Azin Asro
The Indonesian government has officially clarified that the newly proposed 8 percent commission cap for online transportation services will be strictly applied to two-wheeled vehicles, commonly known as ojek online or "ojol." This landmark policy, aimed at increasing the net take-home pay for millions of gig economy workers, does not currently extend to four-wheeled online taxis (taksol). Minister of Transportation Dudy Purwagandhi confirmed that the government is prioritizing the two-wheeled sector due to the sheer volume of drivers and the immediate socio-economic impact on this specific demographic.
According to Minister Dudy, the decision to focus on two-wheelers is a strategic move based on the massive scale of the ojol ecosystem compared to the four-wheeled sector. The high density of motorcycle-based ride-hailing partners across the archipelago necessitates a more urgent regulatory intervention to ensure welfare and operational sustainability. While the possibility of extending this cap to online taxis remains on the table, the government intends to monitor the implementation within the motorcycle segment first before conducting further feasibility studies for cars.
The Strategic Prioritization of Two-Wheeled Services
The decision to limit the initial rollout of the commission cap to two-wheelers is rooted in the demographic realities of Indonesia’s digital economy. Minister Dudy Purwagandhi explained that the focus is currently on the most populous segment of the transport workforce. By addressing the commission structure of ojol first, the government aims to stabilize the most volatile part of the gig economy.
"The current focus is on two-wheelers because the number of users and practitioners in the online motorcycle taxi sector is significantly higher," Minister Dudy stated during a recent press briefing. He emphasized that the regulatory framework for commissions is being tailored specifically for this group to provide immediate relief and financial clarity. This "phased approach" allows the Ministry of Transportation to observe market reactions, operator compliance, and the impact on consumer pricing without disrupting the entire transport ecosystem simultaneously.
The government’s cautious stance on four-wheelers is also influenced by the different operational costs associated with cars. Unlike motorcycles, four-wheeled vehicles involve higher maintenance, fuel, and insurance costs, which complicates the calculation of a universal commission cap that remains fair to both the driver and the application provider.
Regulatory Framework and the Shift from 20 Percent to 8 Percent
The legal foundation for this shift is rooted in the recently issued Presidential Regulation (Perpres) Number 27 of 2026, which focuses on the Protection of Online Transportation Workers. This regulation serves as a broad mandate to improve the working conditions of gig workers, who have long advocated for better profit-sharing models.
To implement the mandate of the Perpres, the Ministry of Transportation is currently in the process of revising the Minister of Transportation Decree (KP) Number 1001 of 2022. The existing decree allowed application providers (operators) to take a maximum commission of 20 percent from each transaction. Under the new proposed revision, this cap will be slashed to just 8 percent.
This 12 percent reduction represents a significant shift in the revenue model of major tech platforms operating in Indonesia, such as Gojek, Grab, Maxim, and InDrive. For years, the 20 percent standard was the industry norm, but persistent protests from driver associations regarding the rising cost of living and fuel prices have pushed the government to intervene in the pricing algorithms of these private entities.
The Jurisdictional Complexity of Four-Wheeled Regulation
One of the primary reasons the four-wheeled sector remains under the old regulatory regime is the complexity of its jurisdictional oversight. Minister Dudy explained that the authority to regulate online taxis is currently fragmented between central and regional governments.
For the Greater Jakarta area, known as Jabodetabek (Jakarta, Bogor, Depok, Tangerang, and Bekasi), the regulatory authority lies directly with the Ministry of Transportation. However, for regions outside of Jabodetabek, the power to set operational rules and commission structures is delegated to the respective provincial governments. This decentralization makes it difficult to implement a blanket 8 percent cap for cars across the entire country without extensive coordination with regional leaders.
"For four-wheelers, the provisions for Jabodetabek are indeed regulated by the Ministry. However, for other regions outside Jabodetabek, the regulation is handed over to the provincial governments," Dudy noted. This bureaucratic structure creates a patchwork of regulations that varies from one province to another, a situation that many operators find challenging to navigate.
Operator Demands for Centralized Regulation
In response to this fragmented oversight, several online taxi operators have formally requested the government to centralize the regulation of four-wheeled services. Operators argue that having a single, unified regulatory body at the national level would provide more legal certainty and simplify operational compliance across different cities.
The Ministry of Transportation has acknowledged these requests but maintains that any move toward centralization must involve a comprehensive dialogue with all stakeholders. This includes not only the platform providers and driver unions but also the regional governments who currently hold the authority. The government must balance the need for national uniformity with the principles of regional autonomy, ensuring that local economic conditions are considered.
"There is indeed a request from operators to centralize the regulation for four-wheelers. However, we must talk to all relevant stakeholders, including local governments, to decide if we should unify the regulations for four-wheeled vehicles," the Minister added.
Chronology of the Commission Cap Dispute
The journey toward the 8 percent commission cap has been marked by years of tension between gig workers and platform providers. The following timeline outlines the key milestones leading to the current policy:
- 2018–2021: Rapid expansion of the gig economy in Indonesia. Drivers begin voicing concerns over high commission rates (20%) and the lack of "partner" protections, leading to several large-scale protests in major cities.
- 2022: The Ministry of Transportation issues KP 1001 of 2022, which attempts to standardize commissions at 15-20% while setting floor and ceiling prices for fares. However, drivers argue that the net income remains insufficient due to high platform fees.
- 2023–2024: Economic pressures, including fuel price adjustments and inflation, lead to renewed calls for a "single digit" commission cap. The government begins drafting a Presidential Regulation to provide a stronger legal shield for workers.
- Early 2026: President Prabowo Subianto signs Perpres No. 27 of 2026. This regulation explicitly mandates better protection and fairer revenue sharing for online transport workers.
- Late 2026: The Ministry of Transportation announces the specific 8 percent cap for ojol and begins the revision of KP 1001 of 2022, while placing the four-wheel sector on a separate, longer-term review track.
Economic Implications and Market Reaction
The reduction of the commission cap to 8 percent is expected to have a profound impact on the Indonesian digital economy. From a driver’s perspective, the move is a major victory. A driver who previously earned IDR 100,000 in gross fares would have seen IDR 20,000 taken by the app; under the new rule, the app would only take IDR 8,000, leaving the driver with an additional IDR 12,000 per day. Scaled across millions of trips, this represents a massive injection of liquidity into the lower-middle-class economy.
However, for application providers, the 8 percent cap poses a challenge to their path toward profitability. Most ride-hailing companies in Southeast Asia have struggled to reach consistent net profits, often relying on high commission margins to fund their technological infrastructure, marketing, and driver incentives. A sudden drop to 8 percent may force these companies to reduce driver bonuses, increase consumer "service fees," or cut back on expansion plans.
Financial analysts suggest that while the 8 percent cap improves driver welfare, it may lead to a "fee migration" where platforms introduce new types of administrative charges to the consumer to offset the loss in commission revenue. The government will need to monitor these "hidden fees" to ensure that the spirit of the regulation is not circumvented.
Broader Impact and Future Outlook
The Indonesian government’s move is being watched closely by other nations in Southeast Asia, where the gig economy is a primary source of employment. By setting a hard cap of 8 percent, Indonesia is positioning itself as a leader in gig worker protections, potentially setting a precedent for neighboring markets.
For the four-wheeled sector, the wait continues. The government’s decision to "wait and see" how the 8 percent cap affects the two-wheeler market suggests that the online taxi industry will likely face a similar regulation in the future, provided the initial implementation is successful. The key hurdle remains the harmonization of central and regional laws.
In the coming months, the Ministry of Transportation is expected to finalize the revision of KP 1001 of 2022. Once finalized, the 8 percent cap will become the new legal standard for ojol, marking a new chapter in the relationship between the Indonesian state, tech giants, and the millions of workers who power the nation’s digital infrastructure. The government’s ability to balance the welfare of drivers with the commercial viability of tech platforms will be the ultimate test of this ambitious policy.
