Country Overview - Indonesia - BRICS+ Consulting Group

Indonesia

Overview
Geography
Political Landscape
Economic Landscape
Social Landscape

Overview

Country Name: Indonesia

Country Flag:

Historical Background

1945: Indonesia declared independence from Dutch colonial rule on August 17.
1949: The Netherlands formally recognised Indonesian independence after four years of diplomatic negotiations and armed conflict.
1965-1966: A period of political upheaval led to the transition from President Sukarno to General Suharto, ushering in the “New Order” regime characterised by centralised authority and economic development initiatives.
1998: The Asian financial crisis and widespread public protests resulted in Suharto’s resignation, marking the beginning of Indonesia’s Reformasi era, which introduced democratic reforms and greater political openness.
2004: Indonesia conducted its first direct presidential elections, solidifying its commitment to democratic processes.
2024: Prabowo Subianto was elected as Indonesia’s president, succeeding Joko Widodo. Prabowo’s administration has emphasised economic growth, military modernisation, and an active role in international diplomacy.
Today: Indonesia stands as the largest economy in Southeast Asia, a key regional power, and the world’s third-largest democracy, with a diverse cultural heritage and significant influence in regional and global affairs.

Geography

Capital

Jakarta

Time Zones

Indonesia spans three time zones:
Western Indonesia Time (WIB) (UTC+7)
Central Indonesia Time (WITA) (UTC+8)
Eastern Indonesia Time (WIT) (UTC+9)

Area

Indonesia has an area of 1,904,569 km² (735,358 sq mi)
12.3% of the land is arable.
Position in the world: 14th
Indonesia is slightly larger than Mexico and five times the size of Germany.

Climate

Tropical, characterised by wet and dry seasons influenced by monsoon patterns.

States

Aceh
North Sumatra
West Sumatra
Riau,
Riau Islands
Jambi, Jambi
South Sumatra
Bangka Belitung Islands
Bengkulu
Lampung
Banten
Jakarta Special Capital Region
West Java
Central Java
Yogyakarta Special Region
East Java
Bali
West Nusa Tenggara
East Nusa Tenggara
West Kalimantan
Central Kalimantan
South Kalimantan
East Kalimantan
North Kalimantan
North Sulawesi
Gorontalo
Central Sulawesi
West Sulawesi
South Sulawesi
Southeast Sulawesi
Maluku
North Maluku
Papua
West Papua
South Papua
Central Papua
Highland Papua
Southwest Papua

Minerals/Resources

Indonesia is rich in natural resources, including coal, gold, tin, bauxite, nickel, natural gas, and petroleum.

Natural Disaster susceptibility

Earthquakes & Tsunamis: Indonesia is located on the Pacific Ring of Fire, making it highly susceptible to earthquakes and tsunamis, particularly in Sumatra, Java, and Sulawesi.

Volcanic Eruptions: Active volcanoes such as Mount Merapi, Mount Sinabung, and Krakatoa frequently erupt, affecting surrounding communities.

Flooding & Landslides: Heavy monsoon rains between November and March often lead to severe flooding in Jakarta, Sumatra, and Kalimantan, with landslides occurring in hilly and mountainous areas.

Border Countries

Malaysia
Papua New Guinea
Timor-Leste

Maritime Claims

Indonesia’s maritime claims are defined in accordance with the United Nations Convention on the Law of the Sea (UNCLOS):

Territorial Sea: Extends 12 nautical miles from its baselines, within which Indonesia exercises full sovereignty, including over navigation and resource exploitation.

Exclusive Economic Zone (EEZ): Extends up to 200 nautical miles from the baselines, granting Indonesia exclusive rights to exploit and manage natural resources, both living and non-living, in the water column and seabed. Notably, Indonesia’s EEZ around the Natuna Islands overlaps with areas claimed by China under the “nine-dash line,” leading to diplomatic engagements and the reinforcement of Indonesia’s maritime security presence in the region.

Continental Shelf: Indonesia claims rights to the continental shelf extending beyond the EEZ, allowing for the exploitation of seabed resources such as minerals and hydrocarbons.

Political Landscape

Power Structure: Indonesia operates as a presidential republic, where the president serves as both head of state and head of government.

Parliamentary Structure:Indonesia has a bicameral legislature consisting of the People’s Consultative Assembly (MPR), which includes the House of Representatives (DPR) and the Regional Representative Council (DPD).

Political landscape: Indonesia has a vibrant multi-party system, though major parties such as PDI-P and Golkar dominate elections.

Geopolitical Landscape

Allies

Regional Power:

Indonesia plays a leadership role in ASEAN, actively promoting regional security, economic cooperation, and diplomatic mediation.
South China Sea Dispute: Indonesia seeks to assert its sovereignty over its Exclusive Economic Zone while maintaining balanced relations with China.

Some Major International Allies

China: Major trading partner and infrastructure investor under the Belt and Road Initiative.
United States: Key defense and economic ally, particularly in counterterrorism cooperation.
Japan: A significant investor in infrastructure, technology, and manufacturing.

Government

Government Type

Presidential Republic.

President

Current president: Prabowo Subianto

Current Vice President: Gibran Rakabuming Raka

Term Begin-current

President Term: October 2024

Vice President: October 2024

Top 3 Political Parties and their ideology influence:

The Indonesian Democratic Party of Struggle (Partai Demokrasi Indonesia Perjuangan, PDI-P)

Ideology: Centre- left, nationalist and populist.

Party of Functional Groups (Partai Golongan Karya) ‘Golkar Party’

Ideology: Centre-right

The Great Indonesia Movement Party (Partai Gerakan Indonesia Raya) ‘Gerindra Party’

Ideology: Nationalist, right-wing and conservative.

Elections

Presidential elections occur every five years. The last election was in October 2024.

Upcoming Elections

2029 Presidential, Legislative and Local Elections

Foreign Policies

Balanced Diplomacy: Maintains strong relations with China and the US without aligning fully with either.
Independent and Active Foreign Policy (Bebas-Aktif): Since its inception, Indonesia has adhered to a “free and active” foreign policy, aiming to maintain autonomy in international affairs and avoid alignment with major power blocs. This principle was articulated by Vice President Mohammad Hatta in 1948 and continues to guide Indonesia’s diplomatic engagements.
ASEAN Centrality: As a founding member of the Association of Southeast Asian Nations (ASEAN) in 1967, Indonesia prioritises regional cooperation and integration. The country’s capital, Jakarta, hosts the ASEAN Secretariat, underscoring Indonesia’s commitment to regional leadership and stability.
Global Engagement: Indonesia actively participates in various international organisations, including the United Nations, the Non-Aligned Movement, the Organisation of Islamic Cooperation, and the G20. In January 2025, Indonesia became a full member of the BRICS group, reflecting its growing influence in global economic affairs.
Maritime Security and Sovereignty: Given its strategic archipelagic geography, Indonesia places significant emphasis on maritime security. The country seeks to address sovereignty issues, particularly in the South China Sea, through dialogue and peaceful means, while enhancing defense partnerships to safeguard its territorial waters.
Balanced Diplomacy: Under President Prabowo Subianto, Indonesia aims to balance relations with major powers such as China and the United States. Prabowo’s administration has pursued closer economic ties with China, evidenced by his inaugural state visit to Beijing, while also engaging with Western nations to maintain a neutral and strategic foreign policy stance.
Advocacy for Developing Nations: Indonesia positions itself as a bridge between developed and developing countries, championing the interests of the Global South. The nation’s foreign policy emphasises promoting peace, conflict resolution, and advocating for the rights and development of Muslim communities worldwide.

Economic Landscape

Size in world: 16th largest economy

GDP: 1.15 trillion USD

GDP Per Capita: 3 800 USD

Currency: Indonesian Rupiah (IDR).

Dominant Economic Sector: Services

Market Type: Mixed Economy

FDI by Country

Inbound

China
Singapore
Japan
South Korea
United States

Outbound

Singapore
Malaysia
Philippines
Vietnam

Some Major Trading Partners

European Union
African states
Security Cooperation

Imports

China
Japan
Singapore
South Korea
Thailand

Exports

China
United States
Japan
India
Malaysia