Post by : Shakul

Indonesia has announced a major policy change aimed at improving the earnings and welfare of ride-hailing drivers across the country. The government has decided to significantly reduce the commission that ride-hailing companies can take from drivers, marking an important step in regulating the gig economy.

The decision was announced by Prabowo Subianto during a public address in Jakarta. He stated that a new presidential regulation has been signed, which will set a maximum commission cap for ride-hailing platforms at 8 percent per trip.

This new policy represents a sharp reduction from the previous commission level of around 20 percent. As a result, drivers will now receive a larger share of the earnings from each ride, with their portion increasing from approximately 80 percent to at least 92 percent.

The President emphasized that the move is intended to create a fairer system for drivers, who often bear the physical and financial burden of their work. He highlighted that drivers should receive a greater share of the income they help generate.

In addition to reducing commission rates, the regulation will also require ride-hailing companies to provide accident and health insurance for their driver partners. This step aims to offer better protection and security for workers in the gig economy.

The policy is expected to impact major ride-hailing companies operating in Indonesia, including GoTo and Grab. These companies may face challenges in adjusting their business models to comply with the new rules.

The decision follows ongoing concerns raised by drivers about low earnings and high operational costs. Many drivers have argued that commissions and expenses such as fuel significantly reduce their daily income, making it difficult to maintain a stable livelihood.

In recent years, thousands of drivers have participated in protests, calling for lower commission rates and better working conditions. The new regulation appears to address many of these demands and reflects the government’s response to public pressure.

While the policy is expected to benefit drivers, it may also affect the profitability of ride-hailing platforms. Industry observers believe that companies may need to explore new strategies to balance costs while continuing to provide services.

Overall, this move signals a stronger role of the government in regulating the gig economy. By prioritizing driver welfare and introducing protective measures, Indonesia aims to create a more balanced and sustainable environment for both workers and businesses.

#Business News #Economy #Policy #Business #policy statement