Indonesia to Cap Online Taxi App Commissions at 8% on July 1

Indonesia to Implement 8% Commission Cap for Online Motorcycle Taxis on July 1

Indonesia to Cap Online Taxi App Commissions – Transportation Minister Dudy Purwagandhi of Indonesia has announced that the policy to limit online motorcycle taxi app commissions to 8% will begin on July 1, 2026. This decision follows a directive from President Prabowo Subianto, who outlined the adjustment on May 1, 2026, as part of broader efforts to enhance the livelihoods of drivers in the online transportation sector.

The minister emphasized that the policy is not a trial but will be enforced immediately on the specified date. He noted that the government has already shared the policy with all app providers and urged them to finalize implementation plans to ensure compliance with the new rules by the deadline.

Policy Details and Regulatory Framework

According to Dudy, a meeting with app providers and DPR leadership confirmed the 8% commission ceiling. The Ministry of Transportation is fully prepared to support the policy, having arranged administrative and technical steps to align with existing regulations. The decree governing commission rates, Minister of Transportation Decree No. KP No. 1001 of 2022, already sets the framework for calculating motorcycle service fees through apps.

“I’m saying here, I don’t agree with 10 percent; it must be below 10 percent,” said President Prabowo during his speech at the International Workers’ Day event in Jakarta on May 1.

The minister clarified that the revision only adjusts the maximum commission limit, reducing it from 20% to 8%. He explained that the existing provisions for commission rates are already in place, and the Ministry will update them to reflect the new cap. This change aims to ensure fairer profit distribution for drivers, as the current system is deemed insufficient.

Broader Regulatory Adjustments

In addition to commission caps, the Ministry of Transportation will also revise insurance provisions as part of its regulatory refinements. Dudy noted that these adjustments are consistent with the President’s directive and focus on aligning policies with the needs of online motorcycle taxi operators, particularly motorcycle drivers.

App providers have expressed their readiness to comply with the new rules, as confirmed by the Director General of Land Transportation, Aan Suhanan, who has engaged in discussions with stakeholders. Dudy highlighted that all parties are prepared to meet the President’s expectations and support the welfare of drivers.

Read: GoTo, Grab to Implement 8% Commission Cap Starting July 1

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