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Silfio country intelligence · IDN

Indonesia

10.1% annual new-conflict probability
Indonesia flag

How to read these probabilities: Scores estimate the probability of a new armed conflict starting within the next 12 months. Ongoing conflicts can have a saturation effect, reducing the modelled probability of an additional conflict onset. A low or falling score does not imply less severe ongoing fighting or a safer country.

Population

285.72M

GDP

$1.45T

Currency

IDR

Capital

Jakarta

Land area

1.9M km²

Official languages

Indonesian

Risk assessment

Risk profile

The live 12-month probability is 10.1%, representing a high risk. Indonesia’s large economy and state capacity support stability, but its history includes severe communal violence, separatist conflict in Aceh and Papua, and the 1998–2002 upheaval surrounding regime change. Regional inequality, contested central–local authority, and unresolved grievances in Papua remain relevant sources of armed-conflict risk.

Recent reporting highlights a sharp deterioration in investor confidence: MSCI plans to downgrade Indonesian indices from emerging-market status to “Standalone,” amid concerns about market access and governance. The development points to economic and institutional pressure, but the available reporting does not identify an imminent armed mobilisation. The principal domestic risk actors remain separatist and insurgent networks in Papua, alongside potential communal or political challengers; no neighbouring state is currently identified as preparing an attack on Indonesian territory.

The largest uncertainty is whether economic and governance frustrations translate into organised violence rather than remaining political or financial disputes. Risk would rise with sustained clashes in Papua, a major communal confrontation, or a breakdown in Jakarta’s control; it would fall with durable de-escalation and credible political settlement efforts in conflict-affected regions.

Strategic reasoning

  • Indonesia’s past experience with separatism, communal conflict, and violent political transition shows that domestic disputes can escalate when state legitimacy and local grievances converge.
  • The MSCI downgrade is the clearest current warning of institutional and economic strain, but it is not itself evidence of armed conflict; the key escalation indicator would be sustained violence involving organised domestic actors.
  • Indonesia’s national capacity and geographic control remain important stabilisers, while fighting by Indonesian forces abroad would not constitute a new onset on Indonesian territory.

Critical indicators

  • In the latest reporting, MSCI’s planned move to classify Indonesian indices as “Standalone,” alongside a reported stock-market crash, signalled serious investor concerns about market access and governance. Its significance for conflict risk is indirect, through pressure on institutions and public confidence.
  • From 1998 through the early 2000s, Indonesia experienced regime upheaval, communal violence, and separatist wars, including the Aceh conflict and unrest in Papua. That established record supports continued exposure to renewed internal armed violence if political grievances intensify.

Probability trend

How the Indonesia estimate has moved

Probability10.1%10.1%10.1%

Sep 30

Oct 5

Oct 12

Oct 15

Oct 19

Date

Current conflicts

Source: UCDP · Data to 31 Aug 2026

  • Indonesia: West Papua

    96Deaths (last 12 months)
    Opposition
    • OPM
    Started
    2 Dec 2018

Regional context

Indonesia compared with its neighbours and region

Indonesia ranks number 34 of 196 in new conflict outbreak risk.

Figures are each country's modelled probability of a new armed conflict on its territory within the next 12 months. Select any country to open its full profile.

Related coverage

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From investor favourite to investment ‘backwater’: Why Indonesia’s stock market is crashing | Explained News - The Indian Express

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