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Hundreds of students marched through Jakarta warning that Indonesia is "heading towards bankruptcy". Farheen Hussain examines why the protests matter, and what they reveal about growing unease over the country's economic direction.
Hundreds of Indonesian students took to the streets of Jakarta last week, with organisers saying around 1,500 joined the march, carrying a stark warning for President Prabowo Subianto: Indonesia, they say, is heading towards bankruptcy.
Marching under the slogan Menuju Indonesia Bangkrut ("Heading Towards Bankruptcy"), the protesters demanded lower fuel and food prices and an end to what they described as wasteful government spending. But beneath the chants, placards and clashes with police lay a deeper anxiety about the future of Southeast Asia's largest economy.
At the centre of that debate is a question increasingly being asked not only by students, but also by economists and investors: can Indonesia afford Prabowo's ambitions?
From Fuel Prices to a Broader Reckoning
The protests took place in Jakarta on 12 June, with students marching towards the capital's iconic Hotel Indonesia Roundabout, known locally as Bundaran HI.
Reuters and CNA described the crowd as numbering in
the hundreds, while organisers told Al Jazeera that around 1,500 students took part. Around 6,000 police and military personnel were deployed to secure the protest route. Scuffles broke out after organisers said protesters had been prevented from reaching the designated protest site.
Dressed in their university jackets, students held signs reading "Cancel the fuel price hike" and a "Wall of Shame" directed at members of Prabowo's Cabinet.
The immediate trigger for the protests was the government's decision to raise prices for non-subsidised fuel products earlier this month. Pertamax, one of Indonesia's most widely used non-subsidised fuels and popular among the country's middle class, rose from Rp12,300 to Rp16,250 per litre, an increase of more than 32 per cent, while Pertamax Green climbed from Rp12,900 to Rp17,000 per litre. Tempo reported that economists warned the biggest impact would not necessarily
be on inflation, but on household purchasing power, particularly among middle-income Indonesians already contending with a weakening rupiah and rising living costs. The increase, they argued, risked curbing domestic consumption, which accounts for more than half of Indonesia's GDP.
Kuwait Times reported that the government had long relied on subsidies to shield consumers from fluctuations in global oil markets. However, the spike in crude prices linked to the Iran conflict, combined with mounting fiscal pressures stemming from Prabowo's ambitious spending plans, prompted what the publication described as a "substantial price rise" earlier this month. But while the fuel hike may have been the spark that brought students onto the streets, the
grievances quickly broadened into a wider critique of the government's economic priorities.
According to Yatalathof Ma'shum Imawan, a student leader from the University of Indonesia, protesters presented five demands:
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lower fuel prices;
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lower prices for staple foods;
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the cancellation of Prabowo's flagship free meals programme;
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the cancellation of the village cooperatives initiative; and
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an end to what they described as "wasteful" government spending.
Students also criticised the growing role of the military in civilian affairs, arguing that it risks rolling back democratic gains achieved since the end of Suharto's authoritarian rule.
"We want to show that things are not okay. We don't want Indonesia to truly go bankrupt, but these behaviours prove that Indonesia will go bankrupt economically, democratically, and morally," Imawan told Reuters on behalf of the organisers of the rally. Reuters reported his comments.
The programme at the heart of the protests
One of the most striking aspects of the demonstrations was the anger directed at Prabowo's signature Free Nutritious Meals programme.
Introduced as a centrepiece of his successful 2024 presidential campaign, the initiative aims to provide meals to around 83 million schoolchildren and pregnant women across Indonesia.
Supporters argue it is exactly the kind of long-term investment Indonesia needs. Government officials have described it as an investment in the country's future, saying it will reduce malnutrition, improve educational outcomes and strengthen human capital. BBC reported that authorities continue to defend the programme in these terms.
But critics argue that the issue is not whether children should be fed. It is whether Indonesia can afford a programme of this scale at a time of mounting economic pressure.
The initiative is estimated to cost around US$15 billion annually. In recent months, it has also been dogged by allegations of corruption and implementation failures.
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-Asia Media Centre
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