Jakarta, Feb. 24 -- President Prabowo Subianto is facing a major test of his leadership as signs of dissent against his new government have appeared in the form of student protests and the possible emergence of an opposition party.

Frustration at austerity measures introduced by the Prabowo administration to fund his ambitious campaign promises spilled into the streets last week, when thousands of students rallied against the budget cuts and other policies they say are "not pro-people".

The protests, dubbed Indonesia Gelap (Dark Indonesia), began last Monday and were initially planned to conclude last Thursday in front of the Presidential Palace in Jakarta. But students continued to rally in some major cities on Friday, with activists a...