Indonesia is in Asia.
Indonesia ( [ ɪndəˈniːʒə ] or [ ˌɪndoʊˈniːziə ] ; Indonesian : [ ɪndonesia ] ) , officially the Republic of Indonesia ( [ rɛpublik ɪndonesia ] ) , is a unitary sovereign state and transcontinental country located mainly in Southeast Asia with some territories in Oceania . Its capital and country 's most populous city is Jakarta , which is also the most populous city in Southeast Asia and the second in Asia . Indonesia 's economy is the world 's 16th largest by nominal GDP and the 8th largest by GDP at PPP , the largest in Southeast Asia , and is considered an emerging market and newly industrialised country .