Indonesia's Ride-Hailing Reform: Ensuring Job Security

Indonesia's President Prabowo Subianto is in discussions with major ride-hailing firms to secure job stability for drivers and prevent harmful competition. Ride-hailing is crucial in urban areas, but drivers face issues such as low wages. Talks aim to address such concerns while regulatory challenges affect market dynamics.

Indonesia's President Prabowo Subianto announced on Monday that his administration is actively engaging with two leading ride-hailing firms to ensure job security for drivers and eliminate adversarial competition.

In a speech commemorating his first year in office, Prabowo refrained from disclosing the companies involved in these talks. However, he emphasized the importance of ride-hailing and delivery services, particularly motorcycle taxis, in the transportation ecosystem of Southeast Asia's largest economy.

Key players like Gojek and Grab continue to dominate the Indonesian market, despite drivers' protests over low wages and job security concerns. Notably, Grab's efforts to acquire GoTo have encountered regulatory barriers, underscoring the complex landscape of the industry.

(With inputs from agencies.)