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Indonesia


Updated May  17, 2018


Overview
With 258 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. Indonesia is an active
member  in regional diplomatic institutions and a leader of
the Association of Southeast Asian Nations (ASEAN). 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. 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, among other actions, organized mass demonstrations
against non-Muslim politicians. Indonesia has also had 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 influence of the Islamic State and
dangers posed by Indonesians returning from the Middle
East. In May 2018, a set of suicide attacks in Surabaya
killed 12 civilians, with at least one attack conducted by a
family that had recently been deported from Syria.

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. Corruption
is widespread, and Indonesia is among the world's largest
greenhouse gas emitters, due in part to extensive
deforestation, both legal and illegal.

Political   Background
Indonesia has undergone a significant transformation since
the 1998 fall of its longtime authoritarian leader, President
Suharto. The country has since become a robust democracy,
holding three direct presidential elections, each considered
by international observers to have been largely free and fair.
The most recent, in July 2014, elevated Joko Widodo as
president. Widodo, a former businessman and mayor, is
Indonesia's first president not to have emerged from either
the military or an elite business family.

Widodo  has struggled with a shifting political coalition, as
rivalries between parties, and even within Widodo's PDI-P
party, have complicated governance. His government has


introduced several economic reform packages, largely
aimed at streamlining bureaucratic processes to boost
foreign and domestic investment. Widodo is expected to
run again in 2019, and other prominent figures-notably
Prabowo  Subianto, former head of Indonesia's special
forces unit, Kopassus, who finished second in the 2014
polls-are positioning themselves for presidential bids.

U.S.   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
climate change and maritime security. In October 2015, the
United States and Indonesia upgraded their bilateral
Comprehensive  Partnership to a Strategic Partnership,
with an annual 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, Defense Secretary
James Mattis said: We probably engage with the
Indonesian military more than any other nation anywhere in
terms of mil-to-mil engagements.


U.S. assistance to Indonesia totaled $123 million in FY2017
compared  with $128 million in FY2016. Most U.S.
assistance supports health, environmental, and educational
initiatives. Indonesia is part of the Southeast Asia Maritime


ittps:/crsreports.congress.go

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