Government Plans 15 Percent Ride-hailing Fares Increase, Faculty of Economics and Business, University of Muhammadiyah Malang (ULM): Consider All Impacts

Banjarmasin – The government’s planned 15 percent increase in online motorcycle taxi (ojol) fares has sparked debate among the public, especially drivers and passengers.

According to Faculty of Economics and Business, University of Muhammadiyah Malang (ULM), Dr. Ir. Syahrial Shaddiq, MEng., MM, the fare increase has both positive and negative impacts.

The positive is that it increases drivers’ income, enabling them to improve their standard of living. Furthermore, the fare increase can improve service quality.

However, the negative impacts cannot be ignored. The fare increase could cause passengers to switch to other modes of transportation.

“The economic impact also needs to be considered. The increase in ojol fares could increase inflation and reduce people’s purchasing power,” he explained.

Furthermore, the fare increase could increase people’s transportation costs, requiring them to adjust their budgets.

The government needs to consider these impacts and conduct a careful evaluation before deciding to increase ojol fares.

He added that the government must also ensure that the increase in online motorcycle taxi (ojol) fares does not burden the public and can significantly increase drivers’ income.

“In conclusion, the government needs to consider these impacts and conduct a careful evaluation before deciding to increase online motorcycle taxi (ojol) fares, and ensure that the increase does not burden the public and can significantly increase drivers’ income,” he concluded.

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Published in the Banjarmasin Post, July 3, 2025