Indonesia is creating a major turning point for the Southeast Asian ride-hailing industry as President Prabowo Subianto's administration decides to lower the commission rate that platforms like Grab and GoTo are allowed to charge drivers, from 20% to 8%. Indonesian and international media outlets have been reporting on the new regulation, which was announced on International Labor Day, May 1st.
Accordingly, the Indonesian government requires ride-hailing drivers to receive a minimum of 92% of the revenue from each ride, instead of the previous approximately 80%. The platform companies must also provide accident and health insurance for their drivers. This is considered the strongest intervention ever taken by Indonesia against the digital economy . Previously, the government had considered lowering the ceiling to 10%, but President Prabowo declared that the fee "must be below 10%".
The Indonesian government stated that the policy aims to improve the income of approximately 4 million ride-hailing and delivery drivers – a workforce facing significant pressure due to rising living costs.
This decision immediately impacted the market. According to the Jakarta Globe, GoTo shares fell nearly 6% in the first trading session of the week. GoTo stated that it is reviewing the new regulations and will comply with existing regulations, while also coordinating with the government and relevant parties to assess the impact on its business operations.
Meanwhile, according to Business Times, Grab also stated that it will comply with the Indonesian government's decision, although the company may have to adjust its business model in Indonesia – currently its largest market.
The reaction from drivers has generally been quite positive. Many believe their income could increase by more than 10% if the regulations are strictly enforced. The Straits Times quoted a Grab driver in Jakarta as saying that this is a policy that "stands on the side of the workers."
However, economic experts are currently divided in their views. Some consider this a radical adjustment aimed at rebalancing the interests between digital platforms and the platform workforce.
Conversely, there are also concerns that the Indonesian ride-hailing market could shrink if businesses are forced to raise fares or cut promotions to compensate for lost revenue.
Observers believe that Indonesia is becoming ASEAN's biggest test case in managing the digital economy and the workforce. If this model proves effective, many countries in the region may consider adopting similar measures to protect ride-hailing drivers and delivery workers.
Source: https://vtv.vn/indonesia-gioi-han-muc-phi-hoa-hong-goi-xe-cong-nghe-100260507110404419.htm
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