It has been three days since thousands of online motorcycle taxi (ojek online), online taxi, and delivery drivers filled the streets in front of the Presidential Palace in Jakarta. On Monday (July 21), they staged a mass rally carrying one clear message: real justice, not fading promises.

The protest - dubbed Aksi 217 - was touted as the largest demonstration by online drivers to date. Drivers went on mass strike (offbid) and presented five main demands: the government to issue a law or emergency regulation (Perppu) on online transportation; a fairer revenue-sharing scheme (90% for drivers, 10% for app operators); standardized delivery fares for goods and food; investigative audits of app operators; and the abolition of systems perceived as undermining driver solidarity, such as Aceng, Slot, Hub, and Multi Order.

Chairman of Garda Indonesia, Igun Wicaksono, described the protest as the peak of drivers’ frustration. “The government, especially President Prabowo Subianto, has been indecisive and unresponsive. There is even talk of raising ride-hailing fares by up to 15 percent, while the issue of platform commissions remains unresolved,” he told CNN.

Igun warned that if no concrete response is given, the protests would continue in waves until December. To put things in perspective, there are currently more than 7 million online motorcycle taxi partners across Indonesia. Beyond drivers, many MSMEs also rely on the online transport ecosystem for their livelihoods.

Ministry of Transportation: Still Considering, Nothing Final Yet

On the other side, the government stressed that the planned fare hike for online motorcycle taxis has not been finalized. The Ministry of Transportation (Kemenhub) held a focus group discussion (FGD) on Thursday afternoon (July 24) in Jakarta, themed Fair and Sustainable Online Transportation. The forum was designed to refine regulations for online transport, ensuring fair and sustainable policies for the entire ecosystem.

“As the regulator in transportation, we need to gather data and insights before deciding on policies that are fair and sustainable. This forum is not for making decisions but for discussion,” explained Director General of Land Transportation, Aan Suhanan.

According to Aan, regulating the ecosystem requires inter-ministerial synergy, involving the Ministry of Communication and Digital Affairs (for app platforms), the Ministry of Manpower (for labor systems), and others.

“We must consider all perspectives carefully before taking policy steps,” he said.

The Need for Clear Legal Framework

During the FGD, transportation policy analyst Azar Tigor Nainggolan stressed that a clear legal foundation for online transportation is essential to ensure fair and sustainable regulations.

“This includes rules on motorcycles as public transport, online transport business regulation, ecosystem stakeholders—drivers, public transport companies, and the app companies themselves,” he explained.

Transportation observer Djoko Setiwarno echoed this, highlighting legal loopholes as a stumbling block for compromise. Currently, private app operators are not officially recognized as “public transport” providers, which limits the government’s authority to regulate fares or fleet numbers.

“Regulations define them only as app providers, not transport operators. As a result, the government lacks full authority,” Djoko told Suar via teleconference (July 24).

Meanwhile, representatives of app companies in the discussion argued that current platform commission fees are already at a balanced point, covering technology development, operational costs, driver welfare programs, and consumer promotions.

At the same session, one partner driver, Reymon Dwi Kusnadi, reiterated drivers’ aspirations throughout the protests: the need for partnership agreements with platforms that respect legal aspects, ensuring citizens can secure proper jobs and livelihoods.

App Companies’ Stance: Respecting Protests, Staying Operational

Grab Indonesia, through its Chief of Public Affairs Tirza Munusamy, said it respects drivers’ rights to express their aspirations peacefully. “Grab’s operations continue as normal. Our system automatically redirects orders to other partners if adjustments occur,” she told SUAR (July 22).

Grab also welcomed the government’s plan to review the cost structure of online transportation services. “There has been no significant adjustment for more than three years, even as drivers’ living costs and operational expenses continue to rise,” Tirza said.

She emphasized the importance of a comprehensive review so that any new policy benefits the entire ecosystem, not just one side.

Maxim: Rethink the Plan, Avoid Counterproductive Impact

By contrast, online transport provider Maxim warned the government about the risks of fare hikes. According to Maxim Indonesia’s Government Relation Specialist, Muhammad Rafi Assagaf, the proposed 8%–15% increase for two-wheel fleets should be thoroughly reconsidered.

“We believe the fare hike must be comprehensively reviewed with the involvement of all stakeholders,” Rafi said in a statement (July 2).

Maxim argued that fare increases could trigger counterproductive effects: higher costs for consumers leading to weaker demand, longer pickup times, and rising cancellations. On the driver side, if demand drops sharply, daily earnings could decline as well.

For example, in East Kalimantan, a fare hike once led to cancellations surging by 37%. In Makassar and Palopo, ride requests fell by 50% within just two weeks, with more than 30% of consumers stopping usage altogether.

“An imbalance between demand and supply due to fare hikes will make it difficult for companies to survive in Indonesia,” Rafi stressed. He urged the government to consider public purchasing power and drivers’ livelihoods before making any decision.

Beyond Apps: A Vision for Fairer Online Transport

Amid the fare debate, transportation expert and Soegijapranata Catholic University lecturer Djoko Setiwarno shared his vision of a state-run online transport app for Indonesia—not just to help passengers book rides, but also to ensure driver welfare, reduce excessive commissions, and protect the public interest.

For Djoko, this is not just a dream. He has long advocated for such an app, pointing to South Korea as an example.

“In Korea, they built their own app to protect their citizens,” Djoko explained in a lengthy interview with SUAR. If Indonesia had its own app, the government could directly set fare policies, regulate the number of drivers, and enforce public service standards.

“That’s what Indonesia lacks today. Everything is left open, anyone can register without limits, and the balance is broken,” he said.

Why is it so important?

Currently, the ecosystem is dominated by private companies—often called aplikator—who wield the most power: deciding commission cuts, setting or lowering fares, and even terminating partnerships.

Without direct government control, Djoko argued, inequality worsens. “Drivers are basically just ‘surviving.’ All risks are dumped on them,” he said.

If the government owned the app, it could regulate driver quotas, ensure more humane working conditions, and cap commission cuts at 10%.

“Private platforms take 20% or even more. That’s a burden,” Djoko explained.

A state-run app could also open the door to fairer policies on social security, leave entitlements, and accident insurance. “Private operators only think of revenue. They’re not obligated to care about driver welfare,” he added.

Challenges: Power and Investors

Djoko admitted he has proposed this idea for years, even suggesting it directly to President Joko Widodo. He believes priority could be given to those struggling to find steady work, such as people limited by age or education.

He noted South Korea’s example, where a city government operates its own app as an alternative to private platforms. “If the government owns it, they can control fares, parking, routes—everything,” he said.

But creating a state-owned app in Indonesia would not be easy. One challenge, Djoko said, is political courage. “If the government builds its own app, investors will protest. Private operators are already big and heavily funded,” he explained.

The idea is politically sensitive, with fears the government might be accused of stifling private business. “But if the goal is to truly protect citizens, the government must be bold,” he added.

For Djoko, building a state-run app does not mean eliminating private platforms. Instead, it could serve as an additional option with stricter standards. “That way, there’s healthy competition. Right now, only two or three big players dominate—and they’re all private,” he said.

He concluded that if Indonesia is serious about creating a fairer online transport ecosystem, it’s not just about technology, but about courage—balancing the interests of consumers, drivers, and the broader system. “In the end, online transport is not just about apps. It’s about protecting both the people who work and the people who use the service,” he said.