Indonesia to cut ride-hailing companies' maximum commission taken from drivers to 8%

JAKARTA, May 1 (Reuters) - 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 ride-hailing platforms in their largest market in Southeast Asia.

• The rule will affect ride-hailing firms such as Indonesian tech firm GoTo GOTO.JK and Singapore-based rival Grab GRAB.O..