Indonesia Finalizes Online Motorcycle Taxi Rules, What Will Change?
The regulation was previously targeted for completion before Indonesia's 81st Independence Day on August 17.
Indonesia is finalizing regulations governing the online transportation ecosystem, including motorcycle taxi services. State Secretary Prasetyo Hadi stated that most key provisions of the presidential regulation have been agreed upon, with only the formula for the updated business model remaining to be completed.
Under the proposed changes, online motorcycle taxi drivers could receive micro, small and medium enterprises (MSME) status, which would provide them with greater flexibility in setting their working hours and access to government incentives. This classification aims to recognize drivers as small-business operators rather than just digital platform workers, and the government has ruled out imposing additional taxes on drivers with MSME status.
Another change already in effect is the commission cap set at 8 percent by online transportation platforms, following President Prabowo Subianto's directive. This policy will be incorporated into the presidential regulation to ensure a clear legal framework for its implementation, allowing drivers to retain a larger portion of their earnings while enabling platforms to continue their operations.
The government is also working on finalizing a new business model formula for online transportation services, ensuring that the regulation does not disrupt existing operations once implemented. While two provisions concerning online motorcycle taxis are still under discussion, the government aims to complete the regulation before Indonesia's 81st Independence Day on August 17.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
