The Hindu: Published on 10 September 2025.
Why in News?
Indonesia has been rocked by its most violent protests in recent years, sparked by public anger over government austerity measures, elite privileges, and the killing of a 21-year-old delivery worker by police. The unrest has left at least seven people dead, thousands arrested, and widespread damage to public and private property.
Background:
The protests began on August 25, 2025, when students and labour unions demonstrated outside the Parliament in Jakarta.
The immediate trigger was Parliament members’ housing allowance of 50 million rupiah ($3,000), nearly 10 times the national minimum wage.
On August 28, video footage of a paramilitary police vehicle running over and killing Affan Kurniawan, a young delivery worker, spread rapidly, turning the protests violent.
Key Issues:
Public Anger at Elite Privileges
Extravagant housing and foreign travel allowances for legislators.
Widening wealth inequality — Indonesia ranks 6th globally for inequality, with four richest citizens owning more wealth than 100 million poor combined.
Austerity Measures & Budget Cuts:
Fiscal cuts of 306 trillion rupiah ($18.8 billion).
Up to 70% cut in public works, 52% in economic affairs, 40% in investment, and 25% cut in higher education.
Local tax hikes (e.g., 250% property tax increase in Pati, Central Java).
These triggered the student-led “Dark Indonesia” movement earlier in February 2025.
Police Violence:
Death of delivery worker Affan Kurniawan became the spark.
At least 3,000 arrests/detentions, hundreds injured, and 20 missing persons reported.
Escalation of Protests:
Protesters attacked and looted homes of officials, including Finance Minister Sri Mulyani Indrawati (later dismissed).
Public facilities and economic centres were vandalized.
Government Response:
President Prabowo Subianto:
Promised reduction in lawmakers’ housing allowance and travel privileges.
Ordered investigation into Kurniawan’s death.
Warned that looting and rioting = terrorism and treason, instructing police and military to act “strongly.”
Actions Taken:
One police officer fired for misconduct.
Cabinet reshuffle: 5 ministers, including Ms. Indrawati, sacked.
Dialogue with student unions to calm tensions.
Impact:
Social:
Shrinking middle class and growing anger against “corrupt elite.”
Distrust of government institutions and rising student activism.
Political:
Prabowo’s legitimacy tested just one year into office.
Risk of long-term instability if austerity and inequality issues remain unresolved.
Economic:
Fitch Ratings warned that unrest could harm Indonesia’s sovereign credit profile.
Investor confidence shaken due to violence and instability.
Global Significance:
Indonesia is the largest economy in Southeast Asia.
Prolonged unrest could disrupt trade, investment flows, and regional stability.
Highlights broader regional issue of inequality fuelling mass protests (similar to past cases in Thailand, Hong Kong, Chile).
The Road Ahead:
Government likely to continue balancing austerity vs. public welfare.
Pressure to restore trust through:
- Transparent investigations into police violence.
- Addressing inequality with sustainable reforms.
- Ensuring education and job security for youth.
- Risk of recurring unrest if demands remain unmet.
Summary:
Indonesia’s protests are not just about one death but a reflection of deep-rooted inequality, austerity cuts, and anger at political elites. Unless addressed with inclusive reforms, the unrest could seriously undermine both Prabowo’s government and Indonesia’s economic stability.
