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Background The Dutch began to colonize Indonesia in the early 17th century; Japan occupied the islands from 1942 to 1945. Indonesia declared its independence after Japan's surrender, but it required four years of intermittent negotiations, recurring hostilities, and UN mediation before the Netherlands agreed to transfer sovereignty in 1949. Indonesia's first free parliamentary election after decades of repressive rule took place in 1999. Indonesia is now the world's third-largest democracy, the world's largest archipelagic state, and home to the world's largest Muslim population. Current issues include: alleviating poverty, improving education, preventing terrorism, consolidating democracy after four decades of authoritarianism, implementing economic and financial reforms, stemming corruption, holding the military and police accountable for past human rights violations, addressing climate change, and controlling avian influenza. In 2005, Indonesia reached a historic peace agreement with armed separatists in Aceh, which led to democratic elections in Aceh in December 2006. Indonesia continues to face low intensity armed resistance by the separatist Free Papua Movement. Population 242,968,342 (July 2010 est.) Government type 30 provinces (provinsi-provinsi, singular - provinsi), 2 special regions* (daerah-daerah istimewa, singular - daerah istimewa), and 1 special capital city district** (daerah khusus ibukota); Aceh*, Bali, Banten, Bengkulu, Gorontalo, Jakarta Raya**, Jambi, Jawa Barat, Jawa Tengah, Jawa Timur, Kalimantan Barat, Kalimantan Selatan, Kalimantan Tengah, Kalimantan Timur, Kepulauan Bangka Belitung, Kepulauan Riau, Lampung, Maluku, Maluku Utara, Nusa Tenggara Barat, Nusa Tenggara Timur, Papua, Papua Barat, Riau, Sulawesi Barat, Sulawesi Selatan, Sulawesi Tengah, Sulawesi Tenggara, Sulawesi Utara, Sumatera Barat, Sumatera Selatan, Sumatera Utara, Yogyakarta* Administrative divisions republic Independence Independence Day, 17 August (1945) International organization participation two equal horizontal bands of red (top) and white; the colors derive from the banner of the Majapahit Empire of the 13th-15th centuries; red symbolizes courage, white represents purity Economy - overview 4.5% (2009 est.) Market value of publicly traded shares 134.4 billion kWh (2007 est.) Agriculture - products 119.3 billion kWh (2007 est.) Industries 0 kWh (2008 est.) Industrial production growth rate 0 kWh (2008 est.) Electricity - production 987,500 bbl/day (2008 est.) Internet country code 36 (2009) WebCam