Indonesia to cut ride-hailing companies’ maximum commission taken from drivers to 8%

[JAKARTA] Indonesia will cut the caps on the commissions that ride-hailing companies take from drivers for each trip to 8 per cent from 20 per cent, 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 per cent to a minimum of 92 per cent,” 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 exclusively reported on the planned regulation that will threaten the profitability of ride-hailing platforms in their largest market in South-east Asia.

The rule will affect ride-hailing firms such as Indonesian tech firm GoTo and Singapore-based rival Grab. REUTERS