Indonesia's Uneasy Calm: Inequality, Job Cuts, and a Nation on Edge

Indonesia’s Uneasy Calm: Inequality, Job Cuts, and a Nation on Edge

JAKARTA, Sept 2 — Despite government efforts to ease tensions following deadly unrest, the real issues shaking Indonesia’s streets run much deeper — and they’re far from resolved.

The recent wave of protests, the worst Indonesia has seen in decades, left at least six people dead and 20 missing. What began as anger over lavish benefits for lawmakers quickly spiraled into nationwide fury after footage surfaced of police running over a young delivery driver, Affan Kurniawan.

Behind the scenes of the unrest lies a story all too familiar to everyday Indonesians: a booming economy on paper, but empty pockets in reality.

Economic Growth That Doesn’t Reach the People

President Prabowo Subianto proudly pointed to strong second-quarter growth, driven by exports and manufacturing. But ask the average worker on the street, and that success feels like a cruel joke.

“If growth is real, the lower class should feel it,” said economist Nailul Huda from the Center of Economics and Law Studies. “But instead, layoffs are happening everywhere — up 30% from last year.”

While the nation’s elite enjoy housing allowances worth US$3,000 — nearly 10 times the capital’s minimum wage, ordinary Indonesians are dealing with rising prices, stagnant incomes, and shrinking job opportunities.

The government’s attempt to placate public outrage — including reversing perks and banning overseas trips for officials — seems too little, too late.

Frustration That Can’t Be Silenced

Even as politicians backtrack on some benefits, the damage has been done. Resentment is burning across the country — not just in Jakarta. Buildings have been torched, politicians’ homes looted, and Molotov cocktails thrown in cities nationwide.

For many, the issue isn’t just about perks — it’s about a government that promised opportunity, education, and stability but delivered hardship instead.

“People expected jobs and security,” Nailul added. “But all they’ve seen are broken promises.”

A Widening Divide

Indonesia’s middle class is shrinking. Cost of living is rising, wages are flat, and rice — a staple for most households — has jumped over 6% in price since last year.

According to government data, Jakarta’s poverty rate has grown, with over 449,000 people now below the poverty line — up from 362,000 in 2019.

“Yes, the economy is growing — but only for capital owners,” said Jahen Fachrul Rezki, an economist at the University of Indonesia. “For the rest, it’s getting harder to survive.”

Another Protest is Only a Matter of Time

The story of Affan Kurniawan — the young driver whose life was cut short — has become a symbol of the inequality that many feel. Workers like him are being asked to work more, earn less, and shoulder the consequences of economic mismanagement.

And while the protests may quiet down for now, the anger hasn’t gone anywhere.

“We’re not solving the problems,” warned political analyst Ray Rangkuti. “We’re just covering them up. And it’s only a matter of time before the streets erupt again.”

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