Indonesia’s President Prabowo Subianto has dismissed Finance Minister Sri Mulyani Indrawati following nationwide protests triggered by lawmakers’ generous housing allowances.

Demonstrations turned violent, leaving at least eight people dead and causing widespread property damage—including the burning of the minister’s home.

For many protesters, the act symbolised deep resentment against political privilege and marked a turning point that pushed authorities to act.

The allowances, reportedly nearly ten times Jakarta’s minimum wage, fueled public outrage and sharpened perceptions of inequality.

The unrest highlighted frustration among ordinary Indonesians who feel excluded from the country’s economic growth despite years of stability.

Sri Mulyani, respected internationally for her stewardship of Indonesia’s economy and her previous roles at the World Bank, was replaced by Purbaya Yudhi Sadewa, a veteran economist who led the Deposit Insurance Corporation.

Markets reacted swiftly: Indonesian stocks fell around 1.3 percent, while the rupiah spiked before later stabilising.

Analysts caution that the reshuffle may mark a turn toward looser fiscal policy as Prabowo pursues costly pledges, including nationwide school lunches and expanded defence spending.

The government now faces the task of restoring both credibility and calm after a political crisis that underscored how fragile public trust has become.