Indonesia entered a tense calm today as major protest groups in Jakarta cancelled planned marches under heavy police and military presence, even as students in Makassar and Yogyakarta pressed ahead with demonstrations. The unrest, ignited by lawmakers’ lavish housing allowances and inflamed by the death of a motorcycle taxi driver during clashes, has shaken the new administration of President Prabowo Subianto. While the perks were revoked in a bid to cool anger, the crisis reveals deeper fractures in a nation struggling with inequality, inflation, and political mistrust.

Tightened Security In The Capital

Jakarta’s streets were lined with armored vehicles and checkpoints this morning, deterring large-scale gatherings. Student groups cited “impossible conditions” for safe protest and withdrew, fearing another deadly escalation. Yet across Indonesia, the anger did not vanish—Makassar saw fresh clashes over the weekend, with fires at government offices and additional casualties reported.

Deadly Week Of Riots

The past week marked Indonesia’s bloodiest unrest in years. Protests erupted when news spread of parliamentarians enjoying allowances nearly ten times the city’s minimum wage. The fatal police incident involving a ride-hailing driver turned the anger into nationwide riots. Homes of officials were ransacked, public buildings burned, and in Makassar alone at least three people died in a fire set during demonstrations.

Political Concessions, Lingering Distrust

President Prabowo, facing his first major domestic test since taking office, scrapped the perks and ordered an audit of lawmakers’ privileges. He canceled a state visit abroad to focus on the crisis and pledged to punish rioters while listening to citizens’ grievances. But many Indonesians see the benefits scandal as a symptom of entrenched corruption and inequality. Civil society leaders insist that concessions will not restore trust unless paired with structural reforms.

Unfolding Of Events

• Escalation to Violence: As protests intensified, security forces deployed tear gas, water cannons, and armored units across Jakarta. Demonstrators responded by setting fires, vandalizing political figures' homes, and torching buildings—including regional government offices. At least six people lost their lives; the toll included a student and other bystanders.
• Government Response: President Prabowo canceled a scheduled foreign visit, met with religious and political leaders, and announced the immediate revocation of MPs' housing perks and a moratorium on overseas travel.
• Public Reaction and Market Fallout: Civil society groups paused planned rallies, citing heavy security. Yet in cities like Yogyakarta and Purwakarta, smaller gatherings were still expected. Amid uncertainty, the Jakarta stock exchange dropped nearly 3–3.6%, bond yields climbed, and the rupiah weakened—raising red flags for Indonesia’s economic trajectory.

Economic Shock And Market Jitters

Financial markets reacted sharply. The Jakarta Stock Exchange dropped more than 3% before recovering slightly, while the rupiah weakened amid investor concern. Government officials sought to calm nerves by stressing Indonesia’s economic fundamentals, unveiling a small relief package, and promising stability. Yet the unrest underscored how quickly investor sentiment can turn when political legitimacy is questioned.