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         Con re s nal Research Se
prem info rriing   the ieg It ve debat  sin o 1914


Updated March  5, 2024


Indonesia


Overview
With over 279 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-the 7th-largest when
ranked by purchasing power parity. It straddles vital 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 25 years, Indonesia has
become  a robust democracy, holding five direct presidential
elections, each considered by international observers to
have been largely free and fair. In the most recent, held in
February 2024, early results indicate that Defense Minister
Prabowo  Subianto had won and would succeed President
Joko Widodo  when his term ends in October. Prabowo's
Vice Presidential running mate was Widodo's eldest son,
Gibran Rakabuming  Raka.

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
programs initiated during 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 others,
including China. Indonesia is an active member in regional
diplomatic institutions, and served as the 2022 chair of the
Group  of 20 (G-20) nations and the 2023 chair of the
Association of Southeast Asian Nations (ASEAN).

Some  87%  of Indonesians are Muslim, with the vast
majority subscribing to moderate, syncretic forms of Sunni
Islam. Religious diversity is enshrined in the constitution.
Some  observers, however, express concern about growing
political influence of conservative religious groups. Non-
Sunni Muslims  and other religious minorities have been
targets of violence, and some conservative groups have
organized mass demonstrations against non-Muslim
politicians. Indonesia also has a 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 periodically confront or warn 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.
More recently, Chinese Coast Guard vessels reportedly
have harassed Indonesian energy exploration vessels in the
South China Sea more frequently, and have accompanied
fleets of Chinese fishing vessels into Indonesia's EEZ.

Pohitical   Background
On February 14, 2024, over 200 million Indonesians voted
in presidential, parliamentary, and local elections-the
world's largest one-day democratic exercise-and appear to
have selected Defense Minister Prabowo as president,
according to historically accurate exit polling. If the results
are confirmed, Prabowo would become president in
October. Prabowo, the son-in-law of the country's former
authoritarian president Suharto, is a former general who
was removed  from the military in 1998 for allegedly
torturing political activists, and who was implicated in 1999
violence in Timor-Leste. A scion of a wealthy Indonesian
family, Prabowo campaigned on promises to continue the
economic development  policies of President Widodo, who
remains popular.


i-resiaent w iaoao, universally Known Dy ms mckname
Jokowi, tacitly supported Prabowo's campaign, and many
analysts expect the new government to continue Widodo's
populist focus on economic development. One of Widodo's
signature initiatives is a plan to move Indonesia's capital
from Jakarta to East Kalimantan, on the island of Borneo.
Widodo  has enacted several economic reform packages
aimed at streamlining bureaucratic processes to boost
foreign and domestic investment. Poverty and uneven
economic development  remain major issues.

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