and is home to more than 110 million people. Other ethnic groups include Madurese and coastal Malays, who each make up 7.5 percent of the population, and numerous other ethnic groups accounting for 26 percent. Indonesian Chinese, whose ancestors mostly came to the Dutch East Indies as workers, are a small but economically important minority with 2 percent of the population but a majority of the wealth.

Java and Bali are often referred to as the Inner Islands, with the other less densely populated ones known as the Outer Islands. Starting in 1969, the government pursued a policy of transmigration (a program to shift inhabitants from more crowded to less crowded areas). Millions of people have joined this official migration program based on the promise of land and support. After years of criticism for damage to the environment, failure to live up to promises to the transmigrants, and conflicts with local inhabitants, the government announced an end to the program in 2000. Many Indonesians also migrate on their own from one part of the country to another in search of farmland or jobs.

Indonesia has 5 officially recognized religions: Muslim (88 percent), Protestant (5 percent), Roman Catholic (3 percent), Hindu (2 percent), and Buddhist (1 percent), as well as numerous traditional religions. More Muslims live in Indonesia than in any other country. The official language is Bahasa Indonesia, a modified form of Malay adopted as a national language and taught in all schools. Most Indonesians, except some raised in Jakarta or by parents from different ethnic groups, speak Bahasa Indonesia as a second language after their native tongue, one of some 250 local languages and many more dialects.

Indonesia's family planning program was formally established in 1970 after years in which rapid population growth was not seen as a problem and even at times encouraged. The Indonesian family planning program has involved thousands of village-level volunteers, grassroots organizations, and religious leaders and a multifaceted approach that brings together agencies and organizations. The phrase "dua anak cukup" (2 children are enough) appears on T-shirts, statues, and television broadcasts, and family planning and reproductive health program services are made available in over 10,000 clinics, hospitals, and community health centers. The National Family Planning Coordinating Board (BKKBN) coordinates efforts but does not implement activities by itself.

Indonesia has a significant challenge in implementing a population policy, given the size of the population, the geographic distribution, and occasional cultural and religious objections. Despite this, Indonesia has achieved what the World Bank has called "one of the most impressive demographic transitions anywhere in the world." The growth rate has fallen from 2.5-2.7 percent in 1970 to 1.63 percent, and the total fertility rate fell from 5.5 births per women between 1967-70 to 2.6 births per woman in 1995-2000. Indonesia is often held up as a model for developing countries.

As a result of various conflicts, Indonesia has over 1 million internally displaced people (IDPs) who have fled their homes to avoid ethnic, religious, or political violence and military repression, most notably involving populations in Maluku, West Kalimantan, and East Timor.

OVERVIEW OF ECONOMY

Indonesia is made up of the islands of the former Dutch East Indies, a colony established by the Netherlands to control the important spice trade and take advantage of the fertile tropical soil. Indonesia's first 15 years after gaining independence in 1949 were marked by high inflation and very little development beyond the economy inherited from the colonial system, which was heavily dependent on agriculture. The economy grew quickly after that, however, fueled first by oil and gas exports and then by the export of manufactured goods, such as shoes, clothing, and textiles. Agriculture remains important, including both small farmers producing crops for internal consumption and export, and large plantations producing products such as palm oil and rubber.

Indonesia has gone through 6 5-Year Development Plans, known by the Indonesian acronym Repelita. The first 5-Year Development Plan (Repelita I) started in 1969 and emphasized rebuilding the economy by improving agriculture, irrigation, and transportation. Repelita II, starting in fiscal year 1973-74, tried to increase the standard of living through better food, clothing, and housing, infrastructure , social-welfare benefits, and employment opportunities. Repelita III, beginning in fiscal year 1978-79, introduced the "trilogy of development" of high economic growth, national stability, and equitable distribution. Self-sufficiency in food and the promotion of industries processing basic materials into finished goods were also objectives. Starting in fiscal year 1984-85 Repelita IV continued to emphasize self-sufficiency in rice and industrial machinery. Repelita V, from fiscal year 1989-90, stressed rapid development with emphasis on the industrial and agricultural sectors. The sixth 5-Year Development Plan (Repelita VI) began to encourage foreign investment and abandoned policies of high tariff barriers, heavy regulation, and import substitution (manufacturing consumer goods domestically to reduce imports). The greatest success in attracting investment has been in textiles, tourism, shoes, food processing, and timber products.

Indonesia was hit hard by the Asian financial crisis that swept the region in 1997. Following problems with the currency in Thailand, the rupiah fell, causing investors to panic, debts to soar, and the banking sector to collapse. After growing throughout the 1990s, real gross domestic product (GDP) fell by 13 percent in 1998. The GDP was stagnant the next year, and increased slightly in 2000, but investment remained low, and many of the underlying problems still have not been dealt with: banks are weak, large companies are technically bankrupt, the government controls many assets acquired after bailouts, and reform of the corrupt judicial system has been delayed. While other countries in the region, such as Thailand and South Korea, began to rebound, Indonesia's failure to deal decisively with deep-seated problems and continued political uncertainty slowed recovery.

Before the crisis, Indonesia borrowed about US$5 billion annually from foreign countries and international financial institutions such as the World Bank and the International Monetary Fund (IMF) to finance its budget. The government debt slowly increased from US$55.5 billion in 1992 to US$59.9 billion in 1997, but the economy seemed strong and there was little domestic debt. However, in the same period, debt resulting from borrowing by private companies increased from US$28.2 billion to US$78.1 billion, making the economy vulnerable to a fall in the exchange rate . After the crisis, government debt soared as the government bailed out bankrupt companies and banks, and borrowed heavily from the IMF. The total cost of the bailout quickly reached US$69.6 billion. Due to the crisis, Indonesia borrowed US$43 billion from an IMF program and other outside financing from 1997 to 2000. Government debt is estimated by the World Bank to be equal to 80 percent of the GDP, and debt repayments eat up 27 percent of government allocations, more than the entire development budget.

Surveys of business travelers in Asia regularly rank Indonesia as one of the most corrupt places to do business. Corruption has interfered with recovery as well, as the IMF and the World Bank stopped payments in 1999 after a private bank was discovered to have funneled payments from the government to the former ruling political party. In September 2000, the Supreme Court convicted the son of former president Suharto for corruption in a real estate deal, but he vanished before he could be jailed. It is believed that Indonesia is becoming increasingly involved in the shipment of heroin from the Golden Triangle in mainland Southeast Asia.

POLITICS, GOVERNMENT, AND TAXATION

The Republic of Indonesia consists of 23 provinces, 2 special regions, and the capital-city district. In August of 1999, a referendum approved independence for East Timor, the area formerly known as Propinsi Timor Timur, but its status remains in transition. The president, who is both chief of state and head of government, is elected by the People's Consultative Assembly for a 5-year term, as is the vice president. Legislative power is vested in a unicameral House of Representatives of 500 seats, 462 of whom are elected by popular vote and 38 are appointed from the military. The People's Consultative Assembly, which meets every 5 years to elect the president and vice president and broadly approve national policy, is comprised of the House of Representatives plus 200 members chosen indirectly. Judicial power is vested in a Supreme Court, whose judges are appointed by the president. Major political parties include the Crescent Moon and Star Party (PDB), the Development Union Party (PPP), the Indonesia Democratic Party (PDI), the Indonesia Democracy Party-Struggle (PDI-P), the National Awakening Party (PKB), and the National Mandate Party (PAN).

The former Dutch East Indies proclaimed independence on 17 August 1945, and fought a lengthy war with the Dutch, who were not ready to give up their colony. After 4 years of fighting and negotiations, the territory was formally recognized as the independent nation of Indonesia. Under Indonesia's first president Sukarno (who like many Indonesians used only one name), Indonesia experimented with socialism , and the government controlled most markets, foreign trade, and banking. A violent change in government in 1965 brought General Suharto to power. He presided over the extermination of what had been the world's third largest communist party, a process that killed at least half a million suspected communists and arrested a million more. Most of those arrested were deprived of their civil rights for decades. Suharto's "New Order" government also appointed a group of U.S.-trained economists (sometimes known as the Berkeley Mafia) to guide economic policy in a more technocratic and non-political way. The government directed state investment and protected favored industries from competition, but the system was decidedly capitalist. At the same time, state corporations and private conglomerates, mostly owned by Suharto's family and supporters (many of them ethnic Chinese), were built through government-granted monopolies and preferential access to credit, licenses, and products.

The New Order adopted as its slogan a "trilogy of development" consisting of stability, growth, and equitable distribution. Stability was enforced by the harsh repression of dissent from students, journalists, workers, or politicians. Elections were scheduled every 5 years, but no meaningful opposition was allowed. Suharto maintained power through the support of the military and control of the bureaucracy but also in part through the perceived legitimacy that came with significant economic growth.

That legitimacy fell with the onset of the Asian financial crisis in 1997, which also revealed the deep-seated corruption, cronyism (favoritism shown by public officials to their political supporters) and nepotism (favoritism shown by public officials to their relatives) that had left the economy so vulnerable. The economic crisis led to massive student protests that forced Suharto to step down. His vice-president assumed power and announced the first democratic elections in 44 years, which took place in June 1999. After years of restrictions on parties and campaigning, 45 new parties participated in the elections. Despite fears of instability and corruption, the vote was considered a fair representation of the electorate, 93 percent of whom participated. The party winning the most votes (37.4 percent) was the Indonesian Democratic Party (PDI). Led by Megawati Sukarnoputri, the daughter of Indonesia's first president, this nationalist party was unable to form a coalition in the People's Consultative Assembly, where the president is selected. Abdurrahman Wahid, the moderate head of the National Awakening Party (PKB) party, was sworn in for a 5-year term in October 1999, with Megawati as vice-president. Wahid, usually known by the nickname "Gus Dur," is nearly blind and has suffered a stroke, but he is a shrewd politician who led the largest Muslim organization in Indonesia. Wahid's policies have generally supported foreign investment but have also been erratic, sparking fears of instability and economic uncertainty.

The Wahid administration reversed some of the Suharto-era restrictions on free expression: it released political prisoners, eliminated the feared security coordination body BAKORSTANAS, and increased freedom of the press. There is still very weak commitment to investigating and prosecuting human rights violations, which continue to be a problem, particularly in conflict areas such as Aceh, at the northern tip of the island of Sumatra and in East Timor. Moreover, Wahid failed to put a stop to the economic slide that began in 1998. By 2001 the legislature, responding to popular protests, proceeded with impeachment proceedings against Wahid. Ignoring Wahid's threats to dissolve the parliament, the legislature impeached Wahid and replaced him on 26 July 2001, with vice-president Megawati Sukarnoputri.

Although Indonesia has generally pursued a free-market approach to economic development, the government has kept state control over enterprises in sectors such as oil, plantations, and some areas of technology. The role of state-owned enterprises increased during the first decades of the New Order, contributing 30 percent of the GDP by 1990 and remaining dominant players in banking, plantations, transportation, and some areas of manufacturing. The bankruptcy of nearly all the major conglomerates and the subsequent bailout has left the government officially owning major segments of the economy at the dawn of the 21st century. There is pressure from the IMF to sell off assets and privatize the state-owned companies, but movement in this direction has been slow.

Wahid's policies aimed to encourage foreign investment and, in accord with IMF agreements, to take steps to strengthen the weak banking and corporate sectors. But President Wahid was distracted in pursuing these goals by such factors as the ongoing violence in certain regions, allegations of government corruption, the difficult problem of reforming the political role of the military, and battles with parliament. It is uncertain how Megawati, as the new president is known, will solve these problems, but it is clear that she will do so with the backing of the military, long the prop for political power in Indonesia. Indonesian voters will have a chance to voice their approval of Megawati's measures in elections in 2003.

Government revenues in fiscal year 1999-2000 were estimated at US$25.4 billion (including US$6 billion from international financial institutions such as the IMF). Tax revenues have historically been small, with revenues from the personal income tax falling from 6.5 percent of total revenues in 1968 to 2.9 percent in 1984. To boost revenue, the government changed the personal and corporate tax system in 1983 and introduced a value-added tax (VAT) in 1985. The 2000 budget called for the government to broaden the tax base, end most VAT exemptions, and review tax holidays , which guarantee some businesses a period of several years of tax-free operations.

New decentralization laws scheduled to take effect in 2001 will shift most functions from the capital to the provincial and district levels and redistribute a much higher share of profits from oil, gas, forestry, mining, and fishing to local governments. This process has significantly slowed down, however, due to concerns from Indonesian authorities and foreign investors that the local governments were not ready to assume control.

The legal system is based on Roman-Dutch law, modified by indigenous concepts and recent reforms. The court system is extremely corrupt and vulnerable to political influence. Weak courts make it even harder to reform the economic system, as influence and corruption block attempts to resolve the crisis.

Under the New Order, the military was given "dwifungsi," or "dual function," in which it played a social and political role as well as a military one. Active-duty officers occupied important positions in the executive branch, including serving as governors and ministers. The military was also given appointed seats in the national assembly. In their self-described roles as "guardians of development," the military participated in such activities as reforestation and family planning, which led to some charges of coercion or other human-rights abuses. The military also played a pervasive but unofficial role in the economy by placing officers on the boards of private and state-owned enterprises. In exchange for political protection for the businesses, the military was given access to funds for personal and official uses. Military-owned companies also operated in the open market. For example, a holding company tied to the important Army Strategic Reserve Command owned a film company, an airline, and an automobile assembly plant. While its political function has been much reduced since the end of the New Order, the military still has 38 out of 500 seats in the National Assembly, although this may be reduced in the future. Military expenditures in fiscal year 1998-99 were estimated at $1 billion, or 1.3 percent of the GDP. The police force was only recently separated from the armed forces and are not yet seen as an effective or accountable agent of law enforcement.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Indonesia has fairly effective telecommunications and infrastructure, especially roads. From 1969 to 1988, the first 3 Repelitas allocated 55 percent of expenditures on transportation infrastructure to road building and maintenance, with the rest for marine transportation, railroads, and air and river transportation. This trend has continued in the 1990s. As a result, Indonesia had 342,700 kilometers (212,954) miles of roads in 1997, although fewer than half of that number were paved. Railway lines totaled 6,458 kilometers (4,013 miles) in 1995. In 1998 there were more than 16 million vehicles on the road, but only 2.6 million were cars, with most of the rest (11.7 million) being motorcycles.

There are 446 airports throughout Indonesia, but only 127 of them have paved runways. As an archipelago, Indonesia relies on a huge fleet of ships for transporting both passengers and goods. Important ports include Cirebon, Jakarta, Kupang, Palembang, Semarang, Surabaya, and Ujungpandang. Once highly restricted and bureaucratic, inter-island shipping was deregulated as part of the economic reform packages of the 1980s. Traditional shipping still plays an important role, with an estimated 10,000 two-masted sailing ships shuttling around the islands, though many have been motorized.

Communications
Country Newspapers Radios TV Sets a Cable subscribers a Mobile Phones a Fax Machines a Personal Computers a Internet Hosts b Internet Users b
1996 1997 1998 1998 1998 1998 1998 1999 1999
Indonesia 24 156 136 N/A 5 0.9 8.2 0.76 900
United States 215 2,146 847 244.3 256 78.4 458.6 1,508.77 74,100
China N/A 333 272 40.0 19 1.6 8.9 0.50 8,900
Malaysia 158 420