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DEN links August protests to Indonesia's 10-year economic legacy

Source
Tempo - September 19, 2025

Annisa Febiola, Jakarta – Deputy Chief of the National Economic Council (DEN) Mari Elka Pangestu stated that the mass protests in Indonesia in August 2025 were not a result of President Prabowo Subianto's 10-month rule. According to her, these actions were the consequences of the legacy of economic policies over the past decade.

She mentioned that Indonesia is currently facing the most unfriendly and uncertain external environment, considered to be the worst in living memory. This has exacerbated domestic structural challenges and economic dissatisfaction, as seen in the recent protests.

"The recent protests, as we know, are not about the last ten months of this government, but about the conditions and economic situations that have been inherited and developed, especially in the last ten years," she said during the 42nd Indonesia Update Conference broadcast on YouTube by ANU Indonesia Project on Friday, September 12, 2025.

Mari Elka stated that the dissatisfaction felt by the public did not arise in the recent protests. Instead, this dissatisfaction had gradually escalated. "The dissatisfaction that exists did not emerge in the recent protests, but has developed gradually. This is the current situation we are facing," she said.

In her presentation, Mari Elka first discussed the evaluation of Indonesia's economic development regarding economic growth. According to Statistics Indonesia (BPS), Indonesia's economy grew by 5.12 percent in the second quarter of 2025.

Mari Elka mentioned that this figure is indeed higher than the estimate of 4.8 percent. However, the reasons for this 5.12 percent economic growth have already been explained, including the increase in consumption, especially in the recreation sector.

"This figure is higher than the projected 4.8 percent and the Ministry of Finance's projection. This has sparked a debate on whether these figures were manipulated before the President's speech on Independence Day," she said.

However, she emphasized that the main issue lies in the quality of growth. According to her, Indonesia's economy has not fully recovered from the COVID-19 pandemic. "Globally, we still feel the economic slowdown post-COVID," she said.

Mari Elka explained that developed countries are showing a better recovery, although it is still below trend, while developing and poor countries face a more challenging situation.

"Indonesia is no different in this regard, but what I mean is that the long-term impact of the losses suffered due to the pandemic is still evident in the gross domestic product (GDP) and unemployment figures," she said.

Source: https://en.tempo.co/read/2050208/den-links-august-protests-to-indonesias-10-year-economic-legac

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