Government and Political Environment

Form: Unitary republic; proclaimed independence from the Dutch on August 17, 1945.

Executive branches: president (head of government and chief of state), 1 vice president and 34 cabinet ministers. President and vice president are elected by direct popular vote.

Legislative branch: 550-member House of Representatives (DPR) elected for 5-year term.

Judicial branch: Supreme Court.

Indonesia conducted legislative elections on April 5, 2004, and presidential elections on July 5, 2004, which successfully elected Susilo Bambang Yudhoyono as Indonesia's sixth president and Jusuf Kalla as vice president. Both legislative and presidential elections were shaped by recent constitutional reforms that include the direct election of the president and vice-president and the creation of a second legislative chamber.

President Yudhoyono and Vice President Kalla have managed to create a good relationship with the parliament as such that political stability has improved dramatically.