Grab Adjusts Indonesia Business After 8% Commission Cap

Grab announced it will adjust its Indonesia business following President Prabowo Subianto’s government decision to cap ride-hailing commissions at 8%, down from approximately 20%, according to Bloomberg. The change is expected to primarily affect the company’s two-wheel motorbike services in its largest market.

Business Model Recalibration

Grab’s CFO Peter Oey stated that the fare structure and business model for Indonesian motorbike rides will require recalibration. However, the company noted that Indonesian motorbike riders account for less than 6% of Grab’s mobility business volume, according to COO Alex Hungate, suggesting the direct impact on overall operations may be limited.

Policy Context and Driver Welfare

President Prabowo Subianto announced the commission cap at Labour Day events, framing the measure as a step to improve driver welfare. The policy follows years of protests in Jakarta, Surabaya, and other cities, where drivers had previously requested a 10% commission cap. The new 8% ceiling exceeds those demands. The regulation also requires ride-hailing companies to provide health and accident insurance for drivers, adding operational costs.

Broader Industry Implications

The commission cap puts pressure on the high-commission business model many gig economy platforms rely on to fund operations and technology development. While the policy aims to increase driver pay, it could also shrink the market if companies reduce consumer discounts or driver incentives to protect profit margins. The decision may also influence regulators in other major gig markets to implement similar price controls, adding sector-wide risk for investors. The policy could benefit competitors such as inDrive, a ride-hailing company that already operates with commissions below 10%. GoTo, the Indonesian internet group behind ride-hailing and ecommerce operations, had recorded its first net profit in the first quarter of 2026 prior to this policy announcement.