The demonstrations were sparked by the government’s decision to increase allowances for members of the House of Representatives (DPR) of up to IDR 50 million (approx. USD 3,000) per month. This move has been widely perceived as tone-deaf to the current economic hardship facing ordinary Indonesians and emblematic of deeper issues of inequality and fairness. Tensions escalated in Jakarta when security forces attempted to disperse the crowds. During these operations, an armored police vehicle fatally struck an online motorcycle taxi (ojol) driver. The incident ignited widespread public outrage, catalyzing further protests and amplifying grievances not only about parliamentary privileges but also about broader issues, including surging food prices and governance challenges.
The demonstrations tapped into frustrations that had been simmering long before the DPR’s allowances became public. A deepening food crisis has driven up rice prices, Indonesia’s staple, placing enormous pressure on households. Agriculture Minister Andi Amran Sulaiman has faced accusations of shielding powerful interests, allowing manipulation of rice supply and adulterated products being sold as high-priced premium products.
Reports indicate that multiple "actors" are involved in the demonstrations, with no single command structure leading the movement. This lack of coordination has contributed to the outbreak of unrest in various locations across the country. The demonstrations are expected to continue until 5 September 2025, as protests rapidly expand from Jakarta to Makassar, Bandung, Solo, Surabaya, Medan, and beyond.
The Root Cause: Public Discontent over Government Insensitivity
1. Food Insecurity and Political Favoritism
Even before the demonstrations, economic frustrations were already bubbling. A crisis involving rice scarcity and price hikes brought public scrutiny to Agriculture Minister Andi Amran Sulaiman, who was accused of shielding elite interests—and was linked to allegations of supply manipulation by major companies. These conditions intensified broader grievances over inequality and governance.
2. Tone-Deaf Governance and Parliamentary Privilege
The allowance for DPR members, nearly ten times the Jakarta minimum wage, was widely seen as unjustifiable during economic hardship. Public outrage deepened when some legislators dismissed criticism as "stupid," reinforcing perceptions of arrogance and disconnect. Demonstrators coalesced around four core demands: rejecting low-wage policies, ending outsourcing, ensuring transparency in policymaking and remuneration, and enacting an Asset Confiscation Bill for corrupt officials.
3. Spark of Violence: The Death of Affan Kurniawan
On 28 August, crowds clashing with police were dispersed using water cannons and tear gas. Soon after, an armored police vehicle ran over Affan Kurniawan, delivering a tragic and symbolic blow. The incident catalyzed widespread fury, with protesters storming police facilities and demanding full accountability.
Tensions have escalated into chaos and riots, which appear to have strayed from the public’s initial aspirations. Reports suggest that numerous provocateurs infiltrated the demonstrations and steered the unrest, including acts of vandalism against public facilities that followed similar patterns, often taking place at night and continuing into the early morning hours. Such incidents have also been reported in other major cities, including Makassar, Solo, Bandung, and Surabaya. As of 31 August 2025, the residences of several high-ranking Indonesian officials were looted by demonstrators, including those of Ahmad Sahroni, Eko Patrio, and Uya Kuya—Members of the House of Representatives, as well as Sri Mulyani, Minister of Finance.
The government summoned Meta and TikTok over the spread of misinformation, prompting TikTok and Instagram to voluntarily suspend their livestreaming features, which were previously used by the public to share demonstrations nationwide. However, rather than easing tensions, the move has drawn criticism from civil society, accusing the government of suppressing public expression and attempting to silence legitimate dissent under the guise of digital regulation.
Government Response
President Prabowo and other national leaders have issued apologies in a bid to calm protesters; however, no concrete actions have followed, leading to continued public unrest, demanding further action. In a meeting on Sunday, with key leaders of political parties, Prabowo announced sweeping measures to address public anger, including pledging accountability in the case of police brutality and backing reforms to rein in benefits for lawmakers. A moratorium has been put in place starting Monday, under which lawmakers will see certain allowances scrapped and overseas work trips suspended.
Efforts have also been made to minimize disruption to daily life. Jakarta’s local government has encouraged businesses to adopt remote work arrangements, while religious schools moved online starting 1 September, with public schools expected to follow. Yet such measures have done little to quell the unease of ordinary Indonesians, who remain skeptical about whether the government will deliver substantive reform beyond symbolic concessions.
Implications for business
Given the escalating tensions and prevailing uncertainty, businesses should avoid areas designated as red zones, particularly government districts, over the coming week. It is also important to closely monitor how this issue is being perceived and addressed by key stakeholders, to anticipate potential shifts in the political and public landscape and prepare timely responses or engagement strategies. It should be underscored that government stakeholders are likely to deprioritize external meetings and engagements, as a cabinet meeting with President Prabowo is scheduled this week and ministries are expected to focus on managing the current situation.
The turmoil has rattled investor confidence, with Indonesian equities and the rupiah both weakening as protests spread. For businesses operating in the country, the crisis underscores how quickly social discontent can escalate into systemic disruption when grievances about fairness and governance collide.
Conclusion
For the government, the protests mark the most serious challenge to Prabowo’s presidency since he took office. The concessions on parliamentary allowances may calm the immediate unrest, but they are unlikely to resolve the deeper issues of inequality, food insecurity, and political transparency that drove people into the streets. Without broader reform, public trust will remain brittle, leaving the government vulnerable to further mobilization.