The protests began in Jakarta a week ago and spread nationwide, escalating in size and intensity after a police vehicle hit and killed a motorcycle taxi driver on Thursday night.
President Prabowo Subianto said on Sunday political parties had agreed to cut MPs' benefits, including a controversial $US3,000 ($A4,587) monthly housing allowance, in a bid to ease public fury after nationwide protests left six people dead.
He also ordered the military and police to take stern action against rioters and looters after homes of political party members and state buildings were ransacked or set ablaze.
The Alliance of Indonesian Women, a coalition of women-led civil society groups, said on Monday it had delayed planned protests at the parliament to avoid any crackdown by authorities.
"The delay is done to avoid increased violent escalation by authorities ... the delay takes place until the situations calm down," the group said in an Instagram post on Sunday.
Student groups also delayed a protest on Monday, with one umbrella group saying the decision was "due to very impossible conditions".
The protests and violence unsettled financial markets, with the stock market falling more than three per cent in opening trades on Monday.
Flanked by leaders of eight Indonesian political parties, Subianto told a televised news conference in Jakarta on Sunday, they had agreed to cut the housing allowance and suspend overseas trips for MPs.
It was a rare concession in response to mounting public anger.
As nationwide protests escalated across the world's third-largest democracy last week, Subianto summoned the country's prominent figures and cancelled a high-profile trip to China.
Critics argue the MPs' allowance is not only excessive but also insensitive at a time when most people are grappling with soaring living costs, taxes and rising unemployment.
The protests grew wider and more violent following the death of 21-year-old ride-hailing driver Affan Kurniawan.
A video on social media, apparently showing his death during a rally in Jakarta on Thursday, shocked the nation and spurred an outcry against the security forces.
Kurniawan was reportedly completing a food delivery order when he was caught up in the clash.
Witnesses said the armoured car from the National Police's Mobile Brigade unit suddenly sped through the crowd of demonstrators and hit Kurniawan, causing him to fall.
Instead of stopping, the car ran over him.
Subianto said police are investigating seven officers linked to the incident.
The death toll from riots that broke out in multiple cities rose to six after authorities in Yogyakarta on Sunday confirmed that Friday's clashes between rock-throwing demonstrators and riot police killed a 21-year-old university student.
Subianto reiterated that his government respects freedom of expression as guaranteed in Indonesia's constitution and international conventions.
"But when demonstrations turn anarchic, destroying public facilities, endangering lives, and attacking private homes or public institutions, this becomes a serious violation of law," he said.
Subianto cautioned that violent acts risk veering into treason and terrorism, and warned "the state would not tolerate attempts to destabilise the country".
with reuters
