Economists urge caution regarding planned commission cuts for ride-hailing drivers
Senior economist Prasasti Piter Abdullah Redjalam believes that caution is necessary regarding the plan to cut commission rates for online motorcycle taxi (ojol) driver partners from the initial 20 per cent to 8 per cent. This follows the announcement of Presidential Regulation (Perpres) Number 27 of 2026 concerning the income deductions for online driver partners in early May 2026.
“On the government side, there needs to be a shared vision, and there must also be alignment within the industry. Recommendations from expert forums are also important to act as a bridge between the government, regulators, and the industry, because the industry inevitably needs a mediator,” Piter stated during a discussion in Jakarta on Wednesday.
He noted that current regulations regarding ride-hailing in Indonesia are already quite extensive and strict compared to other sectors within the digital economic landscape, particularly regarding the distribution of commissions on platform service fees. “They (driver partners) use technology to access platforms and connect with customers through these platforms, and in return, they pay the platform providers,” Perdapat.
Furthermore, he emphasised the need for in-depth studies regarding the potential impact of these commission rules on the sustainability of the online transport industry, as pricing remains a sensitive issue for service users. “Price sensitivity is quite high. If price sensitivity is that high, then the current tariff regulation at 8 per cent will certainly impact the industry. The industry’s typical response is to pass the cost on to the customer, in this case, the passengers. If they pass it on, it will result in higher fares,” Piter explained.
“This means that if a reduction in commission leads to an increase in fares, the higher fares could cause a decrease in orders,” he added.
Broadly speaking, Piter stated that another potential impact is a decline in the quality of platform services, as the capacity for innovation and investment becomes reduced. “What we fear is that the industry itself will see a decline in quality. Yet, this is a digital industry that we know must compete at high speeds,” he concluded.