Jakarta. Indonesia is once again weighing the idea of launching a state-owned ride-hailing platform, as millions of drivers face shrinking incomes and limited legal protections in an industry dominated by private platforms.

Djoko Setijowarno, Deputy Chairman for Regional Empowerment and Development at the Indonesian Transportation Society (MTI), said Saturday that a government-run app could improve driver welfare and reduce hefty commission fees.

“If the state recognizes ride-hailing drivers as a new category of employment, then ideally it should create its own application to ensure citizens’ welfare,” Djoko said.

Indonesia’s ride-hailing workforce has grown rapidly over the past decade, though estimates vary widely. Maxim Indonesia, a private operator, recently suggested more than 7 million workers depend on the industry for daily income, a figure that may also include couriers and online taxi drivers.

The Social Security Agency for Employment (BPJS Ketenagakerjaan) puts the number closer to 2 million drivers, though only 250,000 are currently covered by insurance.

Behind the soaring numbers are stark economic realities. A 2023 survey by the Institute for Demographic and Poverty Studies (IDEAS) found that drivers’ average daily income fell from Rp 304,688 ($19) before the pandemic to around Rp 175,000 ($11) in 2022–2023. To earn that sum, drivers reported working up to 11 hours a day, completing 10 rides and traveling 42 kilometers on average.

A separate study by the Transport Ministry’s research agency in 2022 showed that 50.1 percent of drivers earned Rp 50,000–100,000 ($3–6) per day, nearly equal to their operating costs, which 44.1 percent said also reached Rp 50,000–100,000 daily.

Amid those pressures, thousands of drivers protested earlier this year in Jakarta, rejecting a 20 percent fee charged by private apps, saying it further squeezed their take-home pay.

But even if a state app were launched, regulatory barriers remain. Motorcycles are not recognized as public transport under Indonesia’s 2009 Traffic and Road Transport Law, meaning ride-hailing operates only under a 2019 ministerial regulation.

“Without legal recognition in national law, the status of both drivers and passengers remains fragile, especially in cases of accidents or disputes,” said transport observer Muhammad Akbar.

Akbar also stressed safety concerns, noting that unlike buses, trains, or taxis equipped with seatbelts and crash-absorbing systems, motorcycles rely solely on helmets.

"With millions relying on ride-hailing for their livelihoods, the government faces a dilemma: remain committed to expanding modern mass transit, or adapt to the popularity of ride-hailing platforms that have become indispensable to urban life," he concluded.