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View all search resultsHow an 8% commission fee cap can cripple Indonesia’s tech giants
The government’s "new social contract" might offer immediate relief to gig drivers, but by slashing commissions to 8 percent, the state risks bankrupting the very digital giants that power the economy.
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An ‘ojol’ (on-demand motorcycle transportation) driver wearing a Gojek helmet transports a passenger donning a Grab helmet in Jakarta on Nov. 12, 2025.
(The Jakarta Post/Iqro Rinaldi)
T
he May Day 2026 rally at the National Monument in Central Jakarta was more than a symbolic celebration of labor. It also served as a stage for a sweeping intervention in the country’s digital economy as President Prabowo Subianto, in a fiery address, unveiled what he framed as a “new social contract” for millions of ride-hailing drivers.
At its core is a blunt directive: app commission fees, which have long hovered around 20 percent, must be slashed to a maximum 8 percent. The logic is straightforward: restore fairness to drivers who shoulder daily risks while reining in technology firms perceived as extracting disproportionate margins.
This mandate is codified in Presidential Regulation No. 27/2026 on the protection of online transportation workers. However, the regulation goes far beyond capping commission fees. It also institutionalizes a deeper form of state intervention by compelling platforms to provide accident insurance, national health coverage and additional social protections.
Companies unwilling to comply with the 8 percent ceiling have been openly asked to exit the Indonesian market.
Beneath the celebratory mood among gig drivers lays a far more complex financial reality. Ride-hailing platforms have long operated on fragile economics, balancing steep infrastructure costs with continuous promotional subsidies. While previous regulations capped commissions at 15 percent (plus auxiliary fees), effective deductions often exceeded this threshold through indirect charges. The new policy risks destabilizing this already delicate equilibrium.
The 8 percent cap becomes particularly contentious when measured against the financial health of major platforms. Consider GoTo, Indonesia’s flagship tech conglomerate. After years of aggressive cash burn to acquire users, the company only posted its first modest net profit in the first quarter (Q1) of 2026 at approximately Rp 171 billion (US$10.5 million), achieved through painful efficiency measures and incentive cuts.
That progress remains fragile. Based on Q1 data, GoTo’s mobility segment generated a gross transaction value (GTV) of Rp 5.71 trillion and net revenue of approximately Rp 815 billion. This implies a take rate, or the percentage of total transaction value the company keeps as revenue, of around 14.3 percent.
