The China Mail - Govt gestures leave roots of Indonesia protests intact

USD -
AED 3.673042
AFN 63.503991
ALL 81.250403
AMD 376.940403
ANG 1.789731
AOA 917.000367
ARS 1399.232404
AUD 1.413428
AWG 1.8
AZN 1.70397
BAM 1.64926
BBD 2.014277
BDT 122.307345
BGN 1.647646
BHD 0.377028
BIF 2965
BMD 1
BND 1.264067
BOB 6.911004
BRL 5.220399
BSD 1.000055
BTN 90.587789
BWP 13.189806
BYN 2.866094
BYR 19600
BZD 2.011317
CAD 1.36202
CDF 2255.000362
CHF 0.767775
CLF 0.021854
CLP 862.903912
CNY 6.90865
CNH 6.901745
COP 3664.42
CRC 485.052916
CUC 1
CUP 26.5
CVE 93.303894
CZK 20.44204
DJF 177.720393
DKK 6.290275
DOP 62.27504
DZD 129.63704
EGP 46.850604
ERN 15
ETB 155.203874
EUR 0.84204
FJD 2.21204
FKP 0.733683
GBP 0.732255
GEL 2.67504
GGP 0.733683
GHS 11.01504
GIP 0.733683
GMD 73.503851
GNF 8780.000355
GTQ 7.67035
GYD 209.236037
HKD 7.817505
HNL 26.510388
HRK 6.346904
HTG 131.126252
HUF 319.370388
IDR 16830
ILS 3.09073
IMP 0.733683
INR 90.58335
IQD 1310.5
IRR 42125.000158
ISK 122.130386
JEP 0.733683
JMD 156.510227
JOD 0.70904
JPY 152.64804
KES 129.000351
KGS 87.450384
KHR 4022.00035
KMF 415.00035
KPW 899.945229
KRW 1441.090383
KWD 0.30663
KYD 0.833418
KZT 494.893958
LAK 21445.000349
LBP 89550.000349
LKR 309.225755
LRD 186.403772
LSL 15.945039
LTL 2.95274
LVL 0.60489
LYD 6.310381
MAD 9.141039
MDL 16.981212
MGA 4395.000347
MKD 51.927321
MMK 2099.574581
MNT 3581.569872
MOP 8.053972
MRU 39.920379
MUR 45.930378
MVR 15.405039
MWK 1736.503736
MXN 17.157185
MYR 3.907504
MZN 63.910377
NAD 15.960377
NGN 1353.230377
NIO 36.710377
NOK 9.492675
NPR 144.93218
NZD 1.654965
OMR 0.384501
PAB 1.000148
PEN 3.353039
PGK 4.293039
PHP 57.870504
PKR 279.603701
PLN 3.54485
PYG 6558.925341
QAR 3.64125
RON 4.287104
RSD 98.862412
RUB 76.63776
RWF 1455
SAR 3.750121
SBD 8.045182
SCR 13.53964
SDG 601.503676
SEK 8.910005
SGD 1.261935
SHP 0.750259
SLE 24.450371
SLL 20969.49935
SOS 571.503662
SRD 37.754038
STD 20697.981008
STN 20.85
SVC 8.750574
SYP 11059.574895
SZL 15.940369
THB 31.087038
TJS 9.435908
TMT 3.5
TND 2.84375
TOP 2.40776
TRY 43.730504
TTD 6.78838
TWD 31.355038
TZS 2600.000335
UAH 43.128434
UGX 3540.03196
UYU 38.554298
UZS 12150.000334
VES 392.73007
VND 25970
VUV 119.325081
WST 2.701986
XAF 553.151102
XAG 0.012992
XAU 0.000199
XCD 2.70255
XCG 1.802336
XDR 0.687473
XOF 553.000332
XPF 100.950363
YER 238.350363
ZAR 15.94704
ZMK 9001.203584
ZMW 18.176912
ZWL 321.999592
  • RBGPF

    0.1000

    82.5

    +0.12%

  • CMSC

    0.0500

    23.75

    +0.21%

  • GSK

    0.3900

    58.93

    +0.66%

  • BCE

    -0.1200

    25.71

    -0.47%

  • RYCEF

    0.2300

    17.1

    +1.35%

  • BTI

    -1.1100

    59.5

    -1.87%

  • VOD

    -0.0500

    15.57

    -0.32%

  • RIO

    0.1600

    98.07

    +0.16%

  • AZN

    1.0300

    205.55

    +0.5%

  • NGG

    1.1800

    92.4

    +1.28%

  • CMSD

    0.0647

    23.64

    +0.27%

  • RELX

    2.2500

    31.06

    +7.24%

  • JRI

    0.2135

    13.24

    +1.61%

  • BCC

    -1.5600

    86.5

    -1.8%

  • BP

    0.4700

    37.66

    +1.25%

Govt gestures leave roots of Indonesia protests intact
Govt gestures leave roots of Indonesia protests intact / Photo: © AFP

Govt gestures leave roots of Indonesia protests intact

Government gestures to calm deadly protests in Indonesia have done little to address the economic inequality and hardship fuelling the unrest, leaving deep resentment to linger and flare up again, experts say.

Text size:

The country's worst violence in decades left at least six people dead and 20 missing, with rallies over lavish perks for lawmakers descending into angry riots against police after officers were filmed running over a young delivery driver.

Southeast Asia's biggest economy recorded a surge in growth in the second quarter of the year on the back of manufacturing and export demand, which President Prabowo Subianto hailed, but everyday Indonesians are not seeing the data reflected in their wallets.

Instead they view a corrupt political class enriching itself and failing to listen to the public, while inequality grows between the rich and the poor, experts said.

"This is caused by economic issues. Some economic policies left the public quite annoyed or even angry," said Nailul Huda, economist at the Center of Economics and Law Studies (CELIOS).

"If economic growth is true, it will be felt by the lower-class society. Terminations are everywhere, and layoffs have increased up to 30 percent, which is quite high," he added.

Lavish benefits for lawmakers including a $3,000 housing allowance, which is nearly 10 times the minimum wage in the capital Jakarta, stirred the initial anger in protests last week before the driver's death.

The protests made Prabowo and parliament leaders U-turn and offer to revoke some perks, including issuing a moratorium on overseas visits.

But their moves have likely not gone far enough to address the underlying grievances of the wider public.

"The government appears insensitive to these concerns," said Nailul. "This has become the root of the administration's problems over the past four days."

Rising anger against the elite has manifested itself in looting, including the homes of several politicians.

It has not been confined to capital Jakarta either, with local and provincial council buildings set on fire or attacked with rocks and Molotov cocktails in cities across the country.

- 'Govt fails to deliver' -

Prabowo had already faced smaller protests in February over widespread budget cuts to fund populist policies, including a billion-dollar free meal programme and new sovereign wealth fund Danantara.

"The budgets that were supposed to be utilised by other sectors are being diverted to popular programmes which most likely still have many problems," said Jahen Fachrul Rezki, an economic researcher at the University of Indonesia.

Around 42,000 people were also laid off between January and June, a 32 percent rise on last year, according to the Ministry of Manpower.

"It might be true that our economy is expanding, but who's benefiting from the growth? Probably just capital owners," Jahen said.

A cost-of-living crisis is being felt by many as the country struggles with a shrinking middle class and slower income growth compared to rising prices because of inflation, according to Jahen.

"The government claimed that we have an increase of rice supply, but it is not reflected in the price," he said.

According to Statistics Indonesia on Monday, the price of the staple good increased by more than six percent on last year.

The number of people living below the poverty line in metropolitan Jakarta -- a megalopolis of around 11 million people -- was up from 362,000 in 2019 to 449,000 as of September 2024, government data says.

"The government initially promised during the campaign that there would be job opportunities, education, and no more layoffs," said Nailul. "But the government fails to deliver."

- 'A matter of time' -

One of Prabowo's early moves was to announce Indonesia would hike its value-added tax to 12 percent, before reversing after a backlash and saying it would only apply to luxury goods.

"It is neither feasible nor wise for the government to raise VAT rates when people's purchasing power is declining," said Nailul.

The death of the delivery driver, Affan Kurniawan, also stoked anger because workers like him have faced bigger pay deductions and longer working hours due to the economic situation.

Such conditions mean many Indonesians will still feel the economic pain in the coming months, leaving the door open for fresh protests.

"The protests on the streets probably will come down in the next few days, but it's just a matter of time until public anger resurfaces again," said Ray Rangkuti, political analyst at think tank Lingkar Madani.

"Because we're not addressing the issues, we're just covering them up," Rangkuti added.

H.Au--ThChM