Indonesia digital transportation platform regulation

Research indicates that the Indonesian gig economy serves as a vital alternative for workers unable to secure formal employment. A survey by the Segara Research Institute found that 73.8 percent of online motorcycle and taxi drivers entered the sector due to a lack of formal job opportunities, with 57.3 percent having never worked in the formal sector.

In response to the growing digital transportation ecosystem, the Indonesian government issued Presidential Regulation Number 27 of 2026 regarding the Protection of the Digital Platform-Based Transportation Ecosystem. This regulation aims to provide legal certainty for drivers, application companies, and the public by establishing a fair, safe, and transparent environment. A key provision includes a maximum application service fee of 8 percent for two-wheeled passenger transportation, a rule already implemented by Grab Indonesia for its GrabBike service.

Transportation Minister Dudy Purwagandhi emphasized that the regulation requires application companies to oversee vehicle safety standards, including maintenance and the use of proper safety equipment like helmets. Recent developments show the regulation also requires companies to provide responsive grievance services for drivers. While companies like Grab Indonesia have noted they have already applied the 8 percent cap for certain services, driver associations are awaiting further implementing regulations to clarify partnership status, income transparency, and social security.

In a broader transportation reform effort, Minister Purwagandhi has also expanded enforcement against Over Dimension Over Loading (ODOL) vehicles. Trials have begun at Tanjung Perak Port in Surabaya as part of a ‘Zero ODOL 2027’ target to ensure cargo vehicles meet technical standards before maritime loading.