Indonesia caps ride-hailing commission fees at 8% in ‘radical correction’ of sector

AI Summary

Indonesia is reforming its ride-hailing sector, capping commission fees at 8% in an effort to enhance driver earnings and regulate the industry. This move reflects a significant shift in one of Asia's largest on-demand economies and acknowledges the political influence of numerous drivers.

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...