Enim Walmuri, a GrabBike partner in Jayapura, Papua, on his way to pick up a passenger. (Photo courtesy of Grab Indonesia)

Government Sets Minimum and Maximum Fares for Online Ojek


MARCH 25, 2019

Jakarta. Indonesia's Transportation Ministry finally announced long-awaited zone-based minimum and maximum fares for online motorcycle taxis on Monday (25/03). 

The ministry-set fares range from Rp 2,000 to Rp 2,500 (14 to 17 cents) per kilometer in the Greater Jakarta area. The minimum fare in the capital will range from Rp 8,000 to Rp 10,000, the general director of land transportation at the ministry, Budi Setiyadi, said in a statement.

The first of the three zones covers Sumatra, Java and Bali. The massive Greater Jakarta market makes up the entirety of the second zone. The third zone covers Kalimantan, Sulawesi, Nusa Tenggara, Maluku, Papua and other islands.

In the first zone, minimum fare is Rp 1,850 and maximum fare Rp 2,300 per kilometer. The third zone has a minimum fare of Rp 2,100 and maximum fare of 2,600 per kilometer. Minimum fare in both zones is set between Rp 7,000 and Rp 10,000 per trip.

There is now also a minimum distance of four kilometers for each trip. Passengers travelling less than the minimum distance will be charged the equivalent of a four-kilometer trip.

Budi said motorcycle taxi drivers will earn at least Rp 8,000 and a maximum of Rp 10,000 for the first four kilometers of each trip.

"These are the net fares drivers will receive regardless of the maximum 20 percent cut that providers charge them," Budi said.

The new maximum and minimum fares will start taking effect on May 1.

Responses From Go-Jek and Grab

Indonesian ride-hailing unicorn Go-Jek's spokesman Michael Reza Say said the company is still studying the possible impact of the new government-set fares.

"We just received [the news] and still need to study the impact on consumer demand, driver-partners’ income which depends on how much our users are willing to pay, and also small and medium enterprises in the Go-Jek ecosystem that use our services," Michael said on Monday as quoted by BeritaSatu.com.

Grab Indonesia offered a similar response.

According to Grab Indonesia's public affairs head Tri Areiano, the company is currently waiting for a copy of the official document from the government to be able to carefully study the impact of the new fares and to respond appropriately. However, he said that the new regulation will have a significant impact on users with limited purchasing power.