Indonesia’s stock market racked up losses on Monday as political tensions remained high even after President Prabowo Subianto scrapped lavish allowances for lawmakers that sparked weeklong protests across the country.
South-east Asia’s largest economy has been rocked by civil unrest that was initially triggered by new housing allowances of $3,000 for parliamentarians. Protesters’ grievances include economic inequality, a lack of jobs and police brutality.
Jakarta’s benchmark stock index fell more than 3 per cent in early trading on Monday, adding to losses from last week. The central bank said it will defend the national currency to ensure “exchange rate stability and adequate rupiah liquidity”.
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