Jakarta. Indonesia has reclassified motorcycle ride-hailing drivers as micro-entrepreneurs and capped platform commissions at 8%, as the government seeks to boost drivers' incomes and expand social protections.

The measures took effect on Wednesday under a broader effort to strengthen support for the more than 4 million motorcycle ride-hailing, or ojol, drivers who form a significant part of Indonesia's digital economy.

Micro, Small and Medium Enterprises Minister Maman Abdurrahman said two-wheeled ride-hailing drivers will now be recognized as online transportation micro-business owners, making them eligible for government programs available to other micro enterprises, including business financing, entrepreneurship training and tax incentives.

"As of today, motorcycle ride-hailing drivers officially fall under the category of online transportation micro-entrepreneurs," Maman said on Wednesday.

The new policy also limits the commission that digital platforms can charge for passenger transport services to a maximum of 8%, down from the previous rate of around 20%. As a result, drivers will receive 92% of passenger fares under a presidential regulation issued earlier this year.

Ride-hailing leaders Gojek and Grab have agreed to comply with the new commission cap, although both companies said they would seek to balance higher driver earnings with affordable fares and the sustainability of their platforms.

The government said the new classification also means most drivers will be exempt from income tax because their annual earnings generally remain below Indonesia's Rp 500 million ($27,863) threshold for micro enterprises.

Officials are also preparing additional support programs, including access to financing and business development assistance, to encourage drivers to build supplementary sources of income beyond ride-hailing.

A December 2025 survey by the Institute for Demographic and Affluence Studies (IDEAS) found average monthly net income for ride-hailing drivers had fallen to Rp 1.7 million in 2025 from Rp 2.9 million two years earlier, as rising operating costs and platform commissions eroded take-home pay.

Driver association Garda Indonesia welcomed the commission cap, estimating it could lift daily driver earnings by 20% to 30% if platforms do not offset the policy by reducing passenger fares. Some drivers, however, said initial fare adjustments on certain routes had limited the immediate financial benefits and called on platforms to keep fares unchanged while implementing the lower commission.