Indonesia

1 Chapter Basic knowledge

    • Basic knowledge

      ■Official name of country
       
      Official Name                          : Republik Indonesia
      short form                              : Indonesia
      internationall long form : Republic of Indonesia
       
      ■National flag
      Flag of Republik Indonesia
       
       
      ■National land / Area
      Indonesia is the largest archipelago in the world. It consists of five major islands and about 30 smaller groups. The archipelago is on a crossroad between two oceans, the Pacific and the Indian, and bridges two continents, Asia and Australia. This strategic position has always influenced the cultural, social, political, and economic life of the country which has achieved independence from the Netherlands in 1949. 
      Area                : total: 1,904,569 sq km 
      Land                : 1,811,569 sq km 
      Water              : 93,000 sq km
      Location       : Southeastern Asia, archipelago between the Indian Ocean and the Pacific Ocean
       
      ■Capital
      Jakarta officially known as the Special Capital Region of Jakarta (Indonesian: Daerah Khusus Ibu Kota Jakarta), is the capital and largest city of Indonesia, and one of the most populous urban agglomerations in the world.
      Located on the northwest coast of Java, Jakarta is the country's economic, cultural and political centre, and with a population of 9,761,407 as of December 2012,[7] it is the most populous city in Indonesia and in Southeast Asia. The official metropolitan area, known as Jabodetabek (a name formed by combining the initial syllables of Jakarta, Bogor, Depok, Tangerang and Bekasi), is the second largest in the world, yet the metropolis's suburbs still continue beyond it.
       
      ■Time difference
       
      The Indonesian archipelago geographically stretches across four time zones from UTC+6 in Aceh to UTC+9 in Western Papua. However, The Indonesian government only recognizes three time zones in its territory: Western Indonesian Time—seven hours in advance (UTC+7) of Greenwich Mean Time (GMT), Central Indonesian Time— eight hours ahead (UTC+8) of GMT, and Eastern Indonesian Time—nine hours ahead (UTC+9) of GMT. The boundary between the western and central time zones established is a line running north between Java and Bali through the center of Kalimantan. The border between central and eastern time zones runs north from the eastern tip of Timor to the eastern tip of Sulawesi.
       
      ■Weather
      Indonesia has two seasons, wet and dry, with warm tropical temperatures averaging 28 °C during the day, throughout the year. In most regions, the dry season spans from May to September, with the rains falling from October to April.
      This is slightly different in Sumatra, where it rains from October to January in the north, and January to February in the south. Sulawesi, with its unusual shape, is also an exception; monsoon runs from October to March in south-west Sulawesi, while most rain in the north falls in June and July, with a dry season between August and October.
       
       
      ■Population
       
      During 2015 Indonesia population is estimated to be increased by 2 761 347 people and reach 257 733 333 in the beginning of 2016. The natural increase is expected to be positive, as the number of births will exceed the number of deaths by 3 018 868. If external migration will remain on the previous year level, the population will be declined by 257 522 due to the migration reasons. It means that amount of people who leaves Indonesia to settle permanently in another country (emigrants) will prevail over the amount of people who moves into the country (to which they are not native) in order to settle there as permanent residents (immigrants).
      Population dynamics in 2015
       
      According to our estimations, daily change rates of Indonesia population in 2015 will be the following:
      ·         12 644 live births average per day (526.83 in a hour)
      ·         4 373 deaths average per day (182.21 in a hour)
      ·         -706 emigrants average per day (-29.40 in a hour)
      The population of Indonesia will be increased by 7 565 persons daily in 2015.
      Indonesia population density
       
      Indonesia population density is 133.9 people per square kilometer as of August 2015. Density of population is calculated as permanently settled population of Indonesia divided by total area of the country. Total area is the sum of land and water areas within international boundaries and coastlines of Indonesia. The total area of Indonesia is 1 904 570 km2according to the United Nations Statistics Division
       
      ■Language
      The official language isIndonesian (locally known as Bahasa Indonesia), a variant of Malay, which was used in the archipelago, — borrowing heavily from local languages of Indonesia such as Javanese, Sundanese and Minangkabau. The Indonesian language is primarily used in commerce, administration, education and the media, but most Indonesians speak other languages, such as Javanese, as their first language. Most books printed in Indonesia are written in the Indonesian language.        
      Since Indonesia only recognizes a single official language, other languages are not recognized either at the national level or the regional level, thus making Javanese the most widely spoken language without official status, and Sundanese the second in the list (excluding Chinese dialects).
      ■ Currency
       
      The rupiah (Rp) is the official currency of Indonesia. Issued and controlled by the Bank of Indonesia, the ISO 4217 currency code for the Indonesian rupiah is IDR. The name "rupiah" is derived from the Hindustani word rupiyaa, ultimately from Sanskrit rupya. Informally, Indonesians also use the word "perak" ('silver' in Indonesian) in referring to rupiah.
       
      ■Religion
      Indonesia is a secular democratic country that has a Muslim-majority population. The Indonesian constitution guarantees all people in Indonesia the freedom of worship, each according to his or her own religion or belief. It also stipulates that the state shall be based upon the belief in "the one and only God" (a condition which also forms the first principle of the Pancasila, the Indonesian state philosophy introduced by Soekarno in 1945). At first sight these two conditions seem to be somewhat contradictory but Soekarno, Indonesia's first president, resolved this issue by hypothesizing that every religion (including 'soft polytheistic' Hinduism) essentially has one highest Supreme Being to which one subjects oneself. Although Indonesia is not an Islamic state, Islamic principles do influence political decision making. Moreover, certain hardcore Muslim groups have shown to be able to influence political and judicial decision making through (the threat of) violence.
      One peculiarity of the Indonesian government's stance on (freedom of) religion is that it recognizes six official religions only (which are Islam, Protestantism, Catholicism, Hinduism, Buddhism and Confucianism). Every Indonesian is required to embrace one of these religions as it is mandatory personal data which is mentioned in official documents such as passports and other identification cards.
      Composition of Indonesia's Six Official Religions 
       
      ■The Indonesia’s main history
      1670-1900 - Dutch colonists bring the whole of Indonesia under one government as the Dutch East Indies.
      1928 - A youth conference pledges to work for "one nation, one language, one people" for Indonesia.
      1942 - Japan invades Dutch East Indies.
      1945 - The Japanese help independence leader Sukarno return from internal exile and declare independence.
      1949 - The Dutch recognise Indonesian independence after four years of guerrilla warfare.
      1950s - Maluku (Moluccas) declares independence from Indonesia and fights an unsuccessful separatist war
      1962 - Western New Guinea, or West Papua, held by the Netherlands, is placed under UN administration and subsequently occupied by Indonesian forces. Opposition to Indonesian rule erupts.
      1965 - Failed coup: In the aftermath, hundreds of thousands of suspected Communists are killed in a purge of leftists which descends into vigilantism.
      1966 - Sukarno hands over emergency powers to General Suharto, who becomes president in March 1967.
      1969 - West Papua formally incorporated into Indonesia, becoming Irian Jaya Province.
      1975 - Portugal grants East Timor independence.
      1976 - Indonesia invades East Timor and incorporates it as a province.
      1997 - Asian economic crisis: Indonesian rupiah plummets in value.
      1998 - Protests and rioting topple Suharto; B J Habibie becomes president.
       
      East Timor independence vote
      1999 - Ethnic violence breaks out in Maluku. Free elections are held in Indonesia.
      East Timor votes for independence in UN-sponsored referendum, after which anti-independence militia go on the rampage. East Timor comes under UN administration. Abdurrahman Wahid (Gus Dur) becomes president.
      2000 - Two financial scandals dog the Wahid administration: Buloggate (embezzled funds from the state logistics agency), and Bruneigate (missing humanitarian aid funds from the Sultan of Brunei). The corruption case against former President Suharto collapses.
      Irian Jaya separatists become more vocal in demanding a referendum.
      2001 - Ethnic violence in Kalimantan as indigenous Dayaks force out Madurese transmigrants. Mass political demonstrations by Wahid's supporters and opponents. IMF stops further loans citing lack of progress in tackling corruption.
       
      Megawati sworn in
      2001 July - Parliament dismisses President Wahid over allegations of corruption and incompetence. Vice President Megawati Sukarnoputri is sworn in as his replacement, even as Wahid refuses to leave the presidential palace.
      2002 January - Indonesia inaugurates human rights court which is expected to test government's willingness to hold the military accountable for atrocities in East Timor after the 1999 independence vote.
      Irian Jaya province granted greater autonomy by Jakarta, allowed to adopt locally-preferred name of Papua.
      2002 May - East Timor becomes independent.
      2002 August - Constitutional changes are seen as a step towards democracy. For the first time, voters will be able to elect a president and vice president.
      Bali attacks
      2002 October - Bomb attack on the Kuta Beach nightclub district on Bali kills 202 people, most of them tourists.
      Muslim Cleric Abu Bakar Ba'asyir is arrested shortly after the bombings. He is accused of plotting to overthrow the government as the alleged spiritual leader of Jemaah Islamiah (JI), the group thought to be behind the Bali bombing.
      2002 December - Government and separatist Free Aceh Movement (Gam) sign peace deal in Geneva, aimed at ending 26 years of violence. The accord provides for autonomy and free elections in the Muslim oil-rich province of Aceh; in return the Gam must disarm.
      2003 May - Peace talks between government and Gam separatists break down; government mounts military offensive against Gam rebels. Martial law is imposed.
      2003 August - Car bomb explodes outside the Marriott Hotel in Jakarta, killing 14 people.
      2003 August-October - Three Bali bombing suspects are found guilty and sentenced to death for their roles in the 2002 attacks. A fourth suspect is given life imprisonment.
      Abu Bakar Ba'asyir is cleared of treason but jailed for subversion and immigration offences. The subversion charge is later overturned.
      2004 April - Parliamentary and local elections: Golkar party of former President Suharto wins greatest share of vote, with Megawati Sukarnoputri's PDI-P coming second.
      2004 July - First-ever direct presidential elections; first round narrows field to Susilo Bambang Yudhoyono and incumbent Megawati Sukarnoputri.
      2004 September - Car bomb attack outside Australian embassy in Jakarta kills nine, injures more than 180.
      Former general Susilo Bambang Yudhoyono wins second round of presidential elections, unseating incumbent Megawati Sukarnoputri.
      2004 November - End of two-year process under which 18 people were tried by Indonesian court for human rights abuses in East Timor during 1999 crisis. Only one conviction - that of militia leader Eurico Guterres - is left standing.
       
      Tsunami; Aceh deal
      2004 December - More than 220,000 people are dead or missing in Indonesia alone after a powerful undersea earthquake off Sumatra generates massive tidal waves. The waves devastate Indian Ocean communities as far afield as Thailand, India, Sri Lanka and Somalia.
      2005 March - Court finds Muslim cleric Abu Bakar Ba'asyir guilty of conspiracy over 2002 Bali bombings, sentences him to two-and-a-half years in jail. He is freed in June 2006.
      A powerful earthquake off Sumatra kills at least 1,000 people, many of them on the island of Nias. The quake triggers tsunami alerts around the Indian Ocean.
      2005 August - Government and Free Aceh Movement separatists sign a peace deal providing for rebel disarmament and the withdrawal of government soldiers from the province. Rebels begin handing in weapons in September; government completes troop pull-out in December.
      2005 September - Airliner crashes on take-off from Sumatran city of Medan, killing more than 100 passengers and around 50 people on the ground.
      2005 October - Three suicide bombings on the resort island of Bali kill 23 people, including the bombers
      2006 January - East Timorese report accuses Indonesia of widespread atrocities during its 24-year occupation, holding it responsible for the deaths of more than 100,000 people.
      2006 February-March - Deadly protests at a major US-owned gold and copper mine in Papua province follow attempts to remove illegal prospectors from the site.
      2006 May - A powerful earthquake kills thousands of people on Java.
      2006 July - A tsunami, triggered by a large undersea earthquake, kills more than 500 people on Java.
       
      Aceh elections
      2006 December - First direct elections held in Aceh province, consolidating the August 2005 peace accord. Former separatist rebel leader Irwandi Yusuf elected governor.
      2007 June - Police capture the alleged head of the militant group Jemaah Islamiah (JI), Zarkasih, and the leader of the group's military wing, Abu Dujana.
      2007 December - Alleged JI leader Zarkasih goes on trial in Jakarta.
      2008 January - Former President Suharto dies.
      2008 July - Final report by joint Indonesian-East Timorese Truth Commission blames Indonesia for the human rights violations in the run-up to East Timor's independence in 1999 and urges it to apologise. President Yudhoyono expresses "deep regret" but stops short of an apology.
      2008 November - Three Islamic militants convicted of carrying out the 2002 Bali bombings are executed.
      2009 July - President Susilo Bambang Yudhoyono wins re-election.
      Twin suicide bomb attacks on the JW Marriott and Ritz-Carlton hotels in Jakarta kill nine people and injure scores of others.
       
      Pressure mounts on militants
      2009 September - Police shoot dead Indonesia's most-wanted Islamist militant Noordin Mohammad Top, thought to be responsible for a series of deadly attacks across the archipelago.
      2010 February-March - Several suspected militants are arrested in series of raids on alleged training camps of groups thought to be linked to Jemaah Islamiah (JI) in Aceh province. Fourteen men are charged with plotting to launch terrorist attacks.
      2010 March - Police shoot dead Dulmatin - an alleged leading member of JI and the last main suspect in the 2002 Bali bombings still at large - during a raid on a Jakarta internet cafe.
      2010 October - Indonesia admits that men seen torturing Papuan villagers in a video are members of the military.
      President Yudhoyono calls off a state visit to the Netherlands because of a threatened bid by separatists to have him arrested.
      2010 November - US President Barack Obama visits, hailing Indonesia as an example of how a developing nation can embrace democracy and diversity.
      2011 February - Two churches are set alight in central Java during a protest by hundreds of Muslims about blasphemy..
       
      Radicals in court
      2011 June - Radical cleric Abu Bakar Ba'asyir gets 15-year jail sentence for backing an Islamist militant training camp.
      2011 December - Pay deal ends acrimonious three-month strike by 8,000 workers at copper and gold mine owned by US company Freeport-McMoran in the restive eastern province of Papua.
      Dutch government apologises for massacre of at least 150 people in the village of Rawagede, on the island of Java, in 1947, during Indonesia's war of independence.
      2012 March - Court sentences Islamist militant Pepi Fernando to 18 years in prison for a parcel-bombing campaign targeting Muslim leaders and police.
      2012 June - Jakarta court sentences bombmaker Umar Patek to 20 years in prison for his role in the 2002 Bali attacks. He was extradited from Pakistan in 2011. The sentencing brings to an end the 10-year investigation into the bombings.
      2013 February - Eight soldiers are shot dead in two separate attacks by armed men in Papua province.
      2013 June - Parliament approves a major petrol and diesel price hike to cut the ballooning fuel subsidy, sparking violent protests.
      2013 September - Via its ambassador in Jakarta, the Netherlands publicly apologises for summary executions carried out by the Dutch army in the 1940s.
      2013 November - Major diplomatic row with Australia over allegations that Australia spied on the president.
      2014 April - Opposition Indonesian Democratic Party of Struggle (PDI-P) comes out ahead in parliamentary election, but wins fewer votes than expected.
      2014 July - Joko Widodo is declared the winner in the presidential election.
      2015 January - Brazil and the Netherlands recall their ambassadors from Indonesia after the execution by firing squad of two of their citizens for drug trafficking.
      2015 April - Australia recalls ambassador after Indonesia executes two Australian drug convicts, in a group also including three Nigerians, an Indonesian, a Brazilian and a Ghanaian.
      2015 May - Indonesia and Malaysia agree to rescue and provide temporary shelter to Rohingya migrants fleeng Myanmar by boat, after weeks of mounting humanitarian crisis.
       
      ■ Political system
      Indonesia is a secular country in the sense that its political policies are not necessarily derived from religious teachings and that it does not have a single state religion. Religion, however, does play a very important role in Indonesian society. Indonesian nationals are obliged to adhere to one of the religions that have been selected by the government (Islam, Christianity, Catholicism, Hinduism, Buddhism and Confucianism), while atheism is not an option. Being the country that contains the largest Muslim population in the world, Islamic principles do play an important role in the nation's political decision making, but Indonesia is not a Muslim or Islamic state. Political decentralization in the post-Suharto era has brought more power to the regional governments and this development implied that regional decision-making has been more affected by the regional religious context. In strict Muslim areas, implemented policies can include the regional banning of pork business or the obligation for women to wear the headscarf, while in Christian regions (located mostly in eastern Indonesia) such policies seem impossible to be implemented. However, given the nation's clear Muslim majority and the dominance of (Muslim) Java in national politics, Indonesia - as a whole - is far more Islam oriented. To have a president that is non-Muslim, therefore, seems impossible. On the other hand, Indonesian Islam can generally be labelled 'moderate' as the majority of Indonesian Muslims consist of nominal Muslims. For example, when Megawati Soekarnoputri became the first female Indonesian president in 2001, only a small minority rejected her based on certain Islamic doctrine that women cannot take leading positions.
      The Indonesian political system consists of three branches:

      • Executive branch
      • Legislative branch
      • Judicial branch
      The executive branch consists of the president, the vice president and the cabinet. Both the president and vice president are chosen by the Indonesian electorate through presidential elections. They serve for a term of five years that can be extended once by another term of five years when re-elected by the people. During these elections the president and vice president run as a fixed, inseparable pair, which implies that the composition of this pair is of great political strategic importance. Important matters that are of influence include ethnic (and religious) background and (previous) social position in Indonesian society. In terms ofethnicity and religion, a Javanese Muslim will enjoy more popular support as the majority of the Indonesian people consist of Javanese Muslims. In lower political positions (and depending on the regional religious context) political leaders that are non-Muslim are possible (for example, the current vice governor of Jakarta is Chinese-Christian Basuki Cahaya Purnama). With regard to (previous) social position in society there are a few categories that all enjoy popular support from part of the people. These categories include (retired) army generals, businessmen, technocrats and leading Muslim scholars. Therefore, to optimize chances of winning the election the president and vice president usually come from different social categories in order to grasp a larger share of the popular vote. For example, current president Yudhoyono (himself a retired army general) chose Boediono (a Javanese Muslim technocrat) as vice president in his presidential campaign of 2009. As Boediono is an experienced economist, it raised people's trust in the pair. Despite Indonesia's authoritarian past under Suharto, army generals who run for president can still count on much popular support in present Indonesia as they are considered being strong leaders.
      After election, the new president appoints a cabinet that usually consists of members from his own party, the coalition partners and non-partisan technocrats. To see Indonesia's current cabinet composition, go here.
      The legislative branch is the People’s Consultative Assembly (Majelis Permusyawaratan Rakyat, abbreviated MPR). It has the power to set or change the Constitution and appoints (or impeaches) the president. The MPR is a bicameral parliament that consists of the People’s Representative Council (Dewan Perwakilan Rakyat, abbreviated DPR) and the Regional Representative Council (Dewan Perwakilan Daerah, abbreviated DPD). The DPR, consisting of 560 members, draws up and passes laws, produces the annual budget in cooperation with the president and oversees the general performance of political affairs. It is elected for a five-year term through proportional representation based on general elections. Remarkably, this DPR is notorious due to the frequent occurrences of corruption scandals among its members. The DPD deals with bills, laws and matters that are related to the regions, thus increasing regional representation at the national level. Every Indonesian province elects four members to the DPD (who serve for a five-year term) on non-partisan basis. As Indonesia contains 33 provinces, the DPD consists of a total of 132 members.
      The highest court in Indonesia's judiciary system is the independent Supreme Court (Mahkamah Agung). It is the final court of appeal and also deals with disputes between lower courts. A new court, established in 2003, is the Constitutional Court (Mahkamah Konstitusi), which monitors whether decisions made by the cabinet and parliament (MPR) are in line with the Indonesian Constitution. Most of the legal cases, however, are dealt with by the public courts, administrative courts, religious courts and military courts. A Judicial Commission (Komisi Yudisial) oversees the maintenance of honour, dignity and behaviour of Indonesian judges. There are frequent reports that Indonesia's judiciary institutions are not free from corruption and are not fully independent from the other political branches.
       
      ■Education system
      The Indonesian education system is based on a 12-year school structure (6+3+3) followed by four years at the undergraduate level and two years at the master’s level for students pursuing non-vocational studies.
      Education is compulsory for the first nine years (primary and junior secondary), and Islamic education is offered at all levels. The language of instruction is Bahasa Indonesia, but local regional languages may be used in the first three years of primary school. The school year runs from mid-July to mid-June on a semester system.
      Alongside the general education system, there are also Islamic schools or madrasahs. Islamic primary, lower and upper secondary schools are known as Madrasah Ibtidaiyah (MI), Madrasah Tsanawiyah (MT), and Madrasah Aliyah (MA), respectively. Technical and vocational education within the Islamic school system, known as Madrasah Aliyah Kejuruan (MAK), is also provided.Madrasah schools follow the same 6-3-3 system structure as in general education.
      The Ministry of National Education and Ministry of Religious Affairs have oversight of secondary, vocational and higher education, including state and private religious schools, which must adopt core curriculum developed by the Ministry of National Education. The Ministry of Religious Affairs primarily oversees the religious components of Islamic curricula.
       
      ■Politics / Economic trends
       
      Indonesia’s new president Joko Widodo—or Jokowi, as he is popularly known—has started his term on a positive note. On November 17, he cut subsidies on gasoline and diesel by 31 percent and 36 percent, respectively. The cut in subsidies was a bold step by the new president and signals his intent to remove structural flaws in the economy. The move will also reassure investors. Some have been wary of the government’s ability to enact tough reforms due to the ruling coalition’s lack of a majority in the legislature.
       
      Indonesia’s generous fuel subsidy regime has been one of its key drawbacks in recent times. Prior to the recent cuts (and post the cuts in 2013), fuel subsidies amounted to about 13 percent of budgeted spending for 2015, thereby stifling funds for infrastructure, skills, and health care. Without improvements in these areas, Indonesia will find it difficult to generate enough jobs for its large, young, and growing population. Currently, the country ranks 114 out of 189 countries in the World Bank’s ranking of ease of doing business. A competitiveness ranking by the World Economic Forum put Indonesia at 56th place in infrastructure and 61st in higher education and training out of 144 countries.
       
      The new administration is also trying to make top civil service appointments more transparent, cut administrative costs, and revamp operations in key ministries such as energy. These are welcome actions, given that an overbearing bureaucracy can stifle investments of the type Jokowi asked for during his address to business leaders in the Asia-Pacific Economic Cooperation summit in China.4 Reforms will help Indonesia improve its competitiveness and benefit from greater economic integration within the Association of South East Asian Nations in the future. They will also help draw interest from global businesses who are concerned about the rising cost of production in China.
      The cut in subsidies will also likely bring down Indonesia’s oil imports by reducing demand distortions in the economy. In 2013, the country’s net oil and gas imports amounted to $12.6 billion, a key contributor to the current account deficit of $29.1 billion. As oil imports come down, the resulting easing of the current account deficit will in turn aid the rupiah. It will also please rating agencies, which have been critical of Indonesia’s high deficit at a time when capital flows have been vulnerable due to the winding down of quantitative easing in the United States and the likely rise in interest rates there.
       
      The hike in fuel subsidies will impact inflation in the short term. Indeed, inflation jumped to 6.2 percent in November from 4.8 percent in October. The spike comes after Bank Indonesia’s (BI’s) success in forcing inflation down to its target range of 3.5–5.5 percent in 2014 post similar fuel price hikes in 2013. In July, inflation had gone down to 4.5 percent and had stayed within the target range until October. Encouragingly, just a day after the cuts, BI raised its key policy rate by 25 basis points to 7.75 percent in an emergency session. Clearly, the bank is keen to keep inflation expectations in check, reflected in the fact that it has kept its 2015 inflation target unchanged at 3.0–5.0 percent. It could cut the rate by another 25–50 basis points in 2015 if the rupiah weakens more than expected due to any monetary tightening in the United States. Weak global commodity prices and a high base from November 2015 will, however, keep downward pressure on prices and help BI. In the medium term, if savings from subsidy cuts are invested in infrastructure, some supply-side bottlenecks will ease, thereby aiding consumer prices.
       
      Indonesian businesses will also face pressure from slowing growth in key export destinations, especially China, and the mineral ore export ban since January 2014. Exports fell 0.7 percent in Q3, the third straight quarter of contraction. Household spending, however, is expected to remain strong despite rising inflation in the near term. Evidence from 2013–14 suggests that Indonesian consumers have bounced back from previous fuel price hikes. Private consumption expanded 5.4 percent in Q3, marginally down from 5.6 percent in Q2, and is likely to grow at an annual rate of 5.0–5.5 percent next year.
       
      Jokowi will find it tougher to implement other structural reforms as he encounters entrenched interests and opposition in the legislature. In fact, the recent fuel subsidy cut is only the first step in overhauling public finances. Even now, fuel prices in the country are 10–15 percent lower than international prices. Moreover, low global prices of oil have reduced the margin between domestic and global fuel prices. This dynamic will change when oil prices rise again. Consequently, the government’s best medium- to long-term bet would be to deregulate fuel prices completely. Politically this will be a difficult pill to swallow, but investors will hope that the government holds its nerve. After all, the country is at the crossroads of choosing its next growth path—and the road to higher rewards is not easy.
       
      ■The relation between Japan and Indonesia
       
      Indonesia and Japan are two Asian nations which share historical, economic, and political ties. Both nations went through a difficult period in World War II when the then Dutch East Indies was occupied by the Japanese Imperial Army for three-and-a-half years. Japan is a major trading partner for Indonesia. Japan is Indonesia's largest export partner and also a major donor of development aid to Indonesia through Japan International Cooperation Agency. Indonesia is a vital supplier of natural resources such as liquid natural gas to Japan. Both countries are members of the G20 and APEC. Today in Indonesia there are about 11,000 Japanese expatriates whereas in Japan there are approximately 24,000 Indonesian nationals working and training.
      Economic relations
      In 2012, there were between 1,200 and 1,300 Japanese corporates operating in Indonesia, with some 12,000 Japanese nationals living in Indonesia. Japan has been investing in Indonesia for decades, particularly in the automotive, electronic goods, energy, and mining sectors. Prior to the formation of the Indonesian Republic, the Japanese had viewed Indonesia as an important source of natural resources. The Japanese need of natural resources was among the reasons that led the nation to advance further to the south in their military conquests during World War II. Today Indonesia is Japan's major supplier for natural rubber, liquefied natural gas, coal, minerals, paper pulp, seafood such asshrimp and tuna, and coffee. Traditionally Indonesia has been regarded as a major market of Japanese automotive and electronic goods. For Japanese businesses, Indonesia has been a location for low-cost manufacturing operations as well as being the source of various natural resources required by those operations. Approximately 1,000 Japanese companies operate in Indonesia which employ approximately 300,000 people. Major Japanese factories are concentrated east of Jakarta with high concentrations in Bekasi, Cikarang and Karawang, West Java.
      A new trend in Japanese direct investment in Indonesia has emerged as a result of increasing incomes, a large population, and the increase in consumption of consumer goods in Indonesia. Consequently Japanese direct investment is no longer limited to traditional sectors but now also include retail, media, and consumer products sectors.[ Japanese restaurant chains such as Ootoya, Yoshinoya, and Ebisu Curry, minimarkets such as 7-Eleven, fashion, retail and household appliances stores such as Sogo and MUJI, and bookstores such as Kinokuniya have recently entered the market in Indonesia. Taisho Pharmaceutical recently acquired Bristol Myers Indonesia. The investment of these new corporations is encouraged by the success of several Japanese companies. Ajinomoto is planning the construction of a new $50 million (USD) factory in Indonesia.
      The trend of bilateral trade volume in the 2007-2011 period revealed an average increase of 11.97 percent per year, as the bilateral trade figures shows significant increase from US$30.15 billion in 2007 to US$53.15 billion in 2011.
      Cultural exchange and tourism
      Japanese culture is known in Indonesia, aside from the classic hallmarks of Japanese culture such as kimono, ikebana, origami, or samurai, Japanese culture has also been known to Indonesian youth through pop culture phenomenon such as manga, anime, J-Pop, and video games. Popular Japanese animation programming such as Doraemongained popularity among Indonesians. Conversely, many Japanese have become interested in Indonesian culture. Indonesian cultural icons such as batik, gamelan, and Indonesian dances have gained Japanese attention. Bali and Borobudur have become popular destinations for Japanese tourists: Japan is one of the largest sources of tourism in Bali.
      There are over 85,000 Indonesians studying the Japanese language, the largest number in Southeast Asia and the sixth largest in the world. The Indonesian interest in the Japanese language has been kindled by the increasing amount of Japanese business in Indonesia since 1980 s and the sizable number of Japanese tourists visiting Indonesia. Proficiency in Japanese has become quite an asset for Indonesian workers.
      In Jakarta, Grand Wijaya Center and Blok M have clusters of businesses catering to Japanese expatriates, including restaurants and supermarkets selling imported food products; Blok M, in particular. As a result of the high number of Japanese–style businesses and entertainments, the area around Blok M and Melawai Raya Street have come to be known as Jakarta's "Little Tokyo".
       

    • Education and Education System

       

      Education

      In Indonesia where there are many islands in the vast sea area, a country established with various nationalities and cultures and religions co-exist, education is positioned as an important issue that the nation is dealing with. In the past, educational problems such as low enrollment rate due to child labor, low quality of education and regional inequality were a mountain of tasks.

      After establishing compulsory education up to junior high school in 1994, the enrollment rate has increased. In the 1st century the enrollment rate  has exceeded 90% in elementary school, however in junior high school only 60% was recorded. In addition, since there are still large disparities due to  region and income,  the national education system law  enacted in 2003 set a goal  expecting that the enrollment rate of junior high school will increase up to 95% by 2007.

      The enrollment rate for the year 2012 was recorded at 97.9% for elementary school and 86.1% for junior high school. Although it did not reach the goal enrollment rate of the junior high school, it can be said that it has developed steadily. The literacy rate of Indonesia has already exceeded 90% for both males and females, and it has reached the level that is in line with developed countries. nThe level of education has improved greatly in this decade.

       

      ■ Education system

      In Indonesia, the education system includes Islamic schools, which are under the jurisdiction of the Ministry of Religion, in addition to ordinary schools which are under the jurisdiction of the Ministry of Education and Culture, all of which are of the same 6, 3, 3, 4 system as Japan.

      Compulsory education is 6 years of elementary school (SD: Sekolar Dasar) and 3 years of junior high school (SLTP: Sekolah Lanjutan Tingkat Pertama). High school (SM: Sekolah Menggah) is three years. There are also high schools for commercial skills, technical skills and others in addition to ordinary high school. The university is basically a four-year system, and there are various vocational schools as one year addition   to four years. In addition, there are master's and doctoral programs in graduate school.

      As a feature, there are learning obligations in Indonesian language and each regional language in any area. In Primary school the Five Principles of Panchasila (God faith, Humanitarianism,  Unification of Indonesia, Democracy, Social justice) are being taught. There are also many private schools that are exclusive for  Christianity and Buddhism.

       

       

       

    • Recent Japan-Indonesia Relations

      On April 22, 2015, Japan-Indonesia summit meeting was held in Jakarta between Prime Minister Abe of Japan and President Joko · Widdo of· Indonesia.

       

      From the Indonesian side, the concerns of discussion were cooperation in projects such as investment in Indonesia, city high-speed rail (MRT) and central Java coal-fired power station and expectation for cooperation concretization through maritime forum on marine field, while Japan side, stands to further strengthen "strategic partnership" in marine and economic areas, to promote investment expansion / export promotion, cooperation in infrastructure improvement such as new port construction in the metropolitan area, boost investment by Japanese companies and early discussion in the high-speed rail plan. It was a dialogue that further strengthened the cooperation system between Japan and Indonesia h in realization, willingness to deepen cooperation and discussions in energy, mining, electricity, etc.

      Regarding the high-speed railway, consideration was made as to which method to adopt, either Japan or China, but the adoption of the Chinese method was announced in October of the same year.

    • Babiliography

      [1] United Nations Development Program (UNDP) "Annual Report 2012/2013"

      [2] United Nations Population Fund Tokyo Office (UNFPA) "White Paper of the World Population 2013"

      [3] Republic of Indonesia Tourism Creative Economy Ministry "About Indonesia"

      [4] Ministry of Foreign Affairs "Regional situation in each country - Basic data of Republic of Indonesia"

      [5] "Current status of education and human resource development in Indonesia and trends of reform" Heisei 19th Economic Cooperation Evaluation Report, Ministry of Foreign Affairs

      [6] Ministry of Land, Infrastructure and Transport Policy Bureau "Outline of National Land Policy of Each Country - Indonesia"

      [7] National Diet Library Survey and Legislation Examination Bureau "Constitutional circumstances of other countries - Indonesia" December 2003

      [8] Japan International Association of Local Government Foundation "Local Government in Indonesia"

      [9] Foundation Overseas Vocational Training Association "Indonesia - Policies of Vocational Ability Development and Its Implementation Status"