Integration of Ride-Hailing into the Public Transportation Ecosystem

May 11, 2025

Over the past five years, the gross merchandise value (GMV) of Indonesia’s ride-hailing sector has shown a steady growth trend, rising from US$6 billion (Rp 93 trillion, at an exchange rate of Rp 15,500 per US dollar) in 2019 to US$7 billion in 2023, and reaching US$9 billion in 2024. This represents nearly 50 percent growth over six years, reflecting the strong demand and high transaction volume in the sector.

Estimated annual revenue from the ride-hailing industry in Indonesia also shows a positive trajectory—from US$2.6 billion (Rp 36.78 trillion) in 2019 to US$3.51 billion in 2024, equivalent to around 0.25 percent of Indonesia’s 2024 GDP. More specifically, the GoTo ecosystem, as one of the key players in the industry, is estimated to have contributed Rp 428 trillion in added value in 2022, accounting for 2.2 percent of Indonesia’s total GDP that year. This contribution stems from the activities of the company, driver-partners, and MSMEs within the GoTo ecosystem, underscoring the role of ride-hailing as a driver of micro and household-level economic activity in Indonesia.

The growth and economic contribution of ride-hailing could, however, be affected by the revision of the Law on Road Traffic and Transportation (UU LLAJ), which is expected to include provisions governing online transportation services, including ride-hailing. The inclusion of this revision in the 2025 Priority National Legislation Program (Prolegnas) presents a strategic opportunity to establish a clear legal framework for the ride-hailing industry; promote integration between ride-hailing and the public transportation ecosystem; ensure legal protection for users, driver-partners, and business operators; and strengthen the regulatory foundation to maximize the sector’s potential as a contributor to the national economy. Nevertheless, the regulation must maintain proportionality to ensure that the positive growth and contribution of the ride-hailing industry remain sustainable.