Jakarta, 4 September 2025 – The wave of mass demonstrations across Indonesia on 28–31 August 2025 had significant social and economic impacts. Material losses occurred primarily from damage to public infrastructure such as bus stops, the parliament building, police stations, and public transportation facilities. In addition to material damages, 10 civilians lost their lives, and public anxiety grew over the potential for further escalation. The protests reflected public concerns about transparency, social justice, and public policies that are perceived as not fully addressing society’s needs.

Prasasti Center for Policy Studies documented these events as part of its focus on Indonesian public policy, including the demonstrations at the end of August. “This documentation aligns with the philosophy behind our name, Prasasti. We record important events so that they can serve as a foundation for future policymaking—both to resolve current issues and to prevent us from facing the same problems again,” said Nila Marita, Executive Director of Prasasti.

In addition to documenting the protests of 28–31 August, Prasasti also calculated the total material losses incurred during that period. “We estimate the losses reached Rp1.2 trillion. This figure only accounts for damage to infrastructure such as bus stops, the parliament and regional parliament buildings, police stations, and public transportation facilities. Intangible impacts such as reduced productivity are much harder to quantify,” explained Gundy Cahyadi, Research Director of Prasasti. Damage to vehicles, whether owned by the public or the government, was not included due to the absence of official data on the number affected.

The tense situation in late August also put pressure on the financial markets. Foreign capital flows (net flow) in the stock market, which had previously shown a surplus of Rp731 billion, quickly reversed into an outflow of Rp1.1 trillion. This rapid shift reflected the sensitivity of investor confidence to domestic conditions. “The Rp1.1 trillion capital outflow shows the reaction of market participants to the unfolding socio-political dynamics,” Gundy noted.

The Jakarta Composite Index (IHSG) also reflected this volatility. After rising from 7,858 on 25 August to 7,952 on 28 August, the index dropped sharply to 7,830 on 29 August. “Although the market is capable of recovering in the medium term, this incident underscores that social stability remains an important factor for investors,” Gundy added.

Prasasti emphasized that demonstrations are part of democratic practice in Indonesia and a legitimate channel for citizens to voice their aspirations. However, when protests escalate with high tensions, the economic consequences can be substantial. “This experience serves as an alarm about the urgent need for a formal and inclusive space for dialogue, so that public aspirations are not only expressed but genuinely accommodated in policymaking,” said Nila.

Prasasti also noted that the government and parliament have begun opening direct discussions with the public, including a meeting with student representatives on 3 September that was broadcast live. “We appreciate these efforts as an initial step—particularly the termination of housing allowances since 31 August, as well as the promise of a thorough evaluation and reform to be carried out in the shortest possible time,” Nila said. “It is also important to remember that we need sustainable solutions for the expression of public aspirations. Moving forward, dialogue mechanisms should be more structured so that responses to public concerns can be delivered earlier and more effectively,” she concluded.

Photo Source: BPMI Setpres/Muchlis Jr