It has been three days since thousands of online motorcycle taxi, online taxi, and online courier drivers filled the streets in front of the State Palace in Jakarta. On Monday (21/7), they marched in unison with the same message: real justice, not vague promises.
The action they called Action 217 was predicted to be the biggest demonstration of online drivers so far. They went on strike, aka offbid, and brought five main demands: the state presents an Online Transportation Law or Perppu, a fairer profit-sharing scheme (90% drivers, 10% applicators), setting tariffs for delivery of goods and food, investigative audits of applicators, and the elimination of systems that are considered to divide driver solidarity; such as Aceng, Slot, Hub, and Multi Order.
Chairman of Garda Indonesia, Igun Wicaksono, said this demonstration was the peak of disappointment. "The government, especially President Prabowo Subianto, is not firm and unresponsive. There is even a discourse on increasing ojol tariffs by up to 15 percent, even though the problem of applicator cuts has not been resolved," Igun said, quoting CNN.
Igun emphasized that if there is no concrete response, the action will continue in waves until December. As an illustration, there are currently more than 7 million online motorcycle taxi partners spread throughout Indonesia. In addition to online motorcycle taxi drivers, there are also UMKM players who depend on the online transportation ecosystem.
Ministry of Transportation: still accommodating considerations, not finalized
On the other hand, the government stated that the plan to increase ojol tariffs has not been finalized. The Ministry of Transportation itself held a focus group discussion (FGD) themed Fair and Sustainable Online Transportation, on Thursday afternoon (24/07) in Jakarta. This forum was formed to finalize online transportation rules in order to create rules that are fair and sustainable for the entire ecosystem.
"As a regulator in the transportation sector, we need to absorb various information and data to decide on an equitable and sustainable transportation policy. This forum is not a forum to decide but to discuss," said Director General of Land Transportation, Aan Suhanan.
According to DG Aan, regulation related to this ecosystem requires cross-ministerial synergy, starting from the Ministry of Communications and Digital related to application platforms, the Ministry of Manpower related to the labor system, and so on.
"Therefore, we need to look at all perspectives and be cautious in making policies," said Aan.
Need a clear rule of law
In the FGD, transportation policy analyst Azar Tigor Nainggolan emphasized that the legal footing regarding online transportation must be clarified to build a fair and sustainable policy.
"These rules concern the regulation of motorbikes as a means of public transportation, regulation of the online transportation business, online transportation business stakeholders, drivers, public transportation companies, and the application company itself," he said.
This was also mentioned by transportation observer Djoko Setiwarno who mentioned that there is a legal loophole that becomes a pebble to find a middle ground. Currently, private applicators are not recognized as official 'public transport', making it difficult for the government to regulate fares or fleet size.
"The regulation says they are only applicators, not transportation operators. As a result, the government does not have full power," Djoko told Suar via online teleconference (24/07).
However, the applicator representatives in the discussion said that the applicator's discounted costs are currently at a balance point. Meanwhile, it is intended for technology development, operational costs, driver welfare programs, and promotional prices for consumers.
On the same occasion, one of the driver-partners, Reymon Dwi Kusnadi emphasized the aspirations of ojol drivers during the series, regarding the importance of partnership agreements with applicators that heed legal aspects so that citizens can get decent work and livelihoods.
Applicator stance: respect the action, keep operating
Grab Indonesia through its Chief of Public Affairs, Tirza Munusamy, stated that it respects the right of drivers to express their aspirations in an orderly manner. "Grab operations are still running. Our system automatically diverts orders to other partners if there are adjustments," she explained to SUAR (22/07).
Grab also welcomes the government's plan to review the fee structure for online transportation services. "For more than three years there has been no significant adjustment, even though the cost of living and partner operations have increased," he said.
Tirza emphasized the importance of a thorough study so that new policies do not only favor one party, but build a fair and sustainable ecosystem.
Maxim: review, don't be counterproductive
In a different tone, online transportation service provider Maxim warned the government about the risk of fare hikes. According to Maxim Indonesia's Government Relations Specialist, Muhammad Rafi Assagaf, the plan to increase fares by 8%-15% for two-wheeled fleets needs to be reviewed comprehensively.
"We see that the tariff increase plan must be thoroughly reviewed by involving all stakeholders," said Rafi in his official statement, Wednesday (2/7).
Maxim believes that fare hikes can have a counterproductive effect: from the consumer side, the cost becomes more expensive, resulting in lower demand, increased pick-up times, and a spike in cancellations. On the driver's side, if demand drops dramatically, daily income will suffer.
For example, in East Kalimantan, the fare hike sent cancellations soaring by 37%. In Makassar and Palopo, travel demand dropped by 50% in just two weeks, with more than 30% of consumers stopping using the service.
"The imbalance between demand and resources due to tariff increases will make it difficult for companies to survive in Indonesia," said Rafi. Maxim asks the government to pay attention to people's purchasing power and the sustainability of driver partners before making a decision.
Not just an app: A fairer dream of online transportation
In the midst of the polemics over ojol tariffs, Djoko Setiwarno, a transportation observer who is also a lecturer at Soegijapranata Catholic University, envisions an online transportation application in Indonesia that not only makes it easy for passengers to order ojol or cars, but is also able to ensure the welfare of drivers, reduce high commission rates, and protect the public interest.
For Djoko, the idea is not just a dream. He has long suggested that the Indonesian government have its own app, just like South Korea has done.
"In Korea, they made their own application, because they wanted to protect their citizens," Joko said in a long interview with SUAR. According to him, if the country has its own application, the government can directly regulate tariff policies, the number of drivers, and public service standards.
"That's what's missing in Indonesia now. Everything is left open, anyone can register, without limits. Eventually the balance is broken," he added.
Why is it important?
Currently, the online transportation ecosystem in Indonesia is dominated by the private sector. Application companies, or often called applicators, have the most power: determining the commission deducted from drivers, increasing or decreasing tariffs, and terminating partnerships.
Djoko believes that the absence of direct control from the government has widened the gap. "Now the drivers are actually just 'hitchhiking'. All risks are borne by them," he said.
According to him, if the state has its own application, the government can intervene to regulate the quota of the number of drivers, supervise work patterns to make them more humane, and determine the maximum limit of commission deductions.
One of the major issues that drivers often complain about is the high commission deductions. Joko explained, if the application is owned by the state, the maximum commission cut can be set at only 10 percent.
"For the private sector, it can be 20 percent, even more. That is burdensome," he explained.
In addition to commissions, government-owned applications also allow for fairer policies, such as social security, leave, or accident insurance. "Because now, applicators only think about making money. They are not obliged to think about the welfare of the drivers," he said.
Challenge: power and investors
Djoko admitted that he had conveyed this idea for a long time, and had even suggested it directly to President Joko Widodo. He pointed out that priority could be given to those who have difficulty finding permanent employment, for example due to age or education.
According to him, this model has been done in South Korea, where the city government has its own application as an alternative to private platforms. "If the government owns it, they can control it. Tariffs, parking, routes, everything can be regulated," he explained.
However, realizing state-owned applications is not an easy matter. One of them, said Joko, is a matter of political courage. "If the government makes it on its own, investors will protest. The private applicators are already big, they have a lot of capital," he said.
Djoko did not deny that the idea of state-owned online transportation was politically sensitive. "The government must be worried about being labeled as shutting down private businesses. Especially since there are already big investors," said Joko. "But if you really want to protect your citizens, the government must be brave."
According to Djoko, creating your own application does not mean shutting down existing ones. State-owned platforms can be an additional option, and run with stricter standards. "Let there be healthy competition. Now there are only two or three big players, and those are private," he explained.
He hopes that if the government is serious about building a fairer online transportation, this is not just a matter of technology, but a matter of courage to maintain a balance between the interests of consumers, drivers, and the transportation ecosystem. "Because in the end, online transportation is not just about applications. It's about how we protect the people who work and the people who use the service," he concluded.
