The Indonesian transportation ministry has said that it will increase the fare pricing for motorcycle taxi rides by ride-hailing companies in the Greater Jakarta area, in response to demands by drivers, The Jakarta Post reported.
Following the introduction of zone-based fixed pricing for motorcycle taxi rides last year, drivers of the two prominent ride-hailing companies in Indonesia – Grab and Gojek – demanded higher fares to help them meet the rising cost of living in and around Jakarta.
The hike in pricing was done to “accommodate the drivers’ aspirations,” according to the country’s land transportation director general. It will see the per kilometer floor price rise to Rp 2,250 from Rp 2,000 previously, and the per kilometre ceiling price upped to Rp 2,650 from Rp 2,500.
The policy also fixes the base fare for the first 4 kilometres to between Rp 9,000 and Rp 10,500, depending on the service, from between Rp 8,000 and Rp 10,000 previously.
The new policy, however, only applies to the Greater Jakarta area, designated as Zone 2, while pricing for Zone 1 (Sumatra, Bali and Java, excluding Greater Jakarta) and 3 (Sulawesi, Nusa Tenggara, Maluku and Papua) will not be affected.
Regulators say that the decision was made following discussions with other stakeholders in the ride-hailing sector, which has grown to become a considerable driver of the country’s economy.
Ride-hailing, along with e-commerce and online travel services, has contributed the most to Indonesia’s flourishing digital economy with US$6 billion in 2019, according to the e-Conomy SEA 2019 report by Google, Temasek and Bain & Company.
The new pricing policy by the government, however, has been criticised by one of the country’s consumer associations.
The Indonesian Consumers Foundation (YLKI) slammed the regulator’s decision to hike prices solely in response to a demand from the drivers, arguing that such policies should be made in the interest of the general public instead.