ANCIENT INDONESIA

The first people in Indonesia arrived about 40,000 years ago when sea level was lower and it was
joined to Asia by a land bridge. Then at the end of the last ice age about 10,000 BCE a new wave
of people came. At first they hunted animals, collected shellfish and gathered plants for food. By
about 2,500 BCE they learned to grow crops such as taro, bananas, millet and rice. The early
farmers also made pottery, but all their tools were made of stone.

Among the kingdoms was a Hindu kingdom in central Java called Sailandra. There was also the
great Buddhist kingdom of Sriwijaya in south Sumatra. From the 7th century to the 13th century
Sriwijaya prospered, and it became a maritime empire controlling western Java and part of the
Malay Peninsula. It was also a centre of Buddhist learning. However in the 13th century the
Sriwijaya Empire broke up into separate states. Meanwhile, Islam was brought to Indonesia by
Indian merchants. It first gained a toehold in Aceh in north Sumatra and in following centuries it
spread through the rest of Indonesia.

However, in the 13th and 14th centuries, a Hindu kingdom flourished. It was called the
Majapahit Empire. It was founded in 1292 and soon rose to dominate most of Indonesia.
However in the early 15th century the Majapahit Empire went into a rapid decline.

COLONIAL INDONESIA

In the early 16th century, the Portuguese arrived in Indonesia. at that time there was a huge
demand in Europe for spices such as nutmeg, ginger, cinnamon, cloves and mace. Huge profits
could be made by transporting them to Europe and selling them. The Portuguese therefore
decided to seize the Moluccas, the chief source of spices. In 1511 they captured Melaka, an
important port. They also captured the Moluccas.

Then in 1940 the Germans occupied Holland. In 1942 the Japanese invaded Indonesia. At first,
the Indonesians welcomed the Japanese as liberators. However, they soon grew disillusioned.
The Japanese were brutal and they ruthlessly exploited Indonesia's resources.

Yet, when the Japanese were losing the war, they started to favour Indonesian independence,
hoping to make the Indonesians their allies. Japan surrendered on 15 August 1945. Young
Indonesian nationalists were determined to assert the countries independence before the Dutch
could return. A group of them kidnapped two nationalist leaders Sukarno and Hatta. On 17
August Sukarno declared Indonesian independence. He became the first president and Hatta
became vice-president. However, the Dutch were not willing to let Indonesia go so easily. At
first, British troops landed in Indonesia. They tried to remain neutral although there were armed
clashes between the British and Indonesians in places.

MODERN INDONESIA

At first independent Indonesia was a parliamentary democracy. However, in February 1957

President Sukarno introduced a new political system, which he called 'Guided Democracy'. His
opponents formed a separate 'parliament' called the PRRC (the Revolutionary Government of the
Republic of Indonesia). However, the army remained loyal to Sukarno and he stayed in power.
Meanwhile, in October 1957 the army took over the remaining Dutch companies in Indonesia.
As a result, the army grew wealthy.

Then in the early 1960s the economy faltered. There was very rapid inflation. In September 1965
the Communists attempted a coup in Indonesia. At the beginning of the 21st century, the
Indonesian economy began to recover. Today the economy of Indonesia is growing steadily.
Today the population of Indonesia is 261 million.