Full Country Name: The Republic of Indonesia

Area: 1,919,443 sq km (741,098 sq miles) spread across 17,000 islands

Population: 243 million

Capital: Jakarta (population: estimate 13.23 million)

People: Javanese 41%, Sundanese 15%, Balinese 2%, Madurese 3%, Minangkabau 3%, Betawi 2%, Bugis 2%, Banten 2%, Banjar 2%, other or unspecified 30% (2000 census)

Languages: Official language Bahasa Indonesia. There are about 583 languages and dialects, 13 of these have more than 1m speakers.

Religions: Muslim 86%, Protestant 6%, Roman Catholic 3%, Hindu 2%, other or unspecified 3% (2000 census)

Currency: Rupiah

Major Political Parties: Democrat Party (PD), Party of the Functional Groups (Golkar), Indonesian Democratic Party of Struggle (PDI-P), Prosperous Justice Party (PKS), , United Development Party (PPP), National Awakening Party (PKB), National Mandate Party (PAN), Gerindra and Hanura.

Government: Republic

Head of State: President Susilo Bambang Yudhoyono

Deputy Head of State: Vice President Boediono

Foreign Minister: Dr Raden Mohammad Marty Muliana Natalegawa

Membership of International groupings/organisations: UN, WTO, G20, IMF, IBRD, Asian Development Bank, Colombo Plan, APEC, ASEAN (founding member), Mekong Group, OIC, ASEM, IMO, G77 and the Non-Aligned Movement (NAM)

Summary

      Indonesia is the world’s fourth most populous country, a continent-sized archipelago of 17,000 islands across three time zones. It is the third largest democracy in the world, with more Muslim citizens than any other state. It is the biggest economy in South East Asia and predicted to be the  tenth largest in the world by 2030.  An increasingly affluent middle class numbers 45 million and growing.  It is also one of the largest carbon emitters in the world, mainly from deforestation (current projections suggest that the energy sector will replace deforestation as the primary cause of emissions).

      Thirteen years after the fall of Suharto, Indonesia is one of the most stable, open democracies in Asia, with a vibrant free press and active civil society, and an economy rapidly approaching investment grade as it grows at around 6% p.a.

      By 2015 Indonesia could be a middle-income country with an average per capita income of $4,000pa, a beacon of democratic stability in Asia.

      But poverty remains widespread:  over 100 million people live on less than $2 per day.  Economic crisis could still lead to breakdown of civil governance or a return to autocratic structures.  There is an underlying risk of radicalisation which would be exacerbated by economic pressures.  Health and education provision is poor, as is infrastructure (energy, roads, ports etc).  Indonesia continues to suffer from corruption, weak institutions and erratic rule of law.  Maintaining competitiveness and achieving the double-digit growth many see as necessary for real take-off will be a real challenge.  Meanwhile growth depends on exploitation of Indonesia’s huge natural resources, and does not easily balance with the nation’s ambitious goal to reduce carbon emissions by 26% from business as usual by 2020 (or 41% with international assistance).