Indonesia cut financial perks for lawmakers on Sunday, after at least five people were killed in protests against economic hardship that have escalated into anger against police.

Southeast Asia's biggest economy was rocked by protests in major cities in recent days after footage spread of a motorcycle taxi driver being run over by a police vehicle at a rally against lucrative perks for lawmakers.

"The parliament leadership conveyed that they would revoke several policies, including the amount of allowance for lawmakers, and a moratorium on overseas visits," President Prabowo Subianto said, without specifying which allowance he was referring to.

The ex-general said protests should take place peacefully and if people destroyed public facilities or looted private homes "the state must step in to protect its citizens".

"The rights to peaceful assembly should be respected and protected. But we cannot deny that there are signs of actions outside the law, even against the law, even leaning towards treason and terrorism," Prabowo said in a speech in Jakarta.

Defence Minister Sjafrie Sjamsoeddin later said military and police would take "firm action" against "rioters and looters" who entered private homes or state institutions.

Their comments came after the house of Finance Minister Sri Mulyani Indrawati was looted overnight, soldiers guarding her residence and a witness told AFP on Sunday.

Anger has spread to lawmakers and several have reportedly had their houses ransacked in recent days.

The grievances of protesters are many but rallies before the driver's death this week focused on the revelation that lawmakers were receiving a housing allowance nearly 10 times higher than the minimum wage in Jakarta.

Rights groups said Prabowo's speech and the olive branch from parliament did not go far enough.

"The president's statement was insensitive to all the complaints and aspirations that the people were voicing during the demonstrations," Amnesty International Indonesia executive director Usman Hamid said in a statement.

"The state should respond demands from various groups of people with a series of comprehensive policy changes."

Major test

Protests have spread from capital Jakarta to other major cities, including Yogyakarta, Bandung, Semarang and Surabaya in Java, and Medan in North Sumatra province.

At least three people were killed after a fire Friday started by protesters at a council building in the eastern city of Makassar.

Another victim died in Makassar on Friday after he was beaten by mob on suspicion that he was an intelligence officer, local disaster agency official Muhammad Fadli Tahar told AFP on Sunday.

A local council building was burned on the island of Lombok on Saturday while a police headquarters in the eastern Java city of Surabaya was set on fire.

In response to the protests, social media app TikTok on Saturday temporarily suspended its live feature for "a few days" in Indonesia, where it has more than 100 million users.

Some institutions were anticipating protests to continue on Monday. One international school said its classes would take place online until Tuesday and civil servants working in Jakarta were asked to work from home.

A Jakarta police spokesperson in remarks aired by broadcaster Kompas TV said patrols would be carried out in the capital to "protect" citizens and give a sense of security.

The protests are the biggest and most violent of Prabowo's presidency, a key test less than a year into his rule.

He pledged an investigation into the killing of motorcycle gig driver Affan Kurniawan and promised to help his family. Seven officers in the tactical van were detained for further investigation.

Analysts said his speech could provide a "temporary calming effect" among political elites but not the wider public.

"On the ground frustrations over economic hardship and perceived government privileges remain," said Dedi Dinarto, senior associate at public policy advisory firm Global Counsel. 

"Unless those deeper concerns are addressed, the speech alone is unlikely to fully diffuse the unrest."

The crisis has forced Prabowo to cancel a planned trip to China next week for a military parade commemorating the end of World War II.

Prabowo has pledged fast, state-driven growth but has already faced protests against widespread government budget cuts.

by Marchio GORBIANO