Ride-Hailing Windfall: Prabowo Caps Platform Commissions for Drivers
Indonesian president’s May Day decree promises bigger driver share but raises market sustainability concerns.
President Prabowo Subianto has ordered ride-hailing platforms like Gojek and Grab to sharply cut their commissions, delighting drivers who expect higher take-home pay while analysts warn of possible fallout for jobs, discounts and investment.
Commission Limit Announcement
From May 1, platforms may keep no more than 8 per cent of fares, compared with previous caps around 20 per cent, with Prabowo declaring that the minimum split for drivers has shifted from 80 per cent to 92 per cent. Drivers like 25 year old Grab partner Renaldi Satriansyah and 37 year old Gojek veteran Muhammad Surya Wirawan say the change should lift regular income by more than 10 per cent after years of post pandemic earnings decline.
Drivers’ Longstanding Frustration
The decree follows repeated protests and petitions by driver unions across Indonesian cities, who have long demanded lower platform fees, better working conditions and formal worker status to access state benefits. Speaking before tens of thousands at Jakarta’s National Monument on May Day, Prabowo said commissions must fall below 10 per cent and warned that any company unwilling to follow the rules should not operate in Indonesia.
Broader Populist Measures
Alongside the commission cap, Prabowo pledged to extend mortgage tenures to 40 years at subsidised interest rates around 5 per cent, far below typical 11 to 13 per cent rates, and promised daycare facilities for labourers and health insurance for ride hailing drivers. He also vowed to reclaim millions of hectares of plantations and mining sites he said were opened without permits, framing these land seizures as a move to return stolen natural wealth to the people.
Sustainability And Market Risks
Public policy experts caution that shrinking platform margins could backfire if firms cut promotional incentives, reduce investment or scale back operations, leaving drivers with a larger share of a smaller market. One analyst with government ties argued that regulating revenue splits without fully understanding demand dynamics is risky, warning that trip volumes, discounts and consumer demand might fall, eroding the very incomes the policy aims to protect.
Platform Responses And Next Steps
GoTo chief executive Hans Patuwo said his company would comply with Presidential Decree No. 27 2026 and is reviewing its implications to keep serving drivers and consumers, while Grab Indonesia chief executive Neneng Goenadi pledged to work with the government so that new rules protect drivers while preserving affordability and industry sustainability. How platforms adjust fares, incentives and service levels in the coming months will determine whether the 92 per cent driver share translates into durable gains or short lived relief.
Indonesia’s new ride hailing commission cap captures a powerful May Day message that the state is siding with working class drivers, but it also tests how far governments can push platform economics without undermining jobs and service quality. For Indonesians, the policy’s success will hinge on careful follow up, data driven reviews and open dialogue with drivers and firms; for Singaporeans, the move offers a case study in managing gig economy fairness and investor confidence across a shared regional digital market.
Sources: Straits Times (2026) , The Jakarta Post (2026)
Keywords: Commission Cap, Gojek Drivers, Grab Indonesia, Presidential Decree 27 2026, Driver Income