The Indonesian capital, Jakarta, was shaken by a wave of intense demonstrations on Thursday (August 28) and Friday (August 29). Thousands of protesters flooded the streets, voicing their discontent over government policies. The situation quickly escalated into chaos, with clashes between demonstrators and security forces spreading throughout key areas of the city.

As the protests unfolded, the financial market reacted almost instantly. The Rupiah came under heavy pressure, depreciating against the US Dollar as investor confidence weakened. At the same time, the Indonesia Stock Exchange (IDX) plunged into negative territory, with multiple blue-chip stocks suffering significant losses. This rapid decline reflects the market’s sensitivity to political and social instability.

Market analysts noted that foreign investors were quick to pull out their funds, fearing prolonged unrest. This sudden outflow of capital further intensified the selling pressure, deepening the losses across the market. The protests not only created concerns for domestic investors but also raised questions among global market participants about Indonesia’s short-term economic outlook.

While the government has yet to release an official statement on the protests’ economic impact, experts warn that if the turmoil continues, it could pose a serious threat to economic growth and financial stability. A stable political environment remains crucial for investor trust and for maintaining the strength of Indonesia’s currency and stock market.