Protests Hit Indonesia, Stalling Moves to Rejig Election Law
(Bloomberg) -- Indonesian lawmakers adjourned parliament as thousands protested proposed electoral changes seen as favoring the alliance of President Joko Widodo and his successor, Prabowo Subianto.
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Stocks and the rupiah fell, while the central Jakarta police chief said at least 3,200 police personnel have been deployed across the city along with military vehicles and water cannons. In front of the parliament’s main entrance in the capital, protesters burned tires while in the central Java city of Semarang, police fired water cannon at growing number of demonstrators.
Shortly after 10 a.m., the deputy speaker announced the legislature would adjourn after failing to obtain a quorum. Lawmakers will suspend ratifying changes to the regional election law while they assess the public reaction, Achmad Baidowi, the chairman of the parliament panel said in a statement.
Lawmakers want to change the law to effectively allow Jokowi’s 29-year-old youngest son to run to be a regional deputy governor, while reinstating thresholds that could enable Prabowo and Jokowi allies to run virtually uncontested in elections in Central Java and Jakarta.
Students and workers continue to assemble, with celebrities and other influencers addressing demonstrators in downtown Jakarta. One banner called for a “New Indonesia, Without Jokowi Dynasty,” while Indonesia’s Metro TV showed protests in at least three other major cities.
The backlash comes after a parliamentary panel on Wednesday rushed through draft legislation that would undercut the Constitutional Court, which on Aug. 20 issued a landmark ruling maintaining age limits and ensuring smaller parties can run in regional elections in November. Critics say a rapid legislative change would undermine the court and Indonesia’s less than three-decade-old democracy.
Indonesia’s benchmark stock gauge fell as much as 1% before paring its loss, while the rupiah extended a decline to trade 0.8% weaker against the greenback, the worst performer among Asian currencies on Thursday. Government bond yields edged higher.
“This raises uncertainty for the business sector as they have to review the level of political and market stability,” said Achmad Sukarsono, a Singapore-based associate director at Control Risks, who focuses on Indonesia. “There’s also higher risk for the student protest to grow larger because now they are getting the backing from political factions that want to see an end to Jokowi’s distasteful power plays.”
Lawmakers from PDI-P, the single biggest party, appear to have boycotted proceedings on Thursday and plan to file a memorandum of objection to the proposed revisions. Parliament must push through the legislation before a Monday deadline for nominations for the November elections.
There’s already widespread anger over a 2023 decision by the Constitutional Court, when it was chaired by Jokowi’s brother-in-law, that eased age rules and let his eldest son make a successful run to become vice president. Underscoring the tensions on Thursday, some protesters threw drinking bottles at a car occupied by Habiburokhman, the deputy chairman of Gerindra’s faction as he gave a speech.
“It’s okay to play politics and strategize to get a share in power,” former constitutional judge Mahfud MD said on Instagram. “But there are democratic and constitutional principles that govern the political game.” It will be dangerous if tactical coalitions are used to grab power, he said.
Even actors and singers shared an “emergency warning” image online, with thousands using the hashtag #KawalPutusanMK, calling for a defense of the court decision, which many see as supporting Indonesia’s young democracy.
“History shows that once democracy is undermined, authority is lowered, opportunities to work will be lost,” Thomas Lembong, a former minister in Jokowi’s cabinet, told the protesters through a loudspeaker. “So let’s fight together.”
Jokowi, whose eldest son will become vice president in October, sought to downplay the crisis.
“We respect the authority and decisions of each state institution,” Jokowi said in a televised address late Wednesday. “This is a constitutional process that usually happens in our state institutions.”
Even before the parliamentary panel approved the draft legislation, there were already warnings that the Constitutional Court’s decision should be respected.
“This is dangerous for the government,” Indonesia’s former Vice President Jusuf Kalla said in an interview before the parliamentary committee’s decision on Wednesday. Kalla, who served in Jokowi’s first five-year term, warned there could be riots. “Let’s say this causes a political crisis, at a time when our economy is also in a difficult state.”
--With assistance from Matthew Burgess, Grace Sihombing and Philip J. Heijmans.
(Updates with comments, details of protests, markets.)
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