Academics Urge Development of Conducive Online Transport Ecosystem
Ahmad Khoirul Umam, an advisor at the Paramadina Public Policy Institute (PPPI), has emphasised the importance for all stakeholders—including industry players, the government, and experts—to build a conducive and sustainable ecosystem for the online transportation services industry.
Speaking during the virtual launch of the research findings titled ‘The Future of Online Motorcycle Taxis (Ojek Online) in Indonesia’ by PPPI and the Institute for Development of Economics and Finance (Indef) in Jakarta on Wednesday, Umam expressed hope that all elements would work together to foster this ecosystem. This call follows the announcement in early May 2026 regarding Presidential Regulation (Perpres) Number 27 of 2026, which concerns income deductions for online motorcycle taxi driver partners.
Umam recommended creating a space for dialogue among relevant stakeholders during the drafting and decision-making processes of government policies to ensure they are effective and measurable. He noted that such efforts are crucial for regulatory arrangement, which President Prabowo Subianto previously indicated would be accommodated within the upcoming Presidential Regulation.
Furthermore, he stressed the need for clear regulations to provide a strong legal umbrella for the online motorcycle taxi industry in Indonesia. This could be enhanced by establishing a cross-ministerial and inter-agency committee to regulate and manage the online transport ecosystem, involving the Ministry of Manpower, the Ministry of Communication and Digital, and the Ministry of Micro, Small, and Medium Enterprises (MSMEs).
Regarding tariff regulation, PPPI recommends that the government consider regional conditions, the public’s ability and willingness to pay, and utilise empirical data and precise calculation methods. “Central government tariffs should consider the public’s capacity to pay, while also considering the perspective of application companies to ensure a balanced regulation,” said Umam.
Additionally, the regulation of commissions should balance the sustainability of application companies, order stability, benefits, incentives, driver protection, MSME sustainability, service quality, and consumer affordability.
On the issue of partnership status, Umam stated that while they encourage a flexible partnership model, there must be a strengthening of minimum protections through social security and insurance. He added that improving safety standards and oversight is absolute if the online motorcycle taxi ecosystem is to be formally integrated into future legislation.