The first known hominid inhabitant of Indonesia was the so-called “Java Man,” or Homo erectus, who lived half a million years ago. Approximately 60,000 years ago, the ancestors of the present-day Papuans reached New Guinea. Around 4 BC, they were followed by the ancestors of the modern-day Malays, Javanese and other Malayo-Polynesian groups who now make up the bulk of Indonesia’s population.
Trade contracts with India, China and the mainland of Southeast Asia brought outside cultural and religious influences to Indonesia. One of the first Indianized empires, known as Sriwijaya, was located on the coast of Sumatra around the strategic straits of Malacca, serving as the hub of a trading network that reached to many parts of the archipelago more than a thousand years ago.
On neighboring Java, large kingdoms of the interior of the island erected scores of exquisite religious monuments, such as Borobudur, the largest Buddhist monument in the world. The last and most powerful of these early Hindu-Javanese kingdoms, the 14th Century Majapahit Empire, once controlled and influenced much of what is now known as Indonesia, maintaining contacts with trading outposts as far away as the west coast of Papua New Guinea.
Beginning in 1602, the Dutch slowly established rule over Indonesia, except for East Timor, which remained under Portugal’s control until 1975. During 300 years of rule, the Dutch developed the Netherlands East Indies into one of the world's richest colonial possessions.
The Indonesian movement for independence began early in the 20th century. The Indonesian Communist party (PKI) was founded in 1920; in 1927 the Indonesian Nationalist party (PNI) arose under the leadership of Sukarno. It received its impetus during World War II, when the Japanese drove out the Dutch and occupied the islands. In August 1945, immediately after the Japanese surrender, Sukarno and Muhammad Hatta, another nationalist leader, proclaimed Indonesia an independent republic. The Dutch resisted the nationalists, and four years of fighting followed. Under UN pressure, an agreement was finally reached in November 1949 for the creation of an independent republic of Indonesia. A new constitution provided for a parliamentary form of government. Sukarno was elected president, and Hatta became premier.
Although Sukarno had achieved a major accomplishment in uniting so many diverse peoples and regions under one government and one language, his rule was marked by problems. The economy staggered under soaring inflation, and in 1958, a popular revolt began on Sumatra and spread to Sulawesi and other islands. Sukarno responded by imposing authoritarian measures, including dissolving the parliament in 1960 and reinstating an old constitution that provided for a strong, independent executive. Sukarno’s moves resulted in Hatta resigning from office.
The Indonesian army’s influence grew during this time as a result of its role in quelling the revolts. The Communist party also grew, leaving Sukarno to try to balance these two important power blocs in Indonesian politics.
In early 1962, Sukarno dispatched paratroopers to Netherlands New Guinea—territory still held by the Dutch. The Dutch agreed to transfer the area to the United Nations until a referendum was held in August 1969. The Indonesian government then annexed Netherlands New Guinea and changed its name to West Irian (Irian Barat), then Irian Jaya, and later Papua. A guerrilla war was begun soon after by the Organisasi Papua Merdeka (OPM; Free Papua Movement), a group seeking Papua’s independence.
Meanwhile, Sukarno tried to lay claim to Malaysian territory on Borneo, beginning a three-year conflict. He also began to lean increasingly toward the left, openly summoning Communist leaders for advice, exhibiting hostility toward the United States, and cultivating the friendship of Communist China. In 1965 he withdrew Indonesia from the United Nations.
That same year, a coup was launched by army forces under General Suharto that eventually forced Sukarno from power. Thousands of alleged Communists were executed by the army, and a widespread massacre ensued from October–December 1965. As many as 750,000 people may have been killed, including many ethnic Chinese. Entire villages on the islands of Java and Bali were wiped out, including those having nothing to do with communism. On March 12, 1967, the national assembly named Suharto acting president. He was elected president in 1968, and reelected in 1973, 1978, 1983, 1988, 1993, and 1998.
The economy began to grow rapidly in the 1970s, due mainly to expanded oil, gas and timber exports. In 1975–1976, Indonesia annexed East Timor, resulting in thousands of deaths and human rights abuses. The takeover was not recognized by the United Nations.
During Suharto’s regime, his family held sway over much of Indonesia’s economic life, and government corruption increased. While the economic conditions of many Indonesians improved, opposition to his policies continued to be suppressed. In October 1997, the country was plunged into economic upheaval when its currency plummeted. The stock market followed soon after, and the International Monetary Fund (IMF) agreed to provide the country with a $40 billion aid package in exchange for economic reforms. Struggling under a huge foreign debt and Suharto's reluctance to implement the IMF reforms, Indonesia’s economy continued to worsen in 1998.
Student protests and riots over rising prices broke out across the country, with increasing demands for Suharto to resign. Suharto stepped down in May 1998, and his vice president, B J Habibie, assumed the presidency. In June, the government reached an agreement with foreign bankers on the rescheduling of nearly $80 billion in debt.
Early in 1999, Indonesia and Portugal reached an agreement permitting the people of East Timor to choose in a referendum between limited autonomy within Indonesia and independence. Fighting in East Timor between government security forces and anti-independence militias on one side and separatist guerrillas on the other increased in mid-1999 as the vote approached. In August, voters chose independence, but the territory descended into chaos as pro-Indonesian militias and the army engaged in a campaign of terror and brutality, killing pro-independence Timorese and causing thousands to flee their homes. In September 1999, after intense international pressure, President Habibie asked the UN to send a peacekeeping force to the area, and in October the United Nations agreed to take full control of East Timor until independence, which was achieved in 2002.
During the 1999 parliamentary elections, the Indonesian Democratic Party of Struggle, led by Sukarno’s daughter, Megawati Sukarnoputri, came in first with 34% of the vote; Habibie’s Golkar Party came in second with 22%. In the October 1999 presidential elections, Abdurrahman Wahid, of the National Awakening party, became the country’s first democratically-elected president after Megawati failed to build the coalition needed to win. She was chosen by parliament as vice president. A Muslim theologian and religious leader, as well as a defender of human rights and religious tolerance, Wahid moved to increase civilian control over the military, which lost influence and prestige following Suharto’s fall and the East Timor debacle.
In February 2001, the parliament censured the president, who was implicated in two corruption scandals. Wahid, who had alienated Megawati and suffered a drop in popularity, was censured again in April. Although he was subsequently cleared of wrongdoing in the scandals, the parliament voted in July to remove him from office. Megawati succeeded Wahid as president. Subsequently the parliament passed laws granting limited autonomy (including substantial control over natural resources) to Aceh and Papua, in the hope of undercutting local secessionist movements, but violence in both provinces has continued. An agreement was signed with the Aceh rebels in December 2002.
Relations were strained with Malaysia in 2002 when as many as 400,000 Indonesians were forcibly deported under a tough new anti-illegal-immigrant law. Constitutional amendments passed in the same year called for the direct election of the president and the elimination of the seats reserved for the military in the national legislature.
On October 12, 2002, a terrorist bombing at a night club in Bali that was frequented by foreigners killed 202 people, 88 of whom were Australian. Eventually more than 30 people were tried for the crime and three were executed on November 9, 2008.
Legislative elections in April 2004 were a setback for Megawati’s party, which came in second to Golkar. Megawati subsequently lost the presidency in September 2004 to Susilo Bambang Yudhoyono, a former general and security minister and the candidate of the Democrat Party.
In December 2004, a huge tsunami caused by an earthquake off Sumatra devastated Aceh, killing some 130,000 people, and a subsequent earthquake in March caused destruction on the islands of Simeulue and Nias, west of Sumatra. There was a polio outbreak in Java in May 2005 that was eventually brought under control through a massive immunization campaign.
Acehnese rebels signed a peace agreement with the government in August 2005 and disarmed in exchange for the establishment of local self-government.
In May 2006, an earthquake in central Java killed about 5,800 people. A July quake off Java caused a tsunami that killed another 400 people. Heavy rains caused massive flooding in the Jakarta area in February 2007, forcing as many as 400,000 people from their homes.
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