Indonesia: Grab, GoJek Respond to Tariff Increase Requested by Drivers

• Apr 17, 2018

TEMPO.CO, Jakarta – According to the Indonesian online transport service association (PPTJDI) Chairman Igun Wicaksono, online taxi drivers have requested for ride-hailing app companies, Grab and GoJek, to raise its tariff to an acceptable Rp3,000-Rp4,000 per kilometer from the existing Rp1,600 per kilometer.

According to Igun, drivers that are joined in the PPTJDI and the two-wheel movement (Garda) plans to hold yet another rally on April 23 at the House of Representatives (DPR) in Jakarta.

However, the drivers’ requests for a better tariff have not been conceded by ride-hailing app companies such as Grab and GoJek. Grab management reportedly disagreed on raising the tariff and argues that an expensive tariff will be less attractive towards Grab customers and would potentially reduce driver’s income.

Meanwhile, GoJek Chief Corporate Affairs Nila Marita said that the company is committed to improving the welfare of its partners or drivers, however, Nila denied discussing tariff provisions that have been the subject of discussion among online taxi drivers.

“However, the tariff of Go-Car has been set to follow the rules mentioned in Transportation Minister’s Law No. 108/2017,” said Nila on Monday, April 16.

Furthermore, according to the Business Competition Supervisory Commission (KPPU) Merger Director Deswin Nur, the tariff hike can spark an unhealthy competition among companies. Deswin also claims that the demanded tariff for Grab and GoJek would be too close to the tariff set for conventional taxis.

Source: https://en.tempo.co/read/news/2018/04/17/056917657/Grab-GoJek-Respond-to-Tariff-Increase-Requested-by-Drivers