JAKARTA, INDONESIA – AUGUST 29: Hundreds of online motorcycle taxi drivers and local residents gather in front of the Mobile Brigade Command Headquarters (Mako Brimob) of the Jakarta Metropolitan Police in Kwitang, Jakarta, on August 29, 2025. The crowd, consisting of various groups, demanded accountability for the death of ride-hailing driver who was struck by a police tactical vehicle during a protest at the House of Representatives (DPR) the previous day, August 28, 2025. They also reiterated their calls to abolish outsourcing and reject low wages. (Photo by Eko Siswono Toyudho/Anadolu via Getty Images)
Anadolu via Getty Images
Indonesian shares slumped and the rupiah weakened as anti-government protests in Jakarta intensified, with thousands of workers demanding higher wages and lower taxes clashing with the police near the parliament building.
The country is bracing for heightened protests after a motorcycle taxi driver was killed yesterday during the clash between the police and protesters, who also questioned the hefty allowances of the members of parliament.
In a televised speech, President Prabowo Subianto expressed his deepest sympathy and urged the public to remain calm. “I am shocked and disappointed by the excessive actions of the officers. I already gave an instruction for the incident to be thoroughly and transparently investigated.”
The benchmark stock index plunged 1.1% to 7,860.15 in midafternoon trading in Jakarta, after dropping as much as 2.4% earlier, as investors were unnerved by the prolonged social unrest. The rupiah fell 0.8% against the greenback.
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Harry Su, managing director of Jakarta-based brokerage Samuel Sekuritas Indonesia, said political tensions will pressure both the Indonesian stocks and the rupiah. “Outflows will continue,” he said via text message.
Ezaridho Ibnutama, head of research at NH Korindo Sekuritas Indonesia, said the growing unrest will intensify fears of capital flight. “We will see the rupiah continue to weaken against the U.S. dollar,” he said.