{"id":335274,"date":"2026-03-08T11:31:12","date_gmt":"2026-03-08T11:31:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/335274\/"},"modified":"2026-03-08T11:31:12","modified_gmt":"2026-03-08T11:31:12","slug":"the-economic-heroes-driving-indonesia","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/335274\/","title":{"rendered":"The \u2018economic heroes\u2019 driving Indonesia"},"content":{"rendered":"

For nearly a decade, Djunaedi has spent his days criss-crossing the world\u2019s biggest city, part of a green-jacketed army of motorcycle taxi drivers that has come to symbolise the struggling working class in Indonesia. <\/p>\n

After paying the 20 per cent government-mandated commission to the two biggest ride-hailing companies Grab and Gojek, some days Djunaedi might just \u201cget Rp100,000 ($6) to Rp150,000\u201d, he said, scarcely enough to get by in Jakarta. \u201cThe commission cut is indeed burdensome because it\u2019s 20 per cent\u2009.\u2009.\u2009.\u2009[but] we can only follow the rules.\u201d<\/p>\n

With more people trying to make a living delivering food and passengers, and the two biggest ride-hailing companies in merger talks, Indonesia\u2019s government is considering the best way to support a group whose members are \u2014 as one minister put it \u2014 the \u201ceconomic heroes driving the economy\u201d.<\/p>\n

\"Djunaedi,Djunaedi says he barely earns enough to get by in Jakarta \u00a9 Agoes Rudianto\/FT\"AdikAdik Supriyanto says ride-hailing platforms should be able to help drivers \u2018prosper\u2019 \u00a9 Agoes Rudianto\/FT<\/p>\n

With the Indonesian economy<\/a> struggling to create higher-paying jobs in the formal sector and a decline in the labour-heavy manufacturing sector, 7.46mn Indonesians are unemployed. Millions have become motorcycle taxi or delivery drivers in recent years.<\/p>\n

\u201cMany people are unemployed, so they turned to being online motorcycle taxi drivers,\u201d said Djoko Setijowarno, a public transport expert and professor at Soegijapranata Catholic University. But he said it was hard for this to be a \u201clifetime job\u201d as the income was just enough to cover basic needs. <\/p>\n

One drivers\u2019 association estimate puts the number of drivers at 7mn, exceeding the 1.4mn working in the hotel industry according to government data.<\/p>\n

Their rise is a regional phenomenon. Across six countries in south-east Asia, the food delivery market alone grew at a double-digit rate last year in terms of total sales value, according to Singapore-based market research firm Momentum Works. Growth was highest in Thailand at 22 per cent. As a result, demand for drivers is steady. <\/p>\n

Yet in Indonesia, most \u2014 classified as \u201cdriver partners\u201d and treated as freelancers \u2014 earn far less than the monthly minimum wage for big cities of around Rp4.5mn. <\/p>\n

State secretary Prasetyo Hadi has said driver partners should \u201cget the rights they deserve\u201d. Under a new regulation under consideration, Prasetyo said ride-hailing drivers could receive better financial and social benefits, potentially paying a lower commission to companies. <\/p>\n

Much hinges on a proposed merger<\/a> between the biggest ride-hailing platforms. If it goes ahead, GoTo \u2014 Gojek\u2019s holding company \u2014 and Grab could create a super app that would control 90 per cent of Indonesia\u2019s ride-hailing and food delivery market. The state secretary has said the rules will only be outlined when the merger is completed. But there are no indications when a deal could be finalised.<\/p>\n

The FT has previously reported that the companies are discussing giving sovereign wealth fund Danantara a \u201cgolden share<\/a>\u201d in the merged entity \u2014 a fact that drivers hope could afford them greater protection. \u201cWe asked our friends in Danantara to expedite the\u2009.\u2009.\u2009.\u2009merger process because it will impact the presidential regulation,\u201d Prasetyo said in January. <\/p>\n

The concern in part reflects the fact motorcycle taxi drivers occupy a peculiarly potent space in Indonesian politics.\u00a0More than one-quarter of them are university graduates, according to a survey in 2024. <\/p>\n

\u201cThey are coming from various backgrounds \u2014 in terms of education and income levels prior to working as drivers,\u201d said Arya Fernandes, head of the department of politics and social change at CSIS Indonesia. \u201cThey also interact more with people, making them more open and have a wider perspective.\u201d<\/p>\n

\"AMotorcycle taxi drivers occupy a peculiarly potent space in Indonesian politics \u00a9 Agoes Rudianto\/FT<\/p>\n

Their political sway became clear last year with the death of a 21-year-old delivery driver in protests<\/a> over general perks for parliamentarians.\u00a0 <\/p>\n

Thousands of fellow drivers convoyed to his funeral, creating a sea of green on the capital\u2019s arterial roads. Politicians and even the president himself came to his parents\u2019 residence to offer their condolences. <\/p>\n

\u201cThe drivers\u2019 consolidation likely intensified because there was a casualty from [their group],\u201d said Fernandes.\u00a0\u201cThe magnitude [of the chaos] was so large that the government and policymakers had to come and pay a visit to defuse the situation. If not, the drivers could go berserk.\u201d<\/p>\n

That risk of further unrest is always there. \u201cIf the government does not listen to the complaints, concerns and demands of fellow ojol (online motorcycle taxi) drivers, it\u2019s not impossible for mass movement to happen again,\u201d said Raden Igun Wicaksono, founder of the Garda drivers\u2019 association. <\/p>\n

\u201cRight now inflation is rising, cost of living is increasing, while companies are putting pressure by cutting [our income].\u201d<\/p>\n

Grab and GoTo told the FT that they both use the commissions to reinvest in the business and that they supported government efforts to help drivers.<\/p>\n

\u201cA significant portion of the commission is reinvested into generating demand and maintaining stable order volumes, which ultimately supports more sustainable earnings for driver-partners over time,\u201d GoTo said, though it did not respond to questions on whether it would reduce the commissions.<\/p>\n

Tirza Munusamy, chief of public affairs at Grab Indonesia, said the company would continue with the 20 per cent commission payments \u201cas part of its long-term strategy to ensure reliable, competitive, sustainable services that benefit all parties in the ecosystem\u201d.<\/p>\n

Recommended<\/p>\n

\"Visitors<\/a><\/p>\n

Grab recently said it would allocate Rp100bn for drivers\u2019 social security, Eid bonus and training. GoTo has doubled this year\u2019s Eid bonus for drivers to Rp110bn. <\/p>\n

\u201cApplication companies benefit from us. They should be able to help us as partners, to prosper,\u201d said Grab driver Adik Supriyanto, 47.<\/p>\n

Despite the paltry income, Djunaedi, 45, said he would continue as a driver and was not looking for any other jobs, mainly because of his age. <\/p>\n

He initially made more than Rp700,000 a day ferrying food and passengers around Jakarta, far more than the $393 he earned a month at the factory. But his income has dropped due to higher commission cuts and more competing drivers. \u201cI was better off being a driver,\u201d he told the FT. <\/p>\n

\u201cNow, as long as I get to eat, I\u2019m already grateful.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"For nearly a decade, Djunaedi has spent his days criss-crossing the world\u2019s biggest city, part of a green-jacketed…\n","protected":false},"author":2,"featured_media":335275,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":{"0":"post-335274","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-ie","11":"tag-ireland"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/335274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=335274"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/335274\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/335275"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=335274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=335274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=335274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}