Since 2000, Indonesia has faced violent extremism, including international terrorism and domestic militant activity, with major incidents like the 2002 Bali bombings. After a period of calm, ISISinspired attacks resurfaced in 2016, though no terrorist attacks occurred from 2023 to 2025. Despite this, extremist recruitment and activities persist. Jemaah Islamiyah (JI), a key VE organisation, officially disbanded on June 30, 2024, with over 2,400 members renouncing ties and pledging allegiance to the government. However, experts warn of splinter groups, and the continued arrests of extremists highlight ongoing risks of radicalisation and terrorism.

In Indonesia, the drivers behind violent extremism are: extreme religious interpretations, poverty and economic exclusion, electoral polarisation and alienation, gaps of moderate religious organisations and online radicalisation. GCERF began investing in the country in 2025 and till date USD 2.3 million has been invested to address these drivers of violent extremism.