{in-doh-nee'-zhuh} The Republic of Indonesia is located in Southeast Asia on an archipelago of more than 3,000 islands astride the equator. \TSumatra\t, the westernmost major island, lies south of Burma, while \TIrian Jaya\t on the island of \TNew Guinea\t is the country's eastern extreme. The total area of all the islands approximates that of Mexico. The islands command vital sea routes between Australia, Europe, and the Asian mainland and are the principal link between the Indian and Pacific oceans. The islands lie within the Java (see \TJava Sea\t), Flores, Banda, and Molucca seas and are interrupted by the Strait of \TMalacca\t, \TSunda Strait\t, and MAKASAR \TStrait\t. Traders, immigrants, cultural ideas, and technologies reaching Indonesia have resulted in great internal diversity. Indonesia, formerly part of the Netherlands East Indies, proclaimed its independence on Aug. 17, 1945, after more than 300 years of Dutch control. LAND AND RESOURCES Territories on five islands make up 90% of Indonesia. The largest territory, Kalimantan, occupies the southern two-thirds of the island of \TBorneo\t and comprises 28% of Indonesia's total area. Second in size is the island of Sumatra (Sumatera), with 24% of the total area. Irian Jaya, which occupies the western half of New Guinea, forms 22% of the country; \TSulawesi\t (Celebes), 10%; and the islands of \TJava\t and Madura--inhabited by 64% of the population--only 7%. Notable small islands include \TBali\t, \TTimor\t, Lombok, and Sumba of the Lesser \TSunda Islands\t, and Halmahera, Buru, Seram, and Ambon, parts of the \TMoluccas\t (formerly known as the Spice Islands). High mountains, some of them volcanic, extend the length of the archipelago. On Irian Jaya, Indonesia's highest mountain, Jaya, reaches 5,030 m (16,495 ft). High mountains also form the southern edge of Sumatra. They continue across the Sunda Strait, where the famous volcano \TKrakatoa\t is located, and into Java, where they rise to 3,676 m (12,060 ft) in Semeru. On Sulawesi, the mountains rise to 3,455 m (11,335 ft) in Rantekombolo. Extensive, swampy lowlands characterize the eastern half of Sumatra, southern Kalimantan, and southeastern Irian Jaya. Soils As in many rainy, tropical areas, the soils are predominantly infertile in Indonesia because of leaching. The most productive are those on Java and adjacent islands. Soil nutrients there are replenished by frequent volcanic eruptions, and the lavas' alkalinity is conducive to plant growth. Climate Most islands are hot and humid throughout the year. Rain falls primarily from December to March, when the winter monsoon dominates, blowing from the Asian mainland. Only western Java and the Lesser Sunda Islands have a dry season, from June to September, when dry winds blow from the interior of Australia's deserts. Temperatures in coastal areas range from 24 deg C to 28 deg C (75 deg F to 85 deg F), while the mountains are cooler. The average annual rainfall varies from 3,050 mm (120 in) in Sumatra, Kalimantan, and Irian Jaya to 1,015 mm (40 in) in the Lesser Sundas. Drainage Rivers are numerous, short, and important for irrigation. The longest is the Mamberamo, on Irian Jaya, navigable for 160 km (100 mi). Lake Toba (1,300 sq km/ 502 sq mi), in the Barisan Mountains of northern Sumatra, was formed within the world's largest caldera of a volcano. Vegetation and Animal Life Tropical rain forest covers most of the islands; this is characterized by a dense overhead canopy of trees, an abundance of tree species, and numerous lianas (vines), along with ferns, orchids, and other epiphytes. The monsoon forests are composed primarily of stands of bamboo with a seasonal fall of leaves. Indonesia's animals have an Asian affinity in the west and an Australian relationship in the east, suggesting the past existence of land bridges between the islands and the two continents. In the Lesser Sundas, the island of Komodo is the last protected habitation for the Komodo dragon, the world's largest lizard. Resources Indonesia is potentially rich in mineral resources. The most important is crude petroleum--with associated deposits of natural gas--extracted in eastern Sumatra and Kalimantan. Tin ores are found on a number of islands, as well as deposits of bauxite, nickel, and coal. Large reserves of low-grade iron ore have been reported; ore is extracted in central Java. PEOPLE Indonesia has one of the most ethnically diverse populations in the world. More than 300 distinct groups are recognized. The largest is the Javanese, who constitute 40-50% of the total population and form the majority on densely populated Java. Sundanese in western Java make up about 15% of the total population, and the Madurese, on Madura, an estimated 5%. Smaller, but regionally important, ethnic peoples include the \TBalinese\t, \TBatak\t, \TDayak\t, \TPapuans\t, ACEHNESE (Achinese), and Toraja. The largest nonindigenous group is the Chinese, constituting about 3% of the total population and living mainly in urban areas. Language The official language is Bahasa Indonesia (Indonesian), which evolved from Pasar Malay, a dialect widely spoken on Sumatra and used by traders in the islands. In addition, about 25 other languages, most of Malayo-Polynesian origin, and more than 200 dialects are spoken locally, including Acehnese, Batak, Sundanese, Madurese, and Balinese. Religion Islam is the dominant religion in Indonesia today and is practiced by nearly 85% of the population. Hinduism, widespread in the archipelago before the 14th century, is now practiced by only 2% of the population, chiefly on Bali. About 8% are Christian, primarily Protestant; and many Chinese follow Buddhist-Taoist teachings. Animist religions are followed by tribes in remote areas. Demography Indonesia is the world's fifth most populous nation and continues to grow rapidly. About 64% of the population is crowded onto the island of Java, where the density is nearly 700 persons per sq km (1,800 per sq mi). Other islands, by contrast, are sparsely populated. The largest cities are \TJakarta\t (the capital), \TBandung\t, \TSurabaya\t, Semarang, Malang, Surakarta, and Yogyakarta, all of which are on Java, and Medan, on Sumatra. Education and Health Education is controlled primarily by the Ministry of Education and Culture. Compulsory elementary-school education begins at age 6 or 7 and lasts for 9 years, followed by 3 years of secondary-school education. The University of Indonesia (1950) at Jakarta and numerous other institutions provide higher-education opportunities. Health facilities are limited, and many rural areas are grossly underserved because at least 40% of the physicians are concentrated in Jakarta. The Arts The Javanese are famous for \Tbatik\t, a cloth widely used for sarongs. It is imprinted with intricate, elaborate designs by waxing and dyeing fabric. Indonesia is also known for \Lshadow play\ls, a popular art form used to instill moral values and for social comment. The Museum of Indonesian Culture in Jakarta houses an extensive collection of early Indonesian ceramics. (See also \TSoutheast Asian art and architecture\t.) ECONOMIC ACTIVITY Indonesia's traditional subsistence and trading economy was altered radically under the rule of the Dutch. Export crops were emphasized, and for many years their growth was mandatory. A state-dominated, centralized economic system was developed after independence, but it was replaced in 1969 by the "New Order" of President Suharto, based on a series of 5-year plans designed to build an agriculture-based economy capable of supporting simultaneous development of large-scale industrial projects and smaller consumer- and export-oriented processing industries. Economic development has been largely financed by foreign aid, particularly from the Inter-Governmental Group on Indonesia (IGGI), formed by 12 nations for this purpose in 1966. Mining and Manufacturing Indonesia's principal mineral resources are petroleum and natural gas, which accounted for about 40% of all export earnings in 1989. Most petroleum is extracted in eastern Sumatra and Kalimantan, but smaller fields off Java, northern Sumatra, and Irian Jaya are also exploited. Indonesia, a member of the \TOrganization of Petroleum Exporting Countries\t since 1962, placed its oil industry under government control in 1965. Since that time refinery capacity has increased greatly; by 1984 the country refined enough petroleum to satisfy domestic needs. A drop in world oil prices led the government to postpone many large-scale development projects by the mid-1980s and to encourage the growth of non-petroleum export sectors. The rise in petroleum prices in late 1990, however, brought windfall earnings, enabling the government to increase development spending, especially on road construction. Indonesia is the world's largest producer of liquefied natural gas. The output of liquefied natural gas, valued at (U.S.) $547 million in 1978, increased to (U.S.) $3,541 million in 1984. Tin is abundant on the islands of Bangka, Belitung, and Singkep, and Indonesia ranks third in world tin production after Malaysia and Thailand. Bauxite is mined on Sumatra, nickel on Sulawesi, coal on Sumatra and Kalimantan, iron ore on Java, and copper on Irian Jaya. In the late 1980s the Indonesian economy was transformed in both its structure and its position in the world economy. From 1983, non-oil manufacturing grew by more than 12% a year, so that by 1990 manufacturing's share of the gross domestic product matched that of agriculture. This reflected a relocation of labor-intensive manufacturing out of northeast Asia (particularly Japan and Taiwan) into Indonesia and other Southeast Asian countries with low labor costs. Most manufacturing plants are on Java, where Jakarta and Surabaya are the leading industrial centers. Only about 25% of total manufacturing occurs on Sumatra, and very little on other islands. Major industries, in addition to the processing of agricultural products, include petroleum refining and the manufacture of fertilizers, pharmaceuticals, cement, textiles, iron and steel, and plywood. Energy Power facilities are state owned and primarily limited to urban areas and major industrial projects. They remain inadequate despite the expansion of electrical generating capacity from 653 MW in 1966 to 25,471 MV in 1988. Agriculture, Forestry, and Fishing Agriculture continues to be the mainstay of the Indonesian economy, although it contributes less than 10% of export earnings. Indonesia's government was an early proponent of the \Tgreen revolution\t and encouraged multiple plantings of high-yield rice on terraced lands. By 1984 the country had become self-sufficient in rice production. Vegetables, fruits, and poultry are also raised for food. Cash crops, grown mostly on large estates, include rubber, palm oil, coffee, sugar, tobacco, and cocoa. Indonesia has more than 8 million landless farmers. To open remote areas to development and provide a livelihood for the landless, the government offers free land, housing, and other assistance to those willing to move from overcrowded Java, Bali, and Madura to less developed islands. The fourth 5-year plan, REPELITA IV (1984-89), called for the transmigration of 750,000 families, in addition to the 500,000 families resettled under REPELITA III. Indonesia has abundant forests, and wood products--especially plywood and teak--are the chief export after petroleum and natural gas. Fish are locally important, but commercial fishing, rich in potential, is largely undeveloped. Transportation Despite Indonesia's rough terrain and separated commercial centers, transportation is improving. Most of the new highways are spread over Sumatra, Sulawesi, and Kalimantan; the antiquated railway system is concentrated on Java. Interisland shipping exists between hundreds of small ports, but most of the country's imports and exports pass through Tanjung Priok (near Jakarta), Tanjun Perak (near Surabaya), Belawan (near Medan), Pakan Boru, and Bontang (near Samarinda). All provincial capitals can be reached by domestic airlines, and a new international airport in Jakarta opened in 1985. Communications are government controlled. Trade Indonesia generally maintains a favorable balance of trade. Exports include petroleum, liquefied natural gas, timber and plywood, rubber, coffee, shrimp, textiles, and clothing. The principal imports are machinery, electrical and transportation equipment, chemicals, and base metals. GOVERNMENT The constitution of August 1945 was restored on July 5, 1959, in place of two provisional constitutions adopted in 1950. Executive power is vested in the president, who is elected by the People's Consultative Assembly (MPR) for a 5-year term, and in the president's appointed cabinet. Legislative power rests with the Council of Representatives, but since 20% of this body's members are appointed from the armed forces, and the government party, Golkar, holds a substantial majority of the directly elected seats, the president in effect rules by decree. Governors, district heads, and mayors appointed by the central government administer the 27 provinces, 241 districts, and 55 municipalities. Paralleling this civilian regional administration is a system of military commands with wide-ranging responsibilities, including the screening of all public employees and applicants to state universities. HISTORY Indonesia is thought to have been settled mainly by peoples from Malaya and Oceania, and the area was dominated from the 3d to the 13th century by the Hindu and Buddhist Indianized kingdoms of the \TSrivijaya Empire\t, Mataram, Sailendra, Kediri, and the \TMajapahit Empire\t. Islamic influences, brought by Arabic and other traders in the 14th and 15th centuries, replaced the Indian religions in most areas except Bali. From 1602 until 1798 most of the islands were controlled by the Dutch East India Company (see \TEast India Company, Dutch\t), and from 1816 to 1949, Indonesia was regarded as a colony of the Netherlands. During World War II, Japan occupied the islands and encouraged many Indonesians in their quest for independence. On Aug. 17, 1945, Indonesian nationalists led by \TSukarno\t and Muhammad Hatta proclaimed the nation independent. On Dec. 27, 1949, after much dispute, the Netherlands transferred sovereignty. West Irian became part of Indonesia in 1963 and was renamed Irian Jaya in 1973. On July 17, 1976, the former Portuguese territory of East Timor was annexed. Sukarno was Indonesia's first president. He ruled from 1945 to 1965, backed by the military and supported by the Asian Communist nations. During these years, the economy declined, and Indonesia's continually closer ties with the Communist bloc stifled assistance from Western nations. At the end of September 1965, an attempted Communist coup led to an anti-Communist takeover of the government by the military under General \TSuharto\t. An estimated 500,000 were killed in the fighting. Sukarno continued temporarily as president, but de facto control of the nation was transferred to Suharto, who became acting president in March 1967. Suharto looked to the West for economic aid while trying to create the internal stability that would encourage foreign investment. To unify his diverse nation he promoted "Pancasila," a secular national ideology first enunciated by Sukarno in 1945. After withdrawing from the United Nations in 1965, Indonesia rejoined that international body in 1966. Indonesia also became a charter member of the Association of Southeast Asian Nations, founded in 1967. Raids against Malaysia, initiated by Sukarno in 1964, were ended by Suharto. Elections, held in 1968 for the first time in 13 years, gave Suharto the presidency. Despite Muslim fundamentalist opposition, a law passed in 1985 required all mass religious, cultural, and professional organizations to adopt Pancasila. That same year, Indonesia celebrated the 30th anniversary of the Bandung conference, a precursor of the \TNonaligned Movement\t. Suharto won a fifth term as president in 1988; his Golkar party won a landslide victory in the 1987 elections. In 1990, Indonesia restored full trade and diplomatic ties with China (severed in 1967) while maintaining flourishing trade and investment relationships with Taiwan and Hong Kong. Modern Indonesia has never experienced the peaceful transfer of power, and no one knows how or when the Suharto era will end. Hence, the issue of transfer of power is creating uncertainty about Indonesia's future political stability and policy direction. Thomas R. Leinbach Reviewed by Dwight King Bibliography: American University, Indonesia, A Country Study, 4th ed. (1983); Aveling, H., ed., The Development of Indonesian Society (1980); Booth, A., and McCawley, P., eds., The Indonesian Economy During the Suharto Era (1981); Crouch, Harold, The Army and Politics in Indonesia (1988); Drake, C., National Integration in Indonesia (1989); Green, M., Indonesia (1991); Holt, Claire, et al., Culture and Politics in Indonesia (1988); Jenkins, D., Suharto and His Generals (1985); Kahin, A., ed., Regional Dynamics of the Indonesian Revolution (1986); McDonald, H., Suharto's Indonesia (1981); Mackie, J. A. C., Indonesia: The Making of a Nation (1981); Peacock, James L., Indonesia: An Anthropological Perspective (1973); Reeve, D., Golkar of Indonesia (1987); Ricklefs, M. C., A History of Modern Indonesia (1981); Stewart, I. C., and Shaw, J., Indonesians: Portraits from an Archipelago (1984); Wild, C., and Carey, P., eds. Born in Fire, The Indonesian Struggle for Independence (1988).