An attempted communist coup in 1965 was countered by the army, who led a bloody purge in which between 500,000 and a million people were killed. The head of the military, General Suharto, siezed power from the politically-weakened Sukarno and became president in 1968.
Suharto's "New Order" administration was supported by the US government and encouraged foreign investment in Indonesia, which led to three decades of economic growth. But his administration was widely accused of corruption and politcal oppression which sparked a wave of popular protest in 1998 and ultimately led to his resignation.
Four amendments to the 1945 Constitution of Indonesia have sincerevamped the executive, judicial, and legislative branches. The president of Indonesia is the head of state, commander-in-chief of the Indonesian National Armed Forces and director of domestic governance, policy-making, and foreign affairs. He or she appoints a council of ministers, who are not required to be elected members of the legislature. The president may serve a maximum of two consecutive five-year terms.
The first fully-democratic presidential elections were held in 2004, whenSusilo Bambang Yudhoyono was elected. He is a broadly liberal president who has been credited with pacifying many of Indonesia's regions of sectarian unrest. Every general and presidential election since have been independently observed by the Carter Center, but the New York-based charity Human Rights Watch claims that bribery and corruption continue to undermine the democratic process.
Sectarianism and social unrest
Violent separatist movements have blighted Indonesia since it achieved Independence, and the government has faced a constant battle to keep its 13,000 islands together. The main areas of unrest are the Aceh andPapua provinces, where armed conflict has led to allegations of human rights abuse and brutality on all sides.
A thirty-year guerrilla war between the free Aceh Movement and the Indonesian military, which left 15,000 people, mainly civilians, dead, came to an uneasy conclusion in 2005, when a ceasefire was reached. There has been a reported decline in the level of violence and human rights abuse in Papua since president Susilo Bambang Yudhoyono began implementing regional autonomy laws in 2004, but outbreaks of ethnic, sectarian and separatist conflict continue to blight the region.
Foreign relations
Indonesia has been a member of the United Nations since 1950. President Sukarno's post-colonialist antipathy to Western powers had the effect of isolating the archipelago to an extent, but Indonesia's foreign relations since Suharto's "New Order" have been based on economic and political cooperation with the West.
Indonesia maintains close relationships with its Asian neighbors and is afounding member of ASEAN and the East Asia Summit. It restored relations with China in 1990 following a freeze put in place during the anti-communist purges of the Suharto era. Indonesia is signatory to the ASEAN Free Trade Area agreement, the Cairns Group, and the WTO, and has historically been a member of OPEC, although it withdrew in 2008 as it was no longer a net exporter of oil. The country has received aid from the US, Europe, Australia and Japan since 1966.
Terrorism
The Indonesian Government's efforts to hunt down and prosecute terrorists behind several major bombings linked to militant Islamism and Al-Qaeda has been recognised by the US Center for Defense Information. The deadliest attack killed 202 people, including 164 foreign tourists, in the Bali resort town of Kuta in 2002. The bombing, and subsequent travel warnings issued by other countries, badly damaged Indonesia's tourist industry and prospects of attracting overseas investment.
Religion
Religious freedom is stipulated in the Indonesian constitution, but only six religions are officially recognised by the government: Islam, Protestantism, Roman Catholicism, Hinduism, Buddhism, and Confucianism. Though it is not an Islamic state, Indonesia is the world's most populous Muslim-majority nation - with 86 per cent of Indonesians declared Muslim according to the 2000 census.
State laws that ban "blasphemy" have been criticised for hampering religious freedom and discriminating against non-Muslim groups. Ahmadiyah, a controversial Muslim minority, are banned from practising their brand of Islam.
Military
Indonesia's 300,000-member armed forces include an army, navy and air force. Years of underfunding by the government have meant that in recent years, up to 75 per cent of defence spending has been funded by profits from a raft of commercial military ventures. In 2007, the Indonesian military had 23 foundations and over 1,000 cooperatives, including ownership of 55 companies, as well as leases on thousands of government properties and buildings. Human rights groups claim these ventures are platforms for extortion, violence, property seizures and crimes against civilians.
President Susilo Bambang Yudhoyono decreed in 2004 that the government must assume control of all commercial ventures run by the military, but a report released in January by Human Rights Watch found that many of the businesses had not yet been dismantled. The president announced a 20 per cent increase in the defence budget last year in a bid to bring the armed forces under control.
The formal representation of the armed forces in parliament was ended following the resignation of president Suharto in 1998, but the military remains extensive political influence.
Human right abuse
Armed conflict in the Aceh and Papua provinces has led to allegations of human rights abuse and brutality on all sides - including on the part of the military. A video released on October showed Papuan detainees being tortured by two Indonesian soldiers, who now face prosecution. Journalists are banned from travelling to Papua.
Human Rights Watch called on President Obama to challenge the Indonesian government over a raft of alleged abuses. The New York-based pressure group claims dozens of political protestors have been unfairly imprisoned and draconian defamation laws are used to silence anti-corruption campaigners.
It claims that commercial ventures run by the armed forces are used to extort and tyrannise citizens and has called on the government to step up its efforts to shut them down.
The charity is also campaigning against dozens of laws which restrict the rights of women and non-Muslims.
Corruption
A culture of bribery and corruption remains an endemic problem in Indonesia, and threatens to undermine the democratic process,according to Human Rights Watch.
Five men suspected of corruption were elected as district heads or governors in regional elections in August, prompting calls by the pressure group Indonesia Corruption Watch for stricter laws disqualifying candidates suspected of foul play.
A report by the Java-based Center for International Forestry Research warned in January that billions of dollars of aid flooding into Indonesia under a UN-backed forestry scheme were at risk because of high levels of corruption and financial mismanagement.
Justice
Indonesia has a relatively sophisticated judicial system and its courts are generally more lenient than those of other Muslim countries. Murder, drug trafficking and terrorism are punishable by death and executions are carried out by firing squad.
Human Rights Watch is campaigning for the release of dozens of political prisoners, primarily from areas of unrest such as Papua, who were jailed for engaging in nonviolent demonstrations, raising flags, and displaying pro-independence symbols.
The New York-based human rights organisation also claims that laws that criminalise "insulting" public officials are used to silence anti-corruption activists, human rights defenders, and citizens who publicly air consumer complaints or allegations of misconduct.
Most civil disputes in Indonesia appear before a State Court, while appeals are heard before the High Court and the Supreme Court is the highest court in the land. There is also a Commercial Court, which handles bankruptcy and insolvency; a State Administrative Court to hear cases against the government; a Constitutional Court to hear disputes concerning general elections, political parties and state institutions; and a Religious Court.
Economy
The Japan Credit Rating Agency upgraded Indonesia's investment grade from BB+ to BBB (Investment Grade - proper to invest) in July. It is the largest economy in Southeast Asia and a member of the G20 major economies.
Media
Domestic journalism was closely controlled by the Ministry of Information and the foreign press were restricted under the rule of President Suharto, but media freedom has improved since his resignation in 1998. The commercial television market now includes ten national networks and multiple provincial networks that compete with the state-owned TVRI. Private radio stations carry their own news bulletins and foreign broadcasters are free to supply programs. But journalists are still banned from travelling to Papua, the remote separatist province where armed conflict between sectarian activists and the military has led to allegations of human rights abuse.
Internet access is unrestricted and the latest figures show that 30 million Indonesians are online, comprising 12.5 per cent of the population.
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