Political turmoil has been on the rise in Indonesia for months. As per the reports of the British Broadcasting Corporation and Cable News Network, the latest political unrest in Jakarta — the capital city — and several other cities led to arson attacks by demonstrators and their lootings of the houses of political leaders, leading to the government’s use of force, several deaths and many arrests. Though the unrest was in response to controversial housing perks, it later included several other concerns including rising living costs, corruption and the lack of accountability within the government. It was later ended for now due to the government’s withdrawal from the policy, but it remains unclear how much the concerns will be addressed.
Political unrest is not uncommon in Indonesia. But political unrest including the latest one, which first erupted in Jakarta on 25 August against the pay of $6,150 a month for parliamentarians and later spread across the country due to the death of a 21-year-old motorcycle rideshare driver Affan Kurniawan, has largely increased after Prabowo Subianto entered office in 2024 due to economic, political and other reasons. Economic and political frustration, which has been brewing for years in terms of several concerns including rising living costs, inequality and corruption, led to political unrest several times, though the latest unrest was directly triggered by the Indonesian government’s decision to raise the allowance for national parliamentarians, which is more than 30 times the average national income.
But — pertinently saying — economic hardships for ordinary Indonesians have been worsening, as wages stagnate and living costs rise in Indonesia, for several years. Though fifteen years of sustained economic growth including the growth in the last two years have helped reduce poverty and create a growing middle class, economic headwinds, from which the rich and powerful are rather unfairly insulated, due to weak wage growth, a lack of secure, formal jobs particularly for youth and other reasons such as corruption and rising inequality, have been impacting many, particularly the poor and middle class, as growth has disproportionately benefited the rich and increased wealth concentration, leading to anger among many people in Indonesia.
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But, hopefully saying, Indonesia has been making policy-based and other efforts to improve economic conditions and address inequality. Consequently, the economic conditions of many Indonesians have generally improved, with the GDP growing over the years amidst global uncertainties. The government established anti-corruption agencies including the Corruption Eradication Commission or KPK, made reforms in public procurement and business regulations and increased transparency in state finances in Indonesia, where corruption is a major issue that is integral to Indonesian culture. President Prabowo Subianto, who has faced the most serious leadership challenge with the latest unrest since becoming president in 2024, delivered a firm warning against corruption and the abuse of power within his administration.
But these are not enough to address economic hardships, inequality and corruption that have been going on for decades and there are various flaws in the measures— leading to limited or sometimes negative outcomes. Economic measures are not implemented as desired. There are also gaps in the implementation of anti-corruption measures due to political favoritism and other reasons. Consequently, there remains a lack of effective enforcement against systemic corruption and the failure of decentralization to curb regional graft, disproportionate benefits from policies favoring the wealthy, the perpetuation of inequality through asset concentration and bureaucratic inefficiencies that undermine public trust and service delivery.
The concerns of economic hardship, inequality and corruption need to be addressed, no matter whether there is further unrest due to these. For this, rising living costs need to be addressed. Providing economic opportunities and ensuring access to services, along with enhancing the productivity of the poor, for which progress has been slow, are also vital. But improvement in governance and reduction in corruption are also vital in Indonesia. For this, the decision making capacity of the KPK needs to be improved and a strong political commitment is needed.
