Three developments will now shape Indonesian politics. All have serious implications both for President Megawati and the country. The first concerns Bali itself. The so-called ‘island of the gods’ is not only at the heart of Indonesia’s vital $5.4 billion tourist economy, contributing over forty percent of revenue, but it has also long been seen as one of the few places left in post-Suharto Indonesia where violent inter-ethnic and inter-religious conflicts have been held at bay.
With its unique blend of Hinduism and Buddhism, small Muslim population and reputation for tolerance, it had been perceived as somehow immune from the tensions of the rest of the country.
