The country will cut the caps on the commissions that ride-hailing companies take from drivers for each trip to 8% from 20%, President Prabowo Subianto said.
Prabowo said he signed a presidential regulation which was the basis for the new maximum commission cap that ride-hailing firms could take from their driver partners.
“The revenue share for drivers has been increased from 80% to a minimum of 92%,” he said during a speech yesterday.
Aside from the lower commission cap, the regulation will also require ride-hailing firms to provide accident and health insurance, he said.
“It’s just not right that you’re the one sweating while they’re the ones making the money,” Prabowo added.
In January, Reuters exclusively reported on the planned regulation that will threaten the profitability of ride-hailing platforms in their largest market in South-East Asia.
The rule will affect companies such as Indonesian tech firm GoTo and Singapore-based Grab. — Reuters
