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Updated July 26, 2022

Indonesia

Overview
With over 270 million citizens, Indonesia is the most
populous country in Southeast Asia, the world's most
populous Muslim-majority nation, and the world's third-
largest democracy (after India and the United States). It has
the world's 16th largest economy and the 10th largest when
ranked by purchasing power parity. It straddles important
sea lanes and borders the Strait of Malacca, one of the
world's busiest trade routes, as well as the Indian Ocean
and the South China Sea.
Over the past two decades, Indonesia has become a robust
democracy, holding four direct presidential elections, each
considered by international observers to have been largely
free and fair. In the most recent, held in April 2019,
President Joko Widodo was reelected to a second five-year
term. The U.S.-Indonesia relationship has broadened in
recent years, with closer military and counterterrorism
cooperation and a range of new educational, environmental,
and energy initiatives initiated in the Obama
Administration. Indonesia's foreign policy is guided by its
historical role as a leader of the Non-Aligned Movement,
and successive Indonesian governments have bristled at the
notion of aligning too closely with the United States or with
others, including China. Indonesia is an active member in
regional diplomatic institutions and a leader of the
Association of Southeast Asian Nations (ASEAN), which
has a Secretariat based in Jakarta. It chairs the Group of 20
(G-20) in 2022. In June, President Widodo traveled to Kyiv
and Moscow, meeting with both Ukrainian President
Volodymyr Zelensky and Russian President Vladimir Putin.
Some 87% of Indonesians are Muslim, with the vast
majority subscribing to moderate, syncretic forms of the
religion. Religious diversity is enshrined in the constitution.
Some observers, however, express concern about growing
political influence of conservative religious groups who
have organized mass demonstrations against non-Muslim
politicians. Indonesia also has a recent history of violent
extremism: several bombings in Jakarta and tourist center
Bali targeted Westerners in the 2000s, and smaller-scale
attacks have occurred periodically.
Indonesia is increasingly involved in rising South China
Sea tensions. Although the two nations do not dispute
sovereignty over any land features, China's extensive nine-
dash line claims overlap with Indonesia's Exclusive
Economic Zone (EEZ), the coastal area over which a state
has the right to regulate economic activity. Indonesian
authorities have periodically confronted or warned off
Chinese fishing and law-enforcement vessels seen as
encroaching on Indonesian waters. In 2017, Indonesia
elicited a formal diplomatic protest from Beijing by
renaming waters off the Natuna Islands, north of Borneo,
the North Natuna Sea, and Chinese vessels have regularly

shadowed or harassed Indonesian fishing and energy
exploration vessels in contested waters.
Political Background
President Widodo, universally known by his nickname
Jokowi, was reelected in April 2019 elections, winning
55% of the popular vote. He campaigned on promises to
improve Indonesia's infrastructure and raise living
standards, particularly in underdeveloped areas. He has
delivered on some of those promises, enacting several
economic reform packages aimed at streamlining
bureaucratic processes to boost foreign and domestic
investment. However, poverty and uneven economic
development remain major issues. Indonesia has been hit
hard by the Coronavirus Disease 2019 (COVID-19)
pandemic, with over 6 million cases reported as of July 22,
2022, the largest number in Southeast Asia. Indonesia also
has Southeast Asia's second highest COVID-19 mortality
rate, after the Philippines. About 62% of the population was
fully vaccinated as of late July 2022.

Some observers have bristled at Widodo's willingness to
bring authoritarian and conservative Islamist voices into his
coalition. Defense Minister Prabowo Subianto, a former
Army Special Forces Commander, was implicated in a
range of human rights violations in the 1990s. Vice
President Ma'ruf Amin, a conservative Islamic leader, was
chosen at least in part to quell criticism from some Islamic
groups that Widodo's government is not sufficiently
conservative. Such criticism has been a thorn in Widodo's
side throughout his presidency.

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