Jakarta. President Prabowo Subianto on Friday announced a regulation capping the share of driver earnings that ride-hailing companies can deduct, in a move aimed at improving welfare in the country’s fast-growing gig economy.

The presidential regulation No. 27/2026 on the protection of online transportation workers limits platform commissions to a maximum of 8%, significantly below previous practices that could reach up to 20% or more.

“Ride-hailing drivers work hard and risk their safety every day. It is unfair if deductions reach 20%. Even 10% is too high -- I want it below that,” Prabowo said during a May Day event at the National Monument Square in Jakarta.

Beyond regulating revenue-sharing, the decree also mandates expanded social protections for drivers, including workplace accident insurance and enrollment in the national healthcare system administered by BPJS Kesehatan.

Indonesia is estimated to have more than 4 million ride-hailing drivers, both motorcycle and car-based, with roughly a quarter operating in the Greater Jakarta area.

The policy builds on earlier measures introduced last year, when the government required ride-hailing operators to provide Idul Fitri holiday bonuses to their driver-partners, signaling a broader push to formalize protections in the platform-based transport sector.