Indonesia’s Prabowo tells Grab, GoTo to give drivers holiday bonuses

JAKARTA – Indonesian President Prabowo Subianto ordered ride-hailing firms including GoTo Group and Grab Holdings to give holidays bonuses to their drivers as the country nears

its biggest annual holiday.

The cash bonuses will be calculated based on drivers’ work activity, the details of which will be discussed between companies and the Manpower Ministry, Mr Prabowo said alongside GoTo CEO Patrick Walujo and Grab CEO Anthony Tan in Jakarta on March 10.

There are around 250,000 active online drivers and couriers and as many as 1.5 million working part-time, he said.

“With this policy, online drivers and couriers can spend the Eid al-Fitr holiday and homecoming in good condition,” Mr Prabowo said, referring to the week-long break that marks the end of the Ramadan fasting month when Indonesians typically go back to their provinces and celebrate with family.

The announcement is the latest populist move that Mr Prabowo has undertaken to boost consumer spending in 2025, including granting a larger-than-expected increase in the minimum wage and rolling back a planned value-added tax hike.

Weakening private consumption

– which accounts for more than half of Indonesia’s domestic output – will be a key hurdle as Mr Prabowo aims to lift economic growth to 8 per cent during his term, from just 5 per cent currently.

However, this policy would mean additional costs for both GoTo and Grab, who have been focusing on turning a profit after years of spending to gain market share and fend off competition.

GoTo shares fell 1.2 per cent on March 10.

In separate statements, GoTo said it would provide the cash bonuses to “eligible driver-partners who meet specific criteria,” while Grab this would be calculated based on “achievements, including the number of completed orders, order completion rate, number of online days and hours, and driver ratings.”

Private companies and state-owned enterprises should disburse the holiday bonuses at least seven days before the Eid holiday is expected to start on March 31, Mr Prabowo said.

The rules around the disbursement of bonuses for ride-hailing firms may be issued as soon as March 11, the manpower ministry said separately.

Ride-hailing companies like Grab and GoTo – who don’t count drivers and couriers as full-time employees – have been facing more pressure to award more benefits for riders and other employees, as governments around the world focus on ensuring fair treatment of gig-economy workers.

In Indonesia, riders have held several protests in recent weeks calling for their holiday bonuses.

GoTo gave out shares to its drivers as part of its initial public offering in 2022, and

Grab committed to investing $4 million annually

for the welfare of its riders after the Singapore government passed a law in 2024 to protect these gig workers. BLOOMBERG