Government Concessions Following Public Outcry
Indonesian President Prabowo Subianto announced the revocation of parliamentary perks, including a controversial $3,000 monthly housing allowance and suspensions of overseas trips, in response to nationwide protests that left at least eight dead and triggered the worst violence in decades. The move came after days of unrest initially sparked by revelations that lawmakers received allowances nearly ten times Jakarta’s minimum wage, exacerb public anger over rising living costs, unemployment, and perceived government insensitivity. Prabowo, flanked by eight political party leaders, framed the decision as a concession to protesters but simultaneously ordered military and police to take "stern action" against rioters, whom he accused of "treason and terrorism".
Escalation of Violence and Casualties
Protests turned deadly on August 28 when an armored police vehicle struck and killed 21-year-old ride-hailing driver Affan Kurniawan during a Jakarta demonstration. His death, captured on viral video, ignited broader violence, with crowds ransacking legislative buildings and politicians’ homes, including Finance Minister Sri Mulyani Indrawati’s residence. In Makassar, three protesters died in a parliamentary building arson attack, while another was beaten by a mob accused of being an intelligence agent. By September 1, the death toll reached eight, with over 700 injured and $3.4 million in infrastructure damage in Jakarta alone.
Economic and Political Repercussions
The crisis forced Prabowo to cancel a high-profile trip to China and unsettled financial markets, with Indonesia’s stock index dropping 3% and bonds hitting one-month lows. Ratings agency S&P warned of potential fiscal strains if social spending increases to appease protesters, potentially pushing the deficit toward Indonesia’s 3% GDP legal limit. The protests represent the most significant challenge to Prabowo’s presidency since he took office in October 2024, exposing deep frustrations over economic policies like tax hikes and budget reallocations for his controversial free school lunch program.
Mixed Government Response and Ongoing Tensions
While Prabowo pledged investigations into police brutality and offered concessions, his administration deployed military patrols, checkpoints, and snipers in major cities, detaining over 1,200 protesters. TikTok suspended its live-streaming feature to curb "disinformation," reflecting government concerns over digital mobilization. Student groups like the All Indonesian Students’ Executives Body dismissed the perk revocations as inadequate, demanding broader reforms addressing political oligarchy and economic inequality. Despite scaled-back demonstrations due to security fears, organizers warned protests could reignite unless underlying grievances are resolved.