Indonesia finalizes online taxi regulation and revenue sharing

The Indonesian government is finalizing Presidential Regulation (Perpres) No. 27 of 2026 to regulate the online transportation ecosystem. A key component of the regulation is a new revenue-sharing formula, which shifts the driver's portion from 80 percent to 92 percent, leaving a maximum 8 percent commission for application providers. President Prabowo Subianto noted that this recommendation has already led to significant income increases for some drivers.

Under the new regulation, online motorcycle taxi (ojol) drivers will be classified as Micro, Small, and Medium Enterprises (MSMEs). This status grants them access to various benefits, including tax incentives for those with annual turnovers below Rp 500 million, access to People's Business Credit (KUR) with ceilings up to Rp 500 million, and business training. Drivers will also remain eligible for religious holiday bonuses (BHR).

The Indonesian House of Representatives (DPR) is conducting final reviews to ensure the regulation creates a fair ecosystem for drivers, platforms, and passengers without introducing hidden costs. A final meeting to finalize the distinction between passenger and goods delivery services is scheduled for August 18, 2026.