Drivers to take 92% as Indonesia slashes ride-hailing commissions to boost driver earnings
Indonesia will reduce the share of fares taken by ride-hailing companies, in a move aimed at improving drivers’ earnings and working conditions.
Indonesian president, Prabowo Subianto, said on Friday, April 30, that he has signed a new regulation capping platform commissions at 8% per trip, down from as much as 20% under the previous system.
This means drivers will now receive at least 92% of each fare, up from about 80%.
Prabowo said the decision was driven by concerns over fairness in the sector, where drivers shoulder most of the work and risk.
The change comes in one of the region’s biggest ride-hailing markets. The sector in Indonesia is expected to be worth about $4 billion in 2026, with steady growth in the years ahead as more people rely on app-based transport.
It’s also a highly concentrated market. Two companies, GoTo and Grab, dominate the space, together controlling more than over 90% of ride-hailing services.
That level of dominance is quite different from some of Indonesia’s neighbours. In countries like Vietnam and Thailand, the market is more fragmented, with several players competing more actively. Singapore, on the other hand, has a smaller market, shaped by tighter regulation.
Indonesia also stands out for how people use these services. Motorbike taxis account for a large share of trips, more than 60%, making ride-hailing cheaper and more accessible in congested cities like Jakarta.
The regulation also requires ride-hailing companies to provide accident and health insurance for their drivers, adding a layer of social protection in an industry long criticised for weak welfare support.
The new rules are expected to affect major players such as GoTo and Grab, which dominate Indonesia’s ride-hailing market.
A start date for the policy has not yet been announced.
This story is written and edited by the Global South World team, you can contact us here.
