For the last decade, Indonesia has experienced major issues ranging from financial crisis economy, politics, natural disaster, and religious conflicts. Some of the examples are the 1997-1998 Asian financial crisis caused the Indonesia money, rupiah, depreciate value as much as 90%, and it also resulted food riots. Indonesia also sees the transitions from three presidencies: Soekarno Presidency for seven years, Suharto Presidency for 33 years, resignation of President Wahid after two years in office, and the first presidential elections by popular votes in 2004. This paper will discuss the economic issues, political changes, and achievements of Indonesia from 1965 to the current, and it also concentrates on the transitions amongst presidencies from Soekarno Presidency to the current Yudhoyno Presidency.
Indonesia was colonized by the Dutch in the early 17th century, but the Portuguese and British had been on Indonesia before them, but having little effect on Indonesia. From 1602 to 1799, the country was ruled by the Dutch East India Company. Despite rebellions, Indonesia remained a Dutch colony until 1942. The Japanese occupied the islands from 1942 to 1945 before the Dutch returned to claims their colony; however, fierce resistance ensued and at the end of 1949 the Dutch conceded sovereignty in all Indonesia except West Irian.
Indonesia is demographically the fifth largest nation in the world. Geographically, Indonesia is an archipelago of about 13,000 islands that extend over 3,000 miles. Because of the proximity of Malaysian and Singaporean ports and financial centers and the difficulty of patrolling so many islands, strict control of trade and financial flows is impossible. Geography has made Indonesia a truly open econ ...