Indonesia redraws gig economy rules with 8% cap on ride-hailing commissions

President Prabowo Subianto has signed a landmark regulation reshaping Indonesia’s ride-hailing and delivery economy, capping platform commissions at 8% and guaranteeing drivers at least 92% of fares – a sharp shift from the previous 80:20 split.

The move, formalised under Presidential Regulation No. 27/2026 on the Protection of Online Transportation Workers, also introduces mandatory labour protections, including workplace accident insurance and access to public healthcare.

Announced during International Workers’ Day celebrations in Jakarta, the policy signals a more interventionist stance from the Indonesian government – one that prioritises gig worker welfare while placing pressure on platform economics.

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Platforms comply – but brace for structural impact

Indonesia’s two dominant super apps, GoTo and Grab, have both acknowledged the directive, striking a cautious tone as they assess its implications.

GoTo CEO Hans Patuwo confirmed the company’s compliance, while noting that further analysis is underway. “We are currently conducting a review to understand the details, implications, and necessary adjustments in accordance with the regulation.”

Meanwhile, Grab Indonesia CEO Neneng Goenadi framed the policy as a fundamental shift in platform mechanics. 

“This proposed commission structure represents a fundamental change to how digital platforms operate as marketplaces. We will collaborate with the government and relevant stakeholders to work towards implementing these changes, ensuring the policy achieves its objective of protecting driver-partners, while maintaining affordability for consumers and the sustainability of the industry,” she said.

Maxim Indonesia said its current 15% commission cap already strikes an optimal balance between driver earnings and consumer affordability, cautioning that the government’s proposed 8% limit could disrupt industry sustainability if introduced without comprehensive review.

Development director Dirhamsyah urged policymakers to conduct a thorough, inclusive assessment given varying platform models, while noting the company will study its implications before responding further.

The economics: thinner margins, tougher trade-offs

Illustrative fare simulations suggest platform revenues could be significantly compressed.

Under current models, platforms typically extract around 20% from base fares. The new 8% cap reduces that take by more than half – with total platform earnings (after fees and discounts) falling sharply.

The implications extend beyond unit economics. With less room to subsidise rides, fund promotions, or incentivise drivers, platforms may be forced to recalibrate pricing strategies, reduce consumer discounts, and reallocate marketing budgets toward retention over acquisition.

The Indonesia Digital Mobility and Delivery Industry Association (MODANTARA) has cautioned that the policy could trigger systemic disruption if implemented without deeper consultation.

Executive director Agung Yudha warned that the cap may significantly constrain platform operations. “The 8% cap may sound simple, but its impact could be very broad, potentially reducing the platform’s capacity to maintain service quality, incentives and safety.”

He added that the change could cut operational headroom by up to 60%, potentially forcing rapid business model adjustments across the sector.

“Revenue sharing or platform commissions cannot be standardised like parking fees. The question is whether the 8% cap will truly strengthen partners’ earnings in the long term, or instead reduce demand, services, and the flexible work opportunities that have sustained them.”

Globally, ride-hailing platforms typically operate with commission rates between 15% and 30%, making Indonesia’s new cap among the lowest worldwide – a factor that could also influence investor sentiment and long-term capital allocation.

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