HISTORY
It's the world's fourth most populous nation, encompassing an astonishing variety of peoples and cultures.
Indonesia is one of the very few nations on earth to span such a broad spectrum of world history and human civilization – from its ancient Hindu-Javanese temples to Bali 's modern luxury resorts, and from the stone-age lifestyle in West Papua (Irian Jaya) to the immense metropolis that is Jakarta . The country's motto, Bhinneka Tunggal Ika, or Unity in Diversity, is no mere slogan. The population of nearly 220 million people is derived from 300 ethnic groups who speak over 250 distinct languages. The common element is the national language of Bahasa Indonesia, very similar to Malay.
Almost 90 percent of the people are Muslims whit a significant 
Christian population. There are also smaller numbers who
claim
Hindu beliefs are augmented by indigenous,
centuries-old animistic traditions. The forth most populous
nation in the world, Indonesia straddles two geographically-defined racial groups, the Asians to the west and Melanesians
in the east. The majority are Asians, particularly in the
western part of the archipelago. Over the centuries, mostly through commerce and trade, Indians, Arabs and Europeans have mingled with the indigenous people. The largest non-indigenous ethnic group is the Chinese, who control nearly
three-quarters of the nation's wealth while compromising
only 3 percent of the population. This has not gone unnoticed, making them a favorite target of irate rioters.
As the old Suharto order is dismantled, the current leadership struggles to come to terms with the demands of a newly democratized system. However, it will take awhile before the government can get its act together. Political fighting, a weak presidency, religious tensions, the clamor for autonomy and a weak economy all conspire against an immediate recovery.
The Dutch Colonial Years The saga of the Dutch in Indonesia began in 1596, when four small Dutch vessels, led by the incompetent and arrogant Cornelis de Houtman, dropped anchor in Banten, then the largest pepper port in the archipelago. Repeatedly blown off course and racked by disease and dissension, the de Houtman expedition was a disaster. The Dutch achieved effective control of the eastern archipelago and its lucrative spice trade by the end of the 17 th century. In the western half of the archipelago, however, they became increasingly embroiled in fruitless intrigues and wars, particularly in Java. This came about largely because the Dutch presence at Batavia disturbed a delicate balance of power in Java.
Japanese Occupation
The immediate effect of Japan 's 1942 invasion was to show that Dutch military might was a bluff. The Japanese encountered little resistance and, within weeks, had rounded up all the Europeans and placed them in concentration camps. Initially, there was jubilation. But it quickly became apparent that, like the Dutch, the Japanese had come to exploit the Indies , not to free them. Escalating Japanese rice requisitions created famines and sparked peasant uprisings that were ruthlessly stomped out.
Modern Indonesia
At the beginning of the 20 th century, signs of change were everywhere in the Indies . Dutch military expeditions and private enterprises were making inroads into the hinterlands of Sumatra and the eastern islands. Steam shipping and the Suez Canal (opened n 1869) had brought Europe closer, and the European presence in Java was growing steadily. Gracious new shops, clubs, hotels and homes added an air of cosmopolitan elegance to the towns, while newspapers, factories, gas lighting, trains, buses, electricity and cars imparted a distinct feeling of modernity.
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