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Online ojek drivers: Govt powerless to take action against online taxi app providers

Tempo - September 21, 2022

Riani Sanusi Putri, Jakarta – The association of online ojek drivers Garda Indonesia chairperson, Igun Wicaksono, opined that ride-hailing application service providers showed arrogance to comply with the government's regulations as they are reluctant to cut the app fee.

"This is strong proof that even the government is powerless to take firm action against the app companies," said Igun to Tempo on Tuesday, September 20, 2022.

According to him, the government and app providers have thus far issued a cliche reason that they have not made a profit so they are forced to deduct funds earned by drivers.

In fact, Igun said, some of them have succeeded in achieving unicorn status with valuations worth over US$1 billion. "Startup companies that have reached the unicorn level are still defending themselves [that they have] no benefits, which is just a capitalist boast for us as an association," he remarked.

Besides, the government which always expresses pride in online transportation service companies has made drivers helpless. Not to mention that the government has not changed the status quo to online ojek drivers. Igun suspected it was done on purpose so that the drivers could not fight or launch a defense legally against the applicator in a dispute in this digital industry.

Igun also asserted that the hike in online ojek tariffs was not the main thing requested by the drivers because no matter how high the rate hike is, it is the companies that gain the profits since they still apply the app fee at more than 10 percent.

He also denied the company's argument that the app fee was used for promotions and considered it just a marketing gimmick. "We really can't accept the reason," said Igun.

Thus, Igun said that a maximum 10 percent app fee is non-negotiable. The association will continue to stage a mass protest across the country until the demands voiced by online ojek drivers are met by the government and app providers.

Source: https://en.tempo.co/read/1636753/online-ojek-drivers-govt-powerless-to-take-action-against-online-taxi-app-provider