Introduction

Indonesia in 2013 was a nation in anticipation. Unlike the 1990s, when Indonesia was waiting for the fall of authoritarianism, it now waits for the next stage of democratic consolidation. 2014 will see the fourth parliamentary election and third presidential election since the Reformasi movement in 1998. The Susilo Bambang Yudhoyono (SBY) administration has overseen much progress for Indonesia's electoral democracy, in particular the full implementation of the direct election of regional leaders. However, some of the aspirations of the Reformasi movement remain unfulfilled. Corruption is still deeply embedded, and parties are yet to fully act as institutional conduits for the interests and aspirations of the people. As SBY will not be able to run for a third term in office, the political buzz in 2013 revolves around the question of who will become Indonesia's second popularly elected president, and whether he or she will be able to resolve some of the country's deep-seated problems. In addition to widespread corruption, which has plagued and limited the effectiveness of political parties, sectarian and communal tensions continued to brew in 2013 under the watch of a weak state.

On the international front, Indonesia continued to pursue an agenda of international and regional cooperation through the Asia-Pacific Economic Cooperation (APEC) and Association of Southeast Asian Nations (ASEAN) platforms, as well as ties with regional economic powerhouses such as China, India and South Korea. While relations with Australia's new Abbott government started off on a sure footing, this was soon marred by a diplomatic spat over accusations that the Australians had been wiretapping Indonesian leaders. At the same time, the Indonesian economy faced tough challenges managing its growing current account deficit amidst capital outflows as the US tapers off its loose monetary policy. The issues that Indonesia faced in 2013 will be addressed in turn in the following sections.

Corruption: One Against A Million?

Public attention on corruption continued to heighten as more high-profile cases captured the headlines. Besides showing the prevalence of corruption, the latest cases proved that it was not only well-institutionalized but also adaptable. While the Komisi Pemberantasan Korupsi (KPK, Corruption Eradication Commission) had made serious inroads into eradicating corruption through the prosecution of high-profile politicians and officials, the remarkable scale of corruption these cases reveal suggests that fully clamping down on corruption remains a substantial challenge in Indonesia.