Indonesia's Political Turmoil Disrupts Stock and Currency Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 01 2025
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Source: WSJ
Political Unrest in Indonesia
Market Impact: The political unrest has severely affected Indonesia's markets, with the benchmark index facing its worst performance in nearly five months. The Indonesian rupiah is also struggling, hovering near multi-month lows.
Protests Background: Protests erupted in late August following the government's announcement to increase lawmakers' monthly housing allowance to 50 million rupiah (approximately $3,045), which is nearly ten times the minimum wage in Jakarta.
Escalation of Violence: The situation escalated last week when an armored police vehicle was involved in the death of a motorcycle taxi driver during clashes in Jakarta, intensifying public outrage and violence.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
