GoTo and Grab said on June 23 that they will cut the commission they take from two-wheeled drivers in Indonesia to 8% per trip from 20%, effective July 1.

This comes as Indonesian President Prabowo Subianto announced the new cap on May 1, when he spoke during a Labor Day event.

The move follows a presidential regulation that capped platform commissions at 8% and set a minimum 92% income share for drivers, mainly for online transportation and motorcycle taxi services.

This replaces the previous model, in which motorcycle drivers kept about 80% of each trip’s fare.

Industry groups said the policy could also affect food delivery and other delivery services run on the same platforms.

Analysts raised concerns that the lower commission rate – combined with new accident and health insurance requirements – could pressure the companies’ earnings and lead to changes in pricing, incentives, or service levels.

🔗 Source: Reuters

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