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Jakarta Post

Ministry mulls over 'ojol' drivers' demand for fare increase in Greater Jakarta

  • Riza Roidila Mufti
    Riza Roidila Mufti

    The Jakarta Post

Jakarta   /   Tue, February 11, 2020   /   07:47 am
Ministry mulls over 'ojol' drivers' demand for fare increase in Greater Jakarta An app-based ojek (motorcycle taxi) driver waits in a parking shelter in Depok, West Java, on Monday. The shelter was built to reduce traffic at the nearby Depok Lama train station. (The Jakarta Post/Ricky Yudhistira )

The Transportation Ministry is considering raising the minimum fare for app-based ojek (motorcycle taxis) operating in Greater Jakarta to accommodate drivers’ demands, an official has said.

According to the ministry’s road transportation director, Ahmad Yani, ojol (ojek online) drivers have demanded a floor price increase to Rp 2,500 (US$18 US cents) per kilometer from Rp 2,000 per km at present. The rate excludes the Rp 8,000 to Rp 10,000 base fare for Greater Jakarta, or the fixed initial charge, as stipulated by Transportation Ministerial Decree No. 348/2019.

“The drivers asked for an increase because the regulation states that their fare would be evaluated every three months,” the ministry’s land transportation director general, Budi Setyadi, told reporters on Friday.

“They also pointed out that the minimum wage in Greater Jakarta as well as BPJS Kesehatan [Healthcare and Social Security Agency] tariffs had already been raised.”

The aforementioned ministerial degree sets the minimum fare for ojol in Greater Jakarta — or Zone 2 covering Jakarta, as well as Tengerang in Banten and Bogor, Depok and Bekasi in West Java — at Rp 2,000 per km and a maximum fare of Rp 2,500 per km.

That compares to Rp 1,850 and Rp 2,300 for Zone 1, which includes Sumatra, Bali and Java (excluding Greater Jakarta); and Rp 2,100 and Rp 2,600 for Zone 3, which includes Sulawesi, Nusa Tenggara, Maluku and Papua. Base fare for Zone 1 and Zone 3 ranges from Rp 7,000 to Rp 10,000.

The government is currently discussing the matter with app-based ride-hailing companies Gojek and Grab Indonesia, as well as the Indonesian Consumers Foundation (YLKI) and other related stakeholders.

“What’s most important is the YLKI insight on whether consumers are willing to pay [a higher] rate. We will also analyze the people’s purchasing power,” Ahmad said. 

When contacted by The Jakarta Post, The Two-Wheel Action Movement (Garda), which represents ojol drivers, confirmed the drivers’ request for a tariff evaluation as stipulated by Transportation Ministerial Decree No. 348/2019.

Apart from the fare increase, Garda chief Igun Wicaksono said drivers also demanded that tariffs be province-based "because customers' ability and willingness to pay in each province is different”. 

"Garda […] is still waiting for the government’s decision to implement the provincial tariff system," said Igun. "Hopefully, [the tariffs] can be adjusted with the inflation rate.”

Grab Indonesia’s head of public affairs, Tri Sukma Anreianno, said in a statement that Grab Indonesia had been informed of the drivers’ demand and expected the government to be fair and consider all stakeholders of the ride-hailing ecosystem in making its policy.

"Grab will always respect the government’s [decision]. We hope that the new policy will have a positive impact on all stakeholders, including our drivers and customers across Indonesia.”