East Asia Forum-Sept 8, 2025

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 fueled 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 recognizes the scale of Indonesia’s challenges. Read more at: https://eastasiaforum.org/2025/09/08/indonesian-protests-a-wake-up-call-on-policy-complacency/ First published in East Asia Forum