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.
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