Riot police violently dispersed hundreds of students who resumed protests in Indonesia's capital on Thursday against lavish allowances received by parliament members.

Police shot multiple rounds of tear gas after protests escalated to chaos, turning nearby roads into a smoke-filled battleground.

More than 1,000 students from several high schools and university attempted to reach the heavily guarded Parliament.

Demonstrators enraged by reports revealed that all 580 lawmakers received a monthly housing allowance of 50 million rupiah ($US3,075), in addition to their salaries, since September 2024.

The violence came just hours after thousands of workers at midday demanded a rise of minimum wage, an end to lay off, relaxed outsourcing rules and write-off a monthly housing allowance for lawmakers, which is almost 10 times the Jakarta minimum wage.

Public outrage comes amid strict austerity measures imposed by President Prabowo Subianto, including cuts to public works, health and education.

It has grown since reports revealed the monthly income of all 580 lawmakers since September 2024 has surged to around 120 million rupiah ($7,300) comprising housing and a string of generous perks covering from honoraria to family and rice allowances as well as taxes.

House speaker Puan Maharani told reporters on Saturday the allowances had been thoroughly considered and adjusted to current prices in Jakarta.

However, critics argue the new allowance is not only excessive but also insensitive at a time when most people are grappling with soaring living costs and taxes, rising unemployment and weakened purchasing power.

It was clashing directly with Subianto’s austerity measures to curb wasteful spending and prioritize social programs.

Authorities deployed more than 4,500 personnel to secure workers’ rallies in Jakarta and blocked routes leading to the parliament building where about 4,000 workers organized by the Labor Party and several labor unions concentrated their marches.

On Monday, authorities detained a total of 351 protesters, including 196 minors after a clash between riot police and protesters who attempted to reach Parliament.

Minors, mostly high school students, received guidance and warnings before being released to their families.

AP video by Andi Jatmiko