Indonesia’s steady growth performance over much of the past three decades is now under strain as weak wages, rising costs and limited formal-sector employment opportunities squeeze household spending power. A reliance on commodities and consumption masked structural weaknesses, including declining manufacturing competitiveness, poor education outcomes and a weak investment climate. Protests in August 2025, triggered by parliamentary perks and fuelled by frustration at declining living standards, highlight growing public dissatisfaction — especially among the young. President Prabowo’s rural-focused development agenda has yet to address the urban economic malaise, raising questions about whether he recognises the scale of Indonesia’s challenges.
Indonesian protests a wake up call on policy complacency | East Asia Forum
