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Online ojek fares increase, DPR member suggests lower app fee

Tempo - August 10, 2022

Riani Sanusi Putri, Jakarta – The Transportation Ministry readjusted the fare of online ojek or two-wheeled online ride-hailing services. In response, the House of Representatives (DPR) Commission V member, Suryadi Jaya Purnama, opined that the application rental fee should also be dropped in line with the fare hike.

"With this service fare adjustment, the app rental fee of 20 percent is too high," said Suryadi in a written statement received by Tempo on Wednesday, August 10, 2022.

In a business scheme run by the ride-hailing app company, he mentioned that drivers are partners and owners of the vehicle. Thus the company does not need to spend capital or vehicle maintenance costs.

Of the total costs charged to customers, Suryadi explained, drivers earn 80 percent, which will later be used for various things, such as their insurance, safety equipment, to vehicle maintenance.

Thus, in order to meet the principle of fairness, the Transportation Ministry needs to carefully calculate the net profit earned by the driver-partners. The PKS politician said that the app rental fee of 20 percent is huge given its millions of driver partners.

"We call for the rental fee for the app to be evaluated and lowered," Suryadi remarked.

The House member further hoped that with the fare hike, online ojek app companies could continue to improve service standards by providing security and safety guarantees for users. He also asked the companies to rent land for parking to maintain the traffic order as mandated in the Transportation Ministerial Regulation No. 12 of 2019.

As previously reported, the Transportation Ministry issued a new decree No. KP 564 of 2022, regulating a new ceiling and floor price for online ojek services and three zoning systems.

For Zone I covering Sumatra, Java (excluding Greater Jakarta), and Bali, the floor price is Rp1,850 and ceiling price Rp2,300 per kilometer with the minimum service fares of Rp9,250-Rp11,500.

For Zone II covering Greater Jakarta (Jakarta, Bogor, Depok, Tangerang, and Bekasi), the floor price is Rp2,600 and the ceiling price is Rp2,700 per kilometer with the minimum service fares of Rp13,000-Rp13,500.

For Zone III covering Kalimantan, Sulawesi, Nusa Tenggara and its surrounding area, as well as Maluku and Papua, the floor price of online ojek service is Rp2,100 and the ceiling price is Rp2,600 per kilometer with a minimum service fares of Rp10,500-Rp13,000.

Source: https://en.tempo.co/read/1621235/online-ojek-fares-increase-dpr-member-suggests-lower-app-fe