Indonesian ride-hailing and food delivery firm GoTo IDX:GOTO and Singapore-based Grab NASDAQ:GRAB will lower per-trip commissions taken from their two-wheeled drivers in Indonesia to 8% from 20% previously beginning on July 1, the companies said on Tuesday.
Here are some key details:
Indonesian President Prabowo Subianto first announced an 8% 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 vice president director, said at a press conference.
She and Grab Indonesia CEO Neneng Goenadi said their companies will begin applying the 8% 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."