he government will cut the caps on the commissions that ride-hailing companies take from drivers for each trip to 8 percent from 20 percent, President Prabowo Subianto said on Friday in Jakarta.
Prabowo said he signed a presidential regulation which was the basis for the new maximum commission cap that ride-hailing firms could take from their driver partners.
“The revenue share for drivers has been increased from 80 percent to a minimum of 92 percent,” he said during a speech.
Prabowo did not say when the regulation would take effect.
Aside from the lower commission cap, the regulation will also require ride-hailing firms to provide accident and health insurance, Prabowo said.
“It’s just not right that you’re (drivers) the one sweating while they’re (the platforms) the ones making the money,” Prabowo added.
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In January, Reuters reported on the planned regulation that will threaten the profitability of ride-hailing platforms in their largest market in Southeast Asia.
Motorbike drivers who form the backbone of Indonesia’s sprawling gig economy earn up to 150,000 rupiah ($10) a day, but costs including app commissions and fuel eat into their income.
The rule will affect ride-hailing firms such as Indonesian tech firm GoTo and Singapore-based rival Grab.
Last year, thousands of drivers from ride-hailing and food delivery apps protested in Jakarta and Surabaya demanding a 10-percent cap on commission fees.
Drivers also demanded the end of discounted fare programs and calling on lawmakers to meet with the drivers’ association and app companies.
Gojek — which alongside Singapore’s Grab is among Asia’s most valuable start-ups — said it was committed to “supporting the long-term welfare of our driver partners”.
But lowering its 20-percent commission fee was “not a viable solution”, said Ade Mulya, head of public policy for Gojek’s parent company GoTo last year.
