Government Finalises Presidential Regulation on Ride-Hailing, Completes Several Formulas

Jakarta - The government is finalising a presidential regulation governing the ride-hailing transport ecosystem, including discussing the latest formula for the service’s business model.

“Yesterday we held a coordination meeting to finalise the ride-hailing Perpres. Almost all substantive principles have been successfully formulated,” said State Secretary Minister Prasetyo Hadi when answering questions at the Presidential Palace complex in Jakarta on Tuesday.

He explained that one of the issues focused on in the discussion was formulating a formula regarding updates to the transport service business model. He said the finalisation of the formula is being carried out to ensure that when the regulation is issued, its implementation will not disrupt what is already in place and will anticipate conditions on the ground.

Although the presidential regulation is still in the finalisation stage, Prasetyo confirmed that implementation in the field has already begun in accordance with President Prabowo’s instructions, with several ride-hailing applications already applying an 8 percent commission cut. The regulation was previously planned to be completed before the 81st Anniversary of the Republic of Indonesia.

He also explained that with MSME status, ride-hailing drivers will have flexibility in working hours and can receive MSME incentive policy packages. Furthermore, he stressed that the government will not impose any taxes on ride-hailing drivers who will later have MSME status, as their income is in the range of Rp10-15 million.