Hundreds of motorcycle taxi and delivery drivers protested in several Indonesian cities on May 20, seeking higher pay and lower company commission rates.

The drivers also expressed concerns about a potential merger between Indonesia’s GoTo and Singapore-based Grab.

Protests occurred near key government offices in Jakarta, where drivers, wearing green uniforms and carrying banners, delivered speeches.

They criticized what they called exploitative policies, stating they earn between 100,000 rupiah (around US$6) and 150,000 rupiah (around US$9) for a 10 to 12-hour workday.

Drivers demanded that 90% of trip fares be allocated to them, claiming that current company commissions often exceed the regulated 20%.

The protests spread to other cities on Java island, including Surabaya, Bandung, Yogyakarta, and Semarang.

Transportation Minister Dudy Purwagandhi acknowledged the drivers’ concerns and said the government is reviewing the commission structure.

GoTo indicated it is open to driver feedback but does not view reducing its share of fares as a viable solution. Grab affirmed drivers’ rights to voice their opinions and dismissed merger speculation as unverified.

Meanwhile, drivers worry that a merger could result in layoffs, diminished competition, and predatory pricing.

If finalized, the merger could establish a regional ride-hailing leader with 85% of Southeast Asia’s US$8 billion market, according to Euromonitor International.

Currently, GoTo’s Gojek unit employs over 3.1 million motorcycle drivers in Indonesia.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ A decade of evolving driver protests reflects maturing gig economy tensions

Indonesia’s current protests represent a significant evolution from the violent riots of March 2016, when 10,000 traditional taxi drivers attacked ride-hailing vehicles and blocked major Jakarta roads in opposition to Uber and Grab1.

Today’s demonstrations show greater organization through formal unions like KSPI and driver associations like Garda, with specific economic demands rather than calls for outright bans2.