Hundreds clash with police as new parliamentary perks spark outrage during Prabowo’s austerity drive.
Thousands of Indonesians staged protests in Jakarta and other cities on August 25 against new allowances for parliamentarians, including a Rp50 million (US$3,075) monthly housing perk. Critics say the move is insensitive, coming just days after President Prabowo Subianto pledged strict austerity measures.
Housing Perk Sparks Backlash
The new allowance, nearly ten times Jakarta’s minimum wage, was announced on Aug 19 by House Deputy Speaker Adies Kadir. Lawmakers also received rice allowance increases from Rp10 million to Rp12 million and fuel stipends from Rp5 million to Rp7 million monthly. Transparency watchdogs say MPs already earn up to Rp230 million a month without these perks.
Protests Turn Violent
On Aug 25, student groups, workers, and online drivers gathered outside the parliament, chanting for parliament’s dissolution (#bubarkanDPR trended on social media). Protesters tried to breach barricades and clashed with police, who responded with tear gas and water cannons. Parallel demonstrations erupted in other cities. Some protesters compared the Rp50 million housing perk with teacher salaries, which range from Rp1.2 to Rp7 million a month.
Global Media Spotlight
International outlets highlighted the protests. Reuters reported police firing tear gas at demonstrators accusing lawmakers of excessive pay. Bloomberg and The Edge Malaysia emphasized that the allowance came amid Prabowo’s austerity pledges. CNA noted the stark comparison between MPs’ perks and ordinary citizens’ struggles, quoting frustrated students demanding funds be redirected to teachers and job creation.
MPs Defend Perks
Some lawmakers defended the decision, arguing the figure was “carefully calculated.” PDI-P Speaker Puan Maharani said the allowance matched Jakarta’s high living costs, while singer-turned-MP Pasha Ungu stressed the decision had been reviewed by both executive and legislative branches. Adies Kadir even thanked the finance minister for supporting the increases.
Analysts Warn of Political Fallout
Economists criticized the move as irrational, with CELIOS economist Media Wahyudi Askar urging funds to be redirected to economic stimulus. Public policy lecturer Achmad Nur Hidayat called for merging and capping MPs’ fragmented allowance structure. Analysts also suggested the increase may reflect Prabowo’s need to secure parliamentary backing for his social programs, including the Rp335 trillion free-meal initiative.
The Rp50 million housing allowance controversy underscores the widening gap between lawmakers’ privileges and citizens’ economic hardships. While the government defends the perk as necessary, protests at home and scrutiny abroad show growing public demand for accountability and fiscal fairness in Indonesia’s austerity era.
Sources: CNA (2025) , Kompas (2025)
Keywords: Indonesia Protest, DPR Housing Allowance, Rp50 Million Perk, Jakarta Demonstration, Prabowo Austerity, Public Anger
