Jakarta. Indonesia’s government is accelerating the finalization of a long-awaited presidential regulation on online ride-hailing drivers, aiming to issue the decree in the first quarter of 2026 to provide legal certainty for drivers, platform companies and consumers.

State Secretary Prasetyo Hadi said the administration is working to find common ground among stakeholders so the regulation can be implemented swiftly.

“Our hope is that we can soon reach the best compromise,” Prasetyo told reporters at the presidential palace on Monday. “Can it be released in the first quarter? That’s our expectation.”

The planned regulation is designed to create a fairer ecosystem for app-based transportation, an industry that has expanded rapidly over the past decade and become a major source of income for millions of Indonesians.

Prasetyo said the government’s priority is to strengthen legal protections for partner drivers, whose employment status has long been seen as ambiguous. As informal workers, most drivers lack formal contracts, job security and comprehensive social protections.

“The spirit of this regulation is to ensure our drivers receive the rights they deserve, while at the same time ensuring that application companies can continue to operate,” he said. “Both sides must move forward together.”

While the final text has not been released, the regulation is expected to address several long-standing issues, including standardization of tariffs and app commission fees, access to health and workplace accident insurance, and clearer definitions of the partnership relationship between drivers and platform operators.

Driver groups have demanded a cap on app commissions at 10 percent, clear rules on delivery tariffs, and an audit of an additional 5 percent cut from their earnings. They have also called for the removal of app features they consider harmful, such as multi-order systems and paid memberships.

The regulatory push follows nationwide protests last year, during which drivers also urged the government to include an Online Transportation Bill in the national legislative agenda.

Estimates of Indonesia’s ride-hailing workforce vary widely. Maxim Indonesia, a private operator, has suggested more than 7 million people depend on the sector for daily income, including couriers and online taxi drivers. The Social Security Agency for Employment, BPJS Ketenagakerjaan, estimates around 2 million motorcycle ride-hailing drivers, but says only about 250,000 are currently insured.

A 2023 survey by the Institute for Demographic and Poverty Studies found drivers’ average daily earnings fell to around Rp 175,000 ($11) in 2022–2023, from Rp 304,688 ($19) before the pandemic, with many working up to 11 hours a day.

Motorcycles are not classified as public transport under Indonesia’s 2009 Traffic and Road Transport Law, leaving ride-hailing to operate under a 2019 ministerial regulation. The upcoming presidential decree is expected to help close that legal gap.

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