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Indonesian Parliament Scraps $3,000 Housing Allowance After Week of Protests

Ilham Oktafian
September 5, 2025 | 5:28 am
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President Prabowo Subianto, left, and House of Representatives Speaker Puan Maharani prepare to speak in a news conference at the Merdeka Palace in Jakarta, Sunday, Aug. 31, 2025. (Antara Photo/Galih Pradipta)
President Prabowo Subianto, left, and House of Representatives Speaker Puan Maharani prepare to speak in a news conference at the Merdeka Palace in Jakarta, Sunday, Aug. 31, 2025. (Antara Photo/Galih Pradipta)

Jakarta. Indonesia’s House of Representatives (DPR) has scrapped a controversial housing allowance of Rp 50 million ($3,000) per lawmaker per month following a week of widespread demonstrations across the country.

The decision was announced on Thursday by House Speaker Puan Maharani after a meeting between parliamentary leaders, academics, and religious figures at the Senayan parliamentary complex in Jakarta.

Alongside abolishing the housing allowance, the DPR leadership also decided against raising lawmakers’ salaries and imposed a ban on non-essential overseas trips.

“There will be no salary increase. Regarding the housing allowance, it has been terminated as of August 31,” Puan said. “Foreign visits are postponed, except for official state conferences where parliament must be represented.”

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The meeting was attended by political analyst Siti Zuhro, deputy chairman of the Indonesian Ulema Council (MUI) Marsudi Syuhud, communications expert Effendi Gazali, and other public figures.

Puan said the measures are part of a broader effort to transform the parliament into a more transparent and accountable institution. She noted that parliamentary meeting records and activities are now being published on the official DPR website.

“We are serious about transformation. Parliament must be more open, responsive, and accountable,” she stressed.

She added that the DPR will prioritize the quality of legislation and encourage greater public participation in drafting laws.

The decision comes after protests erupted on August 25 when news broke of the monthly housing perks, which critics argued were excessive and out of touch with economic realities. The demonstrations escalated after subsequent rallies turned violent, particularly following the death of a motorbike taxi driver who was struck by a police armored vehicle during a protest in Jakarta.

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