indonesia

Official Name: Republic of Indonesia

Geography
Area: 2 million sq. km. (736,000 sq. mi.), about three times the size of Texas; maritime area: 7,900,000 sq. km. Cities: Capital--Jakarta (est. 9.6 million). Other cities--Surabaya 2.8 million, Medan 2.1 million, Bandung 2.4 million. Terrain: More than 17,500 islands; 6,000 are inhabited; 1,000 of which are permanently settled. Large islands consist of coastal plains with mountainous interiors. Climate: Equatorial but cooler in the highlands.

People
Nationality: Noun and adjective--
Indonesian(s).
Population (July 2009 est.): 240.3
million.
Annual population growth rate
(2009 est.): 1.136%.
Ethnic groups (2000 census):
Javanese 40.6%, Sundanese 15%,
Madurese 3.3%, Minangkabau
2.7%, others 38.4%.
Religions (2000 census): Muslim
86.1%, Protestant 5.7%, Catholic
3%, Hindu 1.8%, others 3.4%.
Languages: Indonesian (official),
local languages, the most
prevalent of which is Javanese.
Education: Years compulsory--9.
Enrollment--94% of eligible
primary school-age children.
Literacy--90.4% (2007).
Health: Infant mortality rate
(2009 est.)--29.97/1,000. Life
expectancy at birth (2009
est.)--70.76 years.
Work force: 111.5 million (2008).
Agriculture--42%, industry--12%,
services--44%.

Indonesia's approximately 240.3
million people make it the
world's fourth-most populous
nation. The island of Java,
roughly the size of New York
State, is the most populous
island in the world (124 million,
2005 est.) and one of the most
densely populated areas in the
world. Indonesia includes
numerous related but distinct
cultural and linguistic groups,
many of which are ethnically
Malay. Since independence,
Bahasa Indonesia (the national
language, a form of Malay) has
spread throughout the
archipelago and has become the
language of most written
communication, education,
government, business, and
media. Local languages are still
important in many areas,
however. English is the most
widely spoken foreign language.
Education is compulsory for
children through grade 9. In
primary school, 94% of eligible
children are enrolled whereas
57% of eligible children are
enrolled in secondary school.

Constitutional guarantees of religious freedom apply to the six religions recognized by the state, namely Islam (86.1%), Protestantism (5.7%), Catholicism (3%), Hinduism (1.8%), Buddhism (about 1%), and Confucianism (less than 1%). On the resort island of Bali, over 90% of the population practices Hinduism. In some remote areas, animism is still practiced.

Principal Government Officials
President--Susilo Bambang
Yudhoyono
Vice President--Boediono
Minister of Foreign Affairs--
Marty Natalegawa

Oil and Minerals Sectorr:
Indonesia left the Organization of Petroleum Exporting Countries (OPEC) in 2008, as it had been a net petroleum importer since 2004. Crude and condensate output averaged 944,000 barrels per day (bpd) in 2010, down slightly from 948,000 in 2009. In 2010, the oil and gas sector is estimated to have contributed $23.3 billion to government revenues, or 20.9% of the total. U.S. companies have invested heavily in the petroleum sector. Indonesia ranked third in world liquefied natural gas (LNG) exports production in 2010. Indonesia's oil, oil products, and gas trade balance was negative in 2008 with a $1.4 billion deficit, but became positive again in 2009 with a $29.4 million surplus, according to official statistics. Petroleum trade statistics are not yet available for 2010.

Indonesia has a wide range of mineral deposits and production, including bauxite, silver, and tin, copper, nickel, gold, and coal. Although the coal sector was open to foreign investment in the 1990s through coal contracts of work, new investment was closed again after 2000. A new mining law, passed in December 2008, opened coal to foreign investment again, although it eliminated the difference between foreign and domestic ownership structures. Total coal production reached 255 million metric tons in 2010, including exports of 198 million tons. Two U.S. firms operate two copper/ gold mines in Indonesia, with a Canadian and a U.K. firm holding significant investments in nickel and gold, respectively. Although coal production has increased dramatically over the past 10 years, the number of new metals mines has declined. This decline does not reflect Indonesia's mineral prospects, which are high; rather, the decline reflects earlier uncertainty over mining laws and regulations, low competitiveness in the tax and royalty system, and investor concerns over divestment policies and the sanctity of contracts.

In early 2010, the Government of Indonesia also formally decided to become a candidate country of the Extractive Industries Transparency Initiative (EITI), which will increase accountability and transparency in energy revenue transactions between the government and oil, gas, and mining firms.
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