Economist Warns Platform Fee Regulation Could Deter Investment

Senior economist and public policy expert Wijayanto Samirin has warned that the government’s plan to regulate platform fees in the digital industry could potentially hamper investment. Platform fees are additional charges imposed by digital service providers on users, used for system maintenance, feature upgrades, and innovation, and are a common practice across ride-hailing, e-commerce, and ticketing sectors.

Samirin stated that as long as the fees are rational, they are a normal part of covering operational and development costs. He cautioned that if the government imposes rigid regulations on these fees, similar to the recent mandated 92 percent to 8 percent revenue split between online motorcycle taxi drivers and application companies, it could be perceived as excessive interference. Such a move, he argued, would limit the private sector’s ability to innovate and make Indonesia less attractive to investors, particularly in the technology sector which is vital for future growth.

Highlighting the broader economic impact, Samirin noted that the online motorcycle taxi industry alone supports over five million direct and indirect jobs, with the wider technology sector creating tens of millions more. He urged the government to avoid policies that burden businesses and consumers, especially given the current decline in purchasing power and constrained economic growth. Instead, he recommended that policymakers benchmark their approach against regional competitors like Malaysia, Thailand, Vietnam, and the Philippines, and focus on providing a flexible regulatory corridor rather than delving into technical and operational specifics.