Ethnically it is highly diverse, with more than 300 local languages. The people range from stone-age hunter-gatherers to a modern urban elite.

Indonesia has seen unprecedented turmoil in recent years, facing first the Asian financial crisis, then the fall of President Suharto after 32 years in office, the first free elections since the 1960s, the loss of East Timor, independence demands from restive provinces, bloody inter-ethnic and religious conflict and a devastating tsunami disaster.

OVERVIEW

kingdoms existed in Indonesia before the Dutch arrived. The Dutch gradually consolidated their hold on the area over two centuries, eventually uniting the archipelago in around 1900.

 Upon the end of Japan's wartime occupation, independence was proclaimed in 1945 by Sukarno, the independence movement's leader. The Dutch formally transferred sovereignty in 1949 after a period of armed struggle.

 Long-term leader General Suharto came to power in the aftermath of an abortive coup in 1965. He imposed authoritarian rule while allowing technocracts to run the economy with considerable success. His policy of allowing army involvement in all levels of government down to village level fostered corruption. His "transmigration" programmes - which moved large numbers of landless farmers from Java to other parts of the country - fanned ethnic conflict.

 Suharto fell from power after widespread rioting in 1998 and has so far escaped efforts to bring him to justice for decades of dictatorship.

 Indonesia faces growing demands for independence among several provinces, where secessionists have been encouraged by East Timor's 1999 success in breaking away after a traumatic 25 years of occupation.

 Militant Islamic groups have flexed their muscles over the past few years. Some have been accused of having links with Osama Bin Laden's al-Qaeda organisation, including the group blamed for the Bali bombings of 2002 which killed 202 people.

 Lying near the intersection of shifting tectonic plates, Indonesia is prone to earthquakes and volcanic eruptions. A powerful undersea quake in late 2004 sent massive waves crashing into coastal areas of Sumatra, and into coastal communities across south and east Asia. The disaster left more than 220,000 Indonesians dead or missing.

FACTS

• Population: 225.3 million (UN, 2005)
• Capital: Jakarta
• Area: 1.92m sq km (742,308 sq miles)
• Major languages: Indonesian, 300 regional languages
• Major religion: Islam
• Life expectancy: 65 years (men), 69 years (women)(UN)
• Monetary unit: 1 rupiah (Rp)
• Main exports: Oil and gas, plywood, textiles, rubber, palm oil
• GNI per capita: US $810 (World Bank, 2003)
• Internet domain: .id<
• International dialling code: +62

LEADERS

President: Susilo Bambang Yudhoyono

Former army general Susilo Bambang Yudhoyono won Indonesia's first-ever direct presidential elections in September 2004, unseating the incumbent Megawati Sukarnoputri. The election was described by observers as the first peaceful transition of power in Indonesia's history.

President Susilo Bambang Yudhoyono Mr Yudhoyono, who at one time served as a security minister in Ms Megawati's government, won the first round of voting in July. He promised to fight corruption, rejuvenate the economy and tackle separatist conflicts.

On the campaign trail, Mr Yudhoyono sought to present himself as a man of integrity and as an effective leader in times of crisis. He said the 2004 Asian tsunami disaster had precipitated the most difficult period in Indonesia's history.

Mr Yudhoyono has said fighting terrorism is a key challenge. As security minister he spearheaded operations to capture Islamic extremists blamed for the 2002 Bali nightclub bombings.

 Mr Yudhoyono is a fluent English speaker; he studied for his master's degree in the US. Rising through the ranks under former President Suharto, he led his country's peacekeeping contingent in Bosnia in the 1990s.

 Sometimes called 'SBY', after his initials, Mr Yudhoyono is praised by his supporters for balancing strength and compassion. Critics have said he is over-cautious.

• Foreign minister: Noer Hasan Wirayudha
• Finance minister: Jusuf Anwar
• Defence minister: Juwono Sudarsono

MEDIA

Media freedom increased considerably after the end of President Suharto's rule, during which the now-defunct Ministry of Information monitored and controlled domestic media and restricted foreign media.

 The country's television market has expanded to include some 10 commercial TV networks, which compete with public Televisi Republik Indonesia (TVRI). Some provinces also operate their own TV stations. Private radio stations carry their own news bulletins and foreign broadcasters can supply programmes. The radio dial is crowded, with some 60 stations on the air in Jakarta alone.

 In 2003 the authorities reported that more than 2,000 illegal TV and radio stations were on the air across the country. The government urged them to apply for licences, or face closure.

 Internet use is on the increase: Bisnis Indonesia newspaper reported in 2004 that there were 10 million users.

 The Press

• The Jakarta Post - English-language
• Kompas - mass-circulation daily
• Pos Kota - mass-circulation daily

Radio

Radio Republik Indonesia (RRI) - public, operates six national networks, regional and local stations, external service Voice of Indonesia

Television

• Televisi Republik Indonesia (TVRI) - public, operates two networks
• Surya Citra Televisi Indonesia (SCTV) - private Rajawali
• Citra TV Indonesia (RCTI) - private
• Televisi Pendidikan Indonesia (TPI) - private
• Metro TV - private

News agency

Antara - English-language pages