Grab and GoTo Brace for Impact as Prabowo Mandates Historic 8% Fee Cap

JAKARTA, Investortrust.id — The regional tech landscape is bracing for a massive structural shift after President Prabowo Subianto issued a bold "comply or exit" ultimatum to ride-hailing giants, slashing platform commissions to just 8%.

President Prabowo used his 2026 May Day address at Jakarta’s National Monument to dismantle the long-standing 20% commission model that has fueled the growth of Southeast Asian "super-apps." By signing Presidential Regulation (Perpres) No. 27 of 2026, the President has legally mandated that at least 92% of every fare must go directly into the pockets of the drivers.

The move is a populist masterstroke that directly challenges the profit margins of the industry's biggest players. Prabowo’s rhetoric was unmistakable, framing the high fees as an exploitation of the working class.

“The drivers work hard, risking their lives every day. Company applicators ask for 20%. How can the drivers agree to that? I say here, I do not agree with 10%; it must be below 10%,” Prabowo declared before a massive crowd of workers on Friday, May 1, 2026.

For global investors, this is a defining moment for the "gig economy" in emerging markets. Indonesia is no longer just a growth theater for tech firms; it is now a strictly regulated territory where social welfare is prioritized over platform profitability. The 8% cap is one of the lowest in the world, and how Gojek and Grab navigate this will set a precedent for gig-worker rights across the Global South.

Grab and GoTo Signal Cooperation

The two dominant forces in the market, Grab Indonesia and Gojek Tokopedia (GoTo), the country’s largest homegrown tech conglomerate, have both issued cautious yet respectful responses. Grab Indonesia CEO Neneng Goenadi stated on Saturday that the firm supports the President’s vision for social welfare but noted the fundamental nature of the change.

“Grab Indonesia respects the directions conveyed by President Prabowo Subianto. We consider the proposed commission structure a fundamental change to how digital platforms function as a marketplace,” Goenadi said in a written statement on May 2, 2026.

Similarly, GoTo CEO Hans Patuwo pledged that the Jakarta-listed giant would align its ecosystem with the new law. Patuwo emphasized on Friday that GoTo has always been a partner to the government and will work to ensure the ecosystem remains sustainable for both drivers and customers.

A "Pinnacle" Victory for Drivers

The driver associations are calling the decree the "puncak" or the ultimate peak of a decade-long struggle. Raden Igun Wicaksono, Chairman of the Garda Indonesia Driver Association, pointed out that the government actually gave them more than they asked for.

“From a demand of 10% to a realization of 8%, this proves that organized voices, based on data and consistent struggle, are capable of producing significant policy changes,” Wicaksono said on Friday.

Beyond the cash split, the regulation forces a total overhaul of the "partner" relationship. Platforms are now legally obligated to provide BPJS Kesehatan (public health insurance) and work accident coverage, effectively closing the gap between independent contractors and formal employees. This shift in liability and cost is expected to force a major re-evaluation of ride-hailing ticket prices in the coming months.