Nandito Putra, Jakarta – Indonesia's plan to limit the commission for online motorcycle taxi drivers and platform companies to a maximum of 8 percent has triggered debate in the country's digital economy sector.
While the government frames the policy as a way to increase driver earnings, industry groups warn it could reshape the entire platform ecosystem.
The Indonesian Association of Mobility and Digital Delivery Industry, MODANTARA, said the proposal requires deeper study and broader consultation before implementation.
What the policy proposes
The plan stems from a new regulation announced by President Prabowo Subianto, which sets a minimum 92 percent income share for drivers, leaving a maximum of 8 percent for app companies.
"The share of earnings, from originally 80 percent for the driver, now becomes a minimum of 92 percent for the driver," Prabowo said during International Labor Day in Jakarta on Friday, May 1, 2026.
The policy also includes protections for drivers, including access to work accident insurance and health services through Indonesia's social security agency BPJS Ketenagakerjaan.
Why industry groups are concerned
MODANTARA Executive Director Agung Yudha said the 8 percent cap cannot be treated as a simple adjustment because it affects multiple layers of platform operations.
He warned that while the figure appears straightforward, its impact could be significant – potentially limiting companies' ability to maintain service quality, driver incentives, and operational safety.
According to him, the digital mobility and delivery ecosystem has a complex cost structure, including technology development, customer service, payment systems, transaction security, and long-term investment and risk management.
Agung noted that Indonesia's ride-hailing and delivery sector involves an estimated 2 to 4 million active driver partners, many of whom rely on the platform as their main or supplementary income.
He also said the sector contributes hundreds of trillions of rupiah to economic circulation and supports millions of micro, small, and medium enterprises (MSMEs) as well as logistics-dependent workers.
Potential economic impact
MODANTARA estimated that limiting commissions to 8 percent could reduce platforms' operational flexibility by up to 60 percent. This, it said, could force companies to rapidly redesign their business models.
Agung warned this could affect the stability of the digital economy and discourage investment in Indonesia's platform sector.
He also raised concerns that companies may respond by raising consumer prices or reducing services, particularly in low-margin areas.
Global comparison
Agung said that globally, platform commissions in ride-hailing and delivery services typically range between 15 and 30 percent.
"Therefore, the 8 percent limit could become the lowest in the world and may reduce investment attractiveness in Indonesia," he said.
He added that similar policies in other markets have had mixed results. In India, he said, platforms such as Ola faced pressure to cut incentives and reduce workforce numbers under low-margin conditions.
MODANTARA said it has not yet received the official text of Presidential Regulation Number 27 of 2026 for full review. However, it expressed readiness to engage in dialogue with the government.
Agung emphasized that commission structures should not be treated like fixed administrative fees, arguing that the long-term effects on jobs, demand, and innovation must be carefully assessed.
"The question is whether this strengthens driver income sustainably, or reduces demand and flexible work opportunities," he said.
Source: https://en.tempo.co/read/2101493/why-the-8-ride-hailing-commission-cap-is-stirring-industry-debat