Indonesian Political, Business & Finance News

Association hopes for review of 8 percent platform deduction cap

| Source: ANTARA_ID Translated from Indonesian | Regulation
Association hopes for review of 8 percent platform deduction cap
Image: ANTARA_ID

Jakarta (ANTARA) - The Indonesian Digital Mobility and Delivery Industry Association (Modantara) has requested that the government review the plan to limit revenue sharing between partners and applicator platforms to a maximum of eight percent, as it risks disrupting the sustainability of Indonesia’s digital economy.

According to Modantara’s Executive Director Agung Yudha, the government’s eight percent deduction cap could have far-reaching impacts if implemented without thorough studies and in-depth discussions with industry players, potentially reducing platforms’ room to maintain service quality, incentives, and partner safety.

“We understand the government’s intent to improve driver partners’ welfare, but good policies must be based on data, economic realities, and ecosystem sustainability,” he said in a statement in Jakarta on Monday.

Previously, President Prabowo had signed Presidential Regulation (Perpres) No. 27 of 2026 to cut the income deduction taken by applicator companies from online motorcycle taxi drivers to eight percent.

“I say here, I do not agree with 10 percent, it must be below 10 percent,” the President stated during the International Labour Day/May Day commemoration at the National Monument in Jakarta on Friday (1/5).

The President emphasised that this policy is taken to defend the rights of online motorcycle taxi (ojol) drivers who work hard every day and risk their lives on the roads.

According to him, the revenue-sharing scheme that has been in place so far still does not provide justice for the drivers.

In response, Agung Yudha affirmed that the association is requesting the government to comprehensively review the platform revenue-sharing figure changed to eight percent, involving various stakeholders.

“This ecosystem has become a social safety net for millions of people, so the policies taken need to maintain its sustainability,” he said.

According to him, the issue of partner welfare cannot be simplified merely to the platform deduction figure; the digital mobility and delivery ecosystem involves complex cost structures, from technology, safety, customer service, risk protection, promotions, partner education, payment systems, transaction security, to sustainable investments to maintain service quality.

Currently, he added, the mobility and digital delivery sector has engaged up to 4 million active driver partners and serves as a primary and additional source of income, besides contributing hundreds of trillions of rupiah annually to the national economic circulation, as well as supporting millions of SMEs and workers in other sectors that depend on logistics and mobility services.

The eight percent cap, he continued, would reduce platforms’ operational space by up to 60 percent and force some platforms to significantly and abruptly change their business models, with complex, systemic effects that could even impact economic stability and the investment climate.

According to him, each platform has a different business model with varying commission offers, adjusted to service segmentation, target markets, technological innovations, and partner needs, so partners have the freedom to choose services with revenue sharing tailored to their needs without forcing uniformity.

Globally, the average platform fee is in the range of 15–30 percent for ride-hailing and delivery services, depending on the business model and market stage, he added; the eight percent commission cap policy would potentially become the lowest in the world set by a government.

“This will have a negative impact on Indonesia’s attractiveness as a global investment destination and efforts to attract investors to Indonesia,” he said.

Agung Yudha stated that his side is ready to sit down with regulators and all stakeholders to formulate balanced, implementable, and sustainable policies.

“We believe that good policies must maintain a balance between worker protection, business sustainability, consumer interests, investment competitiveness, and national digital economic growth,” he said.

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