Indonesian Government to regulate the rates drives receive for services in sharing economy companies

11 Jan 2019

Regulators are preparing to fix the rates drivers for ride-hailing services receive, after drivers demands for more oversight and higher rates, as reported by Reuters. As part of an attempt to expand sharing economy services in Southeast Asia, two main companies in the sector, Grab and Go-Jek, have been practiced price wars in Indonesia by reducing fares. Since last year, motorcycle taxi drivers working for both ride-hailing companies have held protest rallies calling for improving their working conditions. The Ministry of transportation aims at implementing minimum and maximum tariffs and at imposing limits on promotional price reduction. The companies claim that such measures can create hurdles for their expansion. The working conditions and payment of ride-hailing drivers and riders have drawn attention of regulators worldwide.

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It is frequently mentioned that the Internet is changing the way in which we work. ICTs have blurred the traditional routine of work, free time, and sleep (8+8+8 hours), especially in multinational corporation working environment. It is increasingly difficult to distinguish where work starts and where it ends. These changes in working patterns may require new labour legislation, addressing such issues as working hours, the protection of labour interests, and remuneration.


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