Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia’s economy remains fundamentally strong despite a week of nationwide protests that turned violent in several cities between August 28–31. 

Speaking at the Indonesian Capital Market Stability Press Conference at the Indonesia Stock Exchange (IDX) in Jakarta on Monday, September 1, Hartarto said foreign exchange reserves stood at USD 152 billion as of July 2025, supported by a stable banking system and effective coordination of fiscal, monetary, and real sector policies.  

“With such solid fundamentals, short-term volatility will not alter our positive economic trajectory. The target of maintaining growth above 5% remains realistic and achievable,” he said at IDX. 

Hartarto also mentioned that he extended condolences to the victims and families affected by the demonstrations, which resulted in several fatalities in different regions. President Prabowo Subianto has instructed the Indonesian Defense Forces (TNI) and National Police (Polri) to safeguard national stability and protect the public. Public transportation in Jakarta, including MRT, TransJakarta buses, and the Commuter Line, has resumed normal operations after infrastructure damage during the unrest. 

Economic indicators were cited to show resilience. Indonesia’s economic growth in the second quarter of 2025 was 5.12% year-on-year. The Purchasing Managers’ Index (PMI) for manufacturing rose to 51.5 in August after four months of contraction. “This is supported by the expansion of output and new demand,” Hartarto said at IDX. 

The Indonesia Composite Index (IHSG) also recorded gains in the week before the protests. On August 25, the index closed at 7,926, up 0.87%. On August 28, it increased 0.2% to 7,942 before weakening 1.53% to 7,830 on August 29 during the demonstrations. The rupiah remained stable at IDR 16,490 per USD on August 29. Inflation was recorded at 2.31% annually in August, while the Central Statistics Agency (BPS) reported a trade surplus of USD 4.17 billion in July 2025. 

IDX President Director Iman Rachman said the stock market fundamentals remain strong despite investor concerns. “Market conditions are influenced by two things: fundamentals and investor perception. Our membership is actually growing, so our fundamentals are good. What’s changing now is foreign investors’ perception,” he said. The IDX Composite fell 3.5% at the start of trading on Monday but reached a record high of 8,022 points earlier in the week. 

Hartarto said the government will maintain close communication with businesses and investors. “We all have a moral responsibility to keep the economy running so jobs and public welfare are preserved. The public should also avoid being provoked by irresponsible information,” he said as quoted by Tempo. 

Meanwhile, Bhima Yudhistira, Executive Director of the Center of Economic and Law Studies (Celios), said the violence during the protests had already impacted foreign capital flows. Net selling by foreign investors reached IDR 1.12 trillion on Monday. “The impact is certainly on economic growth because foreign investment plays a significant role and has a double impact on job creation,” Bhima said as quoted by Tempo.