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.

BMW is positioning its all‑electric Neue Klasse series at the heart of its strategy to restore growth in China, its largest market.

The first model under this new umbrella, the iX3, was unveiled recently and is slated to reach the Chinese market by summer 2026.

Chief Financial Officer Walter Mertl affirmed that the Neue Klasse will render BMW “more than competitive”, expressing confidence that expanded availability will drive renewed growth in the region.

The German automaker’s sales in China have fallen short, with a decline of fifteen point five percent in the first half of 2025 amid fierce local competition and a broader real estate downturn curbing demand from affluent consumers.

The iX3 debut took place ahead of the IAA Mobility car show in Munich, where Chinese brands are mounting a growing challenge to European manufacturers.

A key advantage lies in battery cost reduction: the Neue Klasse models feature batteries between forty and fifty percent cheaper than those in previous vehicles, a factor expected to enhance profitability.

BMW forecasts reaching margin parity—matching combustion‑engine model margins—with the iX3 fifty as early as 2026.

The company projects an automotive earnings before interest and tax (EBIT) margin of five to seven percent in 2025, aiming to elevate this to eight to ten percent in the future.

At the same time, older model lines are scheduled for phase‑out by the close of the decade.

Trade tensions also continue to weigh on profitability.

Import tariffs in the United States are expected to reduce BMW’s profit margin by approximately one point two five percentage points in 2025.

Meanwhile, European regulators are negotiating a reduction of EU duties on U.S. industrial goods in exchange for a U.S. tariff of fifteen percent on European cars—down from twenty‑seven point five percent—potentially taking effect retroactively from August first.

The Neue Klasse initiative represents a substantial shift in strategy, encompassing cost‑efficient electric technology, a refreshed product lineup, and an unwavering commitment to the Chinese market.

As BMW seeks to regain its competitive edge, the iX3 and its successors stand as a flagship effort to combine innovation, profitability, and renewed momentum within the world’s most dynamic automotive landscape.