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Protesters gathered at the capital's main roundabout before marching to the State Palace shouting "labourers unite, we shall not be defeated" and "the country is rich but the people are poor".
Demonstrators carried a coffin covered with a black cloth bearing the slogan "The death of justice", demanding lifelong health insurance and a pension fund.
"There is no social justice for Indonesians without social security," a committee representing more than 60 labour unions said in a statement.
Some 10,000 security personnel had been deployed, the police said.