Political :y y y y y y Indonesia got independence 17 August 1945 Legal system: civil law system based on the Roman-Dutch model

and influenced by customary law President Susilo Bambang YUDHOYONO (since 20 October 2004); Vice President BOEDIONO (since 20 October 2009); note - the president is both the chief of state and head of government Indonesia was a member of OPEC and an exporter of oil until 2004 when it became a net oil importer. In 2008 Indonesia withdrew from OPEC but is open to rejoining if/when it returns to being an oil exporter. The combination of social and political instability, coupled with natural disasters, has limited the amount of capital investment being undertaken in Indonesia.

Culutural & social:y y y Ethnic groups: Javanese 40.6%, Sundanese 15%, Madurese 3.3%, Minangkabau 2.7%, Betawi 2.4%, Bugis 2.4%, Banten 2%, Banjar 1.7%, other or unspecified 29.9% (2000 census) Religions: Muslim 86.1%, Protestant 5.7%, Roman Catholic 3%, Hindu 1.8%, other or unspecified 3.4% (2000 census Indonesia is rich in art and culture which are intertwined with religion and age-old traditions from the time of early migrants with Western thoughts brought by Portuguese traders and Dutch colonists. The basic principles which guide life include the concepts of mutual assistance or "gotong royong" and consultations or "musyawarah" to arrive at a consensus or "mufakat" Derived from rural life, this system is still very much in use in community life throughout the country.

Indonesian culture can be defined as all the local culture that has been there before of the Indonesian national in 1945. The whole culture of the local culture diverse tribes in Indonesia is an integral part of Indonesian culture. Indonesian culture despite a wide range, but in essence and form influenced by the culture of other cultures such as Chinese, Indian culture and Arab culture. Indian culture, especially the distribution of incoming Hindu and Buddhist in the remote archipelago in Indonesia before. Kingdoms bernafaskan the Hindu and Buddhist religion had dominated the century in the archipelago to-5 by the Christian kingdoms in the archipelago, Kutai, until on the 15th century BC.
Indonesia is rich in art and culture which are intertwined with religion and age-old traditions from the time of early migrants with Western thoughts brought by Portuguese traders and Dutch colonists. The basic principles which guide life include the concepts of mutual assistance or "gotong royong" and consultations or "musyawarah" to arrive at a consensus or "mufakat" Derived from rural life, this system is still very much in use in community life throughout the country.

The Indonesia culture is as vibrant and versatile as its landscape and natural beauty. The rich Indonesian culture is the result of the influence of the various neighboring countries and its very own ethnic culture.

The influence of India and the China since the ancient times and the European and the Middle Eastern influence in the medieval age are behind the vibrant culture of Indonesia. Religions also had a big effect on the Indonesian culture. Though a largest Muslim country in the world Indonesia still has the influence of Hinduism and Buddhism embedded in its everyday life. The culture of Indonesia is well depicted in the arts and crafts of this South Asian country. Some of the prominent cultural sites of Indonesia are: y Palembang which consists of the 18th century remnants of the Muslim rule y Borobudur is one of the Seven Wonders of the World. The site consists of the Hindu- Buddhist temple of the ninth century. y Jakarta is also one of the cultural sites of Indonesia as it consists of a number of museums and markets which are dedicated to indigenous art and crafts. y Taman Sari which is a water castle used by the kings and queens for bathing and relaxatio
Technological y This article estimates inefficiency and Total Factor Productivity (TFP) across Indonesian provinces from 1993 to 2000. Indonesia is a large emerging market economy, but provinces within the country (due to the island structure of the country) are more distinct from one another compared to other countries. We use a stochastic frontier methodology to estimate inefficiency and TFP. We find that TFP fell by an average rate of 7.5% across provinces due to the decrease in technical efficiency. In fact, the majority of output growth within Indonesia is explained by the accumulation of inputs. In this sense, economic growth within Indonesia does not appear to be sustainable without reversing these trends. y With an ICT penetration rate of around 2%, only about 9% of Indonesians have internet access
currently. Low telephone line density, high charges and low PC penetration are all significant obstacles. Moreover, only 42% of those Indonesians with internet access have ever made purchases through the internet.

y
y

Technological factor:
Transport system: Indonesia has effective and highly developed transport system with 139

airports, railways with 8529 km and water ways covering 21579 km and major ports are Banjarmasin, Belawan, Ciwandan, Kotabaru, Krueg Geukueh, Palembang, Panjang, Sungai Pakning, Tanjung Perak, Tanjung Priok.

Communication system: The communication system in Indonesia is highly developed which maintained 17.33 millions of people use landlines where as 83.3 million of people use Cellular mobiles in the same way there are 13 million of internet users which is good sign for a country. It has interisland microwave system, HF radio police net and domestic satellite communications system coverage which makes its communication system better. Broadcasting technology: If we talk about media sources it has 678AM and 43 FM channels. Similarly it has 54 local TV stations (11 national TV networks; each with its group of local transmitters.