Perks on fire: Indonesia erupts into protests over MPs’ $3,000 housing allowance

Indonesia’s violent protests that have left seven people dead stemmed from public fury over money, specifically, the revelation that all 580 lawmakers receive a housing allowance of 50 million rupiah ($3,075) each month. The payout, introduced last year, is nearly 10 times Jakarta’s minimum wage and comes on top of regular parliamentary salaries.

Critics say the perk is tone-deaf at a time when millions of Indonesians are struggling with rising taxes, high food prices, and mounting unemployment. Outrage over the allowance quickly escalated into street violence, with protesters torching parliament buildings, police stations, buses, and subway infrastructure. Jakarta’s governor estimated damages at 55 billion rupiah ($3.3 million).

The unrest deepened after the death of 21-year-old ride-hailing driver Affan Kurniawan, reportedly struck by a police armoured vehicle during a rally. His death turned anger into nationwide revolt, with protests spreading from Jakarta to Makassar, Yogyakarta, and Solo. The toll now stands at seven dead and nearly 470 injured.

President Prabowo Subianto, who cancelled a trip to Beijing amid the crisis, admitted the public anger was justified. In a rare concession, he announced cuts to lawmakers’ perks and privileges, including the controversial housing allowance, and suspended MPs’ overseas trips. Still, he condemned the violence, saying “rioters, not protesters,” were trying to destabilise the country.

For Subianto, who came to power promising 8% growth, the crisis underscores a widening gap between elite privilege and everyday hardship. With the World Bank projecting growth at just 4.8% through 2027 and U.S. tariffs squeezing exports, the cash-for-lawmakers scandal risks becoming a symbol of broken promises.