Indonesia to cap online taxi app commissions at 8% from July 1, 2026

Indonesia is set to cap commissions for online motorcycle taxi (ojol) services at a maximum of 8 percent, a policy that will take effect on July 1, 2026. Transportation Minister Dudy Purwagandhi confirmed the implementation date, stating that President Prabowo Subianto had announced the adjustment on May 1, 2026, as part of an initiative to enhance the welfare of ojol drivers.

The minister emphasized that this is not a trial period but an immediate implementation. "Oh no (not a trial), it will be implemented immediately on July 1. We'll see what the reaction is," Purwagandhi stated in Jakarta on Saturday. He confirmed that the government has already communicated the policy to all app providers, urging them to prepare the necessary steps for its timely execution.

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Oh no (not a trial), it will be implemented immediately on July 1. We'll see what the reaction is.

According to Purwagandhi, a meeting between app providers and the House of Representatives (DPR) leadership resulted in an agreement for the 8 percent commission cap to officially begin on July 1. The Ministry of Transportation is fully supporting this policy, ensuring all administrative and technical aspects are in place. App providers have reportedly committed to supporting the government's directive, as expressed in various meetings over recent months.

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Director General of Land Transportation, Aan Suhanan, has held discussions with app providers, concluding that all parties are prepared to implement the President's policy. Purwagandhi clarified that the commission changes do not require new regulations, as the existing Minister of Transportation Decree No. KP No. 1001 of 2022 already covers guidelines for calculating service fees. The ministry will revise this decree to lower the maximum commission limit from 20 percent to 8 percent, aligning with President Prabowo's directive.

In addition to commission rates, the Ministry of Transportation will also update insurance provisions as part of regulatory refinements. Purwagandhi stressed that these changes are confined to regulations previously under the ministry's authority and are in accordance with the President's May 1st directive. Despite the revised regulations not being officially issued yet, app companies have indicated their readiness to support the policy after considering various dynamics to meet driver expectations.

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So, with the 8 percent commission, we will revise the original commission provision, which stated a maximum of 20 percent. That's 15 plus 5, right? We will revise it to a maximum of 8 percent.