July in Indonesia: Government faces public anger over high US tariffs, low growth and inflation

International Desk

The massive protests and violence that have been taking place in Indonesia over the past few days have had a profound impact on the country’s political and economic situation. The public’s anger is rooted in excessive housing allowances for members of parliament, police violence and the rising cost of living. The unrest has emerged as a major challenge for the government led by President Prabowo Subianto, who came to power last October.

The beginning and intensity of the protests

Protests began in front of the parliament building in Jakarta on August 25. Initially, protesters were protesting against a monthly housing allowance of 50 million rupiah (about $3,000) for members of parliament, which is about 10 times the minimum wage in Jakarta. The allowance has sparked public anger as ordinary people in the country grapple with rising living costs, tax increases, and unemployment. The situation escalated on August 28, when a police armored vehicle hit and killed 21-year-old motorcycle taxi driver Affan Kurniawan during a protest in Jakarta. Public anger intensified when a video of the incident went viral on social media. Protesters accused the police of using excessive force and staged large-scale protests in various cities across the country, including Jakarta, Surabaya, Yogyakarta, and Makassar.

Violence and damage

Several government buildings and politicians’ homes were looted and set on fire during the protests. Three people died when a regional parliament building was set on fire in Makassar. In addition, several politicians’ homes, including the home of Finance Minister Sri Muliani Indrawati, were attacked. According to the official figures, at least 10 people have been killed and hundreds injured in the protests so far. Some 3,195 people have been arrested nationwide, including 1,240 in Jakarta. **Government response** Faced with public outrage, President Prabowo announced on Sunday (August 31) that several benefits, including housing allowances, for members of parliament would be canceled and that a ban on foreign travel would be imposed. He ordered an investigation into seven police officers involved in Affan’s death and promised financial assistance to his family. However, he ordered the police and military to take strict action against the protesters, which has drawn criticism from human rights groups.

People’s demands and future

The protesters, mainly members of student and labor unions, are demanding not just the abolition of allowances but deeper reforms. They want the government to take concrete steps to address economic inequality, corruption and police reform. “This is not just one issue, but a long-standing problem of inequality, governance and accountability,” said Herianto, coordinator of the All-Indonesian Students Union. “The people want deeper reforms.” Amnesty International and Human Rights Watch have criticized the government’s harsh crackdown, saying it violates democratic rights. Anis Hidayah, chairwoman of Indonesia’s National Human Rights Commission, said, “The scope for dialogue to express people’s concerns is very limited.”

Economic and political context

Indonesia’s economy is currently under some pressure. President Prabowo promised 8 percent economic growth, but the World Bank forecasts that it will be closer to 4.8 percent between 2025 and 2027. In addition, the United States’ 19 percent tariff on Indonesian exports is putting pressure on Indonesia’s export market.

The ongoing unrest in Indonesia has brought back memories of the 1998 Reformasi movement, when popular protests led to the downfall of then-President Suharto. The extent of the current protests will depend on how the government addresses economic and political problems. Public anger has not subsided, and the situation is likely to worsen in the coming days.