Indonesia is made up of many islands in the worlds largest archipelago, located in the area south of Thailand, Malaysia, and Philippines, between the Indian and Pacific Oceans, and north of Australia. The largest islands are Sumatra, Borneo, New Guinea, and Java, which is the island where the capital city of Jakarta is located, and where most of the population lives. Several of the islands are split between countries, such as Borneao which is split with Malaysia, and New Guinea which is split with Papua New Guinea.
The country itself consists of over 18000 islands, with only several thousand which are inhabited. All of the islands are more or less located right near the equator. The major religion of people of Indonesia is Muslim, and lately there have been some political and religous issues causing warning for Western travellers.
The island of Sumatra was hit by the tsunami and Indian Ocean earthquake in December 2004, and the Aceh province suffered extensive damage. Please update this if you know of the status of this area.