Indonesia at a tipping point: volatile policies and budget cuts drive frustration

Indonesia at a tipping point: volatile policies and budget cuts drive frustration
/ Fajar Grinanda - Unsplash
By bno - Surabaya bureau February 27, 2025

Peaceful student-led protests were held in several Indonesian cities from Jakarta to Surabaya on February 21. The demonstrations were triggered by frustration over budget efficiency and the absence of stability in policy, as well as police censorship of freedom of speech. 

Thanks to President Prabowo Subianto’s overly controlling, controversial and military-influenced policy, Indonesia is becoming a target for international media attention, albeit at the same time local media outlets post positive reports.

Budget efficiency in disguise

The whirlwind of so-called budget efficiency started off on February 6, 2025, when Public Works Minister Dody Hanggodo announced a budget cut from IDR110.95 trillion ($6.8bn) to IDR29.57 trillion as part of Presidential Instruction No. 1/2025 on Budget Efficiency, PWC Indonesia revealed. The affected directorates are:

  • Water Resources Directorate General: Reduced by IDR27.72 trillion.
  • Highways Directorate General: Reduced by IDR24.83 trillion.
  • Human Settlements Directorate General: Reduced by IDR7.75 trillion.
  • Strategic Infrastructure Directorate General: Reduced by IDR20.69 trillion.

The next day, it was announced that projects such as dam construction, new irrigation development, rehabilitation, and over 47 kilometres road maintenance and bridge maintenance will be postponed. The cost-cutting measures directly halt non-priority infrastructure projects, including the now-infamous Nusantara capital city, or IKN, which brought the total of overall budget reduction to $18.9bn, as reported by Xinhua.

Illegal education budget cut

Not only construction development, the higher education sector also experienced budget ‘efficiency’ in the form of decreased government subsidies (BOPTN & KIP College scholarships), which resulted in tuition fee increases at both public (PTN) and private (PTS) universities. This move is potentially in violation of the National Education System Law, which mandates 20% of the state budget must be used in education.

The Ministry of Primary and Secondary Education (Kemendikdasmen) has been mandated to implement a 23.95% budget efficiency cut, amounting to IDR8.03 trillion (​​$492mn), from the initial expenditure budget of IDR33.5 trillion, the BBC reported. This move is expected to have a significant impact on teachers, particularly honorary teachers, according to education analyst Ubaid Matraji.

In 2024, more than 100 honorary teachers in Jakarta’s public schools were abruptly dismissed. 

This time, issues also arose with honorary teachers failing to pass the selection process for the government’s contract-based teacher program (PPPK). In Banjarmasin, Southern Kalimantan region, 751 teachers were left out of the PPPK selection, rendering them ineligible for government incentives, according to reports from Antara.

Health budget cut by IDR19.6 trillion

In the same week, Kompas.com also reported Indonesia's Ministry of Health will implement budget efficiencies amounting to IDR19.6 trillion ($1.2bn) in 2025, reducing total spending to IDR105.6 trillion ($6.5bn). The cuts will affect several healthcare services, including the procurement of medicines and vaccines. However, authorities will conduct evaluations to ensure essential public health services as well as medical care subsidies (BPJS) remain unaffected.

“We have submitted the proposal to the DPR, and the IDR19.6 trillion efficiency has been approved. Some areas were deemed suitable for efficiency, while others were not. Certain reallocations may be necessary for priority programs,” Health Minister Budi Gunadi Sadikin stated on February 6.

Following this, it was announced that the funds are being redirected to priority programs, including Prabowo’s free nutritious meal programme, which authorities claim benefits 82mn students and pregnant women.

Art censorship by law enforcement

Frustration reached boiling point, however, when it was reported that Indonesian post-punk/new wave duo Sukatani, hailing from Purbalingga, Central Java, faced police intimidation, leading them to pull their song "Bayar Bayar Bayar" from all digital music platforms.

The song, Suara.com reported, which contains social and political commentary, has sparked controversy, though details on the alleged pressure remain unclear. The incident raises concerns over artistic freedom and censorship in Indonesia’s music scene.

This was not the first incident regarding freedom of speech censorship that has happened under Prabowo Subianto’s new government. Last year, a solo exhibition by Indonesian artist Yos Suprapto was abruptly cancelled by Galeri Nasional (Galnas), despite being scheduled to open on December 19. Titled "Tanah untuk Kedaulatan Pangan" (Land for Food Sovereignty), the exhibition was reportedly blocked by the gallery's management.

Suara.com further revealed that the decision has sparked controversy, with reports suggesting that five of Suprapto's paintings resembled former President Joko Widodo (Jokowi). The move marks one of the first cases of art censorship under President Prabowo Subianto’s administration, raising concerns over artistic freedom in Indonesia.

#IndonesiaGelap trends as social media uproar peaks 

Over the past week - February 12-17 - Kompas.com reported that the hashtag #IndonesiaGelap (Dark Indonesia) gained traction among Indonesian netizens, reflecting growing public discourse on social media. The hashtag hit its peak on February 17, with a staggering 7,200 posts.

In total, 70,750 posts using #IndonesiaGelap were recorded throughout the week, generating 229,451 interactions, with 98% of engagement originating from the platform X (formerly Twitter). The rapid escalation suggests widespread public concern, though the specific issues driving the conversation are under analysis.

This led to a street protest led by university students on February 20 - 21. From the protests, Tempo.co reported, there were 13 demands being expressed, reflecting on mounting frustration over what seems to be a one-sided, power-hungry move in budget cuts:

  1. Free, scientific, and democratic education while reversing budget cuts in the education sector.
  2. Revoking problematic National Strategic Projects (PSN), which protesters claim have led to land dispossession.
  3. Rejecting the revised Mining Law (UU Minerba), arguing it stifles academic freedom and environmental activism.
  4. Eliminating the military’s multi-functional role, as its involvement in civilian affairs risks repression.
  5. Passing the Indigenous Peoples Bill, ensuring legal protection for indigenous land and culture.
  6. Repealing Presidential Instruction No. 1/2025, which is seen as a threat to public interests like education and healthcare.
  7. Conducting a full evaluation of the free nutritious meal programme to ensure effectiveness and to prevent political misuse.
  8. Ensuring performance allowances for university lecturers, improving academic welfare and labour rights in higher education.
  9. Urging President Prabowo Subianto to enact an emergency regulation on asset seizure.
  10. Opposing revisions to laws governing the military, police, and prosecution, which could strengthen impunity.
  11. Restructuring and streamlining the cabinet, calling out irresponsible and wasteful officials.
  12. Rejecting revisions to the Parliament’s rules of procedure, which protesters argue could lead to unchecked legislative power.
  13. Comprehensive police reform, aiming to end repressive practices and enhance professionalism.

President Prabowo Subianto's policy to cut IDR306 trillion from the national budget aims to improve fiscal efficiency but risks disrupting key sectors. 

Dr. Akhmad Akbar Susamto of UGM’s Faculty of Economics and Business warns that indiscriminate cuts to infrastructure, education, and healthcare could slow long-term economic growth, weaken public purchasing power, and deter investment. 

At its core, Indonesia's current turmoil is a reflection of a nation grappling with the consequences of aggressive fiscal austerity, erratic policy shifts and growing authoritarian tendencies. 

While President Prabowo Subianto’s administration justifies budget cuts as necessary for economic stability, the disproportionate impact on education, healthcare, and infrastructure raises serious concerns about long-term prosperity.

The suppression of artistic expression and public dissent further amplifies fears of democratic backsliding. If left unaddressed, Indonesia risks alienating its youth, discouraging investment, and stifling innovation, pushing the country closer to a crisis of governance that could have lasting socio-economic repercussions.

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