Azin Asro
President Prabowo Subianto has issued a stern ultimatum to major ride-hailing applications operating in Indonesia, specifically targeting industry giants Gojek and Grab, to significantly reduce the commission fees deducted from motorcycle taxi (ojol) drivers. Speaking before a massive crowd during a May Day commemoration at the National Monument (Monas) in Central Jakarta, the President expressed his dissatisfaction with the current commission structure, which typically hovers at 20 percent or higher. In a move that signals a potential shift in the country’s gig economy regulations, Prabowo asserted that these deductions should be slashed to below 10 percent to better reflect the risks and labor provided by the drivers.
The President’s remarks were delivered with a high degree of urgency, emphasizing the physical and financial vulnerabilities faced by millions of Indonesians who rely on ride-hailing platforms for their livelihoods. Addressing the crowd of laborers and drivers, Prabowo highlighted the disparity between the effort exerted by the workforce and the profits retained by the technology companies. He argued that the current 20 percent fee is excessive for workers who risk their lives on the road daily, navigating traffic and weather conditions to provide essential transportation and delivery services.
The Monas Declaration and the Presidential Ultimatum
During his address, President Prabowo engaged directly with the audience, asking the gathered ojol drivers if they found the 20 percent deduction acceptable. The response was a resounding rejection from the crowd. When the President suggested a reduction to 15 percent, the audience continued to voice their dissatisfaction, prompting a more radical proposal from the head of state. Prabowo declared that even a 10 percent commission was too high, stating firmly that the rate must fall below that threshold.
The President went a step further by issuing a direct warning to the management of ride-hailing companies. He suggested that if these "aplikators"—a local term for the platform operators—refuse to comply with the government’s vision for fairer labor practices, they should reconsider their operations within the country. His rhetoric underscored a populist approach to economic justice, suggesting that the government is prepared to take a more interventionist stance in the digital economy if it believes workers are being exploited.
"It is not right for you to sweat while they take the money," Prabowo told the crowd, using a blunt tone that resonated with the labor unions present. He framed the issue as one of national sovereignty and social fairness, arguing that companies operating in Indonesia must contribute to the welfare of the local population rather than merely extracting value through high service fees.
Historical Context of the Commission Fee Dispute
The tension between ojol drivers and platform operators is not a new phenomenon in Indonesia. For the past several years, drivers have organized numerous demonstrations across Jakarta and other major cities, demanding a more transparent and equitable distribution of earnings. The primary grievance has consistently been the high "application fee" or "commission" that platforms take from every completed order.
In 2022, the Ministry of Transportation issued Decree KP Number 1001, which attempted to regulate the industry by setting a maximum commission cap of 20 percent. While this was intended to provide a ceiling, driver associations, such as the Indonesian Two-Wheeled Action Association (Garda Indonesia), have frequently reported that the actual deductions often exceed this limit. According to Garda Indonesia, when various hidden fees, insurance levies, and booking charges are factored in, the total amount deducted from a driver’s gross earnings can reach between 30 and 40 percent.
This discrepancy between official regulations and the reality on the ground has led to a breakdown in trust between the drivers and the platforms. Drivers argue that while the cost of fuel, vehicle maintenance, and mobile data has risen, their net take-home pay has stagnated or even decreased due to the aggressive commission structures and the removal of various subsidies and bonuses that were common during the industry’s early growth phase.
The Economic Reality of the Gig Economy in Indonesia
Indonesia possesses one of the world’s largest and most vibrant gig economies, with millions of citizens registered as "partners" with Gojek, Grab, and Maxim. For many, being an ojol driver is not just a side hustle but a primary source of income. However, the legal status of these workers as "partners" rather than "employees" means they do not have access to standard labor protections such as a minimum wage, health insurance, or severance pay.
The economic pressure on drivers has been exacerbated by inflation and the volatility of fuel prices. Unlike traditional employees whose wages might be adjusted for inflation, ojol drivers are entirely dependent on the fare algorithms set by the platforms and the commission rates allowed by the government. When the commission rate is set at 20 percent, and the platform adds additional service fees for the consumer, the driver often finds themselves earning a fraction of the total price paid for the ride.
Supporting data suggests that the average ojol driver works between 10 and 14 hours a day to meet a basic daily target. After deducting fuel costs and the platform’s cut, many drivers struggle to earn more than the provincial minimum wage, despite the high-risk nature of their work. This reality has fueled the resentment that President Prabowo tapped into during his May Day speech.
Potential Impact on the Technology Sector and Investment
The President’s demand for a sub-10 percent commission rate has significant implications for the business models of Gojek (part of the GoTo Group) and Grab. Both companies have faced immense pressure from investors to achieve profitability after years of heavy spending to acquire market share. A mandatory reduction in commission fees would directly impact their revenue streams and could potentially delay their paths to sustainable profit.
Industry analysts suggest that a commission rate below 10 percent might be difficult for these companies to sustain without significantly raising prices for consumers or cutting back on the incentives and insurance programs they currently provide. There is also a concern regarding the message this sends to international investors. Indonesia has been a major hub for tech investment in Southeast Asia, and a sudden, drastic change in the regulatory environment could lead to concerns about policy stability.
However, proponents of the President’s plan argue that the current model is unsustainable for the human capital involved. They suggest that if the platforms cannot survive on a 10 percent commission, then the model itself may be fundamentally flawed and reliant on the underpayment of labor. The debate now centers on finding a "middle ground" that ensures the viability of the tech platforms while providing a living wage for the drivers.
Chronology of Recent Regulatory Struggles
The path to the current standoff has been marked by several key milestones:
- 2019: The first major set of regulations for motorcycle taxis was introduced by the Ministry of Transportation, attempting to standardize fares and safety protocols.
- 2020-2021: The COVID-19 pandemic saw a surge in demand for delivery services but a drop in passenger transport. Drivers began to feel the squeeze as platforms adjusted algorithms to cope with the economic shifts.
- August 2022: Massive protests erupted in Jakarta, leading to the issuance of KP 1001/2022. This decree increased the minimum fare per kilometer but maintained the 20 percent commission cap.
- August 2024: Thousands of drivers across Indonesia went on strike, turning off their apps for a day to protest the lack of legal protection and the continued high commissions. They demanded that the government give "partner" status more legal weight.
- March 2025: President Prabowo’s May Day speech marks the highest level of executive intervention in the issue to date, elevating it from a departmental regulatory matter to a presidential priority.
Official Responses and Stakeholder Reactions
While Gojek and Grab have yet to issue a comprehensive formal response to the President’s specific demand of "below 10 percent," the companies have previously emphasized their commitment to driver welfare. In past statements, they have argued that the 20 percent commission is necessary to cover the costs of technology development, maps licensing, customer support, and driver insurance.
Representatives from Garda Indonesia have welcomed the President’s statement, calling it a "breath of fresh air" for a workforce that has felt ignored for years. Igun Wicaksono, the head of the association, stated that the drivers have long advocated for a 10 percent cap and that the President’s call for an even lower rate shows a deep understanding of the struggles on the ground.
Legal experts, on the other hand, are examining how such a mandate would be implemented. Currently, the Ministry of Transportation holds the authority to set fare and fee structures. For the President’s demand to become law, it would likely require a new Ministerial Decree or a Government Regulation (PP) that specifically overrides the existing 20 percent cap.
Analysis of Broader Implications
If the Indonesian government follows through with a sub-10 percent commission mandate, it could set a global precedent for gig economy regulation. Indonesia would become one of the first major markets to drastically limit the revenue-sharing model of multinational ride-hailing firms in favor of labor.
The immediate implications would likely include:
- Fare Adjustments: Platforms may increase the "service fee" paid by customers to offset the loss in commission, potentially making ride-hailing more expensive for the general public.
- Service Availability: If the platforms find the Indonesian market less profitable, they may reduce investments in secondary cities, focusing only on high-density areas like Jakarta and Surabaya.
- Legal Status Debates: This move may accelerate the push to reclassify gig workers as employees, a shift that would provide even more protections but would also fundamentally change the cost structure of the industry.
President Prabowo’s stance reflects a broader shift in Indonesian politics toward "economic nationalism" and the protection of the "wong cilik" (common people). By taking a hardline stance against tech giants, the administration is signaling that it prioritizes social stability and the purchasing power of the working class over the profit margins of digital platforms.
As the government prepares to engage in discussions with the relevant stakeholders, the eyes of the tech world remain on Indonesia. The outcome of this dispute will determine the future of the gig economy in Southeast Asia’s largest market and will serve as a litmus test for the Prabowo administration’s ability to balance investor interests with populist labor demands. For the millions of ojol drivers on the streets of Jakarta, the President’s words offer hope for a more equitable future, but the transition from a political speech to a legislative reality remains a complex and challenging road ahead.
