Ministry of Human Rights says eight per cent cap on ride-hailing apps' commissions strengthens worker protection

Jakarta – The Ministry of Law and Human Rights (KemenkumHAM) says that the policy to reduce the app-based platform’s cut on on-demand transport to a maximum of eight percent could strengthen the protection of human rights for digital workers, particularly online motorcycle taxi drivers (ojol).

Special Staff to the Minister of HAM for Fulfilling Human Rights Yosef Sampurna Nggarang said the policy would allow drivers to receive up to 92 percent of the journey fare, which is seen as more reflective of fairness in the digital economy.

‘Reducing the app operator’s cut to eight percent is an important step to deliver fairness in the digital economy. From a human rights perspective, this policy directly relates to the right to a decent livelihood, protection of digital workers, platform-based economic justice, social security, and worker participation in policy-making,’ Yosef said in a statement in Jakarta on Wednesday.

He noted that the digital economy transformation must proceed in line with the principles of respect, protection and fulfilment of human rights for vulnerable groups within the digital platform ecosystem.

The Ministry notes that ojol drivers make a significant contribution to mobility and the growth of the national digital economy, yet they still face challenges including decent income, social protection, and bargaining power in their partnership with platforms.

Therefore, the government should ensure that the development of technology and digital business models does not create new inequalities or practices that undermine human dignity.

In addition to supporting the reduction of the app operator’s tariff, the Ministry of HAM also urges stronger social protection for drivers, including access to health insurance, workers’ compensation, and transparency of algorithms and revenue-sharing systems on digital platforms.

According to Yosef, building a fair digital economy policy requires participatory dialogue among government, platform companies, and the driver community.

The Ministry states it will continue to safeguard a human rights-based approach in the governance of the national digital economy, including in the app-based transport sector, so that technology development can provide fair and inclusive benefits to the people.