Indonesia: Challenges of Conflict and Consensus in the Era of Reformasi

The Republic of Indonesia is the world’s largest archipelagic state. It is the most populous Muslim-majority country in the world with a population of more than 250 Million and one of Southeast Asia’s ethnically most heterogeneous societies. It is also the largest economy in the region and is regarded one of only a few relatively stable and well-functioning democracies in this part of the world. After decade long authoritarian rule collapsed in 1998, an elite settlement led to a series of inclusive democratic reforms and civil society saw a revival. Still, many challenges persist. These include widespread corruption, a weak rule of law and state administration, and a cumbersome consensus-driven political process. Problems of social and economic justice create social tensions that have the potential to unleash along ethnic lines. Religious minorities and proponents of social liberalism have suffered at the hands of Islamic extremists. Even though the consensus-oriented political system has so far kept political conflicts among the political within democratic channels, the slow speed of reform has also increased calls for a return to strongman politics and generated support for populist challengers of democracy. In the meantime, Indonesia’s democracy has remained resilient in the face of all these challenges, defying earlier expectations. This chapter provides a systematic overview of the political actors, institutions, and dynamics of Indonesia’s political system and summarizes its history and recent developments.