Thousands of demonstrators clashed with security forces in Jakarta on Thursday (August 28, 2025) during a large-scale protest highlighting public outrage over the extravagant allowances of members of Indonesia's House of Representatives (DPR). International media outlet Bloomberg assessed that this wave of demonstrations has further increased uncertainty surrounding Indonesia's political and economic stability.

In its report titled "Thousands clash with police in Jakarta as protests intensify", Bloomberg noted that while Indonesia’s inflation rate remains relatively moderate, rising living costs have fueled growing public frustration.

“These protests add to the uncertainty surrounding Indonesia’s economic health. Although inflation has averaged around 3% since the pandemic, soaring rice prices and high education costs have sparked dissatisfaction over the cost of living,” Bloomberg wrote.

The protest, centered around the Indonesian parliamentary complex, was triggered by the granting of a monthly housing allowance of Rp50 million for lawmakers, nearly ten times the Jakarta minimum wage for 2025, which stands at about Rp5.3 million.

Most demonstrators who took to the streets on Thursday were university students. Some threw stones and lit firecrackers, while police responded with tear gas and water cannons to disperse the crowd.

By late afternoon, the unrest had spread to nearby shopping districts around Senayan. Protesters hurled bamboo spears and stones at officers, prompting police to tighten security and block access roads to prevent crowds from pushing further into the city center.

Bloomberg also pointed out that this was not the first demonstration. On August 25, hundreds of students and civil society groups clashed with police at the same location. Even in 2024, a nationwide protest shook the rupiah and stock markets, forcing lawmakers to scrap plans to revise the election law.

This latest wave of anger has been further fueled by surging prices of essential goods, rising education costs, and mass layoffs in the textile industry.

Beyond the DPR issue, public dissatisfaction has also been triggered by hikes in Property Tax (PBB) across several regions. Earlier this August, PBB increases of up to 250% sparked major protests in Pati, Central Java. Similar demonstrations occurred in Bone, South Sulawesi, and Cirebon, West Java, eventually forcing some local governments to revoke the policy.

Meanwhile, the government is also taking action in the digital sphere. The Ministry of Communication and Digital Affairs announced plans to summon ByteDance (TikTok) and Meta regarding the circulation of provocative content related to the August 28 protests. Deputy Minister Angga Raka Prabowo emphasized that digital platforms must comply with Indonesian law.

“Platforms equipped with advanced artificial intelligence must be able to filter and remove misleading or provocative materials,” Angga stated. He denied that the move was intended to restrict freedom of expression, stressing instead that it was to prevent hate speech from undermining democratic institutions.