Indonesia in talks with ride-hailing firms to ensure fair competition and drivers’ jobs

[JAKARTA] Indonesia’s President Prabowo Subianto said on Monday (Oct 20) his government had been in talks with two ride-hailing firms operating in the country to ensure job security for their drivers and no harmful competition.

In a speech marking his first year in office, Prabowo did not name the companies or provide further details.

Ride-hailing and delivery services, especially by motorcycles, are a critical part of the transport landscape in South-east Asia’s largest economy, especially in big cities.

“We’re in talks with the biggest motorcycle taxi drivers to find the best service for drivers, efficiencies, so that there will not be harmful competition,” Prabowo said. “We want to guarantee jobs for online drivers.”

GoTo unit Gojek, which has more than 3.1 million motorcycle drivers on its books, and Singapore-headquartered Grab have dominated the Indonesian market for years. Drivers have protested over low wages and a lack of job security, including in May. Grab and GoTo have said they take a commission on fares as regulated by the government.

Sources have told Reuters that Grab’s plan to acquire GoTo has run into regulatory hurdles.