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Indonesia's Economic Heroes: Ride-Hailing Drivers Push for Fair Pay

Financial Times Companies •
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Indonesia's motorcycle taxi drivers, often called the 'economic heroes driving the economy,' face crushing 20 per cent commission cuts from ride-hailing giants Grab and Gojek. After paying these fees, drivers like Djunaedi, 45, in Jakarta struggle to earn even Rp100,000 to Rp150,000 ($6-9) per day, barely covering basic needs. This squeeze occurs as the government considers new rules to improve their financial and social benefits, including potentially lowering commission rates.

The situation is critical as the country grapples with high unemployment and a shift towards gig work, with 7.46 million jobless Indonesians and millions turning to online driving. Drivers, who number around 7 million according to associations, are pushing back, fearing further income erosion from rising costs and competition. Their political influence became starkly evident last year when thousands attended the funeral of a delivery driver killed in protests over parliamentary perks, forcing government intervention.

A looming merger between Grab and Gojek's parent companies, GoTo and Grab, could create a market monopoly controlling 90 per cent of ride-hailing and food delivery, intensifying pressure on regulators to act swiftly. Drivers hope sovereign wealth fund Danantara's involvement in the merged entity might offer better protection, but the deal's timeline remains unclear. While Grab and GoTo cite reinvestment of commissions into demand generation, drivers like Adik Supriyanto argue they deserve more as partners.

The government's response will determine if these economic heroes can secure fairer earnings before further unrest erupts.