Jakarta. In recent days, Indonesia has been shaken by unrest that has spread across cities and campuses. What began as anger over parliamentary perks has grown into wider discontent, exposing the fragility of trust between the public, business, and government. Images of protests, property damage, and tragic loss of life have circulated widely, stirring memories of past crises. Understandably, many now ask: Can Indonesia emerge from this turbulence without losing its economic momentum?

The short answer is yes—but not automatically. Indonesia’s economy remains fundamentally solid. Growth above five percent, controlled inflation, stable foreign reserves, and a relatively low debt ratio are achievements that cannot be overlooked. These figures matter because they give the country fiscal and financial space to weather shocks. Yet, the events of the past week also remind us that macroeconomic numbers alone do not guarantee confidence. Stability rests not only on economic pillars but also on trust: trust in leadership, in institutions, and in the fairness of opportunity.

The Danger of Complacency 

When public sentiment feels betrayed, even strong fundamentals can wobble. Investors, businesses, and students all react not just to policies, but to signals of credibility. In this sense, statements from leaders carry weight equal to economic data. Words that appear dismissive of hardship or insensitive to grievances may deepen frustration rather than calm it. In times like these, communication must be as carefully managed as fiscal or monetary policy.

Indonesia’s economic history offers valuable lessons. The Asian Financial Crisis of 1997–1998 showed how quickly capital can flee when confidence evaporates. The post-election unrest of 2019 demonstrated how tensions, if handled decisively and transparently, can be contained without derailing long-term growth. Today, the choice lies in how quickly leaders can rebuild the bridge of trust with society.

So, what is needed now?  First, acknowledgment of grievances. Revoking unpopular perks is a necessary step, but more important is recognition that protests reflect deeper concerns about inequality, opportunity, and fairness. The public needs assurance that the government listens sincerely, not only when pressure mounts. Second, a transparent investigation of incidents. The death of a young citizen during protests must be treated with utmost seriousness. Justice that is visible and impartial can help defuse anger and show that the rule of law remains the backbone of democracy.

Third, credible economic messaging. Saying “the economy is solid” is not enough; leaders must also explain how they will keep jobs, prices, and investment secure in uncertain times. In fact, businesses and students want clarity about policies affecting their future, not just reassurance. And fourth, inclusive dialogue. Indonesia’s strength lies in its diversity of voices—government, business, civil society, students, and local communities. Each has a stake in stability. Inviting these groups into open, structured dialogue can transform protests into a platform for collective problem-solving rather than confrontation.

Why Confidence Still Matters 

Amid the turbulence, it is worth recalling what is at stake. Indonesia is striving to transform itself into a major industrial and digital hub, attract global investment, and build resilience in a fragmented world economy. These ambitions cannot advance if the country is seen as unstable or unresponsive to its citizens.

Confidence is the invisible currency of growth. It determines whether entrepreneurs dare to expand, whether students feel hopeful about their future, and whether investors commit capital for the long term. Without confidence, even strong fundamentals lose their meaning. With confidence, however, Indonesia can harness its demographic dividend, natural resources, and strategic geography to continue rising as a regional and global player.

The responsibility for restoring confidence does not fall on the government alone. Business leaders must resist panic and instead show resilience by keeping investment plans on track where possible. Civil society and student groups can channel their energy into constructive dialogue, pushing for reforms without descending into destructive actions. The public at large can play a role by upholding peaceful expression and refusing to be swayed by disinformation that thrives in moments of tension.

Above all, leaders must lead not only with authority but with empathy. A government that demonstrates it hears the people will earn patience, even in tough times. A business community that communicates faith in the long-term story of Indonesia will help steady markets. And a generation of students that voices criticism responsibly will strengthen democracy rather than weaken it.

Looking Ahead 

Indonesia has been tested before and has emerged stronger. The current unrest is another such test—not just of economic resilience but of collective maturity as a nation. If managed wisely, today’s turbulence can even become a turning point: a chance to reaffirm the principle that growth must go hand in hand with fairness, accountability, and trust.

The world is watching, but more importantly, Indonesians themselves are watching their leaders and each other. Whether on the streets, in classrooms, or in boardrooms, confidence must be rebuilt through sincerity, transparency, and collaboration. Only then can the promise of Indonesia’s future remain intact.

--

Iman Pambagyo is the Trade Ministry’s Director General of International Trade Negotiations (2012-2014, 2016-2020) and Indonesia’s Ambassador to the WTO (2014-2015).

The views expressed in this article are those of the author.