Indonesia is moving to reshape its ride-hailing industry from the inside, with officials saying the state has acquired stakes in app companies as President Prabowo Subianto seeks to raise drivers’ earnings and rein in commission fees.
The move could mark a significant shift in one of Southeast Asia’s biggest on-demand economies, where millions of drivers for platforms such as Gojek and Grab have become a highly visible labour force and, analysts say, a potent political bloc.
Last week, Prabowo announced a presidential decree that would lower the commission fees ride-hailing companies charge drivers for each order, from 20 per cent to 8 per cent.
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Drivers would also get universal healthcare and work accident insurance, he said.
“It’s not right that you [drivers] are the ones sweating, but they [the companies] are getting the money. Sorry, if they [the companies] don’t want to comply, don’t bother doing business in Indonesia,” Prabowo said in front of drivers during a May Day rally in Jakarta on Friday.
To ensure that Indonesia’s 7 million ride-hailing drivers get their pay bump, the government, through state wealth fund Danantara, has acquired stakes in several companies, according to Sufmi Dasco Ahmad, deputy speaker of the House of Representatives.