JAKARTA — In removing Indonesia’s finance minister and U-turning on protester demands, the leader of Southeast Asia’s biggest economy is scrambling to restore public trust while seizing a chance to install loyalists after deadly riots last month, experts say.
Demonstrations that were sparked by low wages, unemployment and anger over lawmakers’ lavish perks grew after footage spread of a paramilitary police vehicle running over a delivery motorcycle driver.
The ensuing riots, which rights groups say left at least 10 dead and hundreds detained, were the biggest of Prabowo Subianto’s presidency and the ex-general is now calling on the public to restore their confidence in his government.
He vowed tough action on the officers who ran over 21-year-old Affan Kurniawan, backtracked on lawmaker housing allowances, and on Monday removed five ministers, including respected finance minister Sri Mulyani Indrawati.
“We can read this as damage control after the wave of public anger, especially at... the misdirected budget efficiency,” Rani Septyarini, a researcher at the Center of Economic and Law Studies, told AFP.
Prabowo has focused on expensive social mega-projects funded by widespread budget cuts that already roused protests in February. His flagship policies include a free meal programme and a new sovereign wealth fund.
But his new finance chief Purbaya Yudhi Sadewa said Wednesday he would inject an unprecedented $12 billion into the economy to spur growth and calm simmering public anger.
“Prabowo sees this problem as something that needs to be anticipated seriously,” said Airlangga Pribadi Kusman, political analyst at Airlangga University.
“He wants to prevent further social damage.”