Jakarta. The government's plan to raise online motorcycle taxi (ojol) fares by 8 to 15 percent is drawing concerns from driver groups and ride-hailing companies, who warn the move could backfire by reducing customer demand and ultimately hurting drivers’ incomes.

The Transportation Ministry says the fare hike is intended to improve driver welfare. However, Rahman Thohir, chairman of the Indonesian Online Driver Community Forum (FKDOI), cautioned that higher fares could discourage customers from using ojol services, affecting drivers’ earnings.

“In online transportation, it’s not just about the apps and drivers. If prices go up, demand might go down,” Rahman said during a discussion at The Forum hosted by B-Universe on Tuesday.

Rahman urged the government to postpone the fare hike and conduct a thorough review, taking into account the public’s still-weak purchasing power and potential impacts on the industry.

“This means the burden will fall on passengers, but drivers may lose customers due to the fare increase,” he said.

Maxim Indonesia also expressed concerns over the proposed fare increase. Government Relations representative Muhamad Rafi Assegaf stressed the need for open surveys and comprehensive studies before implementing the policy to ensure it is well-targeted and does not produce counterproductive effects.

“There will certainly need to be specific calculations based on the right data,” Rafi said, adding that the Transportation Ministry should survey the public’s ability and willingness to pay to determine if a fare hike is appropriate under current economic conditions.

Rafi stressed that the decision should be made collectively, involving all stakeholders, rather than being imposed unilaterally by the government.

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