TEMPO.CO, Jakarta - Indonesia’s plan to limit the commission for online motorcycle taxi drivers and platform companies to a maximum of 8 percent has triggered debate in the country’s digital economy sector.
While the government frames the policy as a way to increase driver earnings, industry groups warn it could reshape the entire platform ecosystem.
The Indonesian Association of Mobility and Digital Delivery Industry, MODANTARA, said the proposal requires deeper study and broader consultation before implementation.
What the policy proposes
The plan stems from a new regulation announced by President Prabowo Subianto, which sets a minimum 92 percent income share for drivers, leaving a maximum of 8 percent for app companies.
“The share of earnings, from originally 80 percent for the driver, now becomes a minimum of 92 percent for the driver,” Prabowo said during International Labor Day in Jakarta on Friday, May 1, 2026.
The policy also includes protections for drivers, including access to work accident insurance and health services through Indonesia’s social security agency BPJS Ketenagakerjaan.
Why industry groups are concerned
MODANTARA Executive Director Agung Yudha said the 8 percent cap cannot be treated as a simple adjustment because it affects multiple layers of platform operations.
He warned that while the figure appears straightforward, its impact could be significant—potentially limiting companies’ ability to maintain service quality, driver incentives, and operational safety.
According to him, the digital mobility and delivery ecosystem has a complex cost structure, including technology development, customer service, payment systems, transaction security, and long-term investment and risk management.
Agung noted that Indonesia’s ride-hailing and delivery sector involves an estimated 2 to 4 million active driver partners, many of whom rely on the platform as their main or supplementary income.
He also said the sector contributes hundreds of trillions of rupiah to economic circulation and supports millions of micro, small, and medium enterprises (MSMEs) as well as logistics-dependent workers.
Potential economic impact
MODANTARA estimated that limiting commissions to 8 percent could reduce platforms’ operational flexibility by up to 60 percent. This, it said, could force companies to rapidly redesign their business models.
Agung warned this could affect the stability of the digital economy and discourage investment in Indonesia’s platform sector.
He also raised concerns that companies may respond by raising consumer prices or reducing services, particularly in low-margin areas.
Global comparison
Agung said that globally, platform commissions in ride-hailing and delivery services typically range between 15 and 30 percent.
“Therefore, the 8 percent limit could become the lowest in the world and may reduce investment attractiveness in Indonesia,” he said.
He added that similar policies in other markets have had mixed results. In India, he said, platforms such as Ola faced pressure to cut incentives and reduce workforce numbers under low-margin conditions.
MODANTARA said it has not yet received the official text of Presidential Regulation Number 27 of 2026 for full review. However, it expressed readiness to engage in dialogue with the government.
Agung emphasized that commission structures should not be treated like fixed administrative fees, arguing that the long-term effects on jobs, demand, and innovation must be carefully assessed.
“The question is whether this strengthens driver income sustainably, or reduces demand and flexible work opportunities,” he said.
Read: Jakarta Police Detain 101 People During May Day Rally
Click here to get the latest news updates from Tempo on Google News
Indonesian Ride-Hailing Drivers Cheer New 8% Commission Cap
1 hari lalu
While welcoming the regulation, Garda Indonesia stressed the need for strict oversight to ensure platform companies comply with the 8 percent cap.
Prabowo Sets Minimum 92% Revenue Share for Ride-Hailing Drivers
1 hari lalu
President Prabowo has set the maximum commission for ride-hailing platforms at 8 percent, down from the previous 20 percent.
SPAI Explains How Indonesia's WFH Policy Could Hurt Ojol Drivers' Income
38 hari lalu
Beyond criticizing WFH plan, SPAI urged the government to guarantee drivers' income by recognizing their right to receive the provincial minimum wage.
Philippine Transport Workers to Stage Mass Protest Over Fuel Prices
39 hari lalu
Thousands of transports and ride-hailing drivers staged a nationwide protest in the Philippines on March 26-27, 2026, opposing surging fuel prices.
WFH Policy Threatens Ride-Hailing Income, Ojol Drivers Urge Govt Action
40 hari lalu
The Indonesian govt's plan to implement a work from home (WFH) policy is seen as a risk to reduce the income of ride-hailing (ojol) drivers.
Grab Allocates Rp110 Billion in Eid Bonuses to Over 400,000 Driver
52 hari lalu
The total allocation for Grab's Eid bonuses this year is up to three times higher than last year.
Over 850,000 Ride-Hailing Drivers to Get Rp220 Billion Eid Bonus
3 Maret 2026
Coordinating Minister Airlangga urged ride-hailing and delivery platform companies to disburse the bonus no later than seven days before Eid al-Fitr.
The Power of Algorithms in Online Ride-Hailing Platforms
20 Januari 2026
Algorithms and artificial intelligence are becoming the weapons of choice for ride-hailing and online taxi companies in the future.
Union Calls on Prabowo to Issue Regulation Protecting Online Ojek Drivers
22 Oktober 2025
The Indonesian Transportation Workers Union (SPAI) urged President Prabowo Subianto to swiftly issue a regulation protecting online transport workers.
Indonesian Police to Enable Online Ojek Drivers to Report Crimes via App
20 Oktober 2025
Indonesian National Police will team up with ride-hailing apps to let online motorcycle taxi drivers report crimes directly to nearby police.
