Again, online transportation drivers rallied on Jalan Medan Merdeka Utara, Gambir, Central Jakarta (21/7/2025). At least three times in 2025, they have protested. The message is the same, asking for a reduction in commission deductions to the application so that they can be more prosperous.
The scorching sun did not stop Lily Pujiati from voicing the aspirations of her driver-partners. The Chairperson of the Indonesian Transport Workers Union (SPAI) conveyed that the main demands of her union centered on reducing applicator deductions and recognizing the status of drivers as workers.
"What is certain is that our demand is a cut, lower the applicator cut from 20% to 10%, that's the maximum," Chairperson of the Indonesian Transport Workers Union (SPAI) Lily Pujiati.
Lily emphasized that in the midst of challenging economic conditions, fare increases will not be significant without changes in applicator deductions. SPAI believes that a 10% cut is fair enough, considering that applicators still receive other additional fees from the service.
Chairman of the Garda Indonesia Ojol Driver Association Raden Igun Wicaksono, this demonstration was triggered by the lack of government follow-up regarding online transportation regulations. He highlighted that two months have passed since the big peace rally on May 20, 2025 and the Hearing Meeting (RDP) with Commission V of the House of Representatives, but no concrete policies have been issued.
The demands of online drivers are in line with the analysis of the Director of Digital Economy at the Center of Law and Economic Studies (CELIOS), Nailul Huda, who also reviewed the complexities and potential solutions to achieve a balanced ecosystem.
He highlighted that the Decree of the Minister of Transportation (Kepmenhub) Number 1001 of 2022 regulates the indirect costs paid by drivers to the platform to a maximum of 20%, consisting of 15% of rental fees and 5% for welfare support.
However, he noted that there is imperfect information as the policy categorizes indirect costs as a component of travel fares, rather than a cost charged directly to consumers.
"So there is imperfect information related to this cut," he explained, adding, "The rules should also be clarified to ensure that the information for drivers and passengers is the same," he told Suar, (7/21/2025).
Huda emphasized the need for regulatory clarity to ensure equal information for drivers and passengers. He also warned that a drastic reduction in indirect costs could hurt platforms that have large operating costs and rely on promos to attract price-oriented consumers.
If indirect costs are reduced, platforms may increase platform fees, which in turn makes the price for passengers more expensive and potentially reduces drivers' income.
Ojol Driver Status Issue
In addition to the deduction issue, SPAI has consistently fought for online drivers to be recognized as workers. "All over the world it's all about the drivers. That drivers are workers, no longer partners," said Lily from SPAI.
This recognition, according to him, is crucial to ensure the welfare of drivers, including social security which should be the responsibility of the company, not borne by the drivers themselves.
SPAI urges the enactment of Law No. 13/2003 on Manpower to regulate the status of drivers, distinguishing it from Law No. 22/2009 on Road Traffic and Transportation (LLAJ Law) which only regulates vehicles.
He also criticized the reluctance of applicators to recognize drivers as workers due to financial implications such as THR payments and social security. He criticized applicators' tactics of spreading rumors of layoffs or dividing drivers.
"We think it's unnatural, yes. Don't let these applicators pit drivers against each other," he said. He also highlighted the issue of foreign applicator taxes in Indonesia, while drivers actually pay them, hoping that the government can act decisively.
On the other hand, Huda from CELIOS argues that permanent employee status can eliminate the essence of gig workers who are characterized by time flexibility. He argues that this model could lead to mass layoffs and become a heavy burden for applicators who are not used to having millions of permanent employees.
He sees the ride-hailing business as a two-sided market, where drivers are also consumers for the platform. Therefore, platforms should provide fair compensation for drivers without burdening the end consumers.
Proposed Solution
Both SPAI and Huda from CELIOS highlighted the importance of clarity and balance in the online transportation ecosystem. Lily dismissed the Subscribe partnership model as a distraction, asserting that the main solution remains the recognition of drivers' status as workers.
Huda offers a win-win solution by clarifying the 20% withholding rule, making it part of the total paid by consumers to make it more transparent. This, he said, could provide clarity and potentially more revenue for drivers from platform fees, although it might reduce the platform's share.
He also suggested the option of including travel insurance as a component of travel costs. He cautioned that any price increase for passengers should be prudent and proportionate to the elasticity of consumer demand.
Just as passengers are free to choose a platform, Huda continued, drivers should also have the same right to choose and even join more than one platform, so fair arrangements should apply.
Both views highlight the complexity of creating a fair and sustainable ride-hailing ecosystem, where driver welfare, platform sustainability, and affordability for consumers can be achieved.
Grab Indonesia's Response: Appreciate Aspirations and Support Service Fee Review
Responding to the drivers' action, Tirza Munusamy, Chief of Public Affairs Grab Indonesia, emphasized that the company respects the rights of driver-partners to express their aspirations in an orderly, peaceful manner, and in accordance with applicable laws.
Grab Indonesia, he continued, continues to coordinate with government agencies, especially the Ministry of Transportation, to support the implementation of policies that prioritize partner welfare, user convenience, and industry sustainability. Grab welcomes the government's initiative to review the fee structure of online transportation services.
Grab Indonesia understands that service fee adjustments have not been significant in the last three years, while drivers' living and operational costs have increased. "So, Grab sees that the service fee adjustment study is the right step to build a transportation ecosystem that is more equitable, sustainable, and nurturing for all parties," he explained to SUAR, (21/7/2025)
It views that the proposed 10% commission reduction is not in line with the principle of sustainability of the ecosystem as a whole. This is because the commission is used for various important aspects for partners, such as 24/7 assistance services, accident insurance, education (GrabAcademy), as well as various welfare programs and voluntary incentives such as GrabBenefits and scholarships.
"In line with that, we view that the proposed reduction in commissions to 10% is not in line with the principle of sustainability of the ecosystem as a whole," Tirza said.
Deputy Minister of Transportation, Suntana, in a Hearing Meeting (RDP) at Commission V of the House of Representatives has said that the Ministry of Transportation is currently reviewing the best scheme between Applicators and Online Ojek. He added that the 20% cut was once reduced to 15%.
"Why can it change to 20 percent, if I'm not mistaken, it was once lowered by 15 percent. At that time fuel rose, so there was a demand to lower it by 15 percent. However, there was a request from the applicator to find a solution sir. So 15 plus 5 percent (applicator cut) by Coordinating Minister Marves and the old Minister of Transportation," he said, (30/6/2025)
The Ministry of Transportation continues to try to find the right solution to the demands of online motorcycle taxi drivers in accordance with the aspirations conveyed by Commission V of the House of Representatives.
