Commentary: Don’t Let Riots Obscure Indonesia’s Success

In late August, Indonesia experienced its most severe riots in over two decades, which began in Jakarta and quickly spread to other regions. The unrest was triggered by discontent over excessive stipends for lawmakers and allegations of police brutality. President Prabowo Subianto, responding to the protests, pledged to revoke certain parliamentary privileges, reduce stipends, and suspend overseas work visits for legislators. This governmental response has led to a return to superficial normalcy in Jakarta, but there is underlying public dissatisfaction suggesting deeper issues remain unaddressed[para. 1].

Public discontent is rooted in historical precedents of protests turning violent, notably the 1998 riots which led to the fall of the Suharto regime and ushered in a period of reform and relative openness. The recent unrest highlights persistent structural problems, such as unequal wealth distribution and corruption, which have been overlooked during periods of rapid economic growth. Authorities are being warned that beyond managing immediate triggers, fundamental socioeconomic imbalances need urgent attention to prevent further instability[para. 2].

Over the past two decades, Indonesia has enjoyed significant economic growth, fueled by globalization and foreign investment. Under President Joko Widodo, the government set ambitious growth targets, culminating in the “Golden Indonesia 2045” vision to achieve developed-nation status by the country’s 100th anniversary. Prabowo has continued this developmental ambition, raising annual growth targets even higher to 8%[para. 3].

Despite expansion, there have been ongoing challenges: inequitable distribution of wealth, imbalanced regional development, and widespread corruption. These issues have been exacerbated as Indonesia faces slowing globalization and intensifying geopolitical pressures. There is now a pressing need for Indonesia to move its economy up the value chain from resource extraction toward manufacturing and industrial integration in order to avoid the ‘resource curse,’ which requires not only attracting foreign investment but also undertaking major domestic institutional reforms[para. 4].

Foreign investment remains robust, particularly from China, which contributed $8.1 billion in direct investment in 2024, making it Indonesia’s second-largest foreign investor behind Singapore. Initiatives such as sovereign wealth fund partnerships and significant agreements with French companies in areas like energy and minerals reflect ongoing investor interest. However, institutional reforms—vital for long-term sustainable growth—have proven more challenging for this large, geographically diverse country. Attempts at reform, such as changes to the Corruption Eradication Commission, have faced setbacks, and high-level politics show signs of rising dynastic influences[para. 5][para. 6].

Nonetheless, Indonesia has made remarkable progress. The country’s young and growing population, abundant resources, infrastructure development, and policy direction offer significant optimism. Democratic reforms since the late 1990s have built a stable framework, allowing for regular, peaceful transfers of power. Civil society engagement, especially among youth, is strong and vibrant[para. 7][para. 8].

In the 2024 general elections, Prabowo’s coalition secured 81% of parliamentary seats, underlining strong political backing. Analysts note that the recent protests targeted the legislature and police rather than the administration. Despite not fully satisfying public expectations, the government response was generally seen as adequate, and Indonesia is likely to stay focused on economic and welfare improvements[para. 9].

Culturally, Indonesia has made strides toward pluralism, especially with reforms benefiting ethnic and religious minorities. Progress includes recognition of minority festivals and liberalization of cultural expression[para. 10].

In summary, the August riots expose the incomplete nature of reforms but are not a sign of their failure. They serve as a cautionary lesson for the government, which must remain vigilant against complacency and corruption as the nation continues its ambitious trajectory toward greater prosperity and pluralism. The Indonesian experience is a reminder for other developing nations that social transformation inevitably comes with costs, which can be mitigated by sustained, inclusive progress[para. 11][para. 12].