Government to Split Online Transportation Oversight among Three Ministries
Jakarta. The planned regulations for app-based transportation services will divide oversight among several ministries according to the type of service provided, House of Representatives Deputy Speaker Sufmi Dasco Ahmad said on Tuesday.
Passenger transportation will be regulated by the Transportation Ministry, while delivery services for goods and food will fall under the Communications and Digital Ministry, Dasco told reporters at the parliament complex in Jakarta. Online transportation drivers will meanwhile come under the supervision of the Micro, Small, and Medium Enterprises (MSMEs) Ministry.
“Today, we finalized the framework. The regulations will not cover passenger transportation alone,” Dasco said.
The House and the government are expected to hold further meetings to complete the process. The regulations will address not only fares and platform commissions charged to drivers but also various categories of app-based transportation services.
State Secretary Prasetyo Hadi said the government aims to finalize a presidential regulation governing online transportation services by the end of August 2026.
Prasetyo said the State Secretariat will lead the harmonization process once discussions between the House and the government are completed.
“We at the State Secretariat will directly lead the harmonization process, as Mr. Dasco mentioned earlier,” Prasetyo said.
The presidential regulation will also classify app-based transportation drivers as MSME operators, making them eligible for benefits available to small businesses, including low-interest loans and tax incentives.
One of the regulation’s key provisions will cap the commission that platform operators can deduct from drivers’ earnings at 8%, down from as much as 20% currently.
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