Indonesian Lawmakers Back Ojol Commission Cut, Warn Against Consumer Burden

Indonesia's House of Representatives (DPR) has welcomed a planned 8% reduction in commission fees for online motorcycle taxi (ojol) platforms, set to take effect on July 1, 2026.

Syaiful Huda, Deputy Speaker of Commission V of the DPR, stated that this policy is a direct response to President Prabowo's instructions aimed at safeguarding the economic rights of digital transport workers. Huda emphasized the need for continuous oversight and evaluation to ensure the policy does not compromise service quality.

A primary concern highlighted by Huda is the potential for ride-hailing companies to unilaterally increase service prices for consumers to compensate for the reduced commissions. He warned that a significant rise in fares could lead to a sharp decline in passenger numbers, ultimately harming the daily earnings of drivers and threatening the sustainability of the app companies themselves.

"We must ensure this policy does not burden both app companies and consumers. If it triggers price increases that burden the public, we fear a drop in passenger occupancy. If that happens, drivers and the app companies themselves will be harmed," Huda explained. He urged the Ministry of Transportation to collaborate closely with the Ministry of Communication and Digital and the Ministry of Manpower to conduct a comprehensive evaluation.

Huda also called for the Ministry of Transportation to refine technical regulations governing revenue-sharing formulas transparently. This includes clearly defining app costs, incentives, and other deductions to provide legal certainty and prevent hidden costs that disadvantage drivers. The DPR has pledged to closely monitor the policy's implementation and expects app companies to regularly disclose their operational performance reports to the public.