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Explainer-What's fuelling the rage in Indonesia?
Published by Global Banking and Finance Review
Posted on September 2, 2025
5 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 2, 2025
5 min readLast updated: January 22, 2026
Indonesia faces widespread protests over lawmakers' allowances, sparking violence and challenging Prabowo's presidency.
By Martin Petty
(Reuters) -Protests have flared in parts of Indonesia since August 25 in some of the country's worst violence in decades, presenting the biggest challenge so far to Prabowo Subianto's 10-month-old presidency.
WHAT'S BEEN HAPPENING?
Protests started outside parliament in the capital, Jakarta, initially by groups angered by reports that lawmakers were receiving huge housing allowances on top of base salaries.
Protesters hurled rocks at riot police who responded with tear gas and water cannon. Over the course of a week that grew into wider demonstrations, in at least 32 of Indonesia's 38 provinces according to the home minister, many of which turned violent, with some regional parliaments set ablaze.
A flashpoint was the August 28 killing of a motorcycle taxi driver in Jakarta, who was not part of the protest but was hit by a riot police vehicle, fuelling further rage, arson and destruction and demands for police reform, scenes replicated elsewhere.
Some prominent officials have been targeted with social media "doxxing" that reveals the addresses of their homes, leading to looting, most notably Finance Minister Sri Mulyani Indrawati, after a deep fake video in which she appeared to say teachers were a burden.
The home of lawmaker Ahmad Sahroni was looted after he said calls to dissolve parliament over the allowances were being made by the "stupidest people in the world".
Prabowo cancelled a trip to China and in a big concession on August 31 announced a scrapping of some perks and privileges for lawmakers and a moratorium on overseas travel, but at the same time vowed a firm response to mob violence.
The tally of deaths stands at eight by September 2. With at least 1,200 detained in Jakarta alone and a heavy police and military presence in the streets, some groups opted to keep to the sidelines, but smaller demonstrations were undeterred.
WHO IS LEADING THE PROTESTS?
It is unclear who, if anyone is driving the protest movement that appears on its surface to have no core.
Though initially led by student groups with a long history of government protests, the demonstrations have taken on a life of their own, with some gatherings fuelled by anger over the response by security forces.
New York-based Human Rights Watch has said authorities "acted irresponsibly by treating the protests as acts of treason or terrorism".
The All Indonesian Students’ Executives Body, Indonesia's largest grouping of student associations, is staging organised protests, as are other unaffiliated university groups, but yet other groups are capitalising on the momentum with their own gatherings to vent grievances.
WHAT'S DRIVING THE ANGER?
The trigger was monthly pay for parliamentarians of upwards of 100 million rupiah ($6,150), a huge income in Indonesia, including a substantial housing allowance.
That fed frustration about wealth gaps, inequity and the minimum wage in the country of 280 million, and a perception of corruption or flagrant displays of largesse by the political elite.
Though Indonesia's economy is not in poor shape, signs of unease have emerged in the provinces over the government's state budget priorities and efforts to re-centralise finances.
Last month Prabowo unveiled in parliament a $234 billion budget for 2026 that slashes regional funding by a quarter to $40 billion, the lowest in a decade and a second year of decline. The cuts have forced local authorities to hike land and property taxes to plug the gap.
The budget proposes a rise of 37% on defence and a near doubling in spending on Prabowo's signature free school meals programme to $20.5 billion.
Also stoking anger is the response of police and military and accusations by rights groups of disproportionate use of force, including tear gas and rubber bullets.
WHAT DOES THIS MEAN FOR PRABOWO?
It is a major test for political veteran Prabowo, elected president by a huge margin on his third successive attempt. He has a big majority in parliament and has faced muted opposition, with all but one party in his "big tent" coalition.
It has been tough to gauge public sentiment, with few major opinion surveys since Prabowo crossed 100 days of his presidency in January, with an approval rating of about 80%.
The protests have been a startling check on his power. His response could be critical in determining his popularity, how long the protests last and the likelihood of a recurrence in the rest of his term.
Indonesia's student-led movements have long been regarded as vanguards of democracy and Prabowo knows well their ability to mobilise.
As a former son-in-law of Indonesia's late authoritarian ruler Suharto, whom he served in the military as a special forces commander, Prabowo has first-hand experience of the protests that brought down the strongman in 1998 after 32 years of autocratic rule.
(Reporting by Martin Petty; Editing by Clarence Fernandez)
The protests were triggered by reports of lawmakers receiving large housing allowances on top of their salaries, which fueled frustration over wealth gaps and perceived corruption.
In response to the protests, President Prabowo announced a scrapping of some perks for lawmakers and a moratorium on overseas travel, but he also vowed to maintain order.
Student groups have historically led protests in Indonesia, and they are currently staging organized demonstrations, reflecting a broader public discontent with the government.
The protests represent a significant challenge to Prabowo's authority, and his response will be crucial in determining his popularity and the potential for future unrest.
Protesters are primarily concerned about income inequality, the government's budget priorities, and the perceived lavish lifestyles of political elites amidst economic challenges.
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