The government’s plan to increase online motorcycle taxi (ojol) fares has sparked public attention. The Ministry of Transportation recently announced that the new rates would increase motorcycle ride fares by up to 15 percent, with variations depending on the operational zone.
The government claims this policy aims to balance the needs of passengers, driver-partners, and platform companies.
However, Dwi Ardianta Kurniawan, a researcher at the Center for Transportation and Logistics Studies (Pustral, UGM), warns that higher fares do not automatically translate to higher income for drivers. He explained that consumer behavior is generally price-sensitive, especially for short-distance trips.
“From previous experience, fare hikes led to a 30%–50% drop in demand for short-distance trips, which in turn reduced earnings for everyone involved,” he said on Thursday (Jul. 24).
Kurniawan emphasized the importance of demand analysis to prevent policies from backfiring on the driver-partners themselves.
He further explained that the core challenge lies in the complexity of the fare system and its broad impact. With an estimated 4 to 7 million ojol drivers across Indonesia, fare policy is a sensitive issue.
In the early days of ride-hailing, many people left their stable jobs to become driver-partners due to its high-income potential. However, now that earnings have declined, many drivers feel disadvantaged, even though the real issue lies in shifting standards and expectations.
According to Kurniawan, aligning expectations between drivers, platforms, and passengers is now more crucial than ever.
On the other hand, ride-hailing platforms operate as profit-driven businesses. As of Q4 2024, Goto continues to record financial losses, while Grab has only recently turned a profit after previous losses.
Kurniawan stated that this situation highlights the critical role of the government as a neutral and fair regulator. Oversight and policy enforcement must be strengthened to maintain a balance between business interests and driver welfare.
Achieving this balance is essential to ensuring the long-term sustainability of the ride-hailing sector.
To address the complexities, Kurniawan proposed a solution: develop a reasonable income benchmark for driver-partners to ensure the fare policy is equitable for all.
“All stakeholders must rationally assess what constitutes a fair income for ojol drivers. Minimum wage levels can serve as a reference for setting reasonable driver earnings, similar to other employment sectors,” he explained.
He closed by expressing hope that future fare regulations will be based on transparency and clearly defined mechanisms. One particularly contentious issue needing clarity is the revenue split between platforms and drivers.
Kurniawan underlined that the sustainability of the ride-hailing industry depends on mutual understanding and accountable fare structures.
“Everyone needs to recognize that setting a fair tariff is key to sustaining the industry. If any party insists on pushing their own interest, it could damage the entire ecosystem,” Kurniawan concluded.
Author and Post-editor: Kezia Dwina Nathania
Editor: Triya Andriyani
Illustration: Detik.com