Protests resumed today, Friday (August 29, 2025), continuing the wave of demonstrations that began on Thursday and sending the rupiah into turbulence.

Indonesia’s political climate has been tense since the protests on Monday (August 25, 2025), followed by further unrest on Thursday (August 28, 2025), which culminated in an incident where an online motorcycle taxi driver was struck by a Brimob tactical vehicle in Pejombongan, South Jakarta, on Thursday night. This event further escalated tensions.

The heightened political situation immediately triggered a negative response from market players toward Indonesia’s financial market, particularly the rupiah against the US dollar.

According to Refinitiv, by midday Friday (August 29, 2025), the rupiah had depreciated by 0.67% to Rp16,450 per US dollar, marking its sharpest daily drop since April 9, 2025, when markets were rattled by a trade tariff announcement from US President Donald Trump.

Today’s protest is not the first this year. Since the start of 2025, Indonesia has witnessed a total of 11 major demonstrations.

Data reveals that whenever large-scale protests occur, the rupiah tends to weaken. Below is a record of the currency's movement during demonstrations throughout this year:

The figures indicate a consistent pattern—whenever large protests break out, the rupiah almost always comes under pressure. Foreign investors tend to reduce their exposure when political and social stability is shaken, leaving the rupiah vulnerable to domestic turmoil.