Indonesian Political, Business & Finance News

State Intervention in Ride-Hailing System: Cuts Commissions to 8 Percent and Buys Shares in Applications

| | Source: KOMPAS Translated from Indonesian | Regulation
State Intervention in Ride-Hailing System: Cuts Commissions to 8 Percent and Buys Shares in Applications
Image: KOMPAS

The government is intervening in ride-hailing applications (ojol) to provide welfare for online motorcycle taxi drivers (ojol). This intervention was issued by the President of the Republic of Indonesia, Prabowo Subianto, through Presidential Regulation (Perpres) Number 27 of 2026 on the Protection of Online Transportation Workers. The regulation was announced by Prabowo during the International Labour Day or May Day celebration in 2026 on 1 May 2026. In the announcement delivered at the International Labour Day (May Day) 2026 celebration at Monas Field on Friday (1/5/2026), Prabowo emphasised that application commissions are now limited to a maximum of 8 percent. Prabowo stressed that the rights of ojol drivers must be fulfilled by the companies employing them. “They must be provided with work accident guarantees, will be given BPJS Health, health insurance,” said Prabowo. This state intervention follows the purchase of ojol shares by the Investment Management Agency Daya Anagata Nusantara (BPI Danantara). Deputy Chairman of the Indonesian House of Representatives, Sufmi Dasco Ahmad, explained that to implement the 8 percent commission cut by applications for online motorcycle taxi drivers, the government must buy ojol shares. Through the purchase of ojol shares, adjustment steps can be carried out gradually and certainly. According to him, the employment relationship status of partners with ojol applications is also discussed here. Dasco urged ojol driver organisations to be involved in discussions on this employment status to find mutual agreement. “These ojol driver organisations will still be invited to talk, invited to deliberate,” he said. Ride-hailing application parties have also voiced their response to Prabowo’s statement regarding the reduction of fees for drivers to 8 percent.

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