Prabowo Cracks Down on Gig Economy: Commissions Slashed to 8% in High-Stakes Ultimatum to Tech Giants

JAKARTA, Investortrust.id — Indonesia has sent a shockwave through its massive gig economy as President Prabowo Subianto officially mandated a drastic cut to ride-hailing commission fees.

In a fiery May Day address at the National Monument (Monas), President Prabowo declared that the previous 20% commission structure was "unfair" to the millions of drivers navigating Indonesia’s congested streets. The President’s new directive, Presidential Regulation No. 27 of 2026, forces a redistribution of wealth that favors the worker over the platform.

The President did not mince words when addressing the foreign and domestic tech companies operating in Southeast Asia’s largest economy. He emphasized that drivers risk their lives daily and deserve a lion's share of the revenue.

“The drivers work hard, risking their lives every day. The company applicators ask for a 20% deposit. How can the drivers agree to 20%? What about 10%? You ask for 10%? I say here, I do not agree with 10%,” Prabowo shouted to the crowd on Friday, May 1, 2026.

This move represents a radical shift in the "unit economics" of Southeast Asian tech. By capping platform fees at 8%, the Indonesian government is testing the profitability margins of major players like GoTo and Grab. For investors, this signals a transition from a "growth-at-all-costs" era to a highly regulated environment where social protection is a mandatory cost of doing business.

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Comply or Exit

The "Educator in Chief" issued a stern warning to any tech firm hesitating to slash their take rates. He framed the policy as a non-negotiable condition for accessing Indonesia’s lucrative market of over 270 million people.

“It must be below 10%. It’s not right that you [the driver] sweat while they [the applicator] get the money. Sorry. If they don't want to follow us, they don't need to do business in Indonesia,” Prabowo stated.

Under the new Perpres 27/2026, driver income must be at least 92% of the fare. The law also mandates that companies provide BPJS Kesehatan (public health insurance) and comprehensive work accident insurance.

Tech Giants Respond

GoTo Gojek Tokopedia (GOTO), the country’s largest tech conglomerate, moved quickly to signal cooperation. Despite the potential pressure on its bottom line, GoTo CEO Hans Patuwo expressed a commitment to the new national standards.

“GoTo always complies with government regulations, including the announcement made by President Prabowo Subianto today,” Patuwo said in an official statement on Friday afternoon.

The CEO noted that the company is currently reviewing the technical details of the regulation to understand the full implications for its vast ecosystem of drivers and consumers. GOTO shares remain a key focus for investors as the market gauges how the 8% fee cap will impact the firm's recent streak of profitability.

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A New Deal for Labor

Beyond the ride-hailing sector, the Prabowo administration is leveraging the 2026 May Day milestone to roll out a broader pro-labor agenda. This includes minimum wage hikes, 50% discounts on insurance premiums for independent workers, and expanded job opportunities for people with disabilities.

The administration’s "gift" to the labor force underscores a populist shift that prioritizes domestic consumer purchasing power over the unchecked expansion of platform fees. As the July 2026 deadline for new infrastructure projects nears, this labor reform sets a new baseline for the Indonesian digital economy.