Under pressure, Grab, GoTo cut driver commissions in Indonesia

A passenger sits next to Grab corner sign as he waits for a Grab bike at Sudirman train station in Jakarta, Indonesia
GoTo and Grab will lower per-trip commissions taken from their two-wheeled drivers in Indonesia. (Source: Reuters/Beawiharta)

Indonesian ride-hailing and food delivery firm GoTo and Singapore-based Grab will lower per-trip commissions taken from their two-wheeled drivers in Indonesia to 8 per cent from 20 per cent previously beginning on July 1, the companies said on Tuesday.

Indonesian President Prabowo Subianto first announced an 8 per cent cap on commissions during a speech on May 1 but gave no timeline for implementation of the measure.

“We support the efforts to continue increasing the prosperity of the drivers,” Catherine Hindra Sutjahyo, GoTo’s VP director, said at a press conference.

She and Grab Indonesia CEO Neneng Goenadi said their companies will begin applying the 8 per cent commission rate on July 1.

In January, Reuters exclusively reported on the planned regulation that could threaten the profitability of ride-hailing platforms in their largest market in Southeast Asia.

Deputy parliament speaker Cucun Ahmad Syamsurijal said the reduced commissions were proof that Prabowo’s administration “is genuinely committed to standing by all ride-hailing drivers.”

  • Reporting by Ananda Teresia; Editing by Joe Bavier, of Reuters.

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