Grab agrees to increase drivers’ income

Grab Indonesia, a ride-hailing application provider, plans to take measures to increase the income of its drivers in response to their protest earlier this week.

“We will study this. We all agree to make a joint effort to increase the income [of the drivers],” said Grab Indonesia managing director Ridzki Kramadibrata in Jakarta on Wednesday.

Ridzki and a representative of Go-Jek, another ride-hailing application provider, were at the palace on the invitation of Presidential Chief of Staff (KSP) Moeldoko to discuss the issue, following the meeting between President Joko “Jokowi” Widodo and representatives of the protesting drivers on Tuesday.

Jokowi received the drivers’ representatives after thousands of drivers hit the street on Tuesday morning to demand the tariff increase, which was Rp 1,600 (12 US cents) per kilometer.

During the meeting, Jokowi promised mediation between the drivers and the ride-hailing application providers.

Riszki said he would soon announce the results of the study and get ready to talk to government officials.

“The government has shown goodwill by asking us to negotiate [with the drivers]. We have already understood the problem. It is about income. But the drivers have to understand that tariffs are not the only factor in increasing their incomes,” he said.

Meanwhile, Moeldoko said the drivers demanded the tariff increase to Rp 4,000 per km from Rp 1,600.

He said the Transportation Ministry had also made calculations about the new tariffs that would be proposed in the mediation meeting.