Alfida Rizki Febrianna, Anisa Fauziah, Jakarta – Government plans to raise online motorcycle taxi (ojol) fares by 8-15 percent could end up hurting drivers rather than improving their welfare, economists warned, as high commission fees charged by ride-hailing platforms remain unchanged.
"Higher fares don't automatically increase drivers' take-home pay because platform commissions remain high," said Achmad Nur Hidayat, an economist and public policy expert at UPN Veteran Jakarta, on Monday. "Without limiting these deductions, any fare hike only raises gross income, not net earnings."
Platforms typically charge drivers a 20 percent commission on fares. As fares increase, so do platform revenues, while drivers could see little real benefit, Achmad said, especially if higher prices drive passengers away.
A simulation by the Institute for Demographic and Poverty Studies (IDEAS) shows that with a base fare of Rp 2,500 per kilometer and 10 trips per day, drivers currently earn around Rp 125,000 ($7.7) in gross daily income, taking home about Rp 100,000 after commissions.
If fares rise by 8-15 percent, the per-kilometer rate would increase to Rp 2,700-2,875, raising gross daily income to Rp 135,000-143,750. After the same 20 percent deduction, drivers would take home Rp 108,000-115,000, translating to only a modest net increase of Rp 8,000-15,000 per day.
Muhammad Anwar, a researcher at IDEAS, said this small increase does not address the underlying challenges of the gig economy, where drivers are considered "partners" without real bargaining power over platform policies, fare structures, or commission rates.
"The main complaint from drivers is not about fares, but the high commissions," Anwar said. "Yet these deductions are untouched by the fare hike policy."
IDEAS also warned that higher fares risk pushing customers to switch to other modes of transport, reducing demand and potentially lowering drivers' income despite the fare increase.
"This creates a policy contradiction," Anwar said. "The government says it wants to protect drivers, but without restructuring the ecosystem or addressing commissions, it could instead reduce drivers' income if customers stop using the service."
Both economists urged the government to engage with drivers and platform operators to design a fairer system within the digital transport sector, rather than relying on fare increases alone to address drivers' welfare.
"Public policy should prioritize social justice and human welfare," Achmad said. "It's not just about raising fares, but about correcting the structural imbalances behind them."