Indonesia News - August 29, 2025

JAKARTA, Aug. 29, 2025 - Indonesia witnessed a flurry of political, economic, and environmental developments today, as authorities and civil society responded to recent tensions and market fluctuations.

Indonesia’s central bank, Bank Indonesia (BI), announced it would remain active in the foreign exchange market after the rupiah slid 1 percent against the U.S. dollar on Friday, reaching its lowest level since August 1. Erwin Gunawan Hutapea, head of BI’s monetary department, said the bank will continue interventions in spot and non-deliverable forward markets and will maintain purchases of government bonds on the secondary market to ensure the currency aligns with economic fundamentals.

On the environmental front, the Ministry of Environment called on private firms and state-owned enterprises to broaden participation in the country’s carbon exchange scheme at the 2025 Green Summit in Jakarta. Noer Adi Wardojo, expert staff for biodiversity and socio-cultural resources conservation, highlighted that Indonesia’s carbon exchange platform, launched in September 2023, had facilitated transactions totaling 78.37 billion rupiah (approximately USD 4.78 million) as of August 22 this year, underscoring both its economic and environmental benefits.

Today also saw renewed student activism in the capital. Alumni of the July 28 “Indonesia Cemas 2025” protests have vowed further demonstrations at Jakarta’s police headquarters on Friday afternoon, decrying police brutality following the tragic death of a motorcycle taxi driver struck by an armored police vehicle during Thursday’s rally outside Parliament. Muzammil Ihsan, leader of the country’s largest student union, urged continued mobilization to demand accountability and reforms in law enforcement practices.

Meanwhile, tensions at the Police Mobile Brigade (Brimob) headquarters eased today after military personnel were deployed to defuse clashes sparked by the driver’s death. Soldiers from the Indonesian National Armed Forces (TNI) acted as intermediaries between riot police and protesting motorcycle taxi drivers, helping restore calm and prevent further escalation.