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Protests erupted over a proposed $3,000 housing stipend for lawmakers—10 times the minimum wage. While Prabowo pushed fiscal restraint, this perk hit Indonesians below poverty line
Debris litter the street as police officers take their position following violent protests against lawmakers’ perks and police brutality after a delivery rider was allegedly run over by a police vehicle during clashes with student protesters, in Jakarta, Indonesia, on August 30. (AP Photo)
Jakarta’s streets are burning. Since late August 2025, Indonesia, Southeast Asia’s sprawling country with 270 million people, has been gripped by violent protests, with tear gas, looting, and torched buildings painting a chaotic scene.
At least eight dead, over 1,000 injured, and thousands arrested mark a crisis that began over lawmakers’ lavish perks but exploded into rage against inequality and police brutality.
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President Prabowo Subianto, caught off-guard, scrapped the perks, but the fury persists. For Indians, this turmoil in a key trade partner and democratic neighbour is not just news, it is a warning. Here’s why the riots are happening, what is fuelling the public’s anger, and why it matters.
Revisiting Indonesia’s Roots
Indonesia, a vast archipelago of 17,000 islands, fought hard for independence from Dutch rule in 1945. Decades of authoritarianism under Sukarno and Suharto gave way to democracy in 1998 after protests toppled the latter amid a financial crisis. Today, it is a G20 powerhouse with a $1.5 trillion economy, thriving on palm oil, coal, and nickel. Under former President Joko Widodo (2014-2024), infrastructure soared—new railways, a new capital—but corruption, environmental damage, and inequality festered.
Prabowo, a former general with a controversial past linked to human rights issues, took office in 2024 with a nationalist agenda. His austerity measures, including fuel and electricity subsidy cuts, spiked living costs, hitting the poor hardest.
Meanwhile, Indonesia’s BRICS alignment and close ties with China and Russia have stirred Western unease, adding a geopolitical edge to domestic woes.
What Triggered The Nationwide Protests
The fuse lit on August 25, when protests erupted over a proposed $3,000 housing stipend for lawmakers—10 times the minimum wage in many regions. While Prabowo pushed fiscal restraint, this perk, alongside travel bonuses, felt like a slap to the 40 million Indonesians below the poverty line.
Students, workers, and gig drivers rallied in Jakarta, but police crackdowns, including a motorbike taxi driver’s death on August 28, turned peaceful marches into riots.
Tires burned, shops were looted, and police stations attacked in cities like Bandung and Surabaya. Graffiti like “RESET SYSTEM” captured demands for systemic overhaul—fair wages, anti-corruption measures, and accountability.
What’s The Real Rage?
Beneath the surface, economic pain drives the unrest. Growth slowed to 4.5% in 2025, hit by global trade dips and falling commodity prices. Unemployment stands at 5%, but youth joblessness doubles that, frustrating a tech-savvy generation. Inflation at 6% erodes wages, with rice and fuel prices stinging the poor. Corruption fuels distrust—Prabowo’s cabinet, packed with elite holdovers, reeks of cronyism to many. Lawmakers’ $4,000 monthly salaries dwarf the average $300, amplifying perceptions of a rigged system.
Environmental and labour issues add fuel. Mining scars landscapes, and workers face eroding rights. Some fear democratic backsliding, with Prabowo’s military past raising ghosts of authoritarianism.
Whispers of foreign meddling—possibly Western NGOs upset by Indonesia’s BRICS shift—point to coordinated protest tactics, though the core anger is homegrown.
What Has Been The Government’s Response?
Prabowo axed the perks on September 1, promising transparency, but the move failed to quell protests. Over 3,000 arrests, 20,000 troops in Jakarta, and labels like “anarchists” for protesters signal a heavy hand.
A police officer linked to a killing was sacked, but reports of excessive force—tear gas, rubber bullets—drew global criticism. Economic losses hit $3.3 million in Jakarta alone, with calls for dialogue from rights groups. A holiday pause by September 5 has not doused the embers—activists vow more protests unless reforms materialize.
Why India Should Watch Out
For Indians, Indonesia’s chaos resonates deeply. Both nations are vibrant democracies juggling diversity and inequality. India’s own protests—farmers’ marches, anti-Citizenship Amendment Act (CAA) rallies—echo Indonesia’s mix of economic grievance and police clashes.
As trade partners, with $30 billion in annual exchanges, disruptions could spike prices for palm oil and coal. A shaky Indonesia weakens ASEAN, a pillar of India’s Act East Policy, and could embolden external actors to stir unrest here, especially as India balances ties with China and the West.
Indonesia’s riots serve as a stark reminder that when governments fail to bridge the widening gap between the haves and have-nots, public anger will inevitably spill onto the streets through protest and dissent.
About the Author
Shilpy Bisht, Deputy News Editor at News18, writes and edits national, world and business stories. She started off as a print journalist, and then transitioned to online, in her 12 years of experience. Her prev…Read More
Shilpy Bisht, Deputy News Editor at News18, writes and edits national, world and business stories. She started off as a print journalist, and then transitioned to online, in her 12 years of experience. Her prev… Read More
September 05, 2025, 12:37 IST
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