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Further Reading

Introduction

Independence	1940s
South Moluccas	1950
Konfrontasi	1963-1965
Papua / West Irian	1963-2006
Suharto Coup	1965
East Timor	1974-1999
Kalimantan	1983-2005
Aceh	1986-2005
Sulawesi	1998-2002
Maluku	1999-2004

Indonesia is the largest country in South East Asia. Indonesia has the 2 million sq. km. (736,000 sq. mi.) land area, and a maritime area of 7,900,000 sq. km. Of moore than 17,500 islands, 6,000 are inhabited, and 1,000 of which are permanently settled. Large islands consist of coastal plains with mountainous interiors.

Indonesia made remarkable gains in the first decade of the 21st Century. It managed a successful transition to multiparty democracy, embarked on the long journey of economic reform, and proven to be a strong partner in the fight against terrorism. It is likely that these positive trends will continue, and that Indonesia will continue to evolve as a stable democratic state with improved social cohesion. As the largest country in Southeast Asia, it will continue to play a crucial role in the Association of Southeast Asian Nations (ASEAN), while also seeking other avenues to play a constructive role more broadly in global affairs.

The armed forces shaped the political environment and provided leadership for Suharto'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 Suharto and Habibie and had considerable influence on policy. Under the dual function concept ("dwifungsi"), the military asserted a continuing role in socio-political affairs. 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 reduce the military's direct role in governmental matters. Control of the military by the democratically elected government has been strengthened.

Although considerably less likely, a weak, fragmented Indonesia beset by intractable communal problems, poverty and failing state institutions, would potentially be a source of threat to our own security and to Indonesia's other neighbours. An authoritarian or overly nationalistic regime in Jakarta would also create strategic risks for its neighbours. Indonesia's democratic development therefore continues to be very welcome. The evolution of democracy gives Indonesia a sound foundation for long-term stability and prosperity, and positive relationships with its neighbors.

Indonesia's 2004 national elections proceeded in an exceedingly peaceful and democratic manner, and gave Indonesians for the first time the right to directly elect their President. President Yudhoyono emerged from the elections with a mandate from the Indonesian people, receiving over 60 percent of the votes in the Presidential runoff in September 2005. With Indonesian voters demanding change, President Yudhoyono is pursuing a bold reformist agenda. President Yudhoyono is keenly aware of Indonesia's status as a role model to the Islamic world and seeks a greater international profile that accords with this status. President Yudhoyono demonstrated his statesmanship in the aftermath of the tsunami, and he opened up the previously closed Aceh Province to international assistance, particularly from the United States.

The direct Presidential election itself was a product of sweeping constitutional reforms aimed at strengthening democratic institutions, accountability and transparency, and separation of powers. A free press and an increasingly active civil society have become important agents of change. People are debating the abuses and excesses of the Suharto years and are demanding real accountability for what happened. Citizens are demanding justice from the judicial sector. Finally, the country is going through one of the most ambitious decentralization efforts ever. That process is empowering Indonesia's farflung 33 provinces and introducing unprecedented levels of transparency and accountability into local governance.

President Yudhoyono placed priority on economic growth and poverty reduction, recognizing that Indonesia had recovered from the 1997-1998 financial and economic crisis. The Government of Indonesia announced an ambitious reform program, boosted investor confidence, attacked corruption and made a push for infrastructure development. President Yudhoyono remains committed to this program. Real GDP growth increased to 5.1 percent in 2004, and the Indonesian economy has been resilient in spite of the tsunami, avian influenza, polio, and high world oil prices.

The capacity to resolve political differences through dialogue, rather than violence, is a hallmark of a functioning democracy. Although Indonesia has experienced political violence in places like Aceh, Papua, and East Timor, President Yudhoyono led a new era in Indonesia, which promised to separate Indonesia from its repressive past. The Yudhoyono government conducted a series of peace talks with the separatist Free Aceh Movement, known by the Indonesian acronym ``GAM.'' These talks proceeded rapidly and culminated in a peace agreement signed on 15 August 2006 in Helsinki. Like Aceh, Papua suffered from separatist conflict and serious human rights abuses. By 2006 the Indonesian Government had not fully implemented the 2001 Special Autonomy law that was designed to address political and economic grievances. However, there had been positive developments.