Indonesian Ride-Hailing Drivers Eye Major Benefits Amid Regulatory Overhaul

Indonesia is considering a draft decree that would significantly increase financial and social benefits for ride-hailing drivers, posing a threat to the profitability of major platforms like GoTo and Grab. The changes reflect growing political pressure to improve conditions for gig workers amid possible market monopolization.

In a move that could reshape Southeast Asia's ride-hailing landscape, Indonesian President Prabowo Subianto is contemplating a draft decree to bolster financial and social benefits for millions of ride-hailing drivers. The initiative, aimed at capping commissions, enhancing insurance coverage, and protecting workers' rights, comes amid pressures from recent protests.

Currently, platforms like GoTo and Grab face scrutiny due to a potential merger and the ongoing debate over driver welfare. Proposed reductions in commission caps and an increase in company-paid insurance present challenges for these companies, expected to impact their operational margins significantly.

The proposed decree also sets the stage for stronger worker rights, allowing unionization and mandating government reviews of company-worker agreements. As Indonesian drivers emerge as a political force, the administration must balance economic interests and worker demands to maintain this crucial sector's stability.

(With inputs from agencies.)