Indonesia facing economic crisis as deadly protests continue

Indonesian President Prabowo Subianto confronts mounting challenges as protests over lawmakers’ perks and economic hardship continue into their second week, with student groups meeting senior ministers Thursday night but failing to secure concrete concessions.

Catch up: The protests erupted on Aug. 25 over controversial housing allowances of 50 million rupiah ($3,000) monthly for lawmakers, which is more than 10 times the minimum wage in Indonesia. They also reflect deeper economic frustrations under Prabowo’s presidency, which began in October 2024 with promises of 8% annual growth but has delivered weakly as foreign direct investment fell 7% in the second quarter, its biggest drop in five years.

Notable incidents: Violence escalated on Aug. 28 when an armored police vehicle fatally struck 21-year-old rideshare driver Affan Kurniawan during protests in Jakarta, triggering widespread outrage as its footage circulated on social media. The protests have resulted in at least 10 deaths and over 1,000 injuries, with rights groups reporting 20 people missing as of Monday. Wednesday saw hundreds of women in pink wielding broomsticks march to parliament, symbolizing their desire to “sweep away the dirt of the state, militarism and police repression.” The violence reached its peak when protesters burned government offices in Makassar and Mataram, killing three government employees in Makassar.

What authorities are doing: Prabowo, who attended China’s military parade this week, announced Sunday that political parties reached consensus to reduce lawmakers’ benefits, though he also ordered military and police to take “stern action” against rioters and suggested that some violence resembled “acts of terrorism and treason.” So far, authorities have detained more than 3,000 people nationwide, according to Human Rights Watch.

On Wednesday, a police commission fired officer Cosmas K Gae — who was inside the vehicle that struck Kurniawan — for acting “unprofessionally.” Senior minister Yusril Ihza Mahendra previously indicated that officers involved could face criminal proceedings following ethics hearings.

What’s next: Whether protests persist will most likely depend on how the government addresses the underlying issues. Economic analysts say substantive reforms are necessary to tackle the country’s financial challenges, which include a 16.7% decline in tax revenue and 6.2% annual rice price increases through August.

Meanwhile, the UN Human Rights Office has demanded investigations into claims of abuses. “We call for prompt, thorough and transparent investigations into all alleged violations of international human rights law, including with respect to use of force. It is also important that the media is permitted to report on events freely and independently,” it said.