The rupiah exchange rate fell slightly at the opening of trading on Friday, August 29, 2025, weakening to IDR 16,354 per US dollar from the previous IDR 16,353. Economists say the decline reflects both global market pressures and the negative impact of violent protests in Jakarta. Mirae Asset economist Rully Arya Wisnubroto explained, “Today there is still room for weakening due to global factors and perhaps some negative impact from the protests.”
Jakarta Protests Trigger Market Volatility
Demonstrations in Jakarta escalated on Thursday after a Brimob tactical vehicle fatally ran over an online motorcycle taxi driver in Pejompongan. The incident, which circulated widely on social media, sparked anger among residents and drivers. The tactical vehicle sped away, and citizens chased it through the Kasablanca Non-Toll Overpass. The victim was pronounced dead upon arrival at a Central Jakarta hospital.
The protests initially focused on the Parliament Complex in Senayan but spread to surrounding areas, including Penjernihan road, Pejompongan road, Bendungan Hilir, KS Tubun Petamburan, and Palmerah. The unrest caused disruptions and increased tensions, affecting both public safety and local commerce.
Rupiah Exchange Rate Dips
Financial markets quickly responded to the unrest. The rupiah weakened by 0.01 percent, reflecting both domestic uncertainty and global currency trends. Rully Arya Wisnubroto highlighted the influence of international factors, noting, “The US Dollar Index (DXY) has strengthened for four days in a row above 98.” Analysts warn that continued unrest could keep the rupiah under pressure if protests persist.
Banks Respond With Temporary Closures
Major banks in Jakarta temporarily closed several branches to protect customers and staff. PT Bank Central Asia Tbk. (BCA) announced early or temporary closures for branches including Atrium, Cempaka Putih, KS Tubun, Kwitang, Otista, Penjernihan, and Senen.
EVP Hera F. Haryn explained, “Adjusting to the current situation in Jakarta, some branches are closed or closed earlier today. We apologize for the inconvenience.” BCA customers were advised to use myBCA, BCA mobile, and KlikBCA for transactions.
PT Bank Negara Indonesia (Persero) Tbk. (BNI) also temporarily closed four branches: Kwitang, Pasar Senen Jaya, Senen, and RSPAD Gatot Subroto. BNI confirmed, “On August 29, 2025, we inform the public about temporary branch closures due to ongoing demonstrations in Jakarta and surrounding areas.”
Business and Retail Disruptions in Central Jakarta
Businesses faced disruptions as the Indonesian Employers Association (Apindo) issued a cautionary notice to shop owners. Apindo Jakarta chairman Solihin said, “Shops around Central Jakarta should close to prevent anything undesirable. We are very concerned about this situation.”
Many retailers closed temporarily, and some companies sent employees home early. Solihin added, “Our advice is that safety comes above all else. Retailers can judge the situation on the ground themselves. We’re not ordering closures, just advising caution.”
The advisory aimed to minimize risks as demonstrations continued to impact commercial activities and public safety.
Online Driver Protests Continue
Following the death of Affan Kurniawan, online motorcycle taxi drivers planned follow-up demonstrations. Lily Pujiati, head of the Indonesian Transportation Workers Union (SPAI), stated, “There will be further protests.”
Authorities warned the public to avoid locations such as Brimob HQ in Kwitang, Polda Metro Jaya HQ on Jalan Jenderal Sudirman, and the Parliament Complex in Senayan. Traffic disruptions and public safety risks remain high in these areas.
Economic Outlook Amid Jakarta Protest Impact
The combination of violent protests and global market factors has caused measurable disruption to Jakarta’s economy. The rupiah exchange rate dipped, banks temporarily closed branches, and businesses adjusted operations to maintain safety.
Economists expect that stability will return once demonstrations subside, but ongoing protests may continue to affect currency and trade. Authorities and businesses remain vigilant to prevent further economic disruption while monitoring the situation closely.
Source: financial.bisnis.com, suarasurabaya.net, ekbis.sindonews.com
Image: Antara/Rivan Awal Lingga
