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JAKARTA – Indonesia’s ride hailing giant GoTo has pledged to safeguard driver earnings following the government’s enforcement of a new regulation that caps platform commissions at 8 percent.
The move, outlined in Presidential Regulation No. 27/2026, ensures that drivers retain 92 percent of fares, a significant shift in the profit-sharing model of the industry.
Regulation and Compliance
The regulation, part of President Prabowo Subianto’s broader agenda to strengthen labor protections, mandates that online motorcycle taxi platforms limit their share of commissions.
GoTo confirmed its full compliance, stating that the adjustment would not affect consumer fares for GoRide Reguler.
By keeping prices steady, the company aims to preserve demand and protect driver income from potential fluctuations.
Hans Patuwo, CEO of GoTo, emphasized the company’s commitment to balancing profitability with social responsibility.
“As an Indonesian-born company, our priority is to ensure drivers’ welfare while maintaining ecosystem sustainability,” he said.
Impact on Drivers and Consumers
For drivers, the regulation promises greater transparency and stability in earnings.
GoTo reassured its partners that their income would remain consistent, supported by steady consumer demand.
Analysts note that avoiding fare hikes is crucial: higher prices could reduce order volumes, undermining the intended benefits of the regulation.
Consumers, meanwhile, stand to benefit from unchanged fares, preserving affordability in a sector that has become essential for urban mobility.
The decision reflects GoTo’s strategy to prioritize long-term trust over short-term margins.
Welfare Initiatives
Beyond regulatory compliance, GoTo highlighted its ongoing welfare programs designed to support drivers and their families.
These include:
– Bonus Hari Raya
– BPJS Ketenagakerjaan and BPJS Kesehatan
– Scholarships for drivers and their children
– Free Umrah trips
– Job fairs for career development
– Health checks in collaboration with the Ministry of Health
These initiatives underscore GoTo’s broader vision of driver welfare as a cornerstone of its business model.
While the regulation may reduce GoTo’s margins in the short term, the company frames the adjustment as a long term investment in ecosystem sustainability.
By reinforcing driver welfare and maintaining consumer affordability, GoTo aims to strengthen its position in Indonesia’s competitive ride-hailing market.
Industry observers suggest that the regulation could set a precedent for other sectors in the gig economy, signaling a shift toward more equitable labor practices.
For GoTo, the challenge will be balancing compliance with profitability while sustaining growth in a rapidly evolving market.
