STORY

After the fall of President Soeharto in May 1998 Indonesia changed dramatically. Soeharto's Vice-President, B J Habibie, took over the presidency until October 1999, when Abdurrahman Wahid (Gus Dur) was elected. After only 21 months in office Wahid was impeached for alleged involvement in financial scandals and replaced by his Vice-President, Megawati Soekarnoputri, (the daughter of Indonesia's first President, Soekarno) in July 2001. The transition was a peaceful one, which was a promising sign that Indonesia was coming to terms with its new democratic system. Susilo Bambang Yudhoyono, Megawati's former security minister, was elected President in September 2004 after defeating Megawati in a second-round election run-off. In his inauguration speech he pledged to stimulate the economy, fight corruption, promote peace in Aceh and Papua and prioritise education and health.

There is a continuing threat from terrorism across Indonesia. On 1 October 2005, the second Bali bombing killed 20 people and injured many more. Other attacks against western interests in Jakarta include the Marriot Hotel bombing on 5 August 2003 and the car bomb outside the Australian Embassy on 9 September 2004.

On 12 October 2002 the first Bali bomb led to the deaths of 200 people, including 28 British nationals. The then President Megawati said immediately after the bombings that she was determined to deal with the terrorist threat. A number of countries, including the UK, Australia and the US, are assisting Indonesia with police capacity building and counter terrorism training.
The Indonesian government brokered an agreement (the Malino I Accord) to end fighting between Christian and Muslim factions in Central Sulawesi, which was signed on 20 December 2001. This has brought an end to the large scale inter-communal violence. Low level violence has continued in the region and the area remains volatile with the possibility of violent clashes. The bombing of Tentena, a largely Christian town near Poso in Central Sulawesi, on 28 May 2005 killed 21 people. The central government is working with local communities to bring about stability.

In the Moluccas serious sectarian violence in 2000 and 2001 left thousands dead. On 12 February 2002 the Indonesian government brokered an agreement (the Malino II Accord) between Christian and Muslim factions in Maluku. Despite attempts to incite unrest, there has been some progress on the ground in Ambon and on 15 September 2003 the Indonesian government lifted the state of civil emergency in the Province. However, sporadic clashes still occur.

The peace process in Aceh has been a major achievement of the current Indonesian government. Both parties fulfilled their security obligations under the peace agreement signed in August 2005. The Free Aceh Movement (GAM) handed in 840 weapons for decommissioning, and the Government of Indonesia withdrew all non-local military and police forces. The UK supported the peace process through its participation in the EU-led Aceh Monitoring Mission. Elections were successfully held on 11 December 2006 with a large turnout. Irwandi Yusuf, former GAM member, was elected as Governor of Aceh.

Following the departure of the Dutch and a brief period of UN administration, Indonesia took over the administration of Papua (formerly Irian Jaya) in 1963. Irian Jaya became a province of Indonesia following a UN-supervised Act of Free Choice in 1969, the legitimacy of which is much debated. The Special Autonomy law was passed after consultations with the Papuan people by Gus Dur's government on 1 January 2002. On 27 January 2003, President Megawati issued a Presidential Instruction to split Papua into three provinces. There was concern that this contradicted the Special Autonomy Law, making its implementation difficult. However, on 14 November 2003 the Indonesian government announced the formation of a new province of West Irian Jaya (now referred to as West Papua) in Papua marking the official split of West Papua from the rest of Papua.

In November 2004 the Constitutional Court ruled that the creation of West Irian Jaya was not legal. However the court also stated that the province was a de facto reality and should be recognised. President Yudhoyono reiterated this position in a speech made to the DPD (Regional Government Assembly). The government subsequently issued a regulation on 16 April 2008 which clarifies the status of the province of West Papua and puts it on an equal footing with that of the province of Papua.

Chronology

1945
Declaration of Independence from the Netherlands. First provisional constitution

1949
Formal recognition of Independence from the Netherlands

1955
First national elections; no party secures a majority

1957
President Soekarno declares martial law

1959-65
Period of 'Guided Democracy'

1965
Limited coup by junior army officers against the high command crushed by General Soeharto; thousands of Indonesians died in the aftermath

1967
Soeharto becomes acting President in March (full President in March 1968)

1975
Indonesia takes over East Timor

1997
Start of Asian financial crisis

1998
21 May - Soeharto resigns to be succeeded by his Vice President Habibie

1999
7 June - Free and fair multi-party elections. Megawati Soekarnoputri's Democratic Party (PDI-P) polls 34% of the votes and Golkar (the former ruling party) 23%
30 August - East Timor Popular Consultation. 79% vote against autonomy and so implicitly for independence
20 September - multinational troops enter East Timor and Indonesia cedes control
20 October - MPR selects Abdurrahman Wahid (popularly known as Gus Dur), Chairman of the Nahdlatul Ulama (Indonesia's largest Muslim organisation) as new President

2001
23 July - following a special session of the MPR Wahid is impeached and removed as President. Megawati Soekarnoputri (daughter of Soekarno) becomes Indonesia's fifth President
21 November - Special Autonomy Bill for the province of Papua comes into effect
20 December - The Indonesian government brokers an agreement between the warring factions in Sulawesi to end the fighting

2002
1 January - Special Autonomy Bill for the province of Aceh comes into effect
12 January - The Indonesian government brokers an agreement between the warring factions in the Moluccas to end the fighting
10 August - The Indonesian Parliament passes legislation that will enable Indonesians to elect their President and Vice-President for the first time
12 October - Terrorist bomb blast kills 202, mostly tourists, in Bali night club
9 December - Indonesian government and Free Aceh Movement (GAM) sign a Cessation of Hostilities Agreement (COHA)

2003
18 May - Talks in Tokyo between the Indonesian government and GAM break down.
19 May - President Megawati declares martial law in Aceh, and military action begins
5 August - Terrorist bomb blast kills 11 at the Marriott Hotel in Jakarta

2004
19 May - Martial law in Aceh lifted and control returned to civilian administration
5 July - First round of the Presidential Elections
9 September – Terrorist bomb blast kills nine outside Australian Embassy in Jakarta
20 September - Second round of the Presidential Elections
4 October - Susilo Bambang Yudhoyono is announced as the winner of the Presidential elections
26 December - Earthquake and tsunami kills over 126, 000 people on Aceh and North Sumatra

2005
28 March - Major earthquake off the Island of Nias kills up to 1000 people.

2006
27 May - a major earthquake caused serious damage and loss of life in the Yogyakarta and Central Java provinces. The earthquake measured 6.2 on the Richter scale, killed more than 5,700 people, and injured between 37,000 and 50,000

2008
27 January – Former President Soeharto dies.