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        General information
        Political Overview
        Economy Overview
        Cultural & Historical Overview
        Relation with the ACD and other regional grouping
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In South Asia

Total Area 1,904,569 sq km/ 735,355 sq mi (water 4.85%)

Indonesia is the world's archipelagic country, it has a total of 17.508 islands.

Climate : Tropical (around 23 – 34 C)

Population (by Religion, Ethincity)
222,781,000 (87% Muslim, 9% Christian, 2% Hindu)

Flag and Meaning : Merah Putih (Red and White)

The Indonesian national flag is called "Sang Saka Merah Putih". As provided for in Articles 35 of the 1945 Constitution, the flag is made up of two colors, red on top of white. Red represents the bravery, while white represents the spiritual.

National Symbol : Burung Garuda (Eagle)
National Symbol
Garuda is a mythical golden eagle, common to both Hindu and Buddhist mythology. The Garuda was a chimera, having the wings, beak, and feet of the golden eagle, but a man's arms and trunk.

The feathers on the Garuda of the Indonesian coat-of-arms are arranged so that they invoke the date of 17 August 1945, the officially recognized Indonesian Day of Independence. There are 17 feathers on each wing, 8 on the tail, 19 on the base of the tail (below the shield), 45 on the neck, corresponding to the "17/8/1945" international date format for Independence.

Pancasila is the philosophical foundation of indonesia, which comes from two sanscrit words "PANCA" meaning Five, and "SILA" meaning Principles. Pancasila consists of Five Interconnecting Principles:
  1. Belief in a one supreme God
  2. Humanity which is Civil and Just
  3. Unity in Diversity
  4. Wise Representation of Democracy
  5. Social Justice for Every Indonesian Citizen

National Day : 17 August 1945

Capital : Jakarta (population: approx. 11 million)
Indonesia's territory extends along 3.977 mile between the indian ocean and the pacific ocean. If the coastal area between the islands be connected, Indonesia's area would become 1.9 million square miles.

There are five large islands in indonesia, they are : Sumatera with an area of 473.606 square km, Java with an area of 132.107 square km, Borneo / Kalimantan (The third biggest island in the world) with an area of 539.460 square km, Sulawesi with an are of 189.216 square km, and Papua with an area of 421.981 square km.

Language : Bahasa Indonesia (plus 583 dialects), English
Political system :
Indonesia is a Republic with a presidential system. Its Democracy is based on Pancasila, the philosphical foundation of Indonesia.

Leaders : President Susilo Bambang Yudhoyono (2004 – 2009)
The President of Indonesia is the head of state, head of government, commander – in – chief of the Indonesian armed forces, and responsible for domestic governance, policy making and foreign affairs. The president appoints a council of ministers, who are not required to be elected members of the legislature.

Key Political Development/Figures :
Following the downfall of the Suharto administration in 1998, Indonesian political and government structure have undergone major reforms. The 1945 Constituation of Indonesia has been amended four times in 1999, 2000, 2001, and 2002.

Executive, judicial and legislative branches were revamped, creating a newly liberal democratic political system. Indonesia is now considered the world’s third largest democracy (after India and the US)
  1. Executive: President with its cabinet.
  2. Legislative : Majelis Permusyawarat Rakyat (MPR)/ the People’s Consultative Assembly is the highest representative body at national level. MPR contains two lower house of representatives; the People’s Representative Council (DPR) with 550 members and the Regional Representative Council (DPD) with 168 members.
    Dewan Perwakilan Rayat (DPR)/ House of Representative is the legistative body which passes legislation and monitors the executive branch. Members of the DPR are elected for five-year terms on a proportional representation basis from more than two thousand electoral districts.
  3. The Indonesian Judicial: Supreme Court and several courts.
  4. Tentara National Indonesia (TNI)/ Indonesia’s armed forces has total about 300,000 members including the Army (TNI–AD), with 233,000 active duty personnel; Navy including marines (TNI-AL); and Air Forces.
Key Political Particies/Figures:
  • Golkar (Partai Golongan Karya/Party of Functional Group)
  • Partai Demokrasi Indonesia Perjuangan (Indonesian Democratic Party Struggle)
  • Partai Kebangkitan Bangsa (National Awakening Party)
  • Partai Persatuan Pembangunan (United Development Party)
  • Partai Demokrat (Democratic Party)
  • Partai Keadilan Sejahtera (Prosperous Justice Party)
  • Partai Amanat National (National Mandate Party)
  • Partai Bulan Bintang (Crescent Star Party)
  • And others
Most Recent Election:
The 2004 presidential election was the first time the people directly vored for President and Vise President. President terms are five years and limited to a maximum of two consecutive terms.
Economic system :
Indonesia has generally pursued a free-market approach to economic development. Nonetheless the Government has kept state control over enterprises in sectors such as oil, plantations, and some areas of technology.

New decentralization laws that took effect in 2001 have shifted most functions from the capital to the provincial and district levels and redistribute a much higher share of profits from oil, gas, forestry, mining, and fishing to local governments. This process has significantly slowed down, however, due to concerns from Indonesian authorities and foreign investors that the local governments were not ready to assume control.

Economic indicators :
Overall macroeconomic conditions in 2007 remained stable with indicators pointing to further improvement in the economy. The major sources of economic growth were exports and rising domestic demand, particularly from renewed investment growth. Exports maintained a high level of growth, buoyed by strong performance in the agricultural and manufacturing sectors. Furthermore, subdued inflation, exchange rate movement with low volatility and a sound, competitive banking industry are the key pillars for common efforts in pursuit of high growth in 2007.

Most recent GDP/GDP per capita / GDP – real growth rate :
Growth in 2007 is predicted to reach 6.0%, up from the 5.5% growth estimated for 2006. During the first half of 2007, the economy will be driven mainly by consumption, while private investment is not expected to undergo significant expansion. Economic growth is predicted to gather momentum in the second half of 2007, with significant expansion in private investment and hefty increases in government capital expenditures. The economic growth is also predicted to reach as much as 6.3%. The expanding role of the banking system in provision of financing is a key factor in this prediction. Credit expansion in 2007 is forecasted at 15%-18%. Added to this, the recent expansion in non-bank financing is predicted to continue.

International Reserve :
The balance of payments in 2007 is predicted to record another surplus albeit below that of 2006. The reduced balance of payments surplus is explained by such developments as growing demand for imports in line with mounting economic activity. Non-oil and gas exports are predicted to climb 6%-8%, with expansion in non-oil and gas imports reaching 12%-14%. The current account in 2007 is thus forecasted to chart a US$6-8 billion surplus. In the capital account, FDI inflows are expected to strengthen in the second half of 2007, catching up with previous gains in portfolio investments. Balance of payments performance in 2007 is thus predicted to boost international reserves to about US$47 billion. The increased balance of payments surplus in 2007 will in turn strengthened the value of the Rupiah, which is predicted to maintain a stable trend.

Inflation :
CPI inflation in 2007 is forecasted to come within the Government-targeted range of 6% ± 1%. Improvements on the supply side will still be adequate to offset rising demand driven by the stronger growth, alleviating pressure on core inflation. The CPI inflation forecast for 2007 is also supported by low pressure in administered prices component in the absence of government plans for increases in strategic administered prices. Reinforcing this is continued low pressure from volatile foods inflation, in keeping with the government commitment to ensure smooth distribution of foods and especially of staple goods.

Fiscal Budget :
Prompt and properly targeted government expenditures will deliver an effective growth stimulus. Added to this, implementation of key government agenda in 2007, such as energy and transport infrastructure and the restructuring of textile industry machinery, is also seen as supporting the 2007 growth outlook.

Key Natural Resources : Natural Gas, Palm oil, Tea, Coffee, Spices
Key Historical Events : Commemoration of Independence Day on 17 of August

Indonesian culture has been shaped by long interaction between original indigenous customs and multiple foreign influences. Indonesia is central among ancient trading routes between the Far East and the Middle East, resulting in many cultural practices being strongly influenced by a multitude of religions, including Hinduism, Buddhism, Confucianism and Islam, all strong in the major trading cities.

Indonesian art-forms express this cultural mix. Wayang, traditional theater-performed puppet shows, were used to spread Hinduism and Islam amongst Javan villagers. Both Javanese and Balinese dances have stories about ancient Buddhist and Hindu kingdoms, while Islamic art forms and architecture are present in Sumatra, especially in the Minangkabau and Aceh regions. Traditional art, music and sport are combined into a martial art form called Pencak Silat.

Western culture has influenced Indonesia mostly in modern entertainment such as television shows, movies and songs. India has notably influenced Indonesian songs and movies. A popular type of song is the Indian-rhythmical dangdut, which is often mixed with Arab and Malay folk music.

Despite the influences of foreign culture, some remote Indonesian regions still preserve uniquely indigenous culture. Indigenous ethnic groups of Mentawai, Asmat, Dani, Dayak, Toraja and many others are still practicing their ethnic rituals, customs and wearing traditional clothes.

Craft : Several Islands are famous for their batik, ikat and songket cloth. Once on the brink of disappearing, batik and later ikat found a new lease of life when former President Soeharto promoted wearing batik shirts on official occasions. In addition to the traditional patterns with their special meanings, used for particular occasions, batik designs have become creative and diverse over the last few years.

Indonesia’s Membership in ACD
Indonesia has been ACD’s member since the establishment of this forum in 2002. As the member of ACD, Indonesia always actively participates in the Ministerial Level Meetings, as well as some working groups meeting in the ACD sector.

It is expected that ACD can play its best role as the forum to elaborate various potential cooperation that has not been discussed in other regional fora. ACD will take initiatives to explore ways to harness Asia’s strength and competitiveness to help reduce poverty and improve welfare for all members.

Indonesia’s participation in the ACD has been shown in its active contribution as prime mover of the energy cooperation, with other member countries, Bahrain, China, the Philippines, Qatar, and Kazakhstan.

Some activities have been held in order to promote energy cooperation,
  1. 1st Energy Forum in Bali 26 – 28 September 2005 which declared the establishment of the ACD Energy Forum to be the main forum to deliberate on issues related to the energy field in the ACD. ACD Forum is tasked and given responsibilities to drawing up an ACD Energy Action Plan which can include some initiatives as stated in Joint Declaration of the 1st ACD Energy Forum to be implemented, in the spirit of voluntary cooperation, mutual respect, and shared benefit.
  2. Consultative Meeting of the Energy Co-Prime Movers on Energy Action Plan, Bali on 11 – 12 April 2007, as a follow up meeting of the 1st ACD Energy Forum in Bali, 2005 to discuss on the draf of the ACD Energy Action Plan.
Indonesia’s Membership in Other Regional Grouping
Indonesia also becomes member or participates actively in other Regional Groupings and Regional Forums:
  1. Asia Africa (AA) since 1955 and NAASP (2005)
  2. Association of Southeast Asian Nation (ASEAN) since 1967
  3. Brunei-Indonesia Malaysia East Asia Growth Area (BIM-EAGA) since 1994
  4. ASEAN Regional Forum (ARF) since 1994
  5. Asia Middle East Dialogue (AMED) since 2005
  6. Asia Pacific Economic Cooperation (APEC) since 1997
  7. Asia Europe Meeting (ASEM) since 1996
  8. Indian Ocean Rim Association for Regional Cooperation (IOR-ARC) since 1997
  9. Forum for East Asia Latin America Dialogue (FEALAC)
  10. Pacific Island Forum (PIF) as a Dialogue Partner since 2002
  11. Southwest Pacific Dialogue (SWPD) as an initiator since 2002
Official site www.indonesia.go.id/en/
Department of Foreign Affairs www.deplu.go.id/
Department of Culture and Tourism www.budpar.go.id/
Department of Energy and Mineral Resources www.esdm.go.id/
Department of Religious Affairs www.depag.go.id
Department of Home Affairs www.depdagri.go.id
Department of Justice and Human Rights www.depkumham.go.id
Department of Public Work www.kimpraswil.go.id
Department of Transportation www.dephub.go.id
Department of Manpower and Transmigration www.nakertrans.go.id
Department of Finance www.depkeu.go.id
Department of National Education www.depdiknas.go.id
Department of Trade www.depdag.go.id
Department of Forestry www.dephut.go.id
Department of Communication and Informatics www.depkominfo.go.id
Department of Agriculture www.deptan.go.id
Department of Health www.depkes.go.id
Department of Defense www.dephan.go.id
Department of Maritime and Fisheries Affairs www.dkp.go.id
Department of Industry www.depperin.go.id
Department of Social Service www.depsos.go.id
Indonesia Central Bank www.bi.go.id/web/en
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