Indonesian app-based drivers strike in protest over low pay

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STORY: :: Jakarta, Indonesia

Motorcycle taxi drivers in Indonesia staged a strike on Thursday (August 29) to protest low pay and called on the government to provide more protection against what they say are unfair practices by ride-sharing companies.

Motorcycle taxis are ubiquitous across Indonesia, including in Jakarta, known for some of the world's worst traffic congestion.

Drivers gathered outside a government building and the Jakarta offices of Indonesia's largest technology company, GoTo and Southeast Asia’s biggest ride-hailing and food delivery firm, Grab.

Driver Wandi – who gave only one name – says he works 10 hours a day, but often makes less than $10 or 150,000 rupiah.

The drivers want ride-hailing firms to raise the share they get for every trip from 80% now, and for the government to give special status for their terms of employment.

Right now, the companies recognize the drivers as partners, so they don’t have a legal obligation to set a minimum wage, according to a labor law lecturer at University of Gadjah Mada.

The protests prompted some complaints on social media of slow services.

But a spokesperson for GoTo's ride-hailing unit said on Thursday its operations were running as normal, and that it was open to drivers' input.

Grab's chief of public affairs says the company's tariffs were designed to ensure stable demand for its services, while keeping in mind drivers’ earnings.

The transport ministry says it does not regulate fees and urged platforms to listen to drivers.

GoTo and Grab offer ride hailing, food delivery, and other services in several Southeast Asian countries, and have a combined market capitalization of about $18 billion.

Indonesia’s manpower ministry did not immediately respond to a request for comment.