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National strikes have erupted across Indonesia with riot police brutally confronting workers and students rallying against Indonesia’s ‘corrupt elite’ and worsening cost-of-living crisis.

Tens of thousands rallied in Jakarta after controversial motions were passed by the Indonesian Parliament (DPR) allowing legislators a monthly housing allowance of Rp50 million (AUD4,600).

This stands in stark contrast to the monthly minimum wage in Jakarta of only Rp5.4 million (AUD500) and is also nearly twenty times the minimum wage in poorer districts. This sparked outrage and discourse on politicians being ‘out of touch,’ as well as lacking transparency and accountability.

In response, students and unions mobilised across provinces with six unwavering demands, including an 8.5-10.5 percent minimum wage increase in 2026, an end to outsourcing and mass layoffs, and reforms to tax and labour laws.

On the streets, 45,00 riot police and military personnel were deployed, brutally striking demonstrators with tear gas and water cannons, injuring many.

Protestors and riot police flood the streets of Jakarta [Photo from Bloomberg].

The protests escalated drastically after an armoured police vehicle struck and dragged motorbike-taxi worker Affan Kurniawan several metres across the ground. He was rushed to the hospital where he tragically died.

The housing allowance was analysed by public policy expert Achmad Nur Hidayat who told BeritaSatu TV, “Just for housing allowances alone, covering 575 lawmakers over a five-year term, the state must spend Rp1.73 trillion (AUD162 million)… [this] deeply hurts the public’s sense of fairness.”

Comparing their allowance to the salaries of lawmakers in neighbouring countries, Singaporean legislators earn around AUD200,000. However, this reflects the country’s high cost-of-living and accountability benchmarks.

When considering the DPR’s ‘eroded credibility’ and the lack of high-quality laws that reflect public interest, the government’s Rp50 million housing allowance is unusually high.

Despite this, politicians have defended the scandalous housing stipend. DPR Deputy Speaker Adies Kadir said it is justified because rental prices in neighbourhoods near the DPR complex can reach over Rp70 million per month, forcing legislators to pay the difference from their own pockets.

However, citizens are unconvinced, as lawmakers already receive a multitude of benefits including their tax being covered by the state.

These demonstrations over the past week mark some of the largest coordinated protests in the last few years, reflecting a long-existing divide between political elites and the Indonesian working class.

As discontent continues to grow, the government faces more and more pressure to meet the demands of students and workers — otherwise, they run the risk of protests continuing to escalate across the country.

 

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