Jakarta protests ease after pay hike for lawmakers is reversed, but aftermath lingers
An analyst warns that if the government’s response is seen as inadequate – or delayed – prolonged demonstrations could hurt private-sector investment and dampen spending on durable goods and tourism
[JAKARTA] Protests in Jakarta, marked by vandalism and looting that damaged infrastructure, eased slightly on Monday (Sep 1) after President Prabowo Subianto scrapped a planned pay hike for lawmakers, but not before causing an estimated nine trillion rupiah (S$770 million) in economic losses, particularly in the Greater Jakarta area.
The retail, transportation and services sectors were hit hardest with the services sector – nearly half of the national economy – suffering a sharp three-day decline, indicated the Center for Economic and Law Studies (Celios).
Businesses and analysts still remain cautious. Nailul Huda, digital economy director at Celios, warned that the situation remains delicate although the angst appears to have cooled.
TRENDING NOW
Singapore government slaps loan curbs on individual private-hire car buyers
If Europe goes to war, the fallout will be felt in East Asia
The grid is the transition: Why Asean’s next energy challenge is coordination
Indonesia stocks suffer worst plunge in nearly 30 years as MSCI proposes standalone status
