Berliner Boersenzeitung - Govt gestures leave roots of Indonesia protests intact

EUR -
AED 4.300909
AFN 77.619277
ALL 96.366953
AMD 446.668392
ANG 2.096761
AOA 1073.908745
ARS 1698.982413
AUD 1.773215
AWG 2.108
AZN 1.995247
BAM 1.953475
BBD 2.357934
BDT 143.170826
BGN 1.9551
BHD 0.441474
BIF 3461.239669
BMD 1.171111
BND 1.51152
BOB 8.089441
BRL 6.472765
BSD 1.170727
BTN 105.62429
BWP 15.470851
BYN 3.434871
BYR 22953.779249
BZD 2.354538
CAD 1.61577
CDF 2651.395397
CHF 0.931852
CLF 0.027214
CLP 1067.608816
CNY 8.246087
CNH 8.240623
COP 4524.834001
CRC 583.318208
CUC 1.171111
CUP 31.034446
CVE 110.134862
CZK 24.31947
DJF 208.47544
DKK 7.471162
DOP 73.564017
DZD 151.815836
EGP 55.734818
ERN 17.566668
ETB 182.070316
FJD 2.674469
FKP 0.87479
GBP 0.875699
GEL 3.150003
GGP 0.87479
GHS 13.463092
GIP 0.87479
GMD 86.077637
GNF 10235.037122
GTQ 8.966329
GYD 244.930584
HKD 9.112135
HNL 30.835827
HRK 7.533175
HTG 153.329477
HUF 386.85903
IDR 19597.433145
ILS 3.760315
IMP 0.87479
INR 105.020334
IQD 1533.587875
IRR 49333.059178
ISK 147.594872
JEP 0.87479
JMD 187.321056
JOD 0.830322
JPY 184.226303
KES 150.953295
KGS 102.413383
KHR 4688.479994
KMF 493.038387
KPW 1053.983025
KRW 1731.804032
KWD 0.359905
KYD 0.975547
KZT 604.028844
LAK 25352.259626
LBP 104836.318011
LKR 362.225079
LRD 207.213382
LSL 19.629273
LTL 3.457987
LVL 0.708394
LYD 6.345556
MAD 10.730121
MDL 19.743839
MGA 5264.846362
MKD 61.543749
MMK 2459.136594
MNT 4159.095589
MOP 9.383113
MRU 46.734376
MUR 54.047016
MVR 18.105591
MWK 2030.027271
MXN 21.115679
MYR 4.774619
MZN 74.845224
NAD 19.629189
NGN 1707.36646
NIO 43.079464
NOK 11.923044
NPR 169.001746
NZD 2.03894
OMR 0.450291
PAB 1.170717
PEN 3.941742
PGK 5.046102
PHP 68.76056
PKR 328.030592
PLN 4.212265
PYG 7815.83136
QAR 4.269255
RON 5.089668
RSD 117.379303
RUB 94.303285
RWF 1704.507744
SAR 4.392492
SBD 9.532982
SCR 16.117672
SDG 704.4177
SEK 10.910904
SGD 1.513948
SHP 0.878637
SLE 28.233288
SLL 24557.62031
SOS 667.919325
SRD 45.296237
STD 24239.63709
STN 24.471397
SVC 10.243896
SYP 12949.102091
SZL 19.634967
THB 36.840234
TJS 10.811233
TMT 4.1106
TND 3.421957
TOP 2.819755
TRY 50.135034
TTD 7.943648
TWD 36.948438
TZS 2921.922842
UAH 49.447705
UGX 4182.058377
USD 1.171111
UYU 45.875401
UZS 14118.317448
VES 326.989939
VND 30814.863086
VUV 142.172961
WST 3.266654
XAF 655.191202
XAG 0.017812
XAU 0.000271
XCD 3.164986
XCG 2.109916
XDR 0.814844
XOF 655.188408
XPF 119.331742
YER 279.251729
ZAR 19.647972
ZMK 10541.409535
ZMW 26.633756
ZWL 377.097324
  • SCS

    0.0200

    16.14

    +0.12%

  • RBGPF

    0.0000

    80.22

    0%

  • CMSC

    0.0300

    23.29

    +0.13%

  • BCC

    1.4100

    77.7

    +1.81%

  • RYCEF

    0.5400

    15.4

    +3.51%

  • BCE

    -0.3000

    22.85

    -1.31%

  • RIO

    0.4400

    77.63

    +0.57%

  • NGG

    -0.7700

    76.39

    -1.01%

  • CMSD

    0.0000

    23.28

    0%

  • GSK

    -0.4200

    48.29

    -0.87%

  • JRI

    0.0000

    13.43

    0%

  • RELX

    0.0900

    40.65

    +0.22%

  • VOD

    -0.0100

    12.8

    -0.08%

  • AZN

    0.7500

    90.61

    +0.83%

  • BP

    -1.1600

    33.31

    -3.48%

  • BTI

    -0.1300

    57.04

    -0.23%

Govt gestures leave roots of Indonesia protests intact
Govt gestures leave roots of Indonesia protests intact / Photo: Timur Matahari - 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.

(T.Burkhard--BBZ)