Hundreds of motorcycle taxi and delivery drivers protested in several Indonesian cities on May 20, seeking higher pay and lower company commission rates.

The drivers also expressed concerns about a potential merger between Indonesia’s GoTo and Singapore-based Grab.

Protests occurred near key government offices in Jakarta, where drivers, wearing green uniforms and carrying banners, delivered speeches.

They criticized what they called exploitative policies, stating they earn between 100,000 rupiah (around US$6) and 150,000 rupiah (around US$9) for a 10 to 12-hour workday.

Drivers demanded that 90% of trip fares be allocated to them, claiming that current company commissions often exceed the regulated 20%.

The protests spread to other cities on Java island, including Surabaya, Bandung, Yogyakarta, and Semarang.

Transportation Minister Dudy Purwagandhi acknowledged the drivers’ concerns and said the government is reviewing the commission structure.

GoTo indicated it is open to driver feedback but does not view reducing its share of fares as a viable solution. Grab affirmed drivers’ rights to voice their opinions and dismissed merger speculation as unverified.

Meanwhile, drivers worry that a merger could result in layoffs, diminished competition, and predatory pricing.

If finalized, the merger could establish a regional ride-hailing leader with 85% of Southeast Asia’s US$8 billion market, according to Euromonitor International.

Currently, GoTo’s Gojek unit employs over 3.1 million motorcycle drivers in Indonesia.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ A decade of evolving driver protests reflects maturing gig economy tensions

Indonesia’s current protests represent a significant evolution from the violent riots of March 2016, when 10,000 traditional taxi drivers attacked ride-hailing vehicles and blocked major Jakarta roads in opposition to Uber and Grab1.

Today’s demonstrations show greater organization through formal unions like KSPI and driver associations like Garda, with specific economic demands rather than calls for outright bans2.

The protesters’ focus has shifted from existential threats to traditional taxis to specific concerns about commission rates and merger impacts, reflecting how deeply embedded ride-hailing has become in Indonesia’s transportation ecosystem.

This evolution mirrors the growth of Indonesia’s gig worker population to approximately 41.6 million people, representing half of the country’s informal workforce3.

The increasingly sophisticated organizing efforts demonstrate how gig workers, initially celebrated for their flexibility, are developing collective responses to shared economic challenges across the digital platform economy.

2️⃣ Consolidation trend threatens driver bargaining power across Southeast Asia

The potential GoTo-Grab merger that drivers are protesting would create a regional giant controlling approximately 85% of the $8 billion Southeast Asian ride-hailing market4.

This follows a pattern of consolidation in global ride-hailing, where companies like Uber have acquired or merged with competitors in multiple markets to achieve dominance and improve profitability.

Indonesia represents a particularly crucial market with Gojek alone employing more than 3.1 million motorcycle drivers4, creating an enormous workforce with limited alternatives if platform policies change.

Research shows that 16% of Indonesian gig workers already struggle to meet basic household expenses5, suggesting limited financial resilience to withstand potential negative impacts from market consolidation.

Historical data from other markets shows that reduced competition among ride-hailing platforms typically leads to reduced incentives for drivers and less favorable commission structures once companies secure market dominance6.

3️⃣ Indonesia’s gig drivers caught between flexibility benefits and economic vulnerability

While 50% of Indonesian gig workers cite flexibility as their primary motivation for choosing platform work5, the economic realities include working long hours for modest pay—typically 100,000-150,000 rupiah ($6.09-$9.13) for 10-12 hour days4.

The average gig worker in Indonesia maintains 1.6 income sources5, indicating that many cannot rely solely on platform work despite the significant time commitment.

Despite higher participation in social protection programs compared to the general population, many gig workers still lack comprehensive coverage for health insurance and work-related accidents3.

Gender disparities persist in the gig economy, with female motorcycle drivers earning less than their male counterparts while facing additional safety concerns2.

Most drivers report they don’t see themselves leaving platform work despite these challenges5, reflecting both the limited alternative opportunities in Indonesia’s labor market and the genuine advantages that flexibility provides to certain workers.

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