"HISTORY OF INDONESIAN COUNTRY"
The 
history of Indonesia has been shaped by its geographic 
position, its natural resources, a series of human migrations and 
contacts, wars and conquests, as well as by trade, economics and 
politics. 
Indonesia is an 
archipelagic country of 17,508 islands (6,000 inhabited) stretching along the equator in 
South East Asia.
 The country's strategic sea-lane position fostered inter-island and 
international trade; trade has since fundamentally shaped Indonesian 
history. The area of Indonesia is populated by peoples of various 
migrations, creating a diversity of 
cultures, 
ethnicities, and 
languages.
 The archipelago's landforms and climate significantly influenced 
agriculture and trade, and the formation of states. The boundaries of 
the state of Indonesia represent the twentieth century borders of the 
Dutch East Indies.
Fossilised remains of 
Homo erectus and his tools, popularly known as the "
Java Man", suggest the Indonesian archipelago was inhabited by at least 1.5 million years ago. 
Austronesian people,
 who form the majority of the modern population, are thought to have 
originally been from Taiwan and arrived in Indonesia around 2000 BCE. 
From the 7th century CE, the powerful 
Srivijaya naval kingdom flourished bringing 
Hindu and 
Buddhist influences with it. The agricultural Buddhist 
Sailendra and Hindu 
Mataram dynasties subsequently thrived and declined in inland Java. The last significant non-Muslim kingdom, the Hindu 
Majapahit kingdom, flourished from the late 13th century, and its influence stretched over much of Indonesia. The 
earliest evidence of Islamised populations in Indonesia dates to the 13th century in northern 
Sumatra; other Indonesian areas gradually adopted Islam which became the dominant religion in 
Java
 and Sumatra by the end of the 16th century. For the most part, Islam 
overlaid and mixed with existing cultural and religious influences.
Europeans arrived in Indonesia from the 16th century seeking to monopolise the sources of valuable 
nutmeg, 
cloves, and 
cubeb pepper in 
Maluku. In 1602 the Dutch established the 
Dutch East India Company
 (VOC) and became the dominant European power by 1610. Following 
bankruptcy, the VOC was formally dissolved in 1800, and the government 
of the Netherlands established the 
Dutch East Indies under government control. By the early 20th century, Dutch dominance extended to the current boundaries. The 
Japanese invasion and 
subsequent occupation
 in 1942-45 during WWII ended Dutch rule, and encouraged the previously 
suppressed Indonesian independence movement. Two days after the 
surrender of Japan in August 1945, nationalist leader, 
Sukarno, declared independence and became president. The Netherlands tried to reestablish its rule, but a 
bitter armed and diplomatic struggle ended in December 1949, when in the face of international pressure, the Dutch formally recognised Indonesian independence.
An attempted coup in 1965 led to 
a violent army-led anti-communist purge in which over half a million people were killed. 
General Suharto politically outmanoeuvred President Sukarno, and became president in March 1968. His 
New Order administration
 garnered the favour of the West whose investment in Indonesia was a 
major factor in the subsequent three decades of substantial economic 
growth. In the late 1990s, however, Indonesia was the country hardest 
hit by the 
East Asian Financial Crisis which led to 
popular protests and Suharto's resignation on 21 May 1998. The 
Reformasi
 era following Suharto's resignation, has led to a strengthening of 
democratic processes, including a regional autonomy program, the 
secession of 
East Timor, and the first 
direct presidential election in 2004.
 Political and economic instability, social unrest, corruption, natural 
disasters, and terrorism have slowed progress. Although relations among 
different religious and ethnic groups are largely harmonious, acute 
sectarian discontent and violence remain problems in some areas.
Prehistory
In 2007 analysis of cut marks on two bovid bones found in 
Sangiran,
 showed them to have been made 1.5 to 1.6 million years ago by clamshell
 tools. This is the oldest evidence for the presence of early man in 
Indonesia. Fossilised remains of 
Homo erectus, popularly known as the "
Java Man" were first discovered by the Dutch anatomist 
Eugène Dubois at 
Trinil in 1891, and are at least 700,000 years old, at that time the oldest human ancestor ever found. Further 
Homo erectus fossils of a similar age were found at 
Sangiran in the 1930`s by the 
anthropologist Gustav Heinrich Ralph von Koenigswald, who in the same time period also uncovered fossils at 
Ngandong alongside more advanced tools, re-dated in 2011 to between 550,000 and 143,000 years old.
[1][2] In 1977 another 
Homo erectus skull was discovered at Sambungmacan
[3]
In 2003, on the island of 
Flores, fossils of a new small hominid dated between 74,000 and 13,000 years old and named "
Flores Man" (
Homo floresiensis) were discovered much to the surprise of the scientific community.
[4]
 This 3 foot tall hominid is thought to be a species descended from Homo
 Erectus and reduced in size over thousands of years by a well known 
process called 
island dwarfism. Flores Man seems to have shared the island with modern 
Homo sapiens
 until only 12,000 years ago, when they became extinct. In 2010 stone 
tools were discovered on Flores dating from 1 million years ago, which 
is the oldest evidence anywhere in the world that early man had the 
technology to make sea crossings at this very early time.
[5]
The archipelago was formed during the thaw after the latest 
ice age. Early humans to travelled by sea and spread from mainland 
Asia eastward to 
New Guinea and 
Australia. 
Homo sapiens reached the region by around 45,000 years ago.
[6] In 2011 evidence was uncovered in neighbouring 
East Timor,
 showing that 42,000 years ago these early settlers had high-level 
maritime skills, and by implication the technology needed to make ocean 
crossings to reach Australia and other islands, as they were catching 
and consuming large numbers of big deep sea fish such as tuna.
[7]
Austronesian people
 form the majority of the modern population. They may have arrived in 
Indonesia around 2000 BCE and are thought to have originated in Taiwan.
[8] Dong Son culture spread to Indonesia bringing with it techniques of 
wet-field rice cultivation, ritual buffalo sacrifice, bronze casting, 
megalithic practises, and 
ikat weaving methods. Some of these practices remain in areas including the 
Batak areas of Sumatra, 
Toraja in Sulawesi, and several islands in 
Nusa Tenggara. Early Indonesians were animists who honoured the spirits of the dead as their souls or life force could still help the living.
Ideal agricultural conditions, and the mastering of wet-field rice cultivation as early as the 8th century BCE,
[9]
 allowed villages, towns, and small kingdoms to flourish by the 1st 
century CE. These kingdoms (little more than collections of villages 
subservient to petty chieftains) evolved with their own ethnic and 
tribal religions. Java's hot and even temperature, abundant rain and 
volcanic soil, was perfect for wet rice cultivation. Such agriculture 
required a well organised society in contrast to dry-field rice which is
 a much simpler form of cultivation that doesn't require an elaborate 
social structure to support it.
Hindu-Buddhist civilizations
Early kingdoms
 
1600-year-old stone inscription from the era of Purnawarman, king of 
Tarumanagara, founded in Tugu sub-district of 
Jakarta.
 
 
 
References to the Dvipantara or 
Jawa Dwipa Hindu kingdom in 
Java and 
Sumatra appear in Sanskrit writings from 200 BCE.
[citation needed] The earliest archeological relic discovered in Indonesia is from the Ujung Kulon National Park, West Java, where an early 
Hindu statue of 
Ganesha
 from the 1st century CE was found on the summit of Mount Raksa in 
Panaitan Island. There is also archeological evidence of a kingdom in 
Sunda territory in West Java dating from the 2nd century, and according 
to Dr Tony Djubiantono, the head of Bandung Archeology Agency, 
Jiwa Temple in 
Batujaya, Karawang, 
West Java was also built around this time.
A number of 
Hindu and 
Buddhist states flourished and then declined across Indonesia. By the time of the European 
Renaissance, 
Java and 
Sumatra had already seen over a millennium of civilization and two major empires. One such early kingdom was 
Tarumanagara, which flourished between 358 and 669 CE. Located in 
West Java close to modern-day 
Jakarta, its 5th-century king, Purnawarman, established the earliest known inscriptions in 
Java, the Ciaruteun inscription located near 
Bogor.
 On this monument, King Purnavarman inscribed his name and made an 
imprint of his footprints, as well as his elephant's footprints. The 
accompanying inscription reads, "Here are the footprints of King 
Purnavarman, the heroic conqueror of the world". This inscription is in 
Sanskrit
 and is still clear after 1500 years. Purnawarman apparently built a 
canal that changed the course of the Cakung River, and drained a coastal
 area for agriculture and settlement. In his stone inscriptions, 
Purnawarman associated himself with 
Vishnu, and 
Brahmins ritually secured the hydraulic project.
[10]
Three rough plinths dating from the beginning of the 4th century are found in 
Kutai, 
East Kalimantan, near 
Mahakam River. The plinths bear an inscription in the 
Pallava script of India reading "A gift to the 
Brahmin priests".
The political history of Indonesian archipelago during the 7th to 11th centuries was dominated by 
Srivijaya based in Sumatra, also 
Sailendra that dominated central Java and constructed 
Borobudur,
 the largest Buddhist monument in the world. The history of the 14th and
 15th centuries is not well known due to scarcity of evidence. Two major
 states dominated this period; 
Majapahit in East Java, the greatest of the pre-Islamic Indonesian states, and 
Malacca on the west coast of the 
Malay Peninsula, arguably the greatest of the Muslim trading empires.
[11]
Medang
 
Prambanan in 
Java; built during the Sanjaya dynasty of Mataram, it is one of the largest Hindu temple complexes in south-east Asia.
 
 
 
Main article: 
Medang Kingdom or previously known as 
Mataram was an 
Indianized kingdom based in Central Java around modern-day 
Yogyakarta between the 8th and 10th centuries. The center of the kingdom was moved from central Java to east Java by 
Mpu Sindok. An eruption of 
Mount Merapi volcano or a power struggle may have caused the move.
The first king of 
Mataram was 
Sri Sanjaya and left inscriptions in stone.
[12] The monumental Hindu temple of 
Prambanan in the vicinity of Yogyakarta was built by 
Daksa. 
Dharmawangsa ordered the translation of the 
Mahabharata into 
Old Javanese in 996.
The kingdom collapsed into chaos at the end of Dharmawangsa's reign under military pressure from 
Srivijaya. One of the last major kings of Mataram was 
Airlangga who reigned from 1016 until 1049.
[13] Airlangga was a son of 
Udayana of 
Bali and a relative of Dharmawangsa re-established the kingdom including Bali under the name of Kahuripan.
Srivijaya
Srivijaya was an 
ethnic Malay kingdom on Sumatra which influenced much of the 
Maritime Southeast Asia. From the 7th century CE, the powerful 
Srivijaya naval kingdom flourished as a result of trade and the influences of Hinduism and Buddhism that were imported with it.
[14]
 
As early as the 1st century CE Indonesian vessels made trade voyages as far as Africa. Picture: a ship carved on 
Borobudur, circa 800 CE.
 
 
 
Srivijaya was centred in the coastal trading centre of present day 
Palembang.
 Srivijaya was not a "state" in the modern sense with defined boundaries
 and a centralized government to which the citizens own allegiance.
[15] Rather Srivijaya was a confederacy form of society centered on a royal heartland.
[16] It was a 
thalassocracy
 and did not extend its influence far beyond the coastal areas of the 
islands of Southeast Asia. Trade was the driving force of Srivijaya just
 as it is for most societies throughout history.
[17] The Srivijayan navy controlled the trade that made its way through the 
Strait of Malacca.
[15]
By the 7th century, the harbors of various vassal states of Srivijaya lined both coasts of the Straits of Melaka.
[16] Around this time, Srivijaya had established 
suzerainty over large areas of Sumatra, western Java, and much of the 
Malay Peninsula. Dominating the Malacca and 
Sunda straits, the empire controlled both the 
Spice Route
 traffic and local trade. It remained a formidable sea power until the 
13th century. This spread the ethnic Malay culture throughout Sumatra, 
the Malay Peninsula, and western 
Borneo. A stronghold of 
Vajrayana Buddhism, Srivijaya attracted pilgrims and scholars from other parts of Asia.
A series of Chola raids in the 11th century weakened the Srivijayan 
hegemony and enabled the formation of regional kingdoms based, like 
Kediri, on intensive agriculture rather than coastal and long distance 
trade. Srivijayan influence waned by the 11th century. The island was in
 frequent conflict with the Javanese kingdoms, first 
Singhasari and then 
Majapahit. Islam eventually made its way to the 
Aceh region of Sumatra, spreading its influence through contacts with 
Arabs and 
Indian traders. By the late 13th century, the kingdom of 
Pasai in northern Sumatra converted to Islam. At that time Srivijaya was briefly a tributary of the 
Khmer empire and later the 
Sukhothai kingdom[citation needed].
 The last inscription dates to 1374, where a crown prince, 
Ananggavarman, is mentioned. Srivijaya ceased to exist by 1414, when 
Parameswara, the kingdom's last prince, converted to Islam and founded the 
Sultanate of Malacca on the Malay peninsula.
Singhasari and Majapahit
 
Wringin Lawang, the split gate shows the red brick construction, and 
strong geometric lines of Majapahit architecture. Located at Jatipasar, 
Trowulan, 
East Java.
 
 
 
Main articles: 
Singhasari and 
Majapahit
Despite a lack of historical evidence, it is known that Majapahit was the most dominant of Indonesia's pre-Islamic states.
[18] The Hindu 
Majapahit kingdom was founded in eastern Java in the late 13th century, and under 
Gajah Mada it experienced what is often referred to as a "Golden Age" in Indonesian history,
[19] when its influence extended to much of southern Malay Peninsula, Borneo, Sumatra, and Bali
[citation needed] from about 1293 to around 1500.
The founder of the Majapahit Empire, 
Kertarajasa, was the son-in-law of the ruler of the 
Singhasari
 kingdom, also based in Java. After Singhasari drove Srivijaya out of 
Java in 1290, the rising power of Singhasari came to the attention of 
Kublai Khan in China and he sent emissaries demanding tribute. 
Kertanagara, ruler of the Singhasari kingdom, refused to pay tribute and the Khan sent a 
punitive expedition which arrived off the coast of Java in 1293. By that time, a rebel from 
Kediri, Jayakatwang, had killed Kertanagara. The Majapahit founder allied himself with the 
Mongols
 against Jayakatwang and, once the Singhasari kingdom was destroyed, 
turned and forced his Mongol allies to withdraw in confusion.
Gajah Mada,
 an ambitious Majapahit prime minister and regent from 1331 to 1364, 
extended the empire's rule to the surrounding islands. A few years after
 Gajah Mada's death, the Majapahit navy captured Palembang, putting an 
end to the Srivijayan kingdom. Although the Majapahit rulers extended 
their power over other islands and destroyed neighbouring kingdoms, 
their focus seems to have been on controlling and gaining a larger share
 of the commercial trade that passed through the archipelago. About the 
time Majapahit was founded, Muslim traders and 
proselytisers
 began entering the area. After its peak in the 14th century, Majapahit 
power began to decline and was unable to control the rising power of the
 
Sultanate of Malacca.
 Dates for the end of the Majapahit Empire range from 1478 to 1520. A 
large number of courtiers, artisans, priests, and members of the royal 
family moved east to the island of 
Bali at the end of Majapahit power.
The age of Islamic states
The spread of Islam
The earliest accounts of the Indonesian archipelago date from the 
Abbasid Caliphate, according to those early accounts the Indonesian archipelago were famous among early 
muslim sailors mainly due to its abundance of precious 
spice trade commodities such as 
nutmeg, 
cloves, 
galangal and many other spices.
[20]
Although Muslim traders first traveled through South East Asia early in the Islamic era, the 
spread of Islam among the inhabitants of the Indonesian archipelago dates to the 13th century in northern 
Sumatra.
[21]
 Although it is known that the spread of Islam began in the west of the 
archipelago, the fragmentary evidence does not suggest a rolling wave of
 conversion through adjacent areas; rather, it suggests the process was 
complicated and slow.
[21]
 The spread of Islam was driven by increasing trade links outside of the
 archipelago; in general, traders and the royalty of major kingdoms were
 the first to adopt the new religion.
[22]
Other Indonesian areas gradually adopted Islam, making it the dominant religion in 
Java
 and Sumatra by the end of the 16th century. For the most part, Islam 
overlaid and mixed with existing cultural and religious influences, 
which shaped the predominant form of Islam in Indonesia, particularly in
 Java.
[22] Only 
Bali
 retained a Hindu majority. In the eastern archipelago, both Christian 
and Islamic missionaries were active in the 16th and 17th centuries, 
and, currently, there are large communities of both religions on these 
islands.
[22]
Sultanate of Mataram
The Sultanate of Mataram was the third Sultanate in Java, after the 
Sultanate of Demak Bintoro and the Sultanate of Pajang.
According to Javanese records, Kyai 
Gedhe Pamanahan became the ruler of the Mataram area in the 1570s with the support of the kingdom of 
Pajang to the east, near the current site of 
Surakarta (Solo). Pamanahan was often referred to as Kyai Gedhe Mataram after his ascension.
Pamanahan's son, Panembahan 
Senapati Ingalaga,
 replaced his father on the throne around 1584. Under Senapati the 
kingdom grew substantially through regular military campaigns against 
Mataram's neighbors. Shortly after his accession, for example, he 
conquered his father's patrons in Pajang.
The reign of Panembahan 
Seda ing Krapyak (
c. 1601–1613), the son of Senapati, was dominated by further warfare, especially against powerful 
Surabaya, already a major center in East Java. The first contact between Mataram and the 
Dutch East India Company
 (VOC) occurred under Krapyak. Dutch activities at the time were limited
 to trading from limited coastal settlements, so their interactions with
 the inland Mataram kingdom were limited, although they did form an 
alliance against Surabaya in 1613. Krapyak died that year.
Krapyak was succeeded by his son, who is known simply as 
Sultan Agung ("Great 
Sultan")
 in Javanese records. Agung was responsible for the great expansion and 
lasting historical legacy of Mataram due to the extensive military 
conquests of his long reign from 1613 to 1646.
After years of war Agung finally conquered Surabaya. The city 
surrounded by land and sea and starved it into submission. With Surabaya
 brought into the empire, the Mataram kingdom encompassed all of central
 and eastern Java, and 
Madura; only in the west did 
Banten and the Dutch settlement in 
Batavia
 remain outside Agung's control. He tried repeatedly in the 1620s and 
1630s to drive the Dutch from Batavia, but his armies had met their 
match, and he was forced to share control over Java.
In 1645 he began building 
Imogiri,
 his burial place, about fifteen kilometers south of Yogyakarta. Imogiri
 remains the resting place of most of the royalty of Yogyakarta and 
Surakarta to this day. Agung died in the spring of 1646, with his image 
of royal invincibility shattered by his losses to the Dutch, but he did 
leave behind an empire that covered most of Java and its neighboring 
islands.
Upon taking the throne, Agung's son Susuhunan 
Amangkurat I
 tried to bring long-term stability to Mataram's realm, murdering local 
leaders that were insufficiently deferential to him, and closing ports 
so he alone had control over trade with the Dutch.
By the mid-1670s dissatisfaction with the king fanned into open revolt. 
Raden Trunajaya, a prince from Madura, lead a revolt fortified by itinerant mercenaries from 
Makassar
 that captured the king's court at Mataram in mid-1677. The king escaped
 to the north coast with his eldest son, the future king 
Amangkurat II,
 leaving his younger son Pangeran Puger in Mataram. Apparently more 
interested in profit and revenge than in running a struggling empire, 
the rebel Trunajaya looted the court and withdrew to his stronghold in 
East Java leaving Puger in control of a weak court.
Amangkurat I died just after his expulsion, making Amangkurat II king
 in 1677. He too was nearly helpless, though, having fled without an 
army or treasury to build one. In an attempt to regain his kingdom, he 
made substantial concessions to the Dutch, who then went to war to 
reinstate him. For the Dutch, a stable Mataram empire that was deeply 
indebted to them would help ensure continued trade on favorable terms. 
They were willing to lend their military might to keep the kingdom 
together. Dutch forces first captured Trunajaya, then forced Puger to 
recognize the sovereignty of his elder brother Amangkurat II. The 
kingdom collapsed after a 
two-year war, in which power plays crippled the Sunan.
The Sultanate of Banten
In 1524–25, Sunan Gunung Jati from Cirebon, together with the armies of 
Demak Sultanate, seized the port of Banten from the 
Sunda kingdom, and established 
The Sultanate of Banten.
 This was accompanied by Muslim preachers and the adoption of Islam 
amongst the local population. At its peak in the first half of the 17th 
century, the Sultanate lasted from 1526 to 1813 AD. The Sultanate left 
many archaeological remains and historical records.
[23]
Colonial era
Beginning in the 16th century, successive waves of Europeans—the 
Portuguese, Spanish, Dutch and British—sought to dominate the spice trade at its sources in 
India and the 'Spice Islands' (
Maluku) of Indonesia. This meant finding a way to Asia to cut out Muslim merchants who, with their 
Venetian outlet in the 
Mediterranean,
 monopolised spice imports to Europe. Astronomically priced at the time,
 spices were highly coveted not only to preserve and make poorly 
preserved meat palatable, but also as medicines and magic potions.
The arrival of Europeans in South East Asia is often regarded as the 
watershed moment in its history. Other scholars consider this view 
untenable,
[24]
 arguing that European influence during the times of the early arrivals 
of the 16th and 17th centuries was limited in both area and depth. This 
is in part due to Europe not being the most advanced or dynamic area of 
the world in the early 15th century. Rather, the major expansionist 
force of this time was Islam; in 1453, for example, the 
Ottoman Turks conquered 
Constantinople, while Islam continued to spread through Indonesia and the 
Philippines.
 European influence, particularly that of the Dutch, would not have its 
greatest impact on Indonesia until the 18th and 19th centuries.
The Portuguese
 
The 
nutmeg plant is native to Indonesia's 
Banda Islands. Once one of the world's most valuable commodities, it drew the first European colonial powers to Indonesia.
 
 
 
New found Portuguese expertise in navigation, ship building and 
weaponry allowed them to make daring expeditions of exploration and 
expansion. Starting with the first exploratory expeditions sent from 
newly conquered 
Malacca in 1512, the Portuguese were the first Europeans to arrive in Indonesia, and sought to dominate the sources of valuable spices
[25] and to extend the 
Catholic Church's missionary
 efforts. The Portuguese turned east to Maluku and through both military
 conquest and alliance with local rulers, they established trading 
posts, forts, and missions on the islands of 
Ternate, 
Ambon, and 
Solor
 among others. The height of Portuguese missionary activities, however, 
came at the latter half of the 16th century. Ultimately, the Portuguese 
presence in Indonesia was reduced to Solor, 
Flores and 
Timor
 in modern day Nusa Tenggara, following defeat at the hands of 
indigenous Ternateans and the Dutch in Maluku, and a general failure to 
maintain control of trade in the region.
[26]
 In comparison with the original Portuguese ambition to dominate Asian 
trade, their influence on Indonesian culture was small: the romantic 
keroncong guitar ballads; a number of Indonesian words which reflect 
Portuguese’s role as the 
lingua franca of the archipelago alongside 
Malay;
 and many family names in eastern Indonesia such as da Costa, Dias, de 
Fretes, Gonsalves, etc. The most significant impacts of the Portuguese 
arrival were the disruption and disorganisation of the trade network 
mostly as a result of their conquest of 
Malacca,
 and the first significant plantings of Christianity in Indonesia. There
 have continued to be Christian communities in eastern Indonesia through
 to the present, which has contributed to a sense of shared interest 
with Europeans, particularly among the Ambonese.
[27]
Dutch East-India Company
 
An early 18th-century Dutch map from a time when only the north coastal ports of Java were well known to the Dutch
 
 
 
In 1602, the Dutch parliament awarded the VOC a monopoly on trade and
 colonial activities in the region at a time before the company 
controlled any territory in Java. In 1619, the VOC conquered the West 
Javan city of Jayakarta, where they founded the city of Batavia 
(present-day 
Jakarta). The VOC became deeply involved in the internal politics of 
Java in this period, and fought in a number of wars involving the leaders of 
Mataram and 
Banten.
The Dutch followed the Portuguese aspirations, courage, brutality and
 strategies but brought better organization, weapons, ships, and 
superior financial backing. Although they failed to gain complete 
control of the Indonesian spice trade, they had much more success than 
the previous Portuguese efforts. They exploited the factionalisation of 
the small kingdoms in Java that had replaced Majapahit, establishing a 
permanent foothold in Java, from which grew a land-based colonial empire
 which became one of the richest colonial possessions on earth.
[27]
Dutch state rule
After the VOC was dissolved in 1800 following bankruptcy,
[25] and after a short British rule under 
Thomas Stamford Raffles, the Dutch state took over the VOC possessions in 1816. A Javanese uprising was crushed in the 
Java War of 1825–1830. After 1830 a system of forced cultivations and indentured labour was introduced on Java, the 
Cultivation System (in Dutch: 
cultuurstelsel).
 This system brought the Dutch and their Indonesian collaborators 
enormous wealth. The cultivation system tied peasants to their land, 
forcing them to work in government-owned plantations for 60 days of the 
year. The system was abolished in 
a more liberal period after 1870. In 1901 the Dutch adopted what they called the 
Ethical Policy, which included somewhat increased investment in indigenous education, and modest political reforms.
The Dutch colonialists formed a privileged upper social class of 
soldiers, administrators, managers, teachers and pioneers. They lived 
together with the "natives", but at the top of a rigid social and racial
 
caste system.
[28][29]
 The Dutch East Indies had two legal classes of citizens; European and 
indigenous. A third class, Foreign Easterners, was added in 1920.
[30]
Upgrading the infrastructure of ports and roads was a high priority 
for the Dutch, with the goal of modernizing the economy, pumping wages 
into local areas, facilitating commerce, and speeding up military 
movements. By 1950 Dutch engineers had built and upgraded a road network
 with 12,000 km of asphalted surface, 41,000 km of metalled road area 
and 16,000 km of gravel surfaces.
[31]
 In addition the Dutch built 7,500 kilometers (4,700 mi) of railways, 
bridges, irrigation systems covering 1.4 million hectares (5,400 sq mi) 
of rice fields, several harbours, and 140 public drinking water systems.
 These Dutch constructed public works became the economic base of the 
colonial state; after independence they became the basis of the 
Indonesian infrastructure.
[32]
For most of the colonial period, Dutch control over its territories 
in the Indonesian archipelago was tenuous. In some cases, Dutch police 
and military actions in parts of Indonesia were quite cruel. Recent 
discussions, for example, of Dutch cruelty in 
Aceh have encouraged renewed research on these aspects of Dutch rule.
[33]
 It was only in the early 20th century, three centuries after the first 
Dutch trading post, that the full extent of the colonial territory was 
established and direct colonial rule exerted across what would become 
the boundaries of the modern Indonesian state.
[34] Portuguese Timor, now 
East Timor,
 remained under Portuguese rule until 1975 when it was invaded by 
Indonesia. The Indonesian government declared the territory an 
Indonesian province but relinquished it in 1999.
The emergence of Indonesia
Indonesian National Awakening
 
Sukarno, Indonesian Nationalist leader, and later, first president of Indonesia
 
 
 
In October 1908, the first nationalist movement was formed, 
Budi Utomo.
[35] On 10 September 1912, the first nationalist mass movement was formed--
Sarekat Islam.
[36] By December 1912, Sarekat Islam had 93,000 members.
[16]
 The Dutch responded after the First World War with repressive measures.
 The nationalist leaders came from a small group of young professionals 
and students, some of whom had been educated in the Netherlands. In the 
post–World War I era, the Indonesian communists who were associated with
 the 
Third International started to usurp the nationalist movement.
[37] The repression of the nationalist movement led to many arrests, including Indonesia's first president, 
Sukarno (1901–70), who was imprisoned for political activities on 29 December 1929.
[38] Also arrested was 
Mohammad Hatta, first Vice-President of Indonesia.
[39] Additionally, Sutan Sjahrir, who later became the first Prime Minister of Indonesia, was arrested on this date.
[40]
In 1914 the exiled Dutch socialist 
Henk Sneevliet founded the 
Indies Social Democratic Association. Initially a small forum of Dutch socialists, it would later evolve into the 
Communist Party of Indonesia (PKI) in 1924.
[41]
 In the post–World War I era, the Dutch strongly repressed all attempts 
at change. This repression led to a growth of the PKI. By December 1924,
 the PKI had a membership of 1,140.
[16] One year later in 1925, the PKI had grown to 3,000 members.
[16]
 In 1926 thru 1927, there was a PKI-led revolt against the Dutch 
colonialism and the harsh repression based on strikes of urban workers.
[42] However, the strikes and the revolt was put down by the Dutch with some 13,000 nationalists and communists leaders arrested.
[16] Some 4,500 were given prison sentences.
[43]
Sukarno was released from prison in December 1931.
[44] However, Sukarno was re-arrested again on 1 August 1933.
[45]
Japanese occupation
The 
Japanese invasion and 
subsequent occupation during World War II ended Dutch rule,
[46] and encouraged the previously suppressed Indonesian independence movement. In May 1940, early in 
World War II, the Netherlands was occupied by 
Nazi
 Germany. The Dutch East Indies declared a state of siege and in July 
redirected exports for Japan to the US and Britain. Negotiations with 
the Japanese aimed at securing supplies of aviation fuel collapsed in 
June 1941, and the Japanese started their conquest of Southeast Asia in 
December of that year.
[47]
 That same month, factions from Sumatra sought Japanese assistance for a
 revolt against the Dutch wartime government. The last Dutch forces were
 defeated by Japan in March 1942.
In July 1942, 
Sukarno accepted Japan's offer to rally the public in support of the Japanese war effort. 
Sukarno and 
Mohammad Hatta
 were decorated by the Emperor of Japan in 1943. However, experience of 
the Japanese occupation of Indonesia varied considerably, depending upon
 where one lived and one's social position. Many who lived in areas 
considered important to the war effort experienced 
torture, 
sex slavery, arbitrary arrest and execution, and other 
war crimes.
 Thousands taken away from Indonesia as war labourers (romusha) suffered
 or died as a result of ill-treatment and starvation. People of Dutch 
and mixed 
Dutch-Indonesian descent were particular targets of the Japanese occupation.
In March 1945 Japan organized an Indonesian committee (BPUPKI) on independence. At its first meeting in May, 
Soepomo
 spoke of national integration and against personal individualism; while
 Muhammad Yamin suggested that the new nation should claim 
Sarawak, 
Sabah, 
Malaya,
 Portuguese Timor, and all the pre-war territories of the Dutch East 
Indies. The committee drafted the 1945 Constitution, which remains in 
force, though now much amended. On 9 August 1945 Sukarno, Hatta, and 
Radjiman Wediodiningrat were flown to meet Marshal 
Hisaichi Terauchi
 in Vietnam. They were told that Japan intended to announce Indonesian 
independence on 24 August. After the Japanese surrender however, Sukarno
 unilaterally proclaimed 
Indonesian independence on 17 August. A later UN report stated that four million people died in Indonesia as a result of the Japanese occupation.
[48]
Indonesian National Revolution
 
Indonesian flag raising shortly after the declaration of independence.
 
 
 
Under pressure from radical and politicised 
pemuda ('youth') groups, Sukarno and Hatta proclaimed 
Indonesian independence, on 17 August 1945, two days after the Japanese Emperor’s 
surrender in the Pacific. The following day, the Central Indonesian National Committee (KNIP) declared Sukarno 
President, and Hatta 
Vice President.
[49]
 Word of the proclamation spread by shortwave and fliers while the 
Indonesian war-time military (PETA), youths, and others rallied in 
support of the new republic, often moving to take over government 
offices from the Japanese.
The Netherlands, initially backed by the British, tried to re-establish their rule,
[50]
 and a bitter armed and diplomatic struggle ended in December 1949, when
 in the face of international pressure, the Dutch formally recognised 
Indonesian independence.
[51]
 Dutch efforts to re-establish complete control met resistance. At the 
end of World War II, a power vacuum arose, and the nationalists often 
succeeded in seizing the arms of the demoralised Japanese. A period of 
unrest with city guerrilla warfare called the 
Bersiap
 period ensued. Groups of Indonesian nationalists armed with improvised 
weapons (like bamboo spears) and firearms attacked returning Allied 
troops. 3,500 Europeans were killed and 20,000 were missing, meaning 
there were more European deaths in Indonesia after the war than during 
the war. After returning to Java, Dutch forces quickly re-occupied the 
colonial capital of Batavia (now 
Jakarta), so the city of 
Yogyakarta
 in central Java became the capital of the nationalist forces. 
Negotiations with the nationalists led to two major truce agreements, 
but disputes about their implementation, and much mutual provocation, 
led each time to renewed conflict. Within four years the Dutch had 
recaptured almost the whole of Indonesia, but guerrilla resistance, led 
on Java by commander 
Nasution
 persisted. On 27 December 1949, after four years of sporadic warfare 
and fierce criticism of the Dutch by the UN, the Netherlands officially 
recognised Indonesian sovereignty under the 
federal structure of the 
United States of Indonesia
 (RUSI). On 17 August 1950, exactly five years after the proclamation of
 independence, the last of the federal states were dissolved and Sukarno
 proclaimed a single unitary Republic of Indonesia.
[52]
Sukarno's presidency
Democratic experiment
 
Campaign posters for the 1955 Indonesian election.
 
 
 
With the unifying struggle to secure Indonesia's independence over, 
divisions in Indonesian society began to appear. These included regional
 differences in customs, religion, the impact of Christianity and 
Marxism, and fears of Javanese political domination. Following colonial 
rule, Japanese occupation, and war against the Dutch, the new country 
suffered from severe poverty, a ruinous economy, low educational and 
skills levels, and authoritarian traditions.
[53] Challenges to the authority of the Republic included the militant 
Darul Islam who waged a guerrilla struggle against the Republic from 1948 to 1962; the declaration of an independent 
Republic of South Maluku by 
Ambonese formerly of the Royal Dutch Indies Army; and rebellions in Sumatra and Sulawesi between 1955 and 1961.
In contrast to the 
1945 Constitution, the 
1950 constitution
 mandated a parliamentary system of government, an executive responsible
 to the parliament, and stipulated at length constitutional guarantees 
for human rights, drawing heavily on the 1948 
United Nations Universal Declaration of Human Rights.
[54]
 A proliferation of political parties dealing for shares of cabinet 
seats resulted in a rapid turnover of coalition governments including 17
 cabinets between 1945 and 1958. The long-postponed parliamentary 
elections were held in 1955; the 
Indonesian National Party (PNI)—considered Sukarno's party—topped the poll, and the 
Communist Party of Indonesia
 (PKI) received strong support, but no party garnered more than a 
quarter of the votes, which resulted in short-lived coalitions.
[55]
Guided Democracy
 
Coat of Arms of the Republic of Indonesia, adopted 1950
 
 
 
By 1956, Sukarno was openly criticising parliamentary democracy, 
stating that it was "based upon inherent conflict" which ran counter to 
Indonesian notions of harmony as being the natural state of human 
relationships. Instead, he sought a system based on the traditional 
village system of discussion and consensus, under the guidance of 
village elders. He proposed a threefold blend of 
nasionalisme ('nationalism'), 
agama ('religion'), and 
komunisme ('communism') into a co-operative '
Nas-A-Kom'
 government. This was intended to appease the three main factions in 
Indonesian politics — the army, Islamic groups, and the communists. With
 the support of the military, he proclaimed in February 1957, '
Guided Democracy', and proposed a cabinet of representing all the political parties of importance (including the PKI).
[55]
 The US tried and failed to secretly overthrow the President, while 
Secretary of State Dulles declared before Congress that "we are not 
interested in the internal affairs of this country." 
[56]
Sukarno abrogated the 
1950 Constitution on 9 July 1959 by a 
decree dissolving the 
Constitutional Assembly and restoring the 1945 
Constitution.
[55]
 The elected parliament was replaced by one appointed by, and subject to
 the will of, the President. Another non-elected body, the Supreme 
Advisory Council, was the main policy development body, while the 
National Front was set up in September 1960 and presided over by the 
president to "mobilise the revolutionary forces of the people".
[55] Western-style parliamentary democracy was thus finished in Indonesia until the 1999 elections of the 
Reformasi era.
[55]
Sukarno's revolution and nationalism
Charismatic Sukarno spoke as a romantic revolutionary, and under his 
increasingly authoritarian rule, Indonesia moved on a course of stormy 
nationalism. Sukarno was popularly referred to as 
bung ("older 
brother"), and he painted himself as a man of the people carrying the 
aspirations of Indonesia and one who dared take on the West.
[57]
 He instigated a number of large, ideologically driven infrastructure 
projects and monuments celebrating Indonesia's identity, which were 
criticised as substitutes for real development in a deteriorating 
economy.
[57]
Western New Guinea
 had been part of the Dutch East Indies, and Indonesian nationalists had
 thus claimed it on this basis. Indonesia was able to instigate a 
diplomatic and military confrontation with the Dutch over the territory 
following an Indonesian-Soviet arms agreement in 1960. It was, however, 
United States pressure on the Netherlands that led to an Indonesian 
takeover in 1963.
[58] Also in 1963, Indonesia commenced 
Konfrontasi with the new state of Malaysia. The northern states of Borneo, formerly British 
Sarawak and 
Sabah, had wavered in joining Malaysia, whilst Indonesia saw itself as the rightful ruler of 
Austronesian peoples and supported an unsuccessful revolution attempt in 
Brunei.
[58]
 Reviving the glories of the Indonesian National Revolution, Sukarno 
rallied against notions of British imperialism mounting military 
offensives along the Indonesia-Malaysia border in Borneo. As the PKI 
rallied in Jakarta streets in support, the West became increasingly 
alarmed at Indonesian foreign policy and the United States withdrew its 
aid to Indonesia.
[58]
Indonesia's economic position continued to deteriorate; by the 
mid-1960s, the cash-strapped government had to scrap critical public 
sector subsidies, inflation was at 1,000%, export revenues were 
shrinking, infrastructure crumbling, and factories were operating at 
minimal capacity with negligible 
investment. Severe poverty and hunger were widespread.
[58][59]
The New Order
Transition to the New Order
Described as the great 
dalang ("puppet master"), Sukarno's 
position depended on balancing the opposing and increasingly hostile 
forces of the army and PKI. Sukarno's anti-imperial ideology saw 
Indonesia increasingly dependent on Soviet and then communist China. By 
1965, the PKI was the largest communist party in the world outside the 
Soviet Union or China. Penetrating all levels of government, the party 
increasingly gained influence at the expense of the army.
On 30 September 1965, six of the most senior generals within the 
military and other officers were executed in an attempted coup. The 
insurgents, known later as the 
30 September Movement,
 backed a rival faction of the army and took up positions in the 
capital, later seizing control of the national radio station. They 
claimed they were acting against a plot organised by the generals to 
overthrow Sukarno. Within a few hours, 
Major General Suharto, commander of the Army Strategic Reserve (
Kostrad),
 mobilised counteraction, and by the evening of 1 October, it was clear 
the coup, which had little coordination and was largely limited to 
Jakarta, had failed. 
Complicated and partisan theories
 continue to this day over the identity of the attempted coup's 
organisers and their aims. According to the Indonesian army, the PKI 
were behind the coup and used disgruntled army officers to carry it out,
 and this became the official account of Suharto's subsequent 
New Order administration. Most historians agree
[citation needed]that
 the coup and the surrounding events were not led by a single mastermind
 controlling all events, and that the full truth will never likely be 
known.
The PKI was blamed for the coup, and anti-communists, initially following the army's lead went on a violent 
anti-communist purge across much of the country. The PKI was effectively destroyed,
[60] and the most widely accepted estimates are that up to 500,000 were killed.
[61]
 The violence was especially brutal in Java and Bali. The PKI was 
outlawed and possibly more than 1 million of its leaders and affiliates 
were imprisoned.
[62]
Throughout the 1965–66 period, President Sukarno attempted to restore
 his political position and shift the country back to its pre-October 
1965 position but his Guided Democracy balancing act was destroyed with 
the PKI's destruction. Although he remained president, the weakened 
Sukarno was forced to transfer key political and military powers to 
General Suharto, who by that time had become head of the armed forces. 
In March 1967, the Provisional People's Consultative Assembly (MPRS) 
named General Suharto acting president. Suharto was formally appointed 
president in March 1968. Sukarno lived under virtual house arrest until 
his death in 1970.
Entrenchment of the New Order
 
Suharto was the military president of Indonesia from 1967 to 1998
 
 
 
In the aftermath of Suharto's rise, hundreds of thousands of people 
were killed or imprisoned by the military and religious groups in a 
backlash against alleged communist supporters.
[63] Suharto's administration is commonly called the 
New Order era.
[64]
 Suharto invited major foreign investment, which produced substantial, 
if uneven, economic growth. However, Suharto enriched himself and his 
family through business dealings and widespread corruption.
[65]
Annexation of West Irian
At the time of independence, the Dutch retained control over the western half of 
New Guinea,
 and permitted steps toward self-government and a declaration of 
independence on 1 December 1961. After negotiations with the Dutch on 
the incorporation of the territory into Indonesia failed, an Indonesian 
paratroop invasion 18 December preceded armed clashes between Indonesian
 and Dutch troops in 1961 and 1962. In 1962 the United States pressured 
the Netherlands into secret talks with Indonesia which in August 1962 
produced the 
New York Agreement, and Indonesia assumed administrative responsibility for West Irian on 1 May 1963.
Rejecting UN supervision, the Indonesian government under Suharto 
decided to settle the question of West Irian, the former Dutch New 
Guinea, in their favor. Rather than a referendum of all residents of 
West Irian as had been agreed under Sukarno, an "
Act of Free Choice"
 was conducted 1969 in which 1,025 Papuan representatives of local 
councils were selected by the Indonesians. After training in 
Indonesian language they were warned to vote in favor of Indonesian integration with the group unanimously voting for integration with Indonesia.
[citation needed] A subsequent UN General Assembly resolution confirmed the transfer of sovereignty to Indonesia.
West Irian was renamed 
Irian Jaya ('glorious Irian') in 1973. Opposition to Indonesian administration of Irian Jaya (later known as 
Papua) gave rise to 
guerrilla activity in the years following Jakarta's assumption of control.
Annexation of East Timor
In 1975, the 
Carnation Revolution in Portugal caused authorities there to announce plans for decolonisation of 
Portuguese Timor, the eastern half of the island of 
Timor whose western half was a part of the Indonesian province of 
East Nusa Tenggara. In the elections held in 1975, 
Fretilin,
 a left-leaning party and UDT, aligned with the local elite, emerged as 
the largest parties, having previously formed an alliance to campaign 
for independence from Portugal. Apodeti, a party advocating integration 
with Indonesia, enjoyed little popular support.
Indonesia alleged that Fretilin was communist, and feared that an 
independent East Timor would influence separatism in the archipelago. 
Indonesian military intelligence influenced the break-up of the alliance
 between Fretilin and UDT, which led to a coup by the UDT on 11 August 
1975, and a month-long civil war. During this time, the Portuguese 
government effectively abandoned the territory, and did not resume the 
decolonisation process. On 28 November, Fretilin 
unilaterally declared independence,
 and proclaimed the 'Democratic Republic of East Timor'. Nine days 
later, on 7 December, Indonesia invaded East Timor, eventually annexing 
the tiny country of (then) 680,000 people. Indonesia was supported 
materially and diplomatically by the United States, Australia and the 
United Kingdom who regarded Indonesia as an anti-communist ally.
Following the 1998 resignation of Suharto, on 30 August 1999, the people of East Timor voted overwhelmingly for independence in 
a UN-sponsored referendum.
 About 99% of the eligible population participated; more than three 
quarters chose independence despite months of attacks by the Indonesian 
military and its militia. After the result was announced, elements of 
the Indonesian military and its militia retaliated by killing 
approximately 2,000 East Timorese, displacing two-thirds of the 
population, raping hundreds of women and girls, and destroying much of 
the country's infrastructure. In October 1999, the Indonesian parliament
 (MPR) revoked the decree that annexed East Timor, and the 
United Nations Transitional Administration in East Timor (UNTAET) assumed responsibility for governing East Timor until it officially became an independent state in May 2002.
Transmigration
The Transmigration program (
Transmigrasi) was a National Government initiative to move landless people from densely populated areas of 
Indonesia (such as 
Java and 
Bali) to less populous areas of the country including 
Papua, 
Kalimantan, 
Sumatra, and 
Sulawesi.
 The stated purpose of this program was to reduce the considerable 
poverty and overpopulation on Java, to provide opportunities for 
hard-working
 poor people, and to provide a workforce to better utilise the resources
 of the outer islands. The program, however, has been controversial with
 critics accusing the Indonesian Government of trying to use these 
migrants to reduce the proportion of native populations in receiving 
areas, in order to weaken separatist movements. The program has often 
been cited as a major and ongoing factor in controversies and even 
conflict and violence between settlers and indigenous populations.
Reformation Era
Pro-democracy movement
 
University students and police forces clash in May 1998.
 
 
 
In 1996 Suharto undertook efforts to pre-empt a challenge to the New Order government. The 
Indonesian Democratic Party
 (PDI), a legal party that had traditionally propped up the regime had 
changed direction, and began to assert its independence. Suharto 
fostered a split over the leadership of PDI, backing a co-opted faction 
loyal to deputy speaker of the 
People's Representative Council Suryadi against a faction loyal to 
Megawati Sukarnoputri, the daughter of 
Sukarno and the PDI's chairperson.
After the Suryadi faction announced a party congress to sack Megawati would be held in 
Medan
 on 20–22 June, Megawati proclaimed that her supporters would hold 
demonstrations in protest. The Suryadi faction went through with its 
sacking of Megawati, and the demonstrations manifested themselves 
throughout Indonesia. This led to several confrontations on the streets 
between protesters and security forces, and recriminations over the 
violence. The protests culminated in the military allowing Megawati's 
supporters to take over PDI headquarters in Jakarta, with a pledge of no
 further demonstrations.
Suharto allowed the occupation of PDI headquarters to go on for almost a month, as attentions were also on 
Jakarta due to a set of high-profile 
ASEAN
 meetings scheduled to take place there. Capitalizing on this, Megawati 
supporters organized "democracy forums" with several speakers at the 
site. On 26 July, officers of the military, Suryadi, and Suharto openly 
aired their disgust with the forums.
[66]
On 27 July, police, soldiers, and persons claiming to be Suryadi 
supporters stormed the headquarters. Several Megawati supporters were 
killed, and over two-hundred arrested and tried under the 
Anti-Subversion and Hate-Spreading laws. The day would become known as 
"Black Saturday" and mark the beginning of a renewed crackdown by the 
New Order government against supporters of democracy, now called the 
"Reformasi" or Reformation.
[67]
Economic crisis and Suharto's resignation
In 1997 and 1998, Indonesia was the country hardest hit by the 
East Asian Financial Crisis,
[68]
 which had dire consequences for the Indonesian economy and society, and
 Suharto's presidency. At the same time, the country suffered a severe 
drought and some of the largest forest fires in history burned in 
Kalimantan and Sumatra. The 
rupiah,
 the Indonesian currency, took a sharp dive in value. Suharto came under
 scrutiny from international lending institutions, chiefly the 
World Bank, 
International Monetary Fund (IMF) and the United States, over longtime embezzlement of funds and some 
protectionist policies. In December, Suharto's government signed a letter of intent to the IMF, pledging to enact 
austerity measures, including cuts to public services and removal of 
subsidies,
 in return for receiving the aid of the IMF and other donors. Prices for
 goods such as kerosene and rice, and fees for public services including
 education rose dramatically. The effects were exacerbated by widespread
 corruption. The 
austerity measures approved by Suharto had started to erode domestic confidence with the New Order
[69] and led to 
popular protests.
Suharto stood for re-election by parliament for the seventh time in 
March 1998, justifying it on the grounds of the necessity of his 
leadership during the crisis. The parliament approved a new term. This 
sparked protests and riots throughout the country, now termed the 
Indonesian 1998 Revolution. Dissent within the ranks of his own 
Golkar party and the military finally weakened Suharto, and on 21 May he stood down from power.
[70] He was replaced by his deputy 
Jusuf Habibie.
President Habibie quickly assembled a cabinet. One of its main tasks was to re-establish 
International Monetary Fund
 and donor community support for an economic stabilization program. He 
moved quickly to release political prisoners and lift some controls on 
freedom of speech and association. Elections for the national, 
provincial, and sub-provincial parliaments were held on 7 June 1999. For
 the national parliament, 
Indonesian Democratic Party-Struggle (PDI-P, led by Sukarno's daughter 
Megawati Sukarnoputri) won 34% of the vote; 
Golkar (Suharto's party; formerly the only legal party of government) 22%; 
United Development Party (PPP, led by 
Hamzah Haz) 12%; and 
National Awakening Party (PKB, led by 
Abdurrahman Wahid) 10%.
Politics since 1999
 
Indonesian 2009 election ballot, since 2004 Indonesian vote their president directly.
 
 
 
In October 1999, the People's Consultative Assembly (MPR), which 
consists of the 500-member Parliament plus 200 appointed members, 
elected 
Abdurrahman Wahid,
 commonly referred to as "Gus Dur" as President, and Megawati 
Sukarnoputri as Vice President, for 5-year terms. Wahid named his first 
Cabinet in early November 1999 and a reshuffled, second Cabinet in 
August 2000. President Wahid's government continued to pursue 
democratization and to encourage renewed economic growth under 
challenging conditions. In addition to continuing economic malaise, his 
government faced regional, interethnic, and interreligious conflict, 
particularly in 
Aceh, the 
Maluku Islands, and Irian Jaya. In 
West Timor,
 the problems of displaced East Timorese and violence by pro-Indonesian 
East Timorese militias caused considerable humanitarian and social 
problems. An increasingly assertive Parliament frequently challenged 
President Wahid's policies and prerogatives, contributing to a lively 
and sometimes rancorous national political debate.
During the People's Consultative Assembly's first annual session in 
August 2000, President Wahid gave an account of his government's 
performance. On 29 January 2001 thousands of student protesters stormed 
parliament grounds and demanded that President Abdurrahman Wahid resign 
due to alleged involvement in corruption scandals. Under pressure from 
the Assembly to improve management and coordination within the 
government, he issued a presidential decree giving Vice President 
Megawati control over the day-to-day administration of government. Soon 
after, 
Megawati Sukarnoputri assumed the presidency on 23 July. In 2004, 
Susilo Bambang Yudhoyono won Indonesia's first direct 
Presidential election and in 
2009 he was elected to a second term.
Terrorism
As a multi-ethnic and multi-culture democratic country with majority 
of moderate Muslim population, Indonesia faces the challenges to deal 
with 
terrorism that linked to global militant Islamic movement. The 
Jemaah Islamiyah (JI) militant Islamic organization that aspired for the establishment of a Daulah Islamiyah
[71]
 that encompassed whole Southeast Asia including Indonesia, is 
responsible for series of terrorist attacks in Indonesia. This terrorist
 organization that linked to 
Al-Qaeda, was responsible for the 
Bali bombings in 2002 and 
2005, as well as 
Jakarta bombings in 2003, 
2004, and 
2009. Indonesian government, people and authorities has ever since tried to crack down the terrorist cells in Indonesia.
Tsunami disaster and Aceh peace deal
On 26 December 2004, a massive 
earthquake and tsunami devastated parts of northern 
Sumatra, particularly 
Aceh.
 Partly as a result of the need for cooperation and peace during the 
recovery from the tsunami in Aceh, peace talks between the Indonesian 
government and the 
Free Aceh Movement (GAM) were restarted. Accords signed in 
Helsinki
 created a framework for military de-escalation in which the government 
has reduced its military presence, as members of GAM's armed wing 
decommission their weapons and apply for amnesty. The agreement also 
allows for Acehnese nationalist forces to form their own party, and 
other autonomy measures.