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For nearly a decade, Djunaedi has spent his days criss-crossing the world’s biggest city, part of a green-jacketed army of motorcycle taxi drivers that has come to symbolise the struggling working class in Indonesia.

After paying the 20 per cent government-mandated commission to the two biggest ride-hailing companies Grab and Gojek, some days Djunaedi might just “get Rp100,000 ($6) to Rp150,000”, he said, scarcely enough to get by in Jakarta. “The commission cut is indeed burdensome because it’s 20 per cent . . . [but] we can only follow the rules.”

With more people trying to make a living delivering food and passengers, and the two biggest ride-hailing companies in merger talks, Indonesia’s government is considering the best way to support a group whose members are — as one minister put it — the “economic heroes driving the economy”.

With the Indonesian economy struggling to create higher-paying jobs in the formal sector and a decline in the labour-heavy manufacturing sector, 7.46mn Indonesians are unemployed. Millions have become motorcycle taxi or delivery drivers in recent years.

“Many people are unemployed, so they turned to being online motorcycle taxi drivers,” said Djoko Setijowarno, a public transport expert and professor at Soegijapranata Catholic University. But he said it was hard for this to be a “lifetime job” as the income was just enough to cover basic needs.

One drivers’ association estimate puts the number of drivers at 7mn, exceeding the 1.4mn working in the hotel industry according to government data.

Their rise is a regional phenomenon. Across six countries in south-east Asia, the food delivery market alone grew at a double-digit rate last year in terms of total sales value, according to Singapore-based market research firm Momentum Works. Growth was highest in Thailand at 22 per cent. As a result, demand for drivers is steady.

Yet in Indonesia, most — classified as “driver partners” and treated as freelancers — earn far less than the monthly minimum wage for big cities of around Rp4.5mn.

State secretary Prasetyo Hadi has said driver partners should “get the rights they deserve”. Under a new regulation under consideration, Prasetyo said ride-hailing drivers could receive better financial and social benefits, potentially paying a lower commission to companies.

Much hinges on a proposed merger between the biggest ride-hailing platforms. If it goes ahead, GoTo — Gojek’s holding company — and Grab could create a super app that would control 90 per cent of Indonesia’s ride-hailing and food delivery market. The state secretary has said the rules will only be outlined when the merger is completed. But there are no indications when a deal could be finalised.

The FT has previously reported that the companies are discussing giving sovereign wealth fund Danantara a “golden share” in the merged entity — a fact that drivers hope could afford them greater protection. “We asked our friends in Danantara to expedite the . . . merger process because it will impact the presidential regulation,” Prasetyo said in January.

The concern in part reflects the fact motorcycle taxi drivers occupy a peculiarly potent space in Indonesian politics. More than one-quarter of them are university graduates, according to a survey in 2024.

“They are coming from various backgrounds — in terms of education and income levels prior to working as drivers,” said Arya Fernandes, head of the department of politics and social change at CSIS Indonesia. “They also interact more with people, making them more open and have a wider perspective.”

Their political sway became clear last year with the death of a 21-year-old delivery driver in protests over general perks for parliamentarians. 

Thousands of fellow drivers convoyed to his funeral, creating a sea of green on the capital’s arterial roads. Politicians and even the president himself came to his parents’ residence to offer their condolences.

“The drivers’ consolidation likely intensified because there was a casualty from [their group],” said Fernandes. “The magnitude [of the chaos] was so large that the government and policymakers had to come and pay a visit to defuse the situation. If not, the drivers could go berserk.”

That risk of further unrest is always there. “If the government does not listen to the complaints, concerns and demands of fellow ojol (online motorcycle taxi) drivers, it’s not impossible for mass movement to happen again,” said Raden Igun Wicaksono, founder of the Garda drivers’ association.

“Right now inflation is rising, cost of living is increasing, while companies are putting pressure by cutting [our income].”

Grab and GoTo told the FT that they both use the commissions to reinvest in the business and that they supported government efforts to help drivers.

“A significant portion of the commission is reinvested into generating demand and maintaining stable order volumes, which ultimately supports more sustainable earnings for driver-partners over time,” GoTo said, though it did not respond to questions on whether it would reduce the commissions.

Tirza Munusamy, chief of public affairs at Grab Indonesia, said the company would continue with the 20 per cent commission payments “as part of its long-term strategy to ensure reliable, competitive, sustainable services that benefit all parties in the ecosystem”.

Grab recently said it would allocate Rp100bn for drivers’ social security, Eid bonus and training. GoTo has doubled this year’s Eid bonus for drivers to Rp110bn.

“Application companies benefit from us. They should be able to help us as partners, to prosper,” said Grab driver Adik Supriyanto, 47.

Despite the paltry income, Djunaedi, 45, said he would continue as a driver and was not looking for any other jobs, mainly because of his age.

He initially made more than Rp700,000 a day ferrying food and passengers around Jakarta, far more than the $393 he earned a month at the factory. But his income has dropped due to higher commission cuts and more competing drivers. “I was better off being a driver,” he told the FT.

“Now, as long as I get to eat, I’m already grateful.”