JAKARTA (Reuters): Indonesia 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 on Friday in Jakarta.
Here are the details:
* 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.
* Prabowo did not say when the regulation would take effect.
* Aside from the lower commission cap, the regulation will also require ride-hailing firms to provide accident and health insurance, Prabowo said.
* "It’s just not right that you’re (drivers) the one sweating while they’re (the platforms) 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 Southeast Asia.
* The rule will affect ride-hailing firms such as Indonesian tech firm GoTo and Singapore-based rival Grab. (Reporting by Stefanno Sulaiman; Editing by Christian Schmollinger and Thomas Derpinghaus) -- Reuters
