Indonesian President: Discounts for ride-hailing platforms must be less than 10%

The above information was announced by President Prabowo Subianto on International Labor Day, May 1. Accordingly, Mr. Prabowo signed the above regulation, which is the basis for tightening the discount ceiling for ride-hailing platforms such as GoTo (Indonesia), Grab (headquartered in Singapore).

The above two platforms are applying a 20% discount to drivers. That is, for each ride of 100,000 IDR, the driver only receives 80,000 IDR. With the new regulations, they receive up to 92,000 IDR.

“The platform’s discount must be less than 10%. The driver is the one who sweats, but the platform is the one receiving the money. Sorry, but that’s not possible,” Mr. Prabowo told tens of thousands of workers at the National Monument square.

In addition to reducing the discount cap, ride-hailing companies must also provide accident and health insurance. The president added that if the platform does not want to comply with the law, “it should not do business in Indonesia”.

This is a sharp reduction compared to the maximum 20% fee currently applied by companies such as Gojek and Grab, the two largest ride-hailing platforms in Indonesia. However, Mr. Prabowo did not specify when this regulation would take effect.

The above statement was made after increasing complaints from the technology driver community before the National Assembly. Over the years, drivers and unions have periodically protested in major cities, demanding a reduction in station platform usage fees, improved working conditions and recognition as official workers to enjoy state benefits.

Mr. Renaldi Satriansyah (25 years old), a technology driver, was very happy to know that he would enjoy 92% of the revenue. Over the past 5 years, he has regularly carried passengers through the congested roads in Jakarta. But one-fifth of the money earned goes to this platform.

For driver Muhammad Surya Wirawan (37 years old), he drives 12 hours a day, but his income has gradually decreased since the Covid-19 pandemic. The amount of money he previously earned was still small enough to cover daily living expenses for his family of three young children.

Trubus Rahardiansyah, a public policy analyst, said it was understandable that the government would take a pro-driver stance to appease growing discontent. However, he warns that operators must find a balance to ensure the business can still make a profit.

“Investors do business for profit. Because if profits are not enough, they will withdraw, causing drivers to lose their jobs,” he added.

Meanwhile, the CEO of GoTo and Grab in Indonesia said they will comply with government regulations, committed to bringing benefits to both driver partners and consumers.