Indonesia, with a population estimated at over 275 million in 2022 [4], is the world's fourth-most populous country [5]. In the period 2000 - 2010, the country’s population grew at an average annual rate of 1.49%. Population growth slowed between 2010 and 2020, to an average annual rate of 1.25%. Nevertheless, within 30 years (1990-2020), Indonesia’s population increased by 50.63%. The most populous province by 2020 was West Java (49.317 million), while the least populous province was West Papua (959,600), which is located in the far eastern region of Indonesia [3].

According to Indonesia’s Third Biennial Update Report (BUR: 2021) under the United Nations Framework Convention on Climate Change (UNFCCC), approximately 67.1% of the country’s population live in urban areas [3]. By 2035, nearly 70% of Indonesia’s population is expected to live in cities, and three-quarters of the population in Java will live in urban areas. Urbanization in Indonesia is driven by the rural to urban migration of people for jobs and better lives, and the transformation of the region from rural areas into urban areas. With rapid urbanization, Indonesia has experienced increasing inequality. According to Indonesia’s Voluntary National Review, data shows that inequality in urban areas is much higher than in rural areas. Poverty in urban areas has also decreased much more slowly than poverty in rural areas. Unanticipated urbanization has resulted in challenges including lower quality of life (urban slum areas), urban poverty, increased pollution, reduced environmental quality, and congestion [6].

Indonesia is the largest economy in Southeast Asia [5]. The country has made remarkable development strides in the 21st century, including sustained economic growth and significant reductions in poverty [7]. The Indonesian poverty rate based on the national poverty line decreased from 11.13% in 2015 to 9.22% in 2019, at an annual rate reduction of 0.48%. The year 2018 was an important milestone in Indonesia, as it was the first time the country’s poverty rate had been a single-figure digit [6].

Between 2015 and 2020, there was a population structural shift from the agriculture sector to other economic sectors, which has become apparent and reflected in the contribution of each sector to GDP. In 2020, the main contributors to the country's GDP were manufacturing (19.88% of GDP) and agriculture (13.70%). During the period 2015-2019, Indonesia's economy enjoyed an average annual GDP growth rate of 5.03%. In 2020, the COVID-19 pandemic negatively impacted the country’s economy [3] and Indonesia experienced negative economic growth for the first time since the Asian Financial Crisis in 1997-1998 [6]. As a result, Indonesia moved from upper-middle income to lower-middle income status, as of July 2021 [5].

Indonesia’s economy is now recovering. The economy accelerated 3.7% at the end of 2021, as the country stepped off from the COVID Delta wave. Momentum continued in early 2022 at 5% (Year on Year) [8], supported by growing commodity exports and accommodative fiscal policy to weather the pandemic [5]. However, due to the challenging global environment, the country is starting to feel the pressures of rising prices and tightening external finance [8]. According to the Asian Development Bank, the Indonesian economy is projected to grow by 5.4% in 2022 and 5% in 2023. But inflation in developing Asia, while remaining lower than elsewhere in the world, is increasing amid higher energy and food prices [9]. Inflation, which averaged 1.6% in 2021, is forecast to rise to 4.6% in 2022, because of higher commodity prices and the recent increases in fuel price. It is projected to be almost 6.0% through June 2023 and to ease to below 4.0% by the end of 2023 [10]. A sharp deceleration in global growth, global financial volatility, tighter macroeconomic policy in Indonesia, and continuing shocks from the Russian invasion of Ukraine all risk denting Indonesia’s economic growth in 2023 [9], [10].

As economic recovery has resumed in Indonesia, the country's headcount poverty rate has declined in 2022. In March 2022, the Indonesian poverty rate based on the national poverty line decreased to 9.5%, down by 0.6 percentage points (pp) from March 2021. Progress in poverty reduction was observed in both urban and rural areas. Increases in employment in agriculture, manufacturing, and transportation, as well as the logistics services sector contributed to poverty reduction in Indonesia. Despite a decline in unemployment by 0.4 pp to 5.8% from February 2021 to February 2022, unemployment has still not returned to its pre-pandemic level of 4.9% in February 2020. Under-employment is also still higher than before the pandemic [11].

Indonesia’s digital economy will remain a key driver of inclusive growth in the coming years [12]. However, Indonesia is still facing challenges to expand access to electricity in remote and hard-to-reach areas, including the provinces of East Nusa Tenggara, Central Kalimantan, Nusa Tenggara, Maluku, and Papua. As of 2020, there are still 409 villages without electrification and 3090 Energy Saving Solar Lamps (Lampu Tenaga Surya Hemat Energi/LTSHE) villages that need access to electricity and increased reliability [6].

Over the last decade, internet access in the country has improved substantially: as of 2020, almost three-quarters of the population are internet users, far above the global average of 60% [12]. However, those living in rural areas and underdeveloped regions, as well as vulnerable groups, such as women, the elderly, and people with disabilities, continue to experience disadvantages in internet access. Development of internet infrastructure should continue to be prioritized in hard-to-reach areas to improve the country’s internet coverage, which can be utilized for business development, innovation creation, social network expansion, and intensive political participation, among many other things [6]. Through the Palapa Ring Project, the government is already investing in fiber optic-based backbone communication infrastructure for 36,000 km to reach around 500 districts in the country [6], which aims to provide access to 4G services across Indonesia's vast archipelago [13].

Though internet connectivity in remote areas remains difficult, there is optimism that increasing smartphone penetration can help leapfrog this challenge [12]. In Indonesia, the proportion of individuals who own mobile telephones increased from 56.92% in 2015 to 63.53% in 2019, but then decreased to 57.48% in 2020. The highest access to mobile telephones was among young people (15-24 years old) and the level of access to mobile telephones in urban areas was better than in rural areas. Additionally, mobile phone access remains higher in men than women, though the gap became narrower during the 2015-2020 period [6].

Indonesia's 2021 Government Work Plan outlines the challenges that still need to be addressed in the Technology, Information and Communication (ICT) sector, which are: (i) inadequate access and unreliability of ICT infrastructure to boost digital economic growth; (ii) the use of ICT infrastructure that has been implemented needs to be optimized for public sector services, industry, tourism and services to restore economic productivity; and (iii) the use of ICT infrastructure services is hampered by limited Human Resources (HR) who have mastered expertise in the digital field [6].

Two types of natural disasters occur in Indonesia, namely hydrometeorological disasters due to climate change and disasters due to geological activities. The number of hydrometeorological disasters is far greater and appears to be showing an increasing trend, when compared with geological disasters. However, the geological characteristics that place Indonesia at a point of several tectonic plates have made it prone to disasters such as earthquakes, volcanic eruptions, and potential tsunamis. Though these disasters are rare in terms of frequency, they have the potential to cause loss of life and economic losses on a large scale as many human settlements and important infrastructure are built around active faults. For example, Indonesia is classified as a tsunami-prone country because it is located at a point where 3 major tectonic plates meet, namely the Eurasian Plate, the Indo-Australian Plate, and the Pacific Plate, and almost all coastal cities and regencies are at high and very high risk of tidal waves of three meters or higher [14].

Violence against children and women are severe problems in Indonesia. One in three women aged 15-64 have experienced physical or sexual violence throughout their lifetime, according to the 2016 National Women’s Life Experience Survey (SPHPN). Furthermore, the National Children and Adolescents Life Experience Survey (SNPHAR) 2018 found that 62% of girls and 61.7% of boys aged 13-17 have experienced violence. One form of violence against children in Indonesia is child marriage. Though it is still challenging to regularly obtain the complete picture of violence against children and women in the country, the Government of Indonesia has recognized that a lot of improvement is needed in the protection of children, women, and other vulnerable groups [6].