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Indonesia imposes 8% cap on online transport platform fees
Indonesian President Prabowo Subianto said on May 1 he had signed Presidential Regulation No. 27/2026 to protect online transport workers by capping ride-hailing platforms’ commission at 8%.
At a Labor Day event at Jakarta’s National Monument, he said the rule would raise drivers’ minimum revenue share to 92% from 80%.
The current cap is 20% under Transportation Ministry Decree KP 1001/2022. Prabowo had earlier floated a 10% limit before opting for 8%.
🔗 Source: Katadata
🧠 Food for thought
Implications, context, and why it matters.
The 8% cap is part of a wider rule change
- Presidential Regulation No. 27/2026 also requires ride-hailing platforms to provide work accident insurance plus health coverage for drivers 1.
- Those added expenses undercut the long-running claim that drivers are independent partners who do not qualify for employee-style benefits 2.
- The tougher rules follow years of political pressure from Indonesia’s estimated seven million online motorcycle taxi and delivery drivers. Their push for better conditions gained support after large protests 2.
- Indonesia already stood alone in Southeast Asia with a commission cap for two-wheeled ride-hailing services. The new 8% ceiling also ranks among the lowest worldwide 3.
Indonesia’s new rules could shrink the driver pool
- The policy is meant to protect drivers, yet platforms may cut driver numbers as profits come under heavier strain 3.
- Under a 10% cap, a major platform could reduce active driver partners to 17% to 20% of current levels 1.
- That squeeze may push platforms to rely less on ride commissions. Other income sources include advertising plus financial services 4.
- Over time, the pressure could speed up spending on automation. Grab is already exploring drone delivery plus autonomous vehicle trials to reduce reliance on a large human workforce 5.
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