Indonesia Caps Ride-Hailing Commissions at 8% to Protect Drivers

Indonesian President Prabowo Subianto signed Presidential Regulation No. 27/2026 on May 1 to cap ride-hailing platforms’ commission at 8%, raising drivers’ minimum revenue share to 92% from the previous 80%. The regulation was announced at a Labor Day event at Jakarta’s National Monument.

Regulatory Details

The new 8% commission cap replaces the previous 20% ceiling set under Transportation Ministry Decree KP 1001/2022. According to the announcement, Prabowo had initially considered a 10% limit before settling on the 8% figure.

Presidential Regulation No. 27/2026 also requires ride-hailing platforms to provide work accident insurance and health coverage for drivers, expanding the scope of worker protections beyond commission rates.

Context

Indonesia is home to an estimated seven million online motorcycle taxi and delivery drivers. The country already maintained a commission cap for two-wheeled ride-hailing services prior to this regulation, making it distinct among Southeast Asian nations in this regulatory approach.