Grab and GoTo Brace for Impact as Prabowo Mandates Historic 8% Fee\nCap<\/p>\n
Key Takeaways<\/p>\n
JAKARTA, Investortrust.id \u2014 The regional tech landscape is bracing\nfor a massive structural shift after President Prabowo Subianto issued a\nbold \u201ccomply or exit\u201d ultimatum to ride-hailing giants, slashing\nplatform commissions to just 8%.<\/p>\n
President Prabowo used his 2026 May Day address at Jakarta\u2019s National\nMonument to dismantle the long-standing 20% commission model that has\nfueled the growth of Southeast Asian \u201csuper-apps.\u201d By signing\nPresidential Regulation (Perpres) No.\u00a027 of 2026, the President has\nlegally mandated that at least 92% of every fare must go directly into\nthe pockets of the drivers.<\/p>\n
The move is a populist masterstroke that directly challenges the\nprofit margins of the industry\u2019s biggest players. Prabowo\u2019s rhetoric was\nunmistakable, framing the high fees as an exploitation of the working\nclass.<\/p>\n
\u201cThe drivers work hard, risking their lives every day. Company\napplicators ask for 20%. How can the drivers agree to that? I say here,\nI do not agree with 10%; it must be below 10%,\u201d Prabowo declared before\na massive crowd of workers on Friday, May 1, 2026.<\/p>\n
For global investors, this is a defining moment for the \u201cgig economy\u201d\nin emerging markets. Indonesia is no longer just a growth theater for\ntech firms; it is now a strictly regulated territory where social\nwelfare is prioritized over platform profitability. The 8% cap is one of\nthe lowest in the world, and how Gojek and Grab navigate this will set a\nprecedent for gig-worker rights across the Global South.<\/p>\n
Grab and GoTo Signal Cooperation<\/p>\n
The two dominant forces in the market, Grab Indonesia and Gojek\nTokopedia (GoTo), the country\u2019s largest homegrown tech conglomerate,\nhave both issued cautious yet respectful responses. Grab Indonesia CEO\nNeneng Goenadi stated on Saturday that the firm supports the President\u2019s\nvision for social welfare but noted the fundamental nature of the\nchange.<\/p>\n
\u201cGrab Indonesia respects the directions conveyed by President Prabowo\nSubianto. We consider the proposed commission structure a fundamental\nchange to how digital platforms function as a marketplace,\u201d Goenadi said\nin a written statement on May 2, 2026.<\/p>\n
Similarly, GoTo CEO Hans Patuwo pledged that the Jakarta-listed giant\nwould align its ecosystem with the new law. Patuwo emphasized on Friday\nthat GoTo has always been a partner to the government and will work to\nensure the ecosystem remains sustainable for both drivers and\ncustomers.<\/p>\n
A \u201cPinnacle\u201d Victory for Drivers<\/p>\n
The driver associations are calling the decree the \u201cpuncak\u201d or the\nultimate peak of a decade-long struggle. Raden Igun Wicaksono, Chairman\nof the Garda Indonesia Driver Association, pointed out that the\ngovernment actually gave them more than they asked for.<\/p>\n
\u201cFrom a demand of 10% to a realization of 8%, this proves that\norganized voices, based on data and consistent struggle, are capable of\nproducing significant policy changes,\u201d Wicaksono said on Friday.<\/p>\n
Beyond the cash split, the regulation forces a total overhaul of the\n\u201cpartner\u201d relationship. Platforms are now legally obligated to provide\nBPJS Kesehatan (public health insurance) and work accident coverage,\neffectively closing the gap between independent contractors and formal\nemployees. This shift in liability and cost is expected to force a major\nre-evaluation of ride-hailing ticket prices in the coming months.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/grab-and-goto-brace-for-impact-as-prabowo-mandates-historic-8-fee-cap-1777704742", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }