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Ride-hailing drivers protest in Indonesia for better pay

On Tuesday, hundreds of taxi drivers and delivery men protested in various cities throughout Indonesia over low wages. They also opposed a merger planned between GoTo, the largest tech company in Indonesia and Grab, a ride-hailing competitor listed on the U.S. stock exchange.

In Southeast Asia's biggest economy, ride-hailing services and delivery services are an important part of the transportation landscape, particularly in large cities. GoTo's unit Gojek, which has more than 3.1 million motorcycle drivers on its books, and Singapore-headquartered Grab have dominated the Indonesian market for years.

In Jakarta's early afternoon, drivers dressed in their green jackets, helmets, and trademarks, gathered near the President's Office, the parliamentary buildings and the Transport Ministry.

The protesters delivered fiery speeches over loudspeakers and waved flags, while holding up posters that criticized what they called unfair and exploitative policies of the company. The drivers, who claim to make between 100,000 and 150,000 rupiah per 10-12 hour day, rode together in a convoy.

GoTo stated in a press release that it would welcome drivers' feedback, but that reducing its share of the fares wasn't a good solution. It said that it had received merger proposals from different parties, but "had not made any decisions."

Tirza Munusamy is the head of public affairs at Grab's Indonesian unit. She said that Grab respects the drivers' right to express their opinions. She said that the speculation about a merger was "not based on verified data".

Raden Igun Wikaksono, head of the online motorcycle drivers association, said that drivers asked the government to make sure they receive 90% of their fare for each trip.

Wicaksono stated that although the regulations state that companies can only take 20% of the fare at any time, some companies have taken more.

He said, "There are no sanctions in the regulations and the government is always lenient with the companies."

Transport Minister Dudy purwagandhi met with company representatives to discuss these issues on Monday. He acknowledged that drivers were concerned about the amount of commissions. In a press release, he said the government is evaluating the scheme.

Grab and GoTo have said that they receive a commission based on the fares set by the government.

Local media reported that protests were held in Surabaya and Bandung as well as Yogyakarta and Semarang, on Java's main island.

Sunardi, a 47-year-old who took part in the Jakarta protests, claimed that the company's discounted fares also affected the driver's income and demanded an end to this practice.

Wicaksono said that the drivers feared that a merger of GoTo and Grab could lead to a "monopoly", which would then result in layoffs and "predatory" prices for consumers.

Two sources familiar with the matter said earlier this month that Grab was looking to make a deal in order to acquire GoTo by the end of the second quarter.

Euromonitor International estimates that if the merger proceeds, it will create a regional giant in the ride-hailing industry with 85% of the $8 Billion market. ($1 = 16,410.0000 rupiah) (Reporting by Ananda Teresia, Heru Asprihanto, Johan Purnomo, and Yuddy Cahya Budiman; Editing by Kate Mayberry)

(source: Reuters)