Administratively, Indonesia consists of 33 provinces, five of which have special status. Each province has its own political legislature and governor. The provinces are subdivided into regencies (kabupaten) and cities (kota), which are further subdivided into subdistricts (kecamatan), and again into village groupings (either desa or kelurahan). Following the implementation of regional autonomy measures in 2001, the regencies and cities have become the key administrative units, responsible for providing most government services. The village administration level is the most influential on a citizen's daily life, and handles matters of a village or neighborhood through an elected lurah or kepala desa (village chief).

The provinces of Aceh, Jakarta, Yogyakarta, Papua, and West Papua have greater legislative privileges and a higher degree of autonomy from the central government than the other provinces. The Acehnese government, for example, has the right to create an independent legal system; in 2003, it instituted a form of Sharia (Islamic law). Yogyakarta was granted the status of Special Region in recognition of its pivotal role in supporting Indonesian Republicans during the Indonesian Revolution. Papua, formerly known as Irian Jaya, was granted special autonomy status in 2001. Jakarta is the country's special capital region.

Indonesia's estimated Gross Domestic Product (GDP) for 2007 is US$408 billion (US$1,038 bn PPP). In 2007, estimated nominal per capita GDP is US$1,812, and per capita GDP PPP was US$4,616 (International Dollars). The services sector is the economy's largest and accounts for 45.3% of GDP (2005). This is followed by industry (40.7%) and agriculture (14.0%). However, agriculture employs more people than other sectors, accounting for 44.3% of the 95 million-strong workforce. This is followed by the services sector (36.9%) and industry (18.8%). Major industries include petroleum and natural gas, textiles, apparel, and mining. Major agricultural products include palm oil, rice, tea, coffee, spices, and rubber.

Indonesia's main export markets (2005) are Japan (22.3%), the United States (13.9%), China (9.1%), and Singapore (8.9%). The major suppliers of imports to Indonesia are Japan (18.0%), China (16.1%), and Singapore (12.8%). In 2005, Indonesia ran a trade surplus with export revenues of US$83.64 billion and import expenditure of US$62.02 billion. The country has extensive natural resources, including crude oil, natural gas, tin, copper, and gold. Indonesia's major imports include machinery and equipment, chemicals, fuels, and foodstuffs.

In the 1960s, the economy deteriorated drastically as a result of political instability, a young and inexperienced government, and ill-disciplined economic nationalism, which resulted in severe poverty and hunger. Following President Sukarno's downfall in the mid-1960s, the New Order administration brought a degree of discipline to economic policy that quickly brought inflation down, stabilized the currency, rescheduled foreign debt, and attracted foreign aid and investment. Indonesia is Southeast Asia's only member of OPEC, and the 1970s oil price raises provided an export revenue windfall that contributed to sustained high economic growth rates. Following further reforms in the late 1980s, foreign investment flowed into Indonesia, particularly into the rapidly developing export-oriented manufacturing sector, and from 1989 to 1997, the Indonesian economy grew by an average of over 7%.

Education in Indonesia is the responsibility of the Ministry of National Education of Indonesia (Departemen Pendidikan Nasional Republik Indonesia/Depdiknas). Education in Indonesia was previously the responsibility of the Ministry of Education and Culture of Indonesia (Departemen Pendidikan dan Kebudayaan Republik Indonesia/Depdikbud). In Indonesia, every citizen has to have nine years of education, six years at elementary level and three in middle school.

Early childhood

From birth until the age of 5, Indonesian children do not generally have access to formal education. From the age of 5 to 6 or 7, they attend kindergarten (Taman Kanak-kanak). This education is not compulsory for Indonesian citizens, as the aim of this is to prepare them for primary school. The majority of kindergartens are private schools, with more than forty-nine thousand kindergartens, 99.35% of the total kindergartens in Indonesia, privately operated. The kindergarten years are usually divided into "Class A" and "Class B" students spending a year in each class.

Elementary School

Children ages 7-12 attend Sekolah Dasar (SD) (literally Elementary School). This level of education is compulsory for all Indonesian citizens, based on the national constitution. In contrast to the majority of privately run kindergartens, most elementary schools are government operated public schools, accounting for 93% of all elementary schools in Indonesia. Similar to education systems in the U.S. and Australia, students must study for six years to complete this level. Some schools offer an accelerated learning program, where students who perform well can finish elementary school in five years.

Middle School

Middle School, generally known by the abbreviation "SMP" (Sekolah Menengah Pertama) is part of primary education in Indonesia. After graduating from elementary school, students attend Middle School for three years from the age of 13-15. After three years of schooling and graduation, students may move on to High School or College, or cease formal education. There are around 22,000 schools in Indonesia with a balanced ownership between public and private sector.

High School

In Indonesia, generally known as by the abbreviation "SMA" ("Sekolah Menegah Atas").Based on the national constitution, Indonesian citizens do not have to attend high school as the citizens only require nine years of education. This is also reflected by the number of high schools in Indonesia, with just slightly below 9,000 schools.

Tertiary education

After graduation from High school or college, students may attend a university.