TEMPO.CO, Jakarta - Economist Bright Institute Awalil Rizky stated that the online motorcycle taxi industry, or ride-hailing, is expanding not only because of technological innovation. He argued that the scarcity of the job market and layoffs also contribute to its growth.
"The ride-hailing industry has become a kind of safety valve for the labor market. It must be acknowledged that this gives drivers weak bargaining power," said Awalil to Tempo on Wednesday, May 21, 2025.
Until now, the ride-hailing driver association has continued to demand justice regarding rates' determination and their reduction. Meanwhile, the government regulation through the Transportation Ministry sets the maximum rate cut by the app companies at 20 percent. However, it is suspected that app companies are violating this rule by taking commissions that exceed the set limit. Ride-hailing drivers are urging the House of Representatives and the government to set a new rate at a maximum of 10 percent.
Amid this situation, Awalil stated that the government and the House of Representatives need to play a role in creating a healthy ride-hailing industry. Both should act as fair referees and good supervisors in this industry. The drafting of regulations or policies must be based on thorough studies, through technocratic considerations, and not on populist pressure. "Of course, we will make every effort to protect the interests of all people. This includes not only the drivers, but also the public being served," he said.
Lasarus, Chairperson of House Commission V, stated that they will immediately draft a law regulating online transportation. He stated that his commission will work quickly to prepare the draft and promptly consult with the House of Representatives' leadership. After the academic draft is completed, the bill will be discussed in the Legislative Body, then brought to a plenary session to be established as a National Legislation Program (Prolegnas) and continue with further discussion.
"There's no need to worry. We will include all stakeholders in discussions about this law later," said Lasarus during a public hearing with the ride-hailing driver association in the Parliament Building, Senayan, on Wednesday, May 21, 2025.
The ride-hailing association welcomed the plan to formulate this policy. General Chairperson of the Indonesian Ride-Hailing Driver Association, Igun Wicaksono, stated that ride-hailing drivers need legal recognition through the Online Transportation Law. He also requested that the policy be specific, separate from Law Number 22 of 2009 concerning Road Traffic and Transportation. The reason is that ride-hailing is still considered illegal under this law.
"So, the Online Transportation Law will regulate ride-hailing as an application-based transportation tool, also known as online transportation," said Igun after the public hearing with Commission V.
Until now, the legal umbrella for ride-hailing has been limited to the Minister of Transportation Regulation. According to Igun, the position of the ride-hailing profession will become stronger when recognized through the Online Transportation Law. Because, through this law, there will be sanctions for parties that violate the provisions. "Currently, the existing regulations do not impose sanctions, so app companies are free to violate them," he said.
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