TEMPO.CO, Jakarta - Maxim Indonesia has urged the government to reconsider its plan to raise online motorcycle taxi fares, warning that such a move could reduce demand for ride-hailing services and ultimately affect the income of driver partners.
Muhammad Rafi Assagaf, Government Relation Specialist at Maxim Indonesia, pointed to data from East Kalimantan, where a fare hike last year led to a 37 percent driver cancellation rate. “If the tariff increase is applied throughout Indonesia, this trend is likely to occur,” Rafi said in a written statement on Wednesday, July 2, 2025.
He added that a similar situation occurred in South Sulawesi after local authorities increased the minimum fare for online transport services. In 2022, Maxim raised fares in Makassar and Palopo, resulting in an average 65 percent increase in online taxi prices. This led to a 50 percent drop in demand during the first two weeks after the adjustment.
“More than 30 percent of consumers have stopped using online taxi services, and 20 percent have reduced their usage,” Rafi added.
He emphasized that the government must consider how fare hikes could affect the growing digital ecosystem. According to Rafi, such increases would disrupt the balance of the platform as a digital service provider.
“The gap between consumer demand and available resources caused by higher tariffs will make it difficult for companies to operate sustainably in Indonesia,” he said.
The plan to raise fares was initially announced by the Ministry of Transportation’s Director-General of Land Transportation, Aan Suhanan, during a meeting with the House of Representatives Commission on Monday, June 30, 2025. Aan mentioned that the government is considering a fare increase between 8 and 15 percent.
The proposal met resistance from ride-hailing driver groups. Igun Wicaksono, Chairman of the General Association of Ride-hailing Drivers, Garda Indonesia, urged the government to first reduce the platform’s commission by 10 percent.
He argued that raising tariffs without lowering the platform’s cut would have little benefit for drivers and could lead to fewer customer orders and lower driver income.
Amid public concern, Aan clarified that the fare hike has not yet been finalized. He said the regulation is still under review and will go through a thorough process.
“We don’t make decisions from just one perspective. It must be comprehensive and fair to ensure long-term sustainability,” Aan said at the Ministry of Transportation on Wednesday, July 2, 2025.
In addition to the fare adjustment, the ministry is also considering reducing the platform’s commission from 20 percent to 10 percent.
Aan explained that both policies (fare increases and commission adjustments) are being considered as a package.
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