Fuel: a lifeline - and a high cost - for Indonesian app-based drivers - Dec 2024

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WageIndicator data highlights fuel as a major expense for Indonesian app-based drivers.

Online motorcycle taxi (Ojol) drivers in Indonesia have recently spoken out about the government's plan to restrict access to subsidised fuel oil - a lifeline for their work.

WageIndicator’s latest cost of living data shows fuel as one of the highest work-related expenses for these drivers.

The graph above illustrates the price trend since 2016. Notable price spikes in 2022 and 2024 reflect a steady upward trend, while a slight decline is observed in 2021.

Fairwork's 2021 analysis has already highlighted that fuel is one of the highest costs app-based drivers have to deduct from the amount paid by customers (up to 40% of the total if the vehicle is owned by the driver), more than platform commissions and vehicle repair costs.

These financial struggles, combined with some of the world's worst traffic congestion and algorithmic fare adjustments, have led to fierce protests, one of the most significant of which saw motorbike taxi drivers strike and suspend service in Jakarta.

Although ojol drivers are widely used by the public, they are not classified as public transport. The government is still evaluating how to ensure ojol drivers can benefit from subsidies. Indonesia is home to approximately 4 million online drivers.

'Will I earn enough to cover the cost of fuel?'

A common question that often arises in social media groups is, 'Will I earn enough to cover the cost of fuel?' These groups serve as a space for drivers to express their financial concerns and foster a sense of community.

As highlighted by Nadia Pralitasari, a labor expert at Gajimu, "Building strong communities or joining trade unions is crucial for gaining a voice with the government and companies."

In the Gigpedia blog, we explored the conversations happening in eight active Facebook groups for Indonesian drivers, shedding light on their daily experiences.

Read the full story here.

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