Draft Perpres on Ojol Awaiting the Merger of Grab and GoTo

The Government is finalizing Regulation of the President (“ Perpres ”) on online motorcycle ride-hailing services (“ Ojol ”). The regulation will be ready for issuance once the Investment Management Agency Daya Anagata Nusantara (“ BPI Danantara ”) has been involved in the merger process between Grab Indonesia and PT GoTo Gojek Tokopedia Tbk.

“The Government, in this case through Danantara and the State-Owned Enterprises (BUMN), intends to be involved in the process. An agreement must first be reached between the two companies, after which we will enter into the process,” said the Minister of State Secretariat (“ Mensesneg ”), Prasetyo Hadi.

The involvement of BPI Danantara will be a determining factor in the Government’s formulation of the commission percentage between platform operators and their partner drivers, which will later be regulated under Perpres on Ojol. The regulation will also establish a formula on social security coverage.

“We are still seeking common ground. Please allow us some time; we will resolve this shortly,” Prasetyo stated.