This paper examines how the Southeast archipelago nation of Indonesia has made huge economic strides since its independence
in 1949 and how it still has
major hurdles to overcome. It looks at how terrorist threats exemplified by the existence of Al-Qaida training camps and recent bombings display the decrease in the military's strength and the legal system's inability to bring justice to the region. It also analyzes how the
instability of the government's leadership and the rampant corruption at all levels poses significant risks as evidenced by the severe currency fluctuations, banking instability and successionist movements by several major islands.