Indonesia in 2002: The Rising Cost of Inaction

During 2002, communal conflicts abated in Indonesia, the government and rebels in Aceh signed a ceasefire agreement, major economic indicators improved, and a four-year-long constitutional reform process came to a successful conclusion. Yet, serious challenges remain for the country, including rampant corruption, economic weakness, and terrorism. Weak leadership and the fragmentation of political power make concerted action to resolve these problems unlikely before a new government is elected in 2004.