Indonesia limits 8% ride-hailing commission cap to motorcycle services

Transportation minister says the new commission cap will initially apply only to motorcycle ride-hailing services, while regulations for app-based four-wheel transportation remain under discussion.

Indonesian Transportation Minister Dudy Purwagandhi prepares to attend a working meeting with Commission V of the House of Representatives at the Parliament Complex in Senayan, Jakarta.
Indonesian Transportation Minister Dudy Purwagandhi prepares to attend a working meeting with Commission V of the House of Representatives at the Parliament Complex in Senayan, Jakarta, on May 21, 2026. Photo by Rivan Awal Lingga/Antara

JAKARTA — Indonesia’s new 8% commission cap for ride-hailing platforms will initially apply only to motorcycle services, with regulations for app-based four-wheel transportation still under discussion, Transportation Minister Dudy Purwagandhi said Sunday, according to Antara.

Dudy said the government chose to prioritize motorcycle ride-hailing because the sector has the largest number of users and driver-partners in Indonesia’s app-based transportation industry.

“For now, the 8% commission policy is focused on two-wheel services because the largest number of users and ride-hailing drivers are in that segment,” Dudy said.

According to the Antara report, the regulation currently being prepared will apply only to motorcycle ride-hailing services and will not cover app-based special rental vehicles operating with four-wheel vehicles.

Dudy explained that regulatory authority over app-based four-wheel transportation differs from motorcycle ride-hailing services. In the Greater Jakarta area, oversight falls under the Transportation Ministry, while provincial governments regulate the sector elsewhere in the country.

He said transportation operators have proposed placing regulatory authority for four-wheel app-based services entirely under the central government to establish a uniform national framework.

However, Dudy said the proposal still requires discussions with all relevant stakeholders, including provincial governments, before any decision can be made.

“There has been a request from operators for four-wheel regulations to be centralized, but we have to discuss it with all stakeholders, not only the operators but also provincial governments,” he said.

The minister added that the government remains focused on finalizing regulations for motorcycle ride-hailing commissions as an initial step toward strengthening legal certainty in Indonesia’s digital transportation sector.

Earlier, Dudy confirmed that the maximum 8% commission cap will take effect nationwide on July 1 without a trial period.

“There will be no trial. It will be implemented directly on July 1, and we will see the public response afterward,” he said.

President Prabowo Subianto first announced the commission adjustment during International Workers’ Day celebrations on May 1 as part of the government’s efforts to improve the welfare of ride-hailing drivers.

Prabowo later signed Presidential Regulation No. 27 of 2026, reducing the maximum share of driver earnings retained by ride-hailing platforms to 8%.

“I do not agree with a 10% commission. It must be below 10%,” Prabowo said during his May Day address at the National Monument in Jakarta.

The president said the policy was intended to better protect ride-hailing drivers, whom he described as workers who earn their living under demanding conditions while facing significant risks on Indonesia’s roads.

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