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Indonesia


Updated June 6, 2019


Overview
With 263 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 8th-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. Indonesia is an active member in regional diplomatic
institutions and a leader of the Association of Southeast
Asian Nations (ASEAN). 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. Some
Indonesian trade and economic regulations are of concern
to the United States. Indonesian leaders speak about the
nation's central place in the Indo-Pacific region-an
important strategic concept for the Trump Administration.

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 the persistence
of smaller-scale attacks raises concerns about the dangers
posed by Indonesians returning from the Middle East.

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. As of early
June, Widodo's opponent Prabowo Subianto had yet to
concede the elections, and demonstrations that followed the
May 21 results announcement-spurred by Prabowo's
largely unsubstantiated allegations of electoral fraud-led
to six deaths in Jakarta.

Widodo chose Ma'ruf Amin, a conservative Islamic leader,
as his Vice President, at least in part to quell criticism from
some Islamic groups that his government is not sufficiently
conservative. Such criticism has been a thorn in Widodo's


side throughout his presidency, particularly in 2016-2017,
when Basuki Tjahaja Purmama, a political ally who is an
ethnically Chinese Christian, was charged and convicted of
blasphemy for a comment he allegedly made about the
Koran at a campaign rally.

Widodo has struggled with a shifting political coalition, as
rivalries between parties, and even within Widodo's PDI-P
party, have complicated governance. The 2019
parliamentary elections made it likely that he can hold
together his legislative coalition, although Prabowo's
Gerindra party emerged as a stronger force in the political
opposition. Widodo's government has enacted several
economic reform packages aimed at streamlining
bureaucratic processes to boost foreign and domestic
investment.


U S       6 Engagement with Indonesia
The United States engages Indonesia across a wide range of
issues, encouraging Indonesians to deepen their democratic
institutions, promote religious tolerance and the rule of law,
develop a more liberal trade and investment climate,
combat terrorism and engage on international issues such as
maritime security and climate change. In October 2015, the
United States and Indonesia upgraded their bilateral
Comprehensive Partnership to a Strategic Partnership,
with a minister-level dialogue intended to address maritime
cooperation, defense cooperation, economic growth and
development, energy cooperation, cooperation on global
and regional issues, and people-to-people ties. In January
2018, on a visit to Jakarta, then-Defense Secretary James


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