Ilham Oktafian, Jakarta – Indonesia's parliament is drafting amendments to the country's road transport law that would formally recognize motorcycle ride-hailing services as public transportation, a move lawmakers say would provide long-term legal certainty for millions of drivers working in the country's digital economy.
Syaiful Huda, deputy chairman of the House of Representatives' Commission V, said the proposed revision to the Road Traffic and Transportation Law (UU LLAJ) includes 15 to 16 articles dedicated to regulating motorcycle ride-hailing, known locally as ojol.
One of the key provisions would, for the first time, classify motorcycles used by ride-hailing platforms as public transportation vehicles.
"Currently, motorcycles are not legally recognized as a mode of public transport. We want to ensure online motorcycle transport is formally acknowledged," Huda told reporters on Thursday.
The proposed legislation follows the government's decision this week to reclassify motorcycle ride-hailing drivers as micro-entrepreneurs and cap platform commissions on passenger fares at 8%, allowing drivers to receive 92% of fares.
Lawmakers, however, said additional regulations are urgently needed after drivers complained that lower commissions have been offset by reduced fares and fewer orders, limiting any improvement in earnings.
Huda urged the Transportation Ministry and the Communications and Digital Ministry to quickly issue technical regulations implementing President Prabowo Subianto's commission cap, saying delays have created uncertainty for drivers and platform operators alike.
He said the regulations should include an independent oversight mechanism to monitor ride-hailing companies and ensure compliance with the new rules.
Deputy House Speaker Cucun Ahmad Syamsurijal echoed the call, saying the current policy has lowered fares for consumers but has not necessarily increased drivers' incomes because some platforms have reduced fare rates.
"The commitment has been made, but technical regulations are needed so there is no misunderstanding in its implementation," Cucun said.
The government estimates Indonesia has more than 4 million motorcycle ride-hailing drivers, many of whom rely on platform work as their primary source of income.
Under the new micro-enterprise classification, drivers become eligible for government support programs, including access to financing, entrepreneurship training and tax incentives. Most are also expected to be exempt from income tax because their annual earnings fall below the threshold for micro businesses.
The reforms come after a December 2025 survey by the Institute for Demographic and Affluence Studies (IDEAS) found average monthly net income for ride-hailing drivers had fallen to Rp 1.7 million ($95) from Rp 2.9 million two years earlier, reflecting higher operating costs and platform commissions.
Source: https://jakartaglobe.id/news/dpr-drafts-law-to-give-ridehailing-drivers-public-transport-statu