Jakarta: Indonesian leaders have ordered a reduction in commission fees for delivery riders to 8%. Good news on Labor Day: Indonesian President Prabowo Subianto announced a reduction in the maximum commission fee that ride-hailing apps charge drivers to 8% from the previous high of 20%, in observance of International Labor Day on May 1st.
According to Thai News Agency, President Prabowo Subianto, in a speech at the National Monument on International Workers' Day, May 1st, announced a reduction in the commission ceiling that ride-hailing apps charge drivers to 8% from the previous high of 20%. Under the new regulations, drivers will receive a higher share of revenue, increasing from 80% to at least 92% per trip. In addition to the commission reduction, the regulations also mandate that companies provide health and accident insurance for their drivers.
This policy is enshrined in Presidential Order No. 27 of 2026 concerning the protection of online delivery workers. President Prabowo stated that he wants to protect the rights of drivers, whom he called "economic heroes," and argued that the previous 20% commission deduction was unfair to those who work hard on the roads while the companies reap the majority of the profits.
This policy aims to increase income and stability for millions of drivers in Indonesia, the largest ride-hailing market in Southeast Asia. It is anticipated that the new rules will directly impact major players in the Indonesian market, such as Gojek and Grab, as well as on-demand delivery services like Lalamove and J and T Express, as Indonesia is the only country in Southeast Asia with such strict regulations. Analysts expect that platforms may retaliate by reducing the number of drivers currently operating to maintain revenue balance; some speculate a reduction of up to 20%. Alternatively, the policy might incentivize companies to invest in self-driving cars or delivery drones to reduce reliance on increasingly costly human labor.