Indonesia ride-hailing profit-sharing scheme faces expert criticism

A new profit-sharing scheme for online motorcycle taxi (ojol) drivers in Indonesia, which allocates 92% to drivers and 8% to platform companies, is facing criticism from economists and observers. While the policy appears to promise increased income for drivers on paper, experts warn it could trigger a domino effect across the ride-hailing ecosystem.

Marcus Ng, Head of Economic Strategy and Asia Pacific at Access Partnership, noted that platforms operate through complex, layered pricing structures including base fares, service fees, and surge pricing. Because the commission cap may only apply to base fares, platforms might be forced to reduce base rates to avoid passing significant costs to consumers. Furthermore, since these companies operate on thin margins, they have limited capacity to absorb sudden cost increases, which could ultimately impact drivers, consumers, and the long-term sustainability of the business models.