Draft decree could reshape driver welfare while pressuring ride-hailing platforms’ profits
Indonesia’s ride-hailing industry may be on the brink of its biggest regulatory shift yet, as President Prabowo Subianto considers sweeping reforms that could redefine how millions of gig workers are protected and paid.
Proposed Decree Targets Driver Welfare
Millions of Indonesian ride-hailing drivers could soon receive higher financial and social protections under a draft presidential decree being reviewed by President Prabowo Subianto. According to Reuters, the proposed rules would significantly expand benefits for drivers, marking a rare intervention in Southeast Asia’s gig economy landscape.
Lower Commission Caps Raise Industry Concerns
One of the most impactful proposals would reduce commission caps charged by platforms to drivers to 10 percent, down from the current 20 percent. Indonesia is already the only ASEAN country to cap commissions for two-wheel ride-hailing services, and further reductions could sharply limit platform profitability.
Insurance and Social Security Costs Shift to Platforms
The draft decree would require companies to fully cover accident and death insurance for drivers, estimated at about US$1 per month per driver. With roughly seven million delivery drivers nationwide, industry sources warned this could translate into soaring annual costs. Platforms would also be required to share the burden of health, old-age, and pension premiums, further increasing operating expenses.
Industry Pushback and Hiring Risks
Two industry sources told Reuters that most ride-hailing companies may struggle to sustain the changes. They cautioned that higher mandatory contributions could reduce margins and force platforms to limit the number of drivers allowed on their apps. Companies have long argued that drivers are gig workers, not employees, and therefore not entitled to full employment benefits.
Political Pressure and Driver Activism
President Prabowo’s administration has shown heightened sensitivity toward driver demands, especially after motorcycle taxi drivers joined large student-led protests in August. Presidential spokesperson Prasetyo Hadi has publicly called drivers “heroes of the economy,” underscoring their growing political influence. The death of a rider during the protests further intensified public scrutiny over gig worker safety.
Market Impact and Regional Implications
Indonesia accounted for 37 percent of ASEAN’s taxi market in 2024, driven by its large population and rapid adoption of digital payments, according to Mordor Intelligence. The proposed decree would also apply to logistics platforms such as Lalamove and J&T Express, signaling broader regulatory tightening across the on-demand delivery sector.
If enacted, the proposed decree could significantly improve protections for millions of Indonesian gig workers while challenging the business models of major ride-hailing and logistics firms, including Singapore-linked platforms. The outcome may set a powerful precedent for labor regulation across Southeast Asia, influencing how governments balance worker welfare with digital economy growth.
Sources: Malay Mail (2026) , The Jakarta Post (2026)
Keywords: Indonesia Ride Hailing, Prabowo Subianto, Gig Worker Welfare, GoTo Grab, Driver Benefits
