Some Users Could Shift to Other Transportation Modes

SITA NURAZMI MAKHRUFAH UMTUK KOMPAS

The online motorcycle taxi association will take action demanding an increase in fare fixing on Monday (23/7/2018).

JAKARTA, KOMPAS — Two on-demand motorcycle taxi operators, namely Gojek and Grab, increased their rates for both delivering goods and transporting passengers starting on Sunday (11/9/2022). The rate hike could lead to some users shifting to other modes of transportation, in particular private vehicles.

The fare hike for on-demand motorcycle taxis is stipulated in Transportation Minister’s Decision No. KP 667/2022 on guidelines for calculating on-demand motorcycle taxi fares, which was signed on 7 Sept. 2022. The fares must be adjusted upwards in line with the increase in the prices of subsidized fuel, regional minimum wages, and other cost components.

Also read:

> Motorcycle Taxi Driver Staunchly Commits to Giving Blood

> Digitalization Becomes a New Economic Driver

According to the new rule, fares are calculated based on a price floor and a price ceiling, with the minimum fare increased in line with regional zoning. In Zone II, which covers Greater Jakarta, the minimum fare has been increased to between Rp 10,200 and Rp 11,200 (70 US cents), and must be paid by all passengers traveling for a maximum distance of 4 kilometers.

The price floor for trip rates in zone II was raised from Rp 2,000 per km (Transportation Ministerial Decree No. KP 348/2019) to Rp 2,550 per km, while the price ceiling was increased from Rp 2,500 per km to Rp 2,800 per km.

Gojek senior vice president for corporate affairs Rubi W. Purnomo said in a statement released on Sunday that the company had imposed new GoRide (motorcycle taxi) rates in line with the new rules starting on 11 Sept. 2022. “In addition, we have also adjusted the rates for GoSend and GoMart to raise the drivers’ minimum incomes," he said.

The new rates also aimed to maintain its drivers’ welfare amidst the rising cost of fuel and to maintain stable market demand.

Meanwhile, Grab Indonesia country managing director Neneng Goenadi said the company had adjusted its rates starting on Sunday at 12:01 p.m. Western Indonesia Time (WIB). The adjusted rates had been calculated carefully in line with government regulations. The new rates also aimed to maintain its drivers’ welfare amidst the rising cost of fuel and to maintain stable market demand.

User resistance

Separately, researcher Kennedy Muslim from the Polling Institute said that most on-demand motorcycle taxi users were opposed to the fare hike. A survey the institute conducted on 16-24 Aug. 2022 regarding on-demand motorcycle taxi users showed that as many as 61 percent of respondents did not agree with the fare increase.

KOMPAS/AGUS SUSANTO

Online motorcycle taxis sleep on motorbikes in the Cipinang Muara area, East Jakarta, on Thursday (7/10/2021).

The majority of respondents from all transportation zones and demographics were opposed to the fare increase. Meanwhile, the majority of drivers, at 82.6 percent, agreed with the fare increase.

Kennedy said this would then impact public transportation use, decrease because nearly 30 percent of users combined public transportation and on-demand transportation services.

However, as regards the impact of the increased fares, around 50 percent of users said they would switch transportation modes or use their own motorcycles more often for daily mobility. Kennedy said this would then impact public transportation use, decrease because nearly 30 percent of users combined public transportation and on-demand transportation services.

Public transportation observer Yayat Supriyatna from Trisakti University told a discussion, held on Sunday (11/9) in Jakarta by the Polling Institute and themed "Increase in On-Demand Motorcycle Taxi Fares in the Eyes of Users and Drivers", that the increase in fares would prompt some users to return to taking private vehicles, especially those who owned motorcycles, because it would be cheaper.

KOMPAS/AGUS SUSANTO

Public transportation observer Yayat Supriyatna

For the drivers, Yayat said, the situation was more difficult. Their average income was less than Rp 4 million per month, or below than the regional minimum wage of Rp 4.2 million per month for Greater Jakarta.

"For drivers, the most important things are a minimal cut in the application fees, work bonuses, and an increase in orders," said Yayat.

One of the issues drivers have voiced is the application fee, which is still considered high. Transportation Minister’s Decree No. KP 667/2022 stipulates that operators should lower the application fee they charge to 15 percent, from 20 percent previously. However, in their written statements, neither Gojek nor Grab provided any explanations regarding their application fees.

(This article was translated by Hendarsyah Tarmizi)