In the years 1998, 2000, and 2001, long-offset transient electromagnetic (LOTEM) surveys were carried out at the active volcano Merapi in Central Java. The measurements investigated the conductivity structure of the volcanic edifice. Our area of interest, which is below the summit and the upper flanks, was investigated using horizontal and vertical magnetic field time derivative data from seven transmitter-receiver setups. Because of topography and a three-dimensional (3-D) underground structure, a 3-D interpretation is used. The method optimizes few parameters of a 3-D model by a stable least squares joint inversion of the data, providing sufficient resolution capability. Reasonable data fits are achieved with a nonhorizontally layered model featuring a very conductive basement below depths of 1.5 km. While hydrothermal alteration is also considered, we tentatively explain the high conductivities by aqueous solutions with relatively high salt contents. A large magma body or a small superficial reservoir below Merapi's central volcanic complex, as discussed by other authors, cannot be resolved by the LOTEM data.