Hundreds of students have taken to the streets across major Indonesian cities, defying fears of a government crackdown following violent protests that resulted in at least eight deaths over the weekend. This unrest marks the most significant wave of violence in Indonesia in over two decades, triggered by rising discontent over government spending priorities and social issues.
Protests first erupted one week ago, with demonstrators voicing their opposition to increased perks for lawmakers. Tensions escalated dramatically after a police vehicle struck and killed a motorcycle taxi driver. In the chaos that ensued, the homes of several political figures were looted, and state buildings were vandalized or set ablaze. This unrest has presented a considerable challenge to President Prabowo Subianto‘s administration since he took office nearly a year ago.
In response to the unrest, President Prabowo announced on Sunday that lawmakers’ perks would be reduced, a significant concession aimed at quelling the protests. However, he also warned that security forces would take firm action to maintain law and order. Despite this warning, protests continued, with gatherings reported in Jakarta, the cultural hub of Yogyakarta, and Makassar, where the most severe violence occurred, resulting in at least four fatalities.
Student leaders expressed discontent with the president’s concession, indicating that it did not address the broader demands of civil society. Syamry, a leader from Makassar State University, emphasized that students are also calling for comprehensive reforms within the police force.
The violence has had immediate economic repercussions, unsettling financial markets. On Monday, Indonesia’s stock market fell by more than three percent in initial trading but later began to recover. In Jakarta, authorities detained over 1,200 protesters, according to the city’s police chief, as many businesses opted for remote work and schools held online classes to ensure safety.
As tensions remained high, the Alliance of Indonesian Women, a coalition of women-led civil society groups, announced a delay in their planned protests to avoid provoking further violence from authorities. In a statement on Instagram, the group explained that their decision was made to prevent escalations and to wait for the situation to stabilize.
The unrest has not only led to human casualties but also significant infrastructure damage. Pramono Anung, the governor of Jakarta, reported that more than 700 individuals sustained injuries during the protests, with damages estimated at approximately $3.4 million (AUD 5.2 million).
In light of the unrest, Chief Economic Minister Airlangga Hartarto reassured the public that the Indonesian economy remains fundamentally sound, suggesting that a planned incentive package could provide a boost. However, the situation has prompted ratings agency S&P to release a note indicating that while the protests are unlikely to destabilize the government, they may lead to policy shifts that increase fiscal burdens.
One possible outcome may be increased social spending aimed at supporting middle- and lower-income groups. The agency warned that this could push the fiscal deficit closer to the legal limit of three percent of GDP, a concern for the country’s financial future.
As protests continue, the situation remains fluid, with student groups and civil society organizations weighing their next steps amid an ongoing state of heightened security.
