The Indonesian archipelago has been an important trade region since at least the seventh century, when the Srivijaya Kingdom formed trade links with China. Indonesian history has been influenced by foreign powers drawn to its natural resources. Under Indian influence, Hindu and Buddhist kingdoms flourished from the early centuries CE. Muslim traders brought Islam, and European powers fought one another to monopolize trade in the Spice Islands of Maluku during the Age of Exploration. Following three and a half centuries of Dutch colonialism, Indonesia secured its independence after World War II. Indonesia's history has since been turbulent, with challenges posed by natural disasters, corruption, separatism, a democratization process, and periods of rapid economic change.

Across its many islands, Indonesia consists of distinct ethnic, linguistic, and religious groups. The Javanese are the largest and politically dominant ethnic group. As a unitary state and a nation, Indonesia has developed a shared identity defined by a national language, a majority Muslim population, and a history of colonialism and rebellion against it. Indonesia's national motto, "Bhinneka tunggal ika" ("Unity in Diversity" lit. "many, yet one"), articulates the diversity that shapes the country. However, sectarian tensions and separatism have led to violent confrontations that have undermined political and economic stability. Despite its large population and densely populated regions, Indonesia has vast areas of wilderness that support the world's second highest level of biodiversity. The country is richly endowed with natural resources, yet poverty is a defining feature of contemporary Indonesia.