TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsDrivers, customers wary of ride hailing fare hike plan
The proposal follows a major driver protest in May, during which drivers demanded higher fares and lower commission rates from the apps.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
In order: Motorcycle deliverymen working for three different online companies, Gojek, Grab and Shopee, wait for the green light at a crossroads on Feb. 10, 2022, in Jakarta. (AFP/Bay Ismoyo)
T
he Transportation Ministry’s plan to raise ride-hailing fares by 8 to 15 percent nationwide, ending a three-year freeze, has stirred unease among drivers, passengers and industry players like Gojek and Grab. While the increase is intended to ease long-standing complaints about low driver earnings, critics warn it could backfire by dampening customer demand, ultimately hurting the very drivers it aims to help.
Garda Indonesia, an online motorcycle taxi (ojol) drivers’ association, rejected the proposal, citing concerns over its potential negative impact, including reduced demand and lower driver incomes. The group urged the government to instead prioritize capping service fees charged by on-demand apps at 10 percent.
“The fare hike affects customers and could lead to inflation. Meanwhile, the app fee cut impacts only the company and drivers,” Garda chairman Raden Igun Wicaksono said in a statement on Wednesday.
The association also criticized the ministry for allegedly consulting only with other driver groups that are backed by the apps, rather than with independent driver representatives.
“The government must form a tariff review team and open dialogue with all stakeholders. We want a fair and transparent process,” Raden said, emphasizing the need for a data-driven fare policy that doesn’t burden passengers.
Arianto Harefa, a complaints officer at the Indonesian Consumers Foundation (YLKI), suggested the government conduct a comprehensive analysis of the public’s financial condition and purchasing power before deciding on the fare hike.
“The government should not significantly raise the fare to offset the income cut from the on-demand apps,” he said on Thursday, as quoted by Tempo.
