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Administratively, Indonesia consists of 33 provinces, five of which have special status. Each province has its own political legislature and governor. The provinces are subdivided into regencies (kabupaten) and cities (kota), which are further subdivided into subdistricts (kecamatan), and again into village groupings (either desa or kelurahan). Following the implementation of regional autonomy measures in 2001, the regencies and cities have become the key administrative units, responsible for providing most government services. The village administration level is the most influential on a citizen's daily life, and handles matters of a village or neighborhood through an elected lurah or kepala desa (village chief).

The provinces of Aceh, Jakarta, Yogyakarta, Papua, and West Papua have greater legislative privileges and a higher degree of autonomy from the central government than the other provinces. The Acehnese government, for example, has the right to create an independent legal system; in 2003, it instituted a form of Sharia (Islamic law). Yogyakarta was granted the status of Special Region in recognition of its pivotal role in supporting Indonesian Republicans during the Indonesian Revolution.[56] Papua, formerly known as Irian Jaya, was granted special autonomy status in 2001. Jakarta is the country's special capital region.

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Indonesia consists of 17,508 islands, about 6,000 of which are inhabited. These are scattered over both sides of the equator. The five largest islands are Java, Sumatra, Kalimantan (the Indonesian part of Borneo), New Guinea (shared with Papua New Guinea), and Sulawesi. Indonesia shares land borders with Malaysia on the islands of Borneo and Sebatik, Papua New Guinea on the island of New Guinea, and East Timor on the island of Timor. Indonesia also shares borders with Singapore, Malaysia, and the Philippines to the north and Australia to the south across narrow straits of water. The capital, Jakarta, is on Java and is the nation's largest city, followed by Surabaya, Bandung, Medan, and Semarang.

At 1,919,440 square kilometers (741,050 sq mi), Indonesia is the world's 16th-largest country in terms of land area. Its average population density is 134 people per square kilometer (347 per sq mi), 79th in the world, although Java, the world's most populous island, has a population density of 940 people per square kilometer (2,435 per sq mi). At 4,884 meters (16,024 ft), Puncak Jaya in Papua is Indonesia's highest peak, and Lake Toba in Sumatra its largest lake, with an area of 1,145 square kilometers (442 sq mi). The country's largest rivers are in Kalimantan, and include the Mahakam and Barito; such rivers are communication and transport links between the island's river settlements.

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Indonesia's location on the edges of the Pacific, Eurasian, and Australian tectonic plates makes it the site of numerous volcanoes and frequent earthquakes. Indonesia has at least 150 active volcanoes, including Krakatoa and Tambora, both famous for their devastating eruptions in the 19th century. The eruption of the Toba supervolcano, approximately 70,000 years ago, was one of the largest eruptions ever, and a global catastrophe. Recent disasters due to seismic activity include the 2004 tsunami that killed an estimated 167,736 in northern Sumatra, and the Yogyakarta earthquake in 2006. However, volcanic ash is a major contributor to the high agricultural fertility that has historically sustained the high population densities of Java and Bali.

Lying along the equator, Indonesia has a tropical climate, with two distinct monsoonal wet and dry seasons. Average annual rainfall in the lowlands varies from 1,780–3,175 millimeters (70–125 in), and up to 6,100 millimeters (240 in) in mountainous regions. Mountainous areas—particularly in the west coast of Sumatra, West Java, Kalimantan, Sulawesi, and Papua—receive the highest rainfall. Humidity is generally high, averaging about 80%. Temperatures vary little throughout the year; the average daily temperature range of Jakarta is 26–30 °C (79–86 °F).

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Indonesia's size, tropical climate, and archipelagic geography, support the world's second highest level of biodiversity (after Brazil), and its flora and fauna is a mixture of Asian and Australasian species. Once linked to the Asian mainland, the islands of the Sunda Shelf (Sumatra, Java, Borneo, and Bali) have a wealth of Asian fauna. Large species such as the tiger, rhinoceros, orangutan, elephant, and leopard, were once abundant as far east as Bali, but numbers and distribution have dwindled drastically.

Forests cover approximately 60% of the country. In Sumatra and Kalimantan, these are predominantly of Asian species. However, the forests of the smaller, and more densely populated Java, have largely been removed for human habitation and agriculture. Sulawesi, Nusa Tenggara, and Maluku—having been long separated from the continental landmasses—have developed their own unique flora and fauna. Papua was part of the Australian landmass, and is home to a unique fauna and flora closely related to that of Australia, including over 600 bird species.