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Indonesia plans to lower the caps on commissions that ride-hailing firms take from drivers per trip from 20% to 8%.
President Prabowo Subianto said last Friday in Jakarta that he signed a presidential regulation that was the basis for the new maximum commission cap that ride-hailing firms could take from their driver partners.
"The revenue share for drivers has been increased from 80% to a minimum of 92%," he said during a speech.
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GrabFood drivers wait for order in Jakarta, Indonesia on Dec. 30, 2021. Photo by AFP |
Aside from the lower commission cap, the regulation will also require ride-hailing firms to provide accident and health insurance, Prabowo said.
"It’s just not right that you’re (drivers) the one sweating while they’re (the platforms) the ones making the money," he added.
Prabowo did not say when the regulation would take effect. The rule will affect ride-hailing firms such as Indonesian tech firm GoTo and its Singapore-based rival Grab.
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