Indonesia caps ride-hailing commission fees at 8% in ‘radical correction’ of sector

The new commission scheme shows the state’s support for ride-hailing drivers, but may not necessarily boost their incomes, observers say The move could mark a significant shift in one of Southeast Asia’s biggest on-demand economies, where millions of drivers for platforms such as Gojek and Grab have become a highly visible labour force and, analysts say, a potent political bloc. Last week, Prabowo announced a presidential decree that would lower the commission fees ride-hailing companies charge drivers for each order, from 20 per cent to 8 per cent. Drivers would also get universal healthcare and work accident insurance, he said. “It’s not right that you [drivers] are the ones sweating, but they [the companies] are getting the money. Sorry, if they [the companies] don’t want to comply, don’t bother doing business in Indonesia,” Prabowo said in front of drivers during a May Day rally in Jakarta on Friday.

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