Resource-rich Indonesia has been hit by some of its worst political unrest for almost 30 years, but the country's vast commodity sector appears to be largely unscathed.

Protests against a new housing allowance for members of parliament turned violent over the weekend, leaving up to eight people dead, according to local reports. The protests began in the capital Jakarta but have since spread to many of the country's biggest cities, reflecting discontent over a slowing economy and rising living costs.

Indonesian stock markets fell by almost 4pc on 1 September before later recovering, while the rupiah weakened against the dollar.

The protests appear to be largely confined to urban areas and have not disrupted commodity production. Indonesia is among the world's largest producers of coal, nickel, palm oil, fertilizers and LNG, as well as a major regional importer of oil products. There is no impact on fertilizer production, a source at a leading Indonesian producer said.

There is no sign that foreign investors are a target for the protests. Previous incidents of unrest, including during the Asian financial crisis in 1998, led to violence against Indonesia's large Chinese community.

China has become a major investor in Indonesia's nickel sector and other industries in recent years, helping turn the country into the world's biggest nickel producer.

The protests forced Indonesian president Prabowo Subianto to cancel a planned trip to China this week. Prabowo, who took power in October last year, has laid out ambitious plans to boost oil output and has made food security a core focus of his government.

Prabowo has reversed some of the perks granted to lawmakers that sparked the unrest, a move that appeared to have defused some of the protests on 1 September.

By Kevin Foster