Indonesia’s fee cap threatens ride-hailing profits, clouds outlook for Grab, GoTo
Analysts say the policy could dampen investor sentiment – just as ride-hailing firms are beginning to turn a profit
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[JAKARTA] Indonesian President Prabowo Subianto’s move to slash ride-hailing commissions in the country may have brought cheer to gig workers, but analysts have raised concerns over the impact on the earnings of regional operators, including Grab Holdings and GoTo Group.
Prabowo announced on May 1 that the government will cut the commission cap charged by ride-hailing platforms from 20 per cent to 8 per cent, a policy aimed at improving the welfare of ride-hailing drivers.
The regulation, unveiled during Labour Day celebrations, will also require companies to provide accident and health insurance coverage for drivers.
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