Prabowo Mandates 8% App Fee Cap to Boost Ride-Hailing Driver Welfare

President Prabowo Subianto has directed ride-hailing platforms in Indonesia to reduce the commission fees charged to drivers, targeting a maximum cut of 8% to increase the take-home pay and overall welfare of gig workers.

The directive follows the president’s criticism of the current fee structures, where some applicators take up to 20% of a driver’s earnings. According to reporting from Kompas.com, Prabowo expressed disapproval of the existing rates, suggesting it was unfair for drivers who perform the bulk of the labor to lose a fifth of their income to the platform.

The move is part of a broader effort by the administration to strengthen protections for online motorcycle taxi (ojol) drivers, who serve as a critical component of Indonesia’s urban transport and logistics infrastructure.

State Intervention via Danantara

To ensure the 8% cap is implemented, the Indonesian government is considering a strategic investment approach. Sufmi Dasco, Vice Speaker of the House of Representatives, stated that the government may use Danantara, Indonesia’s sovereign wealth fund and investment superholding, to acquire shares in ride-hailing applications.

As reported by detikFinance, the acquisition of shares would provide the state with more significant leverage and a seat at the table in determining the operational policies of these platforms, specifically regarding the commission rates imposed on drivers.

The proposal suggests that by becoming shareholders, the government can directly influence the corporate governance of the applicators to align their profit motives with the national goal of increasing driver welfare.

Industry Response from Grab and GoTo

Major industry players, including Grab and GoTo, have responded to the government’s directive. According to reports from CNBC Indonesia and Bloomberg Technoz, both companies have spoken out regarding the proposed 8% limit.

While the companies have not publicly committed to a specific new percentage in a binding agreement, they have emphasized their ongoing efforts to support driver welfare. The platforms generally maintain that their commission structures are necessary to cover operational costs, insurance, and the maintenance of the digital infrastructure that connects drivers with customers.

The tension between the state’s desire for a lower cap and the companies’ need for sustainability highlights the ongoing debate over the partnership model used by gig economy platforms, where drivers are treated as independent contractors rather than formal employees.

Welfare and Protection Goals

The administration’s focus extends beyond just the commission rate. A statement from the Office of the President of the Republic of Indonesia indicated that the reduction in applicator cuts is part of a wider strategy to strengthen the protection of ojol workers.

The government aims to address several systemic issues affecting gig workers, including:

• Reducing the financial burden on drivers by slashing the commission from 20% toward the 8% target.
• Improving the overall welfare and social safety nets for independent contractors.
• Ensuring a more equitable distribution of revenue between the technology providers and the service providers.

The push for an 8% cap represents a significant shift in the regulatory environment for ride-hailing in Indonesia, moving from a largely laissez-faire approach toward more active state intervention in the pricing and profit models of digital platforms.

The implementation of this directive will likely depend on the negotiations between the Ministry of Transport, the investment agency Danantara, and the corporate leadership of Grab and GoTo. If the state proceeds with share acquisitions, it could set a precedent for how Indonesia manages the intersection of foreign-invested tech platforms and domestic labor protections.