ABOUT
Indonesia at a glance
Indonesia has long been a favourite holiday destination for Australians, but behind the tourist scene, incidences of poverty, instability and conflict span the country.
Past events have led to present problems
For years, strong government control ensured stability in Indonesia, but failed to improve the life of many living in poverty. In 1998, Indonesia fell into crisis when its debtridden economy crashed. The value of the rupiah plummeted and the 80% inflation ate up savings accumulated by the poor. Drought-induced forest fires covered the region in smoke and riots broke out, leading to the fall of the long-lived regime of Dictator Suharto. Since then, the country’s economy has been in decline.
Despite some success at stabilising the country following the chaos of the post-Suharto years, the Indonesian people’s perception of Megawati, the 2001 elected leader, quickly turned to that of an uncaring and aloof leader. Some accused her of failing to rein in corruption left after Suharto's regime, saying it was hampering economic development, deterring foreign and domestic investors.
The country was further crippled from three major attacks by Muslim terrorists during Megawati's tenure, including the 2002 Bali bombings that killed 202 people, most of them foreign tourists.
Indonesia went to the polls again in September 2004 and voters handed Susilo Bambang Yudhoyono a landslide victory in Indonesia's first direct presidential election. The new government continues to face many challenges such as corruption and continued regional conflicts in Aceh and Papua where there has been an increase in vigilante/gang-type incidents.
Poverty is a Reality
Indonesia is still emerging from the after effects of the devastating 1997-98 economic crisis, which halted the good progress the country was making towards poverty alleviation. While poverty levels in Indonesia are now declining, growth has been unequally distributed leaving the poor without adequate access to education and health care services. Although the percentage of those living below the poverty line is 18%, at least half the country is affected by poverty in some way.
Social Conditions are a Serious Issue
Terrorism, conflict and violence are becoming frequent occurrences on the Indonesian archipelago. As a result there are an estimated1.4 million displaced persons within Indonesia, mostly women and children. This number does not account for those who have been harmed or traumatised by the conflicts.
Over the past few years Indonesia has faced several epidemic outbreaks including dengue fever and SARS. They are currently threatened by the arrival of the avian influenza and must strengthen their health system if they are to avert future tragedies.
Unpredictable Environment
Indonesia is highly prone to earthquakes, volcanic eruptions, tsunamis, floods and drought. The economic, psychological and environmental devastation caused by disasters, such as the 2004 Boxing Day Tsunami which killed more 130,736 Indonesians, continue to impact the affected areas, despite generous aid donations from all over the world.
How Opportunity International is Helping
In 2005 Opportunity International Australia made a substantial contribution to the tsunami relief effort, putting in motion a long-term strategy for sustainable social and economic reconstruction in Aceh. Three enterprise development centres and an investment program were established, creating jobs for 446 tsunami survivors, impacting over 3,460 people.
Opportunity International partnering with TLM, is reaching out to people in the province of Nusa Tenggara Timur. This area consists of 550 islands dominated by three main islands – West Timor, Sumba and Flores. In Nusa Tenggara Timur, the incidence of poverty is severe, with 80% of the population (4.2 million) living below the poverty line. There is a tremendous need for microfinance and enterprise development in this province where an estimated 80% of the workforce is self-employed or involved in family businesses.
Without access to financial products, and enterprise development services such as market access and training, these businesses rarely develop beyond subsistence level.
Opportunity International Australia has committed A$2.5 million in 2006/07 to support and fund the growth of TLM so that it has the capacity and resources to serve 30,000 working poor by the end of 2008.
For more information about Indonesia:
Local news: http://www.thejakartapost.com/headlines.asp
Country profile: http://www.theworldnews.com.au/Worldguide/index.php3
Country statistics: http://hdr.undp.org/statistics/data
Sources: Map from CIA World Factbook, Wikipedia, unicef.org, undp.org, ausaid.gov.au
| Area | 1.9 million sq km |
| Population | 245,452,739 |
| Capital city | Jakarta |
| People | Javanese 45%, Sundanese 14%, Madurese 7.5%, coastal Malays 7.5%, other 26% |
| Religion | Muslim 88%, Protestant 5%, Roman Catholic 3%, Hindu 2%, Buddhist 1%, other 1% |
| Language | Bahasa Indonesia (official), local dialects, English, Dutch |
Past events have led to present problems
For years, strong government control ensured stability in Indonesia, but failed to improve the life of many living in poverty. In 1998, Indonesia fell into crisis when its debtridden economy crashed. The value of the rupiah plummeted and the 80% inflation ate up savings accumulated by the poor. Drought-induced forest fires covered the region in smoke and riots broke out, leading to the fall of the long-lived regime of Dictator Suharto. Since then, the country’s economy has been in decline.
Despite some success at stabilising the country following the chaos of the post-Suharto years, the Indonesian people’s perception of Megawati, the 2001 elected leader, quickly turned to that of an uncaring and aloof leader. Some accused her of failing to rein in corruption left after Suharto's regime, saying it was hampering economic development, deterring foreign and domestic investors.The country was further crippled from three major attacks by Muslim terrorists during Megawati's tenure, including the 2002 Bali bombings that killed 202 people, most of them foreign tourists.
Indonesia went to the polls again in September 2004 and voters handed Susilo Bambang Yudhoyono a landslide victory in Indonesia's first direct presidential election. The new government continues to face many challenges such as corruption and continued regional conflicts in Aceh and Papua where there has been an increase in vigilante/gang-type incidents.
Poverty is a Reality
Indonesia is still emerging from the after effects of the devastating 1997-98 economic crisis, which halted the good progress the country was making towards poverty alleviation. While poverty levels in Indonesia are now declining, growth has been unequally distributed leaving the poor without adequate access to education and health care services. Although the percentage of those living below the poverty line is 18%, at least half the country is affected by poverty in some way.
| Infant mortality rate | 35.6 per 1,000 |
| Life expectancy |
69.57 years |
| Literacy | 87.9% |
| Population with access to safe drinking water |
78.5% |
| Population below poverty line | 18% |
| GDP per capita | A$4,734 |
Social Conditions are a Serious Issue
Terrorism, conflict and violence are becoming frequent occurrences on the Indonesian archipelago. As a result there are an estimated1.4 million displaced persons within Indonesia, mostly women and children. This number does not account for those who have been harmed or traumatised by the conflicts.
Over the past few years Indonesia has faced several epidemic outbreaks including dengue fever and SARS. They are currently threatened by the arrival of the avian influenza and must strengthen their health system if they are to avert future tragedies.
Unpredictable Environment
Indonesia is highly prone to earthquakes, volcanic eruptions, tsunamis, floods and drought. The economic, psychological and environmental devastation caused by disasters, such as the 2004 Boxing Day Tsunami which killed more 130,736 Indonesians, continue to impact the affected areas, despite generous aid donations from all over the world.
How Opportunity International is Helping
In 2005 Opportunity International Australia made a substantial contribution to the tsunami relief effort, putting in motion a long-term strategy for sustainable social and economic reconstruction in Aceh. Three enterprise development centres and an investment program were established, creating jobs for 446 tsunami survivors, impacting over 3,460 people.
Opportunity International partnering with TLM, is reaching out to people in the province of Nusa Tenggara Timur. This area consists of 550 islands dominated by three main islands – West Timor, Sumba and Flores. In Nusa Tenggara Timur, the incidence of poverty is severe, with 80% of the population (4.2 million) living below the poverty line. There is a tremendous need for microfinance and enterprise development in this province where an estimated 80% of the workforce is self-employed or involved in family businesses.
Without access to financial products, and enterprise development services such as market access and training, these businesses rarely develop beyond subsistence level.
Opportunity International Australia has committed A$2.5 million in 2006/07 to support and fund the growth of TLM so that it has the capacity and resources to serve 30,000 working poor by the end of 2008.
For more information about Indonesia:
Local news: http://www.thejakartapost.com/headlines.asp
Country profile: http://www.theworldnews.com.au/Worldguide/index.php3
Country statistics: http://hdr.undp.org/statistics/data
Sources: Map from CIA World Factbook, Wikipedia, unicef.org, undp.org, ausaid.gov.au
