President Prabowo Subianto announced at Labour Day rally that a new presidential regulation caps ride‑hailing platform commission at 8 percent, down from as high as 20 percent. Drivers will now keep at least 92 percent of each fare, up from 80 percent. He warned non‑compliant firms could be barred from operating in Indonesia.

The move responds to mounting pressure from the driver’s union Garda Indonesia, which says high commissions exacerbate a broader cost‑of‑living squeeze. With about 7 million delivery riders and 7.5 million unemployed, the sector has become a key source of informal income. Grab and GoTo, the two dominant platforms, have yet to comment.

Beyond commissions, Prabowo used the rally to unveil a package that includes one million new worker housing units and low‑interest loans from state banks. He also reassured markets that oil and LPG supplies remain secure despite Middle‑East volatility, pledging a path to energy self‑sufficiency. The commission cap directly cuts platform margins, forcing a rapid adjustment in pricing models.

Investors will watch earnings reports from GoTo and Grab for any hit to revenue, as lower take rates could compress unit economics. The regulation also signals Jakarta’s willingness to intervene in gig‑economy pricing, a factor that may shape future foreign‑direct investment decisions.