Grab Indonesia, the local unit of the Southeast Asia-wide online ride-hailing service, has suspended some of its driver partners for alleged fraud. (JG Photo/Dion Bisara)

Jakarta. Grab Indonesia, the local unit of the Southeast Asia-wide online ride-hailing service, has suspended some of its driver partners for alleged fraud, the company said in a statement on Tuesday (27/06).

The suspended drivers allegedly manipulated Grab Indonesia's ordering system illegally at the expense of passengers and fellow Grab drivers, Grab Indonesian Managing Director Ridzki Kramadibrata said in the statement.

"Our fraud team had conducted a thorough investigation before we took the necessary action, ... the drivers' temporary dismissal from our system," Ridzki said.

Ridzki did not explain how exactly the drivers allegedly carried out their mischief. Ridzki, however, said the safety of passengers and drivers is Grab Indonesia's number one priority.

"We enforce strict discipline through our code of ethics, which all Grab drivers have to comply with. We will not hesitate to take action against drivers who violate the rules, including sanctioning them with temporary termination or termination of partnership," he said.

Around one hundred Grab drivers rallied in front of Grab Indonesia's office at Maspion Plaza in Pademangan, North Jakarta, earlier on Tuesday morning to protest the company's decision.

Ridzki said the demonstration was unnecessary, as Grab already provides a communication channel for driver partners who want to appeal the decision.

Driver fraud is the last thing the car-hailing service wants to deal with as it continues to seek legality for its Indonesian operation.

The government requires Grab — and rivals like Go-Jek and Uber — to comply with new regulations determining floor and ceiling fares, local taxation, fleet quota and car ownership by July 1.