Jakarta, Indonesia Sentinel — Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia has signaling that ride-hailing motorcycle drivers may not qualify for subsidized fuel. Bahlil stated that motorcycles used by ride-hailing drivers are privately owned and primarily operated for business purposes.
Bahlil acknowledged that the government has not yet established the official criteria for vehicles eligible for fuel subsidies. However, he noted that ride-hailing drivers are unlikely to qualify due to several considerations.
“They [ride-hailing motorcycle] won’t be included [in the subsidy scheme], these motorcycles are personal vehicles used for business. Many of them are owned by others who employ drivers to operate them,” Bahlil stated on Wednesday, November 27, as reported by Detik.
Bahlil explained that the government aims to target fuel subsidies for yellow-plated vehicles, which include public transportation. The objective is to stabilize public transportation fares to prevent additional burdens on the public. Meanwhile, privately owned goods transportation vehicles with black plates will not qualify for subsidized fuel.
Concerns Over Wider Implications
Responding to the Statement, ride-hailing organizations have raised concerns about the policy’s potential ripple effects. Lily Pujiati, Chairperson of the Indonesian Transport Workers Union (SPAI) said that the policy could adversely affect not only ride-hailing drivers but also other sectors, including online taxi drivers and couriers.
“The removal of subsidies adds another financial burden to drivers, who are already struggling with high operational costs, including vehicle maintenance, spare parts, parking fees, data plans, and installment payments for their vehicles and uniforms,” Lily explained, as cited from CNN Indonesia on November 28.
According to Lily, restricting subsidized fuel access for ride-hailing drivers could lead to increased prices for essential goods, placing further strain on consumers. “This will inevitably result in higher living costs for the public, potentially reducing the demand for ride-hailing services as people try to save money,” she warned.
Echoing these concerns, Taha Syafariel, Chairperson of the Online Driver Association (ADO), emphasized the critical role ride-hailing services play in public transportation while they may not have yellow plates. He emphasized that app-based drivers are effectively part of the public transportation system, relied on by many.
Government’s Fuel Subsidies Consideration
Bahlil assured the public that the government is carefully evaluating subsidy allocation to ensure fairness and precision. “We are calculating everything meticulously to be as wise and just as possible,” he said.
Minister Bahlil Unveils Proposed Limits on Subsidized Fuel Access for Specific Vehicles
Currently, the government is considering a hybrid subsidy scheme to improve targeting. This approach would blend direct cash assistance (BLT) to maintain consumer purchasing power with commodity subsidies similar to existing mechanisms.
“Yesterday, we had a meeting with President Prabowo Subianto, and as the team leader, I presented alternatives for ensuring more targeted fuel subsidies,” Bahlil said. “The key message I want to convey is that subsidies are not being eliminated. They will remain in place for everyone.”
The minister emphasized that the changes are not a subsidy removal but a reallocation. “This is part of a strategy to manage the transition in subsidy distribution. The subsidies are not being eliminated, just redistributed. The total amount and volume remain the same. The goal is fairness, aligning with President Prabowo’s commitment to ensuring that subsidies reach the people who truly deserve them.”
(Raidi/Agung)
