Indonesia Plans New Ride-Hailing Rules That Could Reshape Driver Pay and Benefits

Post by : Saif

Indonesia’s ride-hailing industry may soon see major changes as the government considers new rules that could improve pay and protection for millions of drivers. A draft presidential decree under review by President Prabowo Subianto aims to reduce company commissions and expand insurance and social benefits for drivers, a move that could strongly affect both workers and companies.

The proposed changes come after growing public pressure to improve conditions for ride-hailing drivers. In recent months, drivers joined large protests alongside students, showing how powerful and organized this workforce has become. These protests highlighted long-standing issues such as low earnings, lack of insurance, and unsafe working conditions, pushing the government to respond.

According to the draft decree, ride-hailing companies would only be allowed to take a maximum commission of 10% from each trip, down from the current 20% cap. This means drivers would keep more of the money paid by customers. Indonesia is already unique in Southeast Asia for having commission limits on motorcycle ride-hailing services, and the new proposal would tighten those limits further.

The draft also requires companies to fully pay for accident and death insurance for drivers. With around seven million drivers working in ride-hailing and delivery services across the country, this could add large new costs for platforms. In addition, companies would need to share the cost of health insurance, pensions, and old-age benefits, increasing their overall expenses.

Industry insiders have warned that these changes may be difficult for companies to handle. Some fear higher costs could reduce profits and force platforms to limit how many drivers they accept. Ride-hailing firms have long argued that drivers are independent gig workers and not full-time employees, and therefore should not receive the same benefits.

Driver groups and labor unions have welcomed the proposed rules. They say the changes would offer fairer pay and basic security for workers who depend on ride-hailing to support their families. Union leaders have asked the government to make sure the benefits are applied clearly and without extra conditions that could reduce their impact.

The debate over the new rules is also linked to concerns about competition. Possible merger talks between major ride-hailing companies have raised fears of reduced competition and weaker bargaining power for drivers. Supporters of the decree believe stronger government rules are needed to protect workers in such a situation.

President Prabowo’s administration has repeatedly praised ride-hailing drivers as important contributors to the economy. Experts say public concern grew after the death of a motorcycle taxi driver during earlier protests, increasing the urgency to improve worker safety and rights.

If the president enforces the rules through a decree, they could take effect quickly. While drivers stand to gain better pay and protection, companies will need to adjust their business models. The coming period will be crucial in deciding whether Indonesia can protect workers while keeping the ride-hailing industry strong and stable.

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