World Facts

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Capital: Jakarta
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Area: total: 1,919,440 sq km. slightly less than three times the size of Texas
Background: The Dutch began to colonize Indonesia in the early 17th century; the islands were occupied by Japan from 1942 to 1945. Indonesia declared its independence after Japan's surrender, but it required four years of intermittent negotiations, recurring hostilities, and UN mediation before the Netherlands agreed to relinquish its colony. Indonesia is the world's largest archipelagic state. Current issues include: alleviating widespread poverty, preventing terrorism, continuing the transition to popularly-elected governments after four decades of authoritarianism, implementing reforms of the banking sector, addressing charges of cronyism and corruption, and holding the military and police accountable for human rights violations. Indonesia has been dealing with armed separatist movements in Aceh and in Papua.-
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Coastline: 54,716 km-
Climate: tropical; hot, humid; more moderate in highlands
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Disputes - international: East Timor-Indonesia Boundary Committee continues to meet, survey and delimit land boundary, but several sections of the boundary remain unresolved; Indonesia and East Timor contest the sovereignty of the uninhabited coral island of Palau Batek/Fatu Sinai, which hinders a decision on a northern maritime boundary; a 1997 treaty between Indonesia and Australia settled some parts of their maritime boundary but outstanding issues remain; ICJ's award of Sipadan and Ligitan islands to Malaysia in 2002 left maritime boundary in the hydrocarbon-rich Celebes Sea in dispute, culminating in hostile confrontations in March 2005 over concessions to the Ambalat oil block; the ICJ decision has prompted Indonesia to assert claims to and to establish a presence on its smaller outer islands; Indonesia and Singapore pledged in 2005 to finalize their 1973 maritime boundary agreement by defining unresolved areas north of Batam Island; Indonesian secessionists, squatters, and illegal migrants create repatriation problems for Papua New Guinea; piracy remains a problem in the Malacca Strait-
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Economy - overview: Indonesia, a vast polyglot nation, has struggled to overcome the Asian financial crisis, and still grapples with high unemployment, a fragile banking sector, endemic corruption, inadequate infrastructure, a poor investment climate, and unequal resource distribution among regions. Indonesia became a net oil importer in 2004 because of declining production and lack of new exploration investment. The cost of subsidizing domestic fuel placed increasing strain on the budget in 2005, and combined with indecisive monetary policy, contributed to a run on the currency in August, prompting the government to enact a 126% average fuel price hike in October. The resulting inflation and interest rate hikes will dampen growth prospects in 2006. Keys to future growth remain internal reform, building up the confidence of international and domestic investors, and strong global economic growth. In late December 2004, the Indian Ocean tsunami took 131,000 lives with another 37,000 missing, left some 570,000 displaced persons, and caused an estimated $4.5 billion in damages and losses. Terrorist incidents in 2005 have slowed tourist arrivals. Indonesia experienced several human cases of avian influenza in late 2005, sparking concerns of a pandemic.-
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Elevation extremes: lowest point: Indian Ocean 0 m
Environment - current issues: deforestation; water pollution from industrial wastes, sewage; air pollution in urban areas; smoke and haze from forest fires-
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Geographic coordinates: 5 00 S, 120 00 E
Geography - note: archipelago of 17,508 islands (6,000 inhabited); straddles equator; strategic location astride or along major sea lanes from Indian Ocean to Pacific Ocean-
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Heliports: 23 (2005 est.)-
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Illicit drugs: illicit producer of cannabis largely for domestic use; possible growing role as transshipment point for Golden Triangle heroin-
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Location: Southeastern Asia, archipelago between the Indian Ocean and the Pacific Ocean-
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Manpower reaching military service age annually: males: 2,201,047 (2005 est.)
Map references: Southeast Asia-
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Merchant marine: total: 728 ships (1,000 GRT or over) 3,192,847 GRT/4,319,739 DWT-
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Military expenditures - percent of GDP: 3% (2004)
Military service age and obligation: 18 years of age for compulsory and voluntary military service; conscript service obligation - 2 years (2002)-
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Natural gas - consumption: 55.3 billion cu m (2003 est.)
Natural gas - exports: 39.7 billion cu m (2003 est.)
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Natural gas - production: 77.6 billion cu m (2003 est.)
Natural gas - proved reserves: 2.549 trillion cu m (2005)
Natural hazards: occasional floods, severe droughts, tsunamis, earthquakes, volcanoes, forest fires
Natural resources: petroleum, tin, natural gas, nickel, timber, bauxite, copper, fertile soils, coal, gold, silver-
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Oil - proved reserves: 4.6 billion bbl (2005 est.)-
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Ports and terminals: Banjarmasin, Belawan, Ciwandan, Krueg Geukueh, Palembang, Panjang, Sungai Pakning, Tanjung Perak, Tanjung Priok-
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Railways: total: 6,458 km-
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Terrain: mostly coastal lowlands; larger islands have interior mountains-
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Waterways: 21,579 km