Indonesia's Online Ojek Fares Set to Rise: What's Changing for Riders and Drivers?

6 hours ago 2

TEMPO.CO, Jakarta - The Indonesian Transportation Ministry has officially announced an upcoming 8 to 15 percent increase in online taxi or online ojek tariffs. Aan Suhanan, Director General of Land Transportation at the Transportation Ministry, said that the plan is in its final stage.

Aan added that the government is currently reviewing the proposal and gathering input from stakeholders. "This is not a finalized decision. We will continue to discuss this further with ride-hailing app operators and representatives of online motorcycle taxi drivers' associations," he said in an official statement on Tuesday, July 1, 2025.

Aan assured that any tariff changes will be based on a comprehensive study to prevent negative social and economic impacts. Aside from the tariff increase, he noted that the Transportation Ministry is still reviewing a proposal from online ojek drivers to reduce the maximum commission cut by app operators to 10 percent.

Currently, the government sets the maximum commission at 20 percent. Aan emphasized that this needs careful consideration as it affects the entire online transportation ecosystem.

During a Working Meeting with Commission V of the House of Representatives (DPR), Aan mentioned that the online ojek tariff increase will vary by user zone. "The increase will vary, with 15 percent and 8 percent increments, depending on the three zones that we have defined," he said at the Parliament Complex, Senayan, Jakarta, on Monday, June 30, 2025, as reported by Antara.

Reasons for the Online Ojek Tariff Review

The tariff hike has been a primary demand of online ojek drivers, highlighted during a demonstration on May 20, 2025. The following day, driver association representatives directly conveyed their concerns to members of the House of Representatives (DPR) at the Parliament Building in Senayan, Central Jakarta.

Drivers have complained about high service charges imposed by app operators and low fares that are considered detrimental to their income.

According to Aan, the tariff increase will be implemented based on three government-defined zones, with varying percentage increases from 8 to 15 percent. As of now, the government has not confirmed the exact implementation timeline for the tariff increase, according to a CNA news report.

Zoning System and Proposed Increase in Online Ojek Tariff

Current ride-hailing tariffs are regulated by the Transportation Ministerial Decree No. KP 564 of 2022, which serves as a guideline for calculating the usage fee for motorcycles used for public transport via applications. This regulation defines tariffs based on a zoning system.

The service fee, which has already accounted for indirect costs such as the application usage fee, comprises three components: the minimum service fee, the maximum service fee, and the minimal service fee. The minimal service fee is the lowest fare passengers pay for distances up to 5 kilometers.

The online ojek tariff zones are divided as follows:

Zone I: Covers Sumatra and surrounding areas, Java (excluding Jabodetabek or Greater Jakarta), and Bali.

- Minimum service fee: Rp1,850 per kilometer

- Maximum service fee: Rp2,300 per kilometer

- Minimal service fee: Rp9,250-11,500

Zone II: Covers the Jabodetabek area (Jakarta, Bogor, Depok, Tangerang, and Bekasi).

- Minimum service fee: Rp2,600 per kilometer

- Maximum service fee: Rp2,700 per kilometer

- Minimal service fee: Rp13,000-13,500

Zone III: Covers Kalimantan, Sulawesi, Nusa Tenggara, Maluku, Papua, and surrounding areas.

- Minimum service fee: Rp2,100 per kilometer

- Maximum service fee: Rp2,600 per kilometer

- Minimal service fee: Rp10,500-13,000

Based on this decree, the government has simulated an 8 to 15 percent increase in online ojek tariff for each zone, with the following estimated details:

Zone I:

- Minimum service fee: Estimated to increase to Rp1,998-2,127.5 per kilometer.

- Maximum service fee: Estimated to reach Rp2,484-2,645 per kilometer.

- Minimal service fee: Estimated to increase to Rp9,990-12,420 (8% increase) and Rp10,637-13,225 (15% increase).

Zone II:

- Minimum service fee: Estimated to increase to Rp2,808-2,990 per kilometer.

- Maximum service fee: Estimated to Rp2,916-3,105 per kilometer.

- Minimal service fee: Estimated to increase to Rp14,040-14,580 (8% increase) and Rp14,950-15,525 (15% increase).

Zone III:

Minimum service fee: Estimated to increase to Rp2,268-2,415 per kilometer.

Maximum service fee: Estimated to Rp2,808-2,990 per kilometer.

Minimal service fee: Estimated to increase to Rp11,340-14,040 (8% increase) and Rp12,075-14,950 (15% increase).