Indonesia's ride-hailing drivers, couriers stage protest in Jakarta over low pay

Indonesia's ride-hailing drivers, couriers stage protest in Jakarta over low pay

A motorcycle taxi driver working for online ride-hailing start-ups holds a placard that reads "Driver take hikmah (wisdom), applicator takes as many pieces as possible" during a protest against low tariffs in Jakarta, Indonesia, August 29, 2024. REUTERS/Ajeng Dinar Ulfiana

Thousands of ride-hailing drivers and couriers from various platforms including Gojek, Grab, Maxim, and inDrive on Thursday took to the streets to stage a protest against low pay and sought the government’s intervention in ensuring fairness.

The drivers and couriers, under the banner of ‘Koalisi Ojol to Indonesia’, gathered in front of the Ministry of Communications and Information Technology in central Jakarta to seek a revision in the regulation that allowed platforms to set their own pricing.

They also sought standardisation of food and goods delivery services across all platforms, the removal of the ‘Hemat’ (budget) feature in food and goods delivery services, which they claim is unfair to drivers, the elimination of promotional burden on drivers, and legal recognition for drivers, according to local media reports.

According to a Reuters report, citing Andi Kristiyanto, a representative of the National Online Taxi Coalition, which arranged the protest, drivers want ride-hailing firms to raise the share they get for every trip from 80% now and for the government to give special status for their terms of employment so they have more bargaining power over fees.

The drivers and couriers also staged a demonstration in front of the Ministry of Transportation. 

The ministry continues to permit platforms to offer promotions as long as they do not fall below the government’s tariff standards. However, the regulation of food and goods delivery services falls under the jurisdiction of the Ministry of Communications and Information Technology, not the Ministry of Transportation.

In 2022, the Ministry of Transportation established ride-hailing service tariffs according to three zones, with rates ranging from 1,800 rupiah per km to 13,000 rupiah per km.

Commenting on today’s rally, a Gojek spokesperson said, “We are always open to receiving input from our active driver-partners and consistently encourage them to share their views through Gojek’s various formal communication channels and platforms.”

“We want to assure our customers that Gojek operations are running as usual, and they can continue to rely on our services.”

Grab’s chief of public affairs Tirza Munusamy said the firm respects drivers’ right to express their opinions, which is facilitated through the Grab Support services or regular face-to-face discussions. The firm claimed that drivers’ income is never reduced to fund customer discounts. “All discounts are provided by the company and are aimed at increasing customer demand. Grab ensures the protection and work benefits of drivers by providing accident insurance, health insurance, and BPJS Ketenagakerjaan (employment social security). It also offers additional benefits and incentives, such as discounts on phone data, haircuts, phone accessories, essential goods, and food and beverage assistance,” the spokesperson added.

Nailul Huda, director of digital economy at the Center of Economic and Law Studies (CELIOS), stated that legal recognition of ride-hailing services as public transportation could limit drivers with inflexible working hours and strict contracts. “A win-win solution for both parties could be that drivers remain informal workers, but their well-being is improved,” he suggested.

He added that commissions and tariffs should be monitored to align with the Ministry of Transportation’s standards. At the same time, driver commissions and incentives should be gradually increased to keep pace with inflation.

Edited by: Padma Priya

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