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Indonesian President Prabowo Subianto has called for calm as authorities try to bring an end to protests that were sparked by lavish new parliamentary allowances and which sent stocks and the rupiah lower.
Thousands of protesters have this week taken to the streets in cities across the country, voicing anger at MPs’ $3,000 monthly housing allowances.
Protesters, including labour unions, are also demanding higher wages. On Thursday, a 21-year-old motorcycle taxi and delivery driver died in Jakarta after he was run over by a police vehicle, further fuelling unrest.
More demonstrations were held on Friday and Saturday. In the eastern city of Makassar, three people died after protesters burned the local parliament building, according to local authorities. In other cities, including Bandung and Surabaya, fires were reported, some at police stations. In Jakarta, bus stops and toll gates were set alight, disrupting public transport.
“In a situation like this, I urge the public to remain calm and to have confidence in the government that I lead,” said Prabowo in a video released on Friday. “I urge all Indonesians to remain vigilant. There are elements that always wish for unrest, for chaos.”
Seven police officers had been arrested in connection with the delivery driver’s death, chief of Jakarta police Asep Edi Suheri said, adding the police would take firm action against those committing the “violation”.
Muhammad Bagir, a student at University of Indonesia, said protesters were demanding the removal of the police chief and punishment of those responsible for the motorcyclist’s death.
“There have been cases where the police, instead of being protectors and servants of the people, are serving the power instead,” Bagir said.
Prabowo, Indonesia’s general-turned-president who was sworn in a year ago, called for a transparent investigation into the death.
“I’m shocked and disappointed by the excessive actions by the officers. I have ordered a thorough and transparent investigation into last night’s incident and for officers involved to be held accountable,” the president said.
Jakarta stocks closed down 1.5 per cent on Friday while the rupiah slid 0.8 per cent against the dollar.
The protests are a test for Prabowo’s administration, which is already trying to right an economy hit by waning purchasing power, a shrinking middle class and job cuts in manufacturing at a time when President Donald Trump’s tariffs on US trading partners have added to uncertainty.
Prabowo has vowed to increase annual economic growth to 8 per cent, but economists say even maintaining 5 per cent is now impossible.
Teuku Riefky, a researcher at the University of Indonesia’s Institute for Economic and Social Research, said the demonstrations were causing capital outflows that were hurting the currency and stock market. “[The] protests today send signals of political instability to foreign investors”, he said.
