Indonesia to cut ride-hailing companies

Indonesia will cut the caps on the commissions that ride-hailing companies take from drivers for each trip to 8% from 20%, President Prabowo Subianto said on Friday in Jakarta. Here are the details: * Prabowo said he signed a presidential regulation which was the basis for the new maximum commission cap that ride-hailing firms could take from their driver partners. * "The revenue share for drivers has been increased from 80% to a minimum of 92%," he said during a speech. * Prabowo did not say when the regulation would take effect. * Aside from the lower commission cap, the regulation will also require ride-hailing firms to provide accident and health insurance, Prabowo said. * "It’s just not right that you’re (drivers) the one sweating while they’re (the platforms) the ones making the money," Prabowo added. * In January, Reuters exclusively reported on the planned regulation that will threaten the profitability of ri

de-hailing platforms in their largest market in Southeast Asia. * The rule will affect ride-hailing firms such as Indonesian tech firm GoTo and Singapore-based rival Grab.