PRESIDENT Prabowo Subianto moved to quell widespread protests across Indonesia with parliament removing hefty lawmaker allowances that had sparked public outrage, while warning that firm action will be taken against violent demonstrators.
The government will listen and act on people’s concerns, Prabowo said in a televised briefing from the presidential palace on Sunday, flanked by political party leaders. Parliament will also place a moratorium on overseas visits by lawmakers, while parties will take firm action against their erring members, he said.
Protests over rising living costs and inequality intensified over the weekend, with government buildings being burned and looters reportedly targeting the homes of the finance minister and several lawmakers. Prabowo on Saturday scrapped a trip to China to attend a major security summit, underlining growing concern about the protests that have rocked the nation in the past week and hurt stocks and the rupiah.
The protests were sparked by outrage over lawmakers’ housing allowances— nearly 10 times the monthly minimum wage — and fueled by tax hikes, mass layoffs, and inflation that have disproportionately hit lower-income Indonesians. The death of a motorcycle taxi driver, Affan Kurniawan, who was run over by a police vehicle during a rally, further inflamed tensions.
“I call on all citizens to trust the government and remain calm,” Prabowo said. “The government under my leadership is determined to always fight for the people’s interests, including those of the most vulnerable and marginalized.”
Rioters entered Finance Minister Sri Mulyani Indrawati’s residence near Jakarta early Sunday, but were repelled by armed forces personnel. Items were taken from the homes of lawmaker Ahmad Sahroni and two others, according to Detik.com. The finance ministry did not responded to requests for comment.
Embassies in Jakarta, including those of the US, Japan, Australia and Singapore, earlier issued warnings for their citizens in Indonesia to avoid crowds and protest areas.
A police spokesperson on Sunday said any anarchic acts would face “decisive but measured” action under standard procedures, calling it a last resort the force hopes to avoid. Jakarta Police will deploy over 300 personnel to patrol the city, he said.
The situation is “indeed very concerning,” said Rajeev De Mello, global macro portfolio manager at Gama Asset Management. “We expect this to translate into heightened volatility for the rupiah and broader Indonesian assets, as markets reassess both political risk and policy continuity.”
Even before Prabowo’s announcement on Sunday, Indonesia’s Democratic Party of Struggle and Gerindra issued separate statements over the weekend pledging to scrap or review a controversial monthly housing allowance of 50 million rupiah ($3,030) along with other perks deemed excessive.
“A worsening economy, spending cuts, corruption – no one believes that anything good is being done to fix those issues and the feeling is Parliament has lost touch with the people,” said Vedi Hadiz, director of the Asia Institute at the University of Melbourne. “These are the organic grievances of the people.”
Empty Showrooms
While calm prevailed in Jakarta’s Chinatown — a historic flashpoint for unrest that fueled the 1998 riots and led to the fall of former President Suharto — businesses took precautions. Armored personnel carriers were stationed outside major shopping centers, and a nearby BMW showroom, ransacked during the 1998 violence, pulled its cars from display. In downtown Jakarta, a Toyota showroom also removed vehicles from public view.
Police also blocked road access to the Sudirman Central Business District, the location of the Indonesian Stock Exchange building and headquarters of several international banks.
Protests in major cities have turned deadly, with at least three people killed in Makassar and dozens of buildings and public facilities destroyed, despite the president’s earlier plea for calm. In response to the escalating violence, TikTok announced it has “voluntarily” suspended its Live feature.
While citizens have the right to expression and assembly, “demonstrations currently taking place in several regions tend to violate” the law, National Police chief Listyo Sigit Prabowo said on television on Saturday, speaking alongside Indonesian military commander Agus Subiyanto. He cited the burning of buildings and public facilities and the attacks on police headquarters.
Indonesia’s equity benchmark has retreated from a record and was the world’s worst-performing primary index on Friday after it dropped 1.5%. –BLOOMBERG
The post Indonesia revokes lawmaker perks as Prabowo tries to end unrest appeared first on The Malaysian Reserve.
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