KUALA LUMPUR - Indonesia will reduce the maximum commission that ride-hailing companies can charge drivers to 8% from 20%, President Prabowo Subianto said on May 1 in Jakarta.
Prabowo said he has signed a presidential regulation that sets the new limit on commissions taken by ride-hailing platforms.
“The revenue share for drivers has been increased from 80% to a minimum of 92%,” he said during a speech.
He did not specify when the new rule would take effect.
The regulation will also require ride-hailing companies to provide accident and health insurance for drivers.
“It is just not right that you're (drivers) the one sweating while they're (the platforms) the ones making the money,” Prabowo added.
Earlier in January, Reuters reported that the planned rule could affect the profitability of ride-hailing companies in Southeast Asia’s largest market.
The regulation is expected to impact major ride-hailing firms, including Indonesia’s GoTo and Singapore-based Grab.
