Government Type: republic

Capital: Jakarta Geographic Coordinates: 6 10 S, 106 49 E

Independence: 17 August 1945 (declared); 27 December 1949 (by the Netherlands); note - in August 2005 the Netherlands announced that it had recognized de facto Indonesian independence on 17 August 1945

National holiday: Independence Day, 17 August (1945)

Constitution: August 1945; abrogated by Federal Constitution of 1949 and Provisional Constitution of 1950, restored 5 July 1959; series of amendments concluded in 2002

Legal system: based on Roman-Dutch law, substantially modified by indigenous concepts and by new criminal procedures and election codes; has not accepted compulsory ICJ jurisdiction

Suffrage: 17 years of age; universal and married persons regardless of age

Economy Overview: Indonesia, a vast polyglot nation, has weathered the global financial crisis relatively smoothly because of its heavy reliance on domestic consumption as the driver of economic growth. Although the economy slowed significantly from the 6%-plus growth rate recorded in 2007 and 2008, expanding at 4% in the first half of 2009, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth during the crisis. The government used fiscal stimulus measures and monetary policy to counter the effects of the crisis and offered cash transfers to poor families; in addition, campaign spending in advance of legislative and presidential elections in April and July helped buoy consumption. The government made economic advances under the first administration of President YUDHOYONO, introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. Indonesia's debt-to-GDP ratio in recent years has declined steadily because of increasingly robust GDP growth and sound fiscal stewardship. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. YUDHOYONO's reelection, with respected economist BOEDIONO as his vice president, suggests broad continuity of economic policy, although the start of their term has been marred by corruption scandals. The government in 2010 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, while addressing climate change mitigation and adaptation needs, particularly with regard to conserving Indonesia's forests and peatlands.

Indonesia has a stated foreign policy objective of establishing stable fixed land and maritime boundaries with all of its neighbors; some sections of border along Timor-Leste�s Oecussi exclave and maritime boundaries with Timor-Leste remain unresolved; many refugees from Timor-Leste who left in 2003 still reside in Indonesia and refuse repatriation; 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 the sovereignty of Unarang rock and the maritime boundary in the Ambalat oil block in the Celebes Sea in dispute; the ICJ decision has prompted Indonesia to assert claims to and to establish a presence on its smaller outer islands; Indonesia and Singapore continue to work on finalization of their 1973 maritime boundary agreement by defining unresolved areas north of Indonesia's Batam Island; Indonesian secessionists, squatters, and illegal migrants create repatriation problems for Papua New Guinea; piracy remains a problem in the Malacca Strait; maritime delimitation talks continue with Palau; Indonesian groups challenge Australia's claim to Ashmore Reef; Australia has closed parts of the Ashmore and Cartier Reserve to Indonesian traditional fishing and placed restrictions on certain catches.