Association Reveals Impact of 8 Percent Ride-Hailing Fee Split

The Indonesian Digital Mobility and Delivery Industry Association (MODANTARA) believes that the government’s plan to limit the revenue split between online motorcycle taxi (ojol) drivers and platform operators to a maximum of 8 percent could have widespread impacts on the digital economy ecosystem. The policy is seen as too drastic if implemented without comprehensive studies and dialogue with industry stakeholders.

MODANTARA Executive Director Agung Yudha stated that the restriction cannot be viewed simplistically, as its implications touch on many operational aspects of the platforms.

“A cap of 8 percent may sound simple, but its impact could be very broad, even reducing the platforms’ room to maintain service quality, incentives, and partner safety,” said Agung, quoted from a written statement on Saturday, 2 May 2026.

He explained that the issue of partner welfare is not solely determined by the size of the platform’s cut. According to him, the digital mobility and delivery ecosystem has a complex cost structure, ranging from technology development, customer service, payment systems, transaction security, to risk protection and long-term investments.

Currently, the sector involves around 2 to 4 million active driver partners and serves as a primary or supplementary source of income. Additionally, the sector contributes hundreds of trillions of rupiah to the national economic circulation and supports millions of SMEs and other workers dependent on logistics services.

Agung estimated that capping the cut at 8 percent could slash the platforms’ operational space by up to 60 percent. This situation could force companies to significantly alter their business models in a short time, ultimately having systemic impacts on the stability of the digital economy and the investment climate.

“Revenue splits or platform cuts cannot be standardised like parking fees. The question is whether an 8 percent cap will truly strengthen partners’ income in the long term, or instead reduce demand, services, and flexible job opportunities that have supported them so far?” he said.

Agung continued that a single restriction could also reduce competition among platforms, which has driven innovation and partner empowerment programmes. Moreover, platforms might adjust tariffs for consumers or cut services, especially in areas with low margins.

If this policy is still enforced, he said platforms would be compelled to make massive efficiencies that could lower service quality. Agung cited the experience in India, where low-commission platforms like Ola had to cut staff numbers and reduce driver incentives to survive.

According to him, globally, average platform cuts are in the range of 15 to 30 percent for ride-hailing and delivery services. “Therefore, an 8 percent cap could become the lowest in the world and reduce Indonesia’s attractiveness for investments,” he said.

To date, Agung admitted that the association he leads has not received an official copy of Presidential Regulation No. 27 of 2026 for further study. Nevertheless, the association is ready to engage in dialogue with the government to formulate balanced policies.

Previously, President Prabowo Subianto established a new regulation increasing the share of income for online motorcycle taxi drivers. In the policy, drivers receive at least 92 percent of total revenue, while operators are limited to a maximum of 8 percent.

“The income split (originally) 80 percent for drivers, now becomes at least 92 percent for drivers,” said Prabowo during the International Labour Day commemoration at the National Monument, Jakarta, on Friday, 1 May 2026.

In addition to regulating revenue shares, the policy also covers work protection guarantees for drivers, including access to work accident insurance and health services through BPJS.