JAKARTA, Thekabarnews.com—The Indonesian government is taking a major policy shift to improve income protection for ride-hailing drivers across Indonesia. This comes with the signing of Presidential Regulation No. 27/2026 on the Protection of Online Transportation Workers by President Prabowo Subianto.

Under the new rule, app-based transportation companies can only deduct a maximum commission of 8 percent from driver earnings. Previously, the current maximum deduction was 20 percent.

Currently, the 20 percent cap is governed by the Transportation Ministry’s decree KP 1001/2022. Many online motorcycle taxi (ojol) drivers have widely criticized this decree. Many say the platform fees are too high.

Prabowo announced the new policy at Monas, Jakarta, on Friday, May 1, on the occasion of the May Day celebration.

“This regulation raises the income-sharing structure from the current 80 percent for drivers to a minimum of 92 percent,” Prabowo said in his speech.

The president added that drivers, who do the actual work out in the field, deserve a larger and fairer share of the revenue. Digital transportation platforms generate this revenue.

Earlier, he had proposed reducing the app company’s commission to 10 percent. However, he later said that even 10 percent was too much and that the deduction should remain below that for fairness.

“It’s not fair that drivers work hard on the streets while app companies profit from their efforts. Sorry. Don’t do business in Indonesia unless you want to follow our rules,” Prabowo said firmly.

Labor groups and online driver communities have shown strong interest in the announcement. Many of them have long called for stronger government intervention to improve welfare and income certainty in the gig economy sector.

The regulation could have a significant impact on the business models of the ride-hailing companies operating in Indonesia. In addition, it could force them to adjust their revenue structures while maintaining sustainable service.

The policy is also expected to enhance social protection for millions of online transport workers. These workers rely on platform-based income as their main source of livelihood.

The move signals a growing recognition that gig workers need more robust legal and economic protections. This is particularly important as digital platforms become more central to urban employment.

The government has also pitched the regulation as part of a wider push for fairer economic distribution. This aims to prevent concentrated corporate control over informal workers.

Officials and industry observers are still closely monitoring the implementation of the regulation and the companies’ responses. Arguably, the regulation is one of the strongest state interventions, so far, in Indonesia’s digital transport sector.

Many drivers see the new 8 percent cap as more than a financial adjustment—it gives long-awaited recognition to their role as essential workers in the country’s modern economy.

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