Workers take to the streets in Jakarta

Summary

Marketplace Morning Report | August 28, 2025

Episode: Workers Take to the Streets in Jakarta

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Episode Overview

The episode spotlights major labor protests in Jakarta, Indonesia, where workers are demanding higher wages and tax relief, reflecting broader economic frustration amid rising living costs and political discontent. The podcast also provides updates on global stock markets, the surge of cheap Chinese imports into the UK, and a grassroots movement to promote Bitcoin for financial inclusion in Kenya’s informal settlements.

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Key Discussion Points & Insights

1. Jakarta’s Labor Protests and Economic Discontent

• Context and Trigger

  • Thousands rally in Jakarta for higher wages and lower taxes, the second significant protest in a week.
  • Protests are fueled by public outrage over a newly proposed housing allowance for lawmakers, valued at about ten times the average Indonesian salary.
    • “This is... completely luxurious and inappropriate at a time when the government is saying we have to kind of tighten our belts.”
      (Maura Fogarty, 01:29)
  • The proposal is seen as emblematic of inequality and possible corruption, especially while government spending is being cut.

• Broader Economic Tensions

  • Cost of living increases and economic uncertainty are exacerbated by global factors, including US-China geopolitical tensions and new tariffs announced by President Trump.

• Government Response

  • Protests have met a harsh government crackdown; police used water cannons and tear gas earlier in the week, primarily against student protestors.
    • "Police used both water cannon and tear gas to disperse the protesters... The ones that we're seeing today were actually organized by the labor union."
      (Maura Fogarty, 02:24)
  • Current demonstrations focus on labor union demands:
    • 8.5% increase in minimum wage
    • Repeal of a law allowing for increased job outsourcing

• Political Backdrop

  • The protests are an early test for new Indonesian President Prabowo Subianto, in office less than a year.
    • “He’s already starting to face kind of domestic unhappiness and growing discontent over his handling of the economy.”
      (Maura Fogarty, 02:52)

2. Global Markets Update

• Asia & Europe
  • Japan’s Nikkei: Closed up 0.7%, attributed to Nvidia outperforming earnings expectations.
  • US Market: Nvidia shares initially dipped on news of slowed business in China, but rebounded.
  • France’s CAC 40: Rebounded after fears of government instability; up 0.5%.
    • (Numbers, 03:19–03:54)

3. Surge in Chinese Imports to the UK

• Key Stat:
  • Value of low-duty Chinese goods shipped to the UK more than doubled to over $4 billion last year.
    • Cheap goods shipped in parcels under $1 currently avoid customs duties.
  • Main contributors: e-commerce giants Shein and Temu.
    • “Temu says its business model helps consumers access affordable products. Shein says its sellers have to meet strict safety standards.”
      (Tommy Lumby, 03:54)
• Policy Moves:
  • UK government is reviewing the import rules amid pressure from domestic retailers.
  • US has already ended its exemption for low-cost Chinese imports; the new rule goes global from Friday.

4. Bitcoin for Financial Inclusion in Kenya’s Kibera Settlement

• Community Innovations

  • Waste collection teams in Nairobi’s Kibera settlement now accept Bitcoin as payment for services.
    • “I prefer to pay my garbage collection using Bitcoin because its transaction cost is really low. It's something like 0.0 something percent.”
      (Knight Mudoni, 05:05)

• Afribit Initiative

  • Kenyan fintech company Afribit is helping residents bypass traditional financial obstacles with Bitcoin.
    • “A lot of them had issues accessing financial services from the traditional finance system... One thing that we were very sure about was bitcoin.”
      (Roni Mdewida, 05:43)
  • Community training meetups are fostering local acceptance; merchants in Kibera report regular Bitcoin usage.

• Risks and Cautions

  • Economist Edward Kucewa voices caution over volatility and infrastructural limits.
    • “Crypto is exposed to a lot of external shocks... that's a huge risk for communities. There are also small infrastructural risks, lack of mobile penetration, especially in the informal settlements.”
      (Edward Kucewa, 06:49)

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Notable Quotes & Memorable Moments

• “This is... completely luxurious and inappropriate at a time when the government is saying we have to kind of tighten our belts.”
  — Maura Fogarty (01:29)
• “He’s already starting to face kind of domestic unhappiness and growing discontent over his handling of the economy.”
  — Maura Fogarty (02:52)
• “I prefer to pay my garbage collection using Bitcoin because its transaction cost is really low.”
  — Knight Mudoni (05:05)
• “Crypto is exposed to a lot of external shocks... that's a huge risk for communities.”
  — Edward Kucewa (06:49)

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Key Timestamps

| Timestamp | Segment Description | |-----------|-------------------------------------------------------------------------------| | 00:58 | Introduction to Jakarta labor protests | | 01:29 | Public outrage over housing allowance for lawmakers | | 02:24 | Government response to protests; labor union demands outlined | | 03:13 | Analysis of political context in Indonesia | | 03:19 | Global markets update (Japan, US, France) | | 03:54 | Surge in low-duty Chinese imports to UK; e-commerce impact | | 04:17 | Changes in US import policy; Bitcoin initiative in Kenya | | 05:05 | Community use of Bitcoin in Kibera, Nairobi | | 05:43 | Afribit founder on why Bitcoin helps the unbanked | | 06:49 | Economist cautioning about volatility and infrastructure for crypto adoption |

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Conclusion

This episode captures Indonesia’s swelling labor unrest as a proxy for broader social unease around inequality and economic policy, while providing concise, sharp snapshots of key global business trends—from cargo surges in the UK to tech-led financial inclusion in Africa. Frequent interviews and local voices ground major headlines in everyday realities, offering a rich and relevant start-of-day briefing.

Transcript

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[Liana Byrne]

The streets in Jakarta over jobs and pay. Good morning. This is the Marketplace Morning Report and we're live from the BBC World Service. I'm Liana Byrne. So we're going to start in Indonesia's capital, Jakarta. Thousands of workers are rallying to demand higher wages and lower taxes. It's a second major protest there this week. The BBC's Maura Fogarty is following this one. Hi, Maura.

[Maura Fogarty]

Hi there, Mohr.

[Liana Byrne]

This all began over a housing allowance for MPs. Why has that struck such a nerve?

[Maura Fogarty]

You know, it really comes down to the cost of living and how that's just increased around the world and in particular in Indonesia. And on Monday, they were upset because of a new proposal that would give lawmakers in Indonesia a housing allowance that was roughly worth about 10 times what the average salary is for a normal Indonesian working person. And that really got kind of people's backs up saying wait a minute, this is the smells of corruption. This is completely luxurious and inappropriate at a time when the government is saying we have to kind of tighten our belts and have to reduce spending, government spending overall because tough times are around us. And of course, that's referring to the fact that we've got these geopolitical tensions between the US And China affecting the global economy and more importantly, the tariffs that President Trump has, has proposed.

[Liana Byrne]

Has Indonesia's government responded?

[Maura Fogarty]

Well, quite harshly. On Monday, the police used both water cannon and tear gas to disperse the protesters. Those protesters were mostly students. The ones that we're seeing today were actually organized by the labor union in Indonesia. And their specific concerns today were around raising the minimum wage by about 8.5% overall. They also wanted to get rid of a law that would allow for outsourcing, essentially allowing more jobs to be in Indonesia. The main thing here to think about is the fact that thiswe're still in the honeymoon phase for presidents. Prabowo Subianto, the new Indonesian president, he's been in office for less than a year and he's already starting to face kind of domestic unhappiness and growing discontent over his handling of the economy.

[Liana Byrne]

Okay. The BBC's Maura Fogarty, thank you so much for joining us on Marketplace Kirs.

[Maura Fogarty]

Thank you.

[Liana Byrne]

All right. Let's do the numbers. Japan's Nikkei closed up 7.10of a percent, driven by AI giant Nvidia beating earnings expectations. In the US its shares dropped before recovering in early trading over stalled business in China. And In Paris, the CAC 40 rebounded after yesterday's drop on fears the government could be toppled. Its trading up 5. 10 of a percent. And exclusive data given to the BBC shows cheap goods shipped from China to the UK more than doubled last year to over $4 billion. At the moment, small parcels under dollar avoid customs duties. Here's the BBC's Tommy Lumby.

[Odoo Advertiser / Tommy Lumby]

It's thought Chinese giants such as Shein and Temu were partly behind the rise. The UK Government announced a review of such imports in April to address retailers competition concerns, but it faces calls to act now. Temu says its business model helps consumers access affordable products. Shein says its sellers have to meet strict safety standards.

[Liana Byrne]

Tommy Lumby there. Meanwhile, the US has already scrapped its exemption on low cost imports from China. And from Friday, that rule will apply worldwide. Some countries have already paused low value shipments to the US In Kenya, a tech company is encouraging the use of bitcoin in one of Africa's largest informal settlements. The hope is that crypto will promote financial inclusion and boost the area's economy. But there are worries about its volatility. The BBC's Malka Kloki reports.

[Narrator / Reporter]

A team of young men and women who are part of a waste collection group go door to door collecting garbage from residents in Nairobi's Kibera informal settlement. The group charges a fee for their service. Some of the area residents, such as Knight Mudoni, pay the fee using the cryptocurrency Bitcoin.

[Maura Fogarty]

I prefer to pay my garbage collection using Bitcoin because its transaction cost is really low. It's something like 0.0 something percent.

[Narrator / Reporter]

Francis Anene is the team leader of the waste collection group.

[Francis Anene / Roni Mdewida / Edward Kucewa]

When I'm paid in bitcoin, I'm able to pay members of my waste collection group using Bitcoin. I use it as an asset that can help me in the future.

[Narrator / Reporter]

Both Knight Mudoni and Francis Anene reside in areas of Kibera, where a Kenyan technology firm, Afribit, is undertaking an initiative encouraging the use of Bitcoin among residents. Roni Mdewida is the co founder of Afribit.

[Francis Anene / Roni Mdewida / Edward Kucewa]

We started the journey of Afribit Kibera circular economy in 2022 and the main reason we started this was the groups that we were working with, a lot of them had issues accessing financial services from the traditional finance system. They did not have documentation to have like, you know, a bank account. They could not qualify for digital financial tools. And one thing that we were very sure about was bitcoin. We had to show them how could this be used as a means of exchange?

[Narrator / Reporter]

Ronim Dawida and his team regularly undertake what they refer to as community meetups, where residents in the area are taken through learning sessions. One of those who attends is Ruth Kwamboka, a local merchant in the area.

[Liana Byrne]

I own a general shop. I have accepted this bitcoin and many people in my area, Kibera, also use this bitcoin as a mode of payment.

[Narrator / Reporter]

There are those, however, who feel that caution needs to be exercised when promoting the use of cryptocurrency in a community. And Edward Kucewa is a Kenyan economist.

[Francis Anene / Roni Mdewida / Edward Kucewa]

There's the risk of volatility. Crypto is exposed to a lot of external shocks, and so therefore these external shocks bring fluctuations. That's a huge risk for communities. There are also some small infrastructural risks, lack of mobile penetration, especially in the informal settlements. And that is another bottleneck.

[Liana Byrne]

Michael Kaloki there. And I'm Lianna Byrne with the Marketplace morning report from the BBC World Service.

[Emily Hanford]

The Trump administration is making deep cuts to education research.

[Liana Byrne]

The cancellation notices started coming.

[Odoo Advertiser / Tommy Lumby]

When the contract is cut, the study just dies.

[Emily Hanford]

It's all happening. Just as schools are trying to make use of research to improve reading instruction.

[Maura Fogarty]

There would not have been a science of reading without the federal funding. It wouldn't have happened.

[Emily Hanford]

I'm Emily Hanford. On our new episode of Sold a Story, what the Trump cuts mean for the science of reading. Go to your podcast app and follow Sold A Story.