Nyheter fra Bangkok One News
My RSS Feed
- Economic Data Shows Improvement in July
Economic data for July showed improvement compared to the previous month, primarily driven by exports and tourism, according to the Bank of Thailand. On Friday, the central bank reported on the economic and monetary conditions for July, noting a recovery following a slowdown in June. Chayawadee Chai-anant, assistant governor for...
The post Economic Data Shows Improvement in July appeared first on Bangkok One News.
Economic data for July showed improvement compared to the previous month, primarily driven by exports and tourism, according to the Bank of Thailand.
On Friday, the central bank reported on the economic and monetary conditions for July, noting a recovery following a slowdown in June.
Chayawadee Chai-anant, assistant governor for the corporate relations group at the central bank, stated that this improvement was fueled by rising external demand, which is evident in both export figures and tourism revenue.
In July, the number of foreign tourist arrivals, after seasonal adjustments, reached 3.1 million, up from 2.7 million the previous month. The increase was largely attributed to visitors from Malaysia, China, Russia, and Europe, although there was a decline in tourists from the Middle East and India.
Tourism revenue also saw a rise due to higher average spending per visitor, particularly among tourists from Russia and Germany.
The value of merchandise exports, excluding gold and adjusted for seasonal variations, increased by 2.8% month-on-month, with growth observed across several categories. This rise was partly due to precautionary measures taken against potential shipping delays anticipated in the near future, according to the central bank.
Growth in exports was largely supported by electronic products, agro-manufactured goods, and chemical and petrochemical items. However, certain products, such as pickups to Australia, the Philippines, and the Middle East, experienced declines, Ms. Chayawadee noted.
The manufacturing production index also rose month-on-month across various categories, with increased auto production aiding near-term exports, which had been impacted by geopolitical tensions in the Middle East.
The rubber and plastics sectors reported positive growth, while machinery production—particularly electric motors and transformers—also increased.
Conversely, petroleum output decreased after expanding the previous month, Ms. Chayawadee added.
She highlighted that private consumption indicators for July remained stable compared to June, with a rise in spending on services that aligned with increased passenger transport activities.
However, consumer confidence has continued to decline, influenced by concerns over high living costs, sluggish economic growth, and political instability.
Moreover, business sentiment regarding investment has also dipped, especially within the automotive, real estate, and retail sectors.
On the matter of exchange rates, the baht appreciated against the US dollar, driven by weaker than expected US economic data and easing inflation, as the market predicts potential interest rate cuts from the Federal Reserve. The appreciation of the baht was further pressured by rising gold prices, Ms. Chayawadee stated.
“The central bank is closely monitoring the baht’s movement against the dollar, given the volatility of the local currency. We also observe improved management of foreign exchange risk among local businesses through the use of hedging instruments,” she concluded.
The post Economic Data Shows Improvement in July appeared first on Bangkok One News.
31 August 31 2024Bangkok Newshttps://bangkokone.news/?p=203309 - Lack of Aircraft Delays Launch of Really Cool Airlines
The global aircraft shortage has postponed the launch of Really Cool Airlines in Thailand. Patee Sarasin, the airline’s CEO, announced that they are finalizing a lease agreement for two Airbus A330 aircraft, which are now expected to be delivered by the end of this year rather than in the first...
The post Lack of Aircraft Delays Launch of Really Cool Airlines appeared first on Bangkok One News.
The global aircraft shortage has postponed the launch of Really Cool Airlines in Thailand.
Patee Sarasin, the airline’s CEO, announced that they are finalizing a lease agreement for two Airbus A330 aircraft, which are now expected to be delivered by the end of this year rather than in the first half.
He noted that commercial airlines are struggling to acquire aircraft due to strong demand for both new and used wide-body jets.
Boeing and Airbus, the two largest airplane manufacturers, are currently overwhelmed with orders, both existing and new, while their production capabilities remain constrained.
Airlines awaiting the delivery of new planes are unable to offload aircraft from their current fleet, which is impacting the market for used airplanes.
Patee explained that Really Cool Airlines aims to position itself as an innovative carrier, featuring in-flight technology and seating configurations that align with its standards, including at least 20-30% of seats allocated to business class.
“If we receive the first two aircraft in November, we will commence charter flights to Japan as planned, allowing us to fine-tune our operations for 3-4 months,” he stated.
“We are hopeful to initiate scheduled flights in the first or second quarter of 2025 to capitalize on high travel demand during that period.”
The airline has already established distribution channels through tour agents to help fill its capacity during the initial phase, according to Patee.
He also mentioned that talks are ongoing with airport authorities in various countries, including Japan.
According to the International Air Transport Association, global passenger demand increased by 8% in July year-on-year, with the Asia-Pacific region seeing a 12% rise in revenue passenger kilometers.
Regarding the government’s initiative to transform Thailand into an aviation hub, Patee emphasized that the new administration should uphold this policy, as the aviation sector has significant growth potential over the next 5-6 years.
“For Thailand to become an aviation hub, outdated regulations and complicated procedures need to be streamlined, as they present obstacles to business development, such as the lengthy process for aircraft imports,” he added.
The post Lack of Aircraft Delays Launch of Really Cool Airlines appeared first on Bangkok One News.
31 August 31 2024Aviationhttps://bangkokone.news/?p=203305 - The End of Card Numbers for Online Shopping
Mastercard is ramping up its initiative to eliminate credit card numbers in online shopping as part of its strategy to combat fraud. A decade after launching a technology that substitutes consumers’ card numbers with tokens, Mastercard is now processing 1 billion tokenized transactions weekly, according to CEO Michael Miebach in...
The post The End of Card Numbers for Online Shopping appeared first on Bangkok One News.
Mastercard is ramping up its initiative to eliminate credit card numbers in online shopping as part of its strategy to combat fraud.
A decade after launching a technology that substitutes consumers’ card numbers with tokens, Mastercard is now processing 1 billion tokenized transactions weekly, according to CEO Michael Miebach in a recent interview. It took the company three years to reach its first billion transactions using this method.
Looking ahead, Mastercard plans to further enhance this technology by replacing traditional security measures such as passwords with biometric identification like fingerprints or facial recognition, Miebach noted.
This move reflects the financial sector’s efforts to address the growing problem of online payment fraud, which is projected to exceed $91 billion by 2028.
“Ten years ago, the prevailing mindset was to keep things safe by protecting data and transactions with passwords,” Miebach stated during his visit to Mastercard’s London offices. “That was effective for a time, but eventually, it became a vulnerability rather than a reliable safeguard.”
Mastercard and its competitor, Visa, introduced token technology around a decade ago after a series of high-profile breaches affecting U.S. retailers like Target and Best Buy, where the credit card data of millions of consumers was compromised.
Initially, the focus of this technology was on replacing card numbers with a token that only the payment networks can decrypt, rendering it useless if obtained by hackers.
The rise of payment services like Apple Pay significantly contributed to reducing in-store fraud. However, online criminals are now increasingly targeting e-commerce platforms that require customers to manually enter their card details for transactions.
Additionally, hackers are exploiting websites in regions like India that rely on one-time passwords (OTPs) for security. These OTPs, sent by retailers and banks to verify consumer identity, have become more susceptible to fraud, according to Miebach.
To address this, Mastercard will collaborate with banks and payment providers globally to replace OTPs with tokens derived from consumers’ biometric data. The company launched this service in India this week as part of partnerships with PayU and Axis Bank, among others.
“The root of the problem is that if data is exposed and breaches occur, this information can be misused,” Miebach explained. “The digital economy is hindered by the risks of data breaches and fraud, and tokenization is a significant tool to mitigate these issues.”
Mastercard anticipates that by the end of the decade, all e-commerce transactions in Europe will be tokenized.
The post The End of Card Numbers for Online Shopping appeared first on Bangkok One News.
31 August 31 2024Bangkok Newshttps://bangkokone.news/?p=203302 - Air India to take over the Vistara brand from November
On Friday, Indian airline Vistara announced that starting in November, its flights would be operated by Air India, marking significant progress in the ongoing merger between Vistara and India’s national carrier, following a crucial approval from the Indian government. Singapore Airlines (SIAL.SI), which holds a 49% stake in Vistara through...
The post Air India to take over the Vistara brand from November appeared first on Bangkok One News.
On Friday, Indian airline Vistara announced that starting in November, its flights would be operated by Air India, marking significant progress in the ongoing merger between Vistara and India’s national carrier, following a crucial approval from the Indian government.
Singapore Airlines (SIAL.SI), which holds a 49% stake in Vistara through a joint venture with Tata Group, confirmed that it received clearance for foreign direct investment into the expanded Air India, a major step in the merger pathway.
In November 2022, Singapore Airlines revealed plans to merge the decade-old Vistara with Tata-owned Air India, aiming to establish a leading full-service airline in both domestic and international markets.
India ranks among the world’s fastest-growing aviation markets, with global airlines increasing their flight services to the country and Indian carriers having made record orders for hundreds of new aircraft last year.
According to Singapore Airlines, the merger, which has received approval from antitrust regulators in both India and Singapore, is expected to be finalized by the end of 2024. This completion date has been pushed back from the original goal of March, and discussions are ongoing about extending the previously agreed deadline of October 31.
Effective September 3, customers will no longer be able to book flights with Vistara for travel dates on or after November 12. The airline stated that all Vistara-operated aircraft will be transitioned to Air India, and bookings for these routes will be redirected to the Air India website.
Air India personnel have been collaborating with Vistara for months to facilitate the transition, with CEO Campbell Wilson expressing eagerness to provide an expanded network, more flight options, and an enriched frequent flyer program.
Air India has previously indicated that the Vistara brand will eventually be phased out. In exchange for a $250 million investment, Singapore Airlines will acquire a 25.1% stake in the newly formed Air India group.
After the merger is completed, the Singaporean airline plans to invest up to 50.2 billion Indian rupees (approximately $599 million). Tata Group took over Air India in 2022 and has since initiated a significant transformation of the formerly state-run airline.
The post Air India to take over the Vistara brand from November appeared first on Bangkok One News.
31 August 31 2024Aviationhttps://bangkokone.news/?p=203299 - Thai Nominees Set to Undergo Examination
The Commerce Ministry is advancing its efforts to conduct thorough inspections of businesses suspected of employing Thai nominees to hide foreign ownership, particularly in the tourism, real estate, and logistics sectors. Auramon Supthaweethum, the director-general of the Department of Business Development, stated that according to the Foreign Business Act of...
The post Thai Nominees Set to Undergo Examination appeared first on Bangkok One News.
The Commerce Ministry is advancing its efforts to conduct thorough inspections of businesses suspected of employing Thai nominees to hide foreign ownership, particularly in the tourism, real estate, and logistics sectors.
Auramon Supthaweethum, the director-general of the Department of Business Development, stated that according to the Foreign Business Act of 1999, foreign companies must obtain permission as outlined in specific lists before beginning operations. A Thai limited company typically restricts foreign ownership to a maximum of 49%.
Operating a business without proper authorization or disguising foreign ownership through a nominee who holds over 51% of shares is subject to legal penalties.
The department has reviewed 26,019 nominee cases across four business sectors: tourism and related enterprises, real estate, hotels and resorts, and logistics.
These investigations took place in six major tourist provinces: Chiang Mai, Chon Buri, Surat Thani, Phuket, Bangkok, and Prachuap Khiri Khan.
“After conducting comprehensive investigations, including financial assessments in 498 cases, 165 cases required further examination of additional evidence,” said Mrs. Auramon.
Following a meeting led by Caretaker Commerce Minister Phumtham Wechayachai with executives from 28 agencies on August 28 to address the influx of cheap, low-quality imported goods, the department expanded its inspections to four additional sectors: wholesale and retail, warehouses, construction and engineering, and metal trading.
“Entrepreneurs who identify companies at risk of being involved in nominee-related business practices are encouraged to report them to the department for investigation and action by relevant agencies, such as the Department of Special Investigation,” added Mrs. Auramon.
In response to Chinese online retailer Temu’s entry into the Thai market, the Commerce Ministry is collaborating with the Chinese Embassy to facilitate the establishment of an office in Thailand, allowing authorities to verify legal compliance and taxation.
The Ministry has tasked the Digital Economy and Society Ministry with monitoring this situation.
Mrs. Auramon reported that new business registrations in the first seven months of 2024 increased by 0.16% to 54,220, with total registered capital amounting to 169 billion baht, a decrease of 62.1% year-on-year.
The department anticipates that this year’s new business registrations will reach between 90,000 and 98,000, reflecting a growth of 5-15%.
She attributed this increase to government initiatives, including the allocation of the fiscal 2024 budget, approval of the digital wallet handout, measures aimed at attracting foreign investment such as the long-term resident visa program and corporate income tax exemptions for foreign companies operating in Thailand, as well as the crop harvest season.
However, consumers remain concerned about slow economic recovery, high household debt levels, political stability, and ongoing geopolitical conflicts, according to the department.
The post Thai Nominees Set to Undergo Examination appeared first on Bangkok One News.
30 August 30 2024Bangkok Newshttps://bangkokone.news/?p=203296 - Nippon Steel Subsidiaries Pursuing Support from the Board of Investment
Thai steel manufacturers G Steel and GJ Steel are seeking investment incentives from the Board of Investment (BoI) to support a 4.5 billion baht initiative aimed at addressing significant challenges in the local steel market while simultaneously reducing carbon dioxide emissions. Somsak Leeswadtrakul, the founder and honorary chairman of G...
The post Nippon Steel Subsidiaries Pursuing Support from the Board of Investment appeared first on Bangkok One News.
Thai steel manufacturers G Steel and GJ Steel are seeking investment incentives from the Board of Investment (BoI) to support a 4.5 billion baht initiative aimed at addressing significant challenges in the local steel market while simultaneously reducing carbon dioxide emissions.
Somsak Leeswadtrakul, the founder and honorary chairman of G Steel and GJ Steel, informed the Bangkok Post that both companies are operating at low production capacity despite having over 1,000 employees. He attributed this low capacity to the influx of low-quality, inexpensive foreign steel into the Thai market.
Mr. Somsak stated that if the government takes action against the dumping issue, the two companies have advanced steel plants equipped with state-of-the-art machinery that would enable them to expand their production capacity and significantly reduce the amount of imported steel.
The BoI reports that the new manufacturing development plan for the two companies, expected to span three years, aims to improve production processes for hot-rolled sheets.
G Steel plans to upgrade production technology at its Rayong plant with a budget of 3 billion baht, while GJ Steel will invest 1.5 billion baht to enhance machinery at its Chon Buri factory.
The companies will also focus on better managing raw materials derived from recycled steel to support their production.
“This initiative will contribute to the country’s circular economic development and align with the government’s goal of achieving carbon neutrality,” said Narit Therdsteerasukdi, secretary-general of the BoI.
Both G Steel and GJ Steel are experienced in eco-friendly steel production, being the only companies in Thailand that have implemented electric arc furnace (EAF) technology, which significantly reduces carbon dioxide emissions.
EAF technology enables steel manufacturers to remelt scrap for reuse.
G Steel and GJ Steel are also recognized as the largest steel recycling firms in the country.
As subsidiaries of Japan’s Nippon Steel Corporation, the fourth-largest steelmaker globally, G Steel and GJ Steel have the potential to enhance the efficiency and quality of their operations to become leading steel producers in Southeast Asia, according to Mr. Somsak.
“It is advantageous for both companies to partner with Nippon Steel; however, the issue of low-quality steel being dumped into the Thai market must be effectively addressed,” he emphasized.
“We hope the government takes this matter seriously, as the steel industry is a vital foundation for our country’s industrial sector. It has the capacity to replace imports and save the nation hundreds of billions of baht in foreign exchange annually.”
Having established its presence in Thailand nearly 60 years ago, Nippon Steel currently operates over 30 subsidiaries and employs 8,000 people. In 2022, it decided to invest 40 billion baht in G Steel and GJ Steel to reinforce its position in the local steel market, which consists of 180 manufacturers.
“G Steel and GJ Steel are poised to elevate steel production in Thailand, paving the way for low-carbon manufacturing, which is essential for international trade, especially with the European Union,” Mr. Narit noted.
According to the BoI, Thailand has the highest per capita steel consumption in ASEAN, averaging 234 kilograms per person annually.
Approximately 60% of steel products are used for construction, followed by automotive parts (20%), electrical appliances and electronics (7%), machinery (5%), packaging (5%), and others (3%).
The post Nippon Steel Subsidiaries Pursuing Support from the Board of Investment appeared first on Bangkok One News.
30 August 30 2024Bangkok Newshttps://bangkokone.news/?p=203293 - Governor of the Bank of Thailand and Finance Minister Set to Address Inflation Issues
Thailand’s central bank governor and finance minister are set to meet in early September to initiate discussions on an inflation target for 2025, according to a senior official. The government’s aim is to establish a new goal in hopes of achieving a rate cut that it has been advocating for...
The post Governor of the Bank of Thailand and Finance Minister Set to Address Inflation Issues appeared first on Bangkok One News.
Thailand’s central bank governor and finance minister are set to meet in early September to initiate discussions on an inflation target for 2025, according to a senior official. The government’s aim is to establish a new goal in hopes of achieving a rate cut that it has been advocating for months.
Since last year, the government has been in a disagreement with the Bank of Thailand (BoT), consistently urging the central bank to lower key interest rates to stimulate a struggling economy, which is the second-largest in Southeast Asia.
Paetongtarn Shinawatra, who was elected prime minister this month, previously referred to the central bank’s independence as an “obstacle” to addressing economic issues when she spoke in May.
A review of the existing 1-3% inflation target range, established in 2020, could pave the way for a possible rate reduction, as noted by her predecessor Srettha Thavisin, who was removed from office by a court ruling in June.
During the upcoming meeting, the central bank is expected to present a target that has been approved by its Monetary Policy Committee (MPC), according to BoT assistant governor Piti Disyatat.
“We will need to wait for the meeting to determine if there are any differences of opinion,” Mr. Piti told Reuters, but refrained from revealing the MPC’s target. “We anticipate reaching a mutual agreement.”
This meeting for discussions concerning the inflation target has not been previously reported.
Despite calls from the government for a rate reduction, the central bank has maintained its benchmark interest rate at a more-than-decade-high of 2.50%. The next review of the rate is scheduled for October 16.
The finance ministry stated that it was compiling data in preparation for the September meeting, with the exact date to be confirmed once Ms. Paetongtarn finalizes her cabinet, including the finance minister.
“We won’t establish our goal in advance but will wait to hear their proposal,” said Pornchai Thiraveja, the head of the ministry’s Fiscal Policy Office. “It’s important to set an appropriate target.”
Open Letter
Thailand’s inflation target is reviewed annually and must be agreed upon by both the BoT and the finance ministry, as well as receive cabinet approval by year’s end.
The BoT has asserted that the current target range is functioning well, despite the headline inflation averaging just 0.11% from January to July. Since the target was set, the central bank has not met it.
Last month, Governor Sethaput Suthiwartnarueput indicated that altering the target could jeopardize credibility, inflation expectations, and borrowing costs.
The central bank is preparing an open letter to the finance minister to clarify why inflation has fallen outside the target range, following established protocols, Mr. Piti explained.
In a previous letter sent in February, the BoT stated that the low headline inflation was largely due to government energy subsidies, which reduced electricity tariffs and retail oil prices.
“Without these subsidy measures, the average headline inflation over the past 12 months would have remained within the monetary target range at 1.6%,” the letter noted.
Thailand’s economic growth accelerated to 2.3% in the April to June quarter compared to the previous year; however, analysts have suggested that uncertainty surrounding fiscal policy could cloud future prospects.
The BoT has projected a growth rate of 2.6% for 2024, following last year’s growth of 1.9%.
The post Governor of the Bank of Thailand and Finance Minister Set to Address Inflation Issues appeared first on Bangkok One News.
30 August 30 2024Bangkok Newshttps://bangkokone.news/?p=203290 - Low-Income May Be Prioritized for Digital Assistance
The distribution of the digital wallet handout may first target individuals who need it most to boost spending and stimulate the economy towards the end of this year, according to caretaker Deputy Finance Minister Paopoom Rojanasakul. Mr. Paopoom stated that the scheme will be discussed within the new cabinet. However,...
The post Low-Income May Be Prioritized for Digital Assistance appeared first on Bangkok One News.
The distribution of the digital wallet handout may first target individuals who need it most to boost spending and stimulate the economy towards the end of this year, according to caretaker Deputy Finance Minister Paopoom Rojanasakul.
Mr. Paopoom stated that the scheme will be discussed within the new cabinet. However, there may be adjustments to the distribution model for the initiative, potentially prioritizing high-need groups through the state welfare card system.
“We may consider prioritizing those who are most in need of funding, adjusting the requirements to fit current circumstances,” Mr. Paopoom noted.
He emphasized that any actions that can stimulate economic activity will take precedence.
Distributing funds via the state welfare card can be done promptly, as cardholders would not need to re-register, given that the government already possesses their information.
Regarding the suggestion to combat income inequality through a negative income tax (NIT), Mr. Paopoom acknowledged it as a positive concept for redistributing funds and decreasing social inequality.
As for the potential cancellation of the state welfare card if the NIT system is implemented, he clarified that the two issues are separate and should be considered independently.
Pornchai Thiraveja, director-general of the Fiscal Policy Office, explained that the criteria for income eligibility for the state welfare card are determined by the public welfare fund committee, which oversees grassroots economic and social welfare and can adjust the eligibility criteria as needed.
To qualify for the state welfare card, an individual’s annual income must not exceed 100,000 baht, based on a minimum daily wage of 300 baht.
Excluding weekends, a minimum wage worker’s average annual income would be around 90,000 baht.
Cardholders earning less than 30,000 baht annually, as defined by the poverty line established by the National Economic and Social Development Council, receive 300 baht monthly through the card, while those with an income between 30,000 and 100,000 baht receive 200 baht per month.
Mr. Pornchai noted that the current factors used to determine income eligibility for the state welfare card now differ from those in previous years due to the minimum wage exceeding 300 baht.
The post Low-Income May Be Prioritized for Digital Assistance appeared first on Bangkok One News.
30 August 30 2024Bangkok Newshttps://bangkokone.news/?p=203287 - Optimism Surrounds Ministry’s Plan to Enhance Oil Trade Regulations
SET-listed PTT Oil and Retail Business (OR) is optimistic about the Energy Ministry’s initiative to improve the regulation of oil trade and pricing in response to fluctuations in crude oil prices, even amid concerns regarding potential effects on its oil retail operations. The company addressed stock investors’ worries following recent...
The post Optimism Surrounds Ministry’s Plan to Enhance Oil Trade Regulations appeared first on Bangkok One News.
SET-listed PTT Oil and Retail Business (OR) is optimistic about the Energy Ministry’s initiative to improve the regulation of oil trade and pricing in response to fluctuations in crude oil prices, even amid concerns regarding potential effects on its oil retail operations.
The company addressed stock investors’ worries following recent remarks by caretaker Energy Minister Pirapan Salirathavibhaga, who indicated that energy authorities would be granted increased authority to manage domestic oil and cooking gas prices through taxes and subsidies under a new law.
As part of this legislation, a new commission will be established to set suitable tax rates for oil, a role currently held by the Finance Ministry. Once the new law is enacted, only financial officials will be responsible for tax collection.
The introduction of this bill will lead to the dissolution of the Oil Fuel Fund Office, allowing the new commission to take over management of the fund, which has been suffering significant losses due to oil and gas price subsidies.
Additionally, energy authorities aim to regulate both ex-refinery and retail prices for oil.
Wilaiwan Kanjanakanti, OR’s senior executive vice-president for finance, expressed confidence that the new law would not impede profitability for oil retailers. She believes that officials will avoid implementing overly stringent price controls that could impact marketing margins—revenues generated by oil retailers after accounting for costs.
Ms. Wilaiwan noted that energy officials are well-informed about the oil business, as the company has provided them with all necessary information during the law-making process.
In another issue, Ms. Wilaiwan clarified the recent drop in OR’s domestic oil retail market share from 40% to 39% as of the end of June, attributing the decrease to the reduction of state diesel price subsidies to 33 baht per liter, as well as the spread of “fake news” alleging unfair sales practices at a PTT petrol station in Saraburi.
The post Optimism Surrounds Ministry’s Plan to Enhance Oil Trade Regulations appeared first on Bangkok One News.
30 August 30 2024Bangkok Newshttps://bangkokone.news/?p=203284 - Indonesian Ride-Hailing Drivers Stage Strike to Protest Low Wages
Over 1,000 motorcycle taxi drivers held a strike in multiple Indonesian cities on Thursday to protest low wages, calling on the government for greater protection against what they describe as unfair practices by ride-sharing companies. The drivers, identifiable by their distinctive green jackets, gathered outside the Communications Ministry and near...
The post Indonesian Ride-Hailing Drivers Stage Strike to Protest Low Wages appeared first on Bangkok One News.
Over 1,000 motorcycle taxi drivers held a strike in multiple Indonesian cities on Thursday to protest low wages, calling on the government for greater protection against what they describe as unfair practices by ride-sharing companies.
The drivers, identifiable by their distinctive green jackets, gathered outside the Communications Ministry and near the Jakarta offices of GoTo, Indonesia’s largest technology firm, as well as Grab, Southeast Asia’s leading ride-hailing and food delivery service.
Motorcycle taxis are a common sight throughout Indonesia, particularly in Jakarta, which is infamous for its severe traffic congestion. The protests led to some complaints on social media regarding delayed services.
A spokesperson for Gojek, GoTo’s ride-hailing unit, stated on Thursday that their operations continued as usual and that they were open to feedback from drivers.
Tirza Munusamy, head of public affairs for Grab’s Indonesian division, explained that the company’s tariffs are structured to maintain stable demand while considering drivers’ earnings. However, Grab did not respond when asked whether the strike impacted their operations.
Drivers are seeking an increase in the portion they receive per trip from the current 80% and are demanding that the government grant them special employment status to enhance their bargaining power over fees, according to Andi Kristiyanto, a representative from the National Online Taxi Coalition, which organized the protest.
One driver, Wandi, shared that despite working 10 hours daily, he often earns less than 150,000 rupiah (approximately 330 baht), which falls below Jakarta’s minimum wage of 5 million rupiah.
“We want the platforms to listen to us,” said Wandi, who provided only his first name.
GoTo and Grab provide ride-hailing, food delivery, and various other services across several Southeast Asian nations, boasting a combined market capitalization of around US$18 billion.
Since these companies classify drivers as partners, they are not legally obligated to implement minimum wages, provide social security insurance, or limit working hours, explained Nabiyla Risfa Izzati, a labor law lecturer at the University of Gadjah Mada.
“It is appropriate to urge the government to regulate these companies,” she stated, emphasizing the need for setting minimum and maximum fees for drivers across different sectors, including ride-hailing and food delivery.
The Indonesian Manpower Ministry did not promptly respond to requests for comment, while the Transport Ministry noted that it does not set fee regulations, urging ride-sharing platforms to heed drivers’ concerns.
The post Indonesian Ride-Hailing Drivers Stage Strike to Protest Low Wages appeared first on Bangkok One News.
30 August 30 2024Bangkok Newshttps://bangkokone.news/?p=203281