Indonesian Ride-Hailing Revolution: Bold Decree Seeks Better Benefits for Drivers

Indonesian ride-hailing drivers could see significant improvements in financial and social benefits under a proposed presidential decree. The draft aims to reduce commission caps and enforce full insurance payments by companies, amidst merger concerns and mounting pressure from driver protests demanding better working conditions.

Millions of Indonesian ride-hailing drivers may soon experience substantial improvements in financial and social benefits, according to a draft decree being reviewed by President Prabowo Subianto. This proposal has incited concerns about the potential impact on the profitability of ride-sharing platforms in the region's largest market, according to sources.

The urgency for these reforms intensified following widespread protests by drivers, highlighting the political influence of this workforce. A potential merger between Indonesia's GoTo and Singapore's Grab adds to fears, potentially creating an unfair monopoly that critics argue will disadvantage drivers.

The proposed decree mandates a reduction in the commission cap from 20% to 10% and demands companies fully fund accident and death insurances, significantly impacting operational costs. Further, the government would have the authority to evaluate company-driver agreements and uphold workers' rights to unionize.