President Prabowo Subianto has signed Presidential Regulation No. 27 of 2026, which cuts ride-hailing platform commissions to a maximum of 8% and guarantees drivers at least 92% of total fares during the May Day 2026 event in Jakarta (01/05).

Commission Cap Reduced to 8% Under New Presidential Regulation

President Prabowo Subianto has officially enforced a new rule that limits ride-hailing platform commissions to 8% under Presidential Regulation No. 27 of 2026. The policy represents a major change to the digital transport sector’s revenue structure.

Under the regulation, drivers must receive at least 92% of total fares. This marks a sharp reduction from the previous industry standard commission rate of around 20%.

Prabowo Criticizes 20% Fee Structure During May Day Address

The announcement was made during a speech at the National Monument (Monas) in Jakarta as part of May Day 2026 celebrations. Prabowo criticized the existing commission model as unfair to drivers.

“The drivers work hard, risking their lives every day. The company applicators ask for a 20% deposit. How can the drivers agree to 20%? What about 10%? You ask for 10%? I say here, I do not agree with 10%,” Prabowo said.

He emphasized that drivers should receive the majority share of earnings due to the risks they face daily.

Government Issues Compliance Warning to Tech Platforms

Prabowo also issued a firm warning to digital platforms operating in Indonesia, stating that compliance with the new regulation is mandatory.

“It must be below 10%. It’s not right that you [the driver] sweat while they [the applicator] get the money. Sorry. If they don't want to follow us, they don't need to do business in Indonesia,” he said.

The government stated that platforms must comply with the new commission cap as a condition of operating in Indonesia’s large digital market.

Tech Companies Respond to New Regulation

GoTo Group (GOTO), Indonesia’s largest tech conglomerate, responded by stating its readiness to follow the new policy. The company confirmed its commitment to government regulations.

“GoTo always complies with government regulations, including the announcement made by President Prabowo Subianto today,” said GoTo CEO Hans Patuwo.

The company is currently reviewing the technical implementation of the regulation and its impact on its ecosystem of drivers and users.

Wider Labor Reforms Introduced Alongside Commission Cap

Alongside the ride-hailing regulation, the government also introduced broader labor reforms during the May Day 2026 agenda. These include wage increases, insurance premium discounts for independent workers, and expanded employment opportunities for persons with disabilities.

The administration stated that the reforms are designed to strengthen worker welfare and improve economic participation across sectors.

PHOTO: ANTARA

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].