House to draft special law on online transportation to regulate ride-hailing services fairly

  • Published on 22/05/2025 GMT+7

  • Reading time 3 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

The House of Representatives (DPR) is preparing to draft a dedicated law on online transportation services, aiming to provide a legal framework separated from current traffic and road transportation regulations.

Chairman of the House’s infrastructure and transportation Commission V chairman, Lasarus, said that the upcoming legislation would give online transport platforms − such as ride-hailing services − their own legal basis, distinct from existing general transport laws. The discussion will involve multiple commissions, including Commission I, V, VII, IX, and XI, given the broad scope and multi-agency oversight of online transport.

"Every article and clause will be discussed and consulted with all online transport drivers, not just for the benefit of one group," Lasarus said during a public hearing with 66 online transportation associations on Wednesday, May 21, 2025.

Lasarus clarified that the law will not be issued in the near term due to the complex nature of its cross-commission discussion and the need for a thorough technical regulation to avoid misinterpretation in its implementation. The immediate goal is to include it in the National Legislative Program (Prolegnas), although he did not specify a timeline for formal deliberation.

The push for a specific law on online transportation comes under the direction of DPR leadership. Lasarus said his team has compiled sufficient background materials to draft the academic paper for the proposed bill. A key element of the future law will be the inclusion of clear sanctions, especially regarding commission fees charged by app-based companies.

Currently, the maximum commission deduction for online motorcycle taxi (ojol) services is capped at 15 percent, plus an additional 5 percent for driver welfare, as per the Ministry of Transportation Decree No. 1001/2022 − totaling no more than 20 percent of the driver's gross income per trip. For online taxi services, a similar 20 percent cap is outlined in Ministry Regulation No. 118/2018. These figures are subject to evaluation every three months if companies are found to be exceeding the limit.

However, Commission V member Adian Napitupulu revealed that some ride-hailing companies are currently deducting between 30 percent and 50 percent from drivers’ earnings. He attributed the excessive cuts to additional charges imposed on drivers without a clear legal basis.

“These extra costs lack a legal foundation. If we take the delivery service charges alone and multiply that by the 4.2 million sellers using the platform, the companies could be earning up to Rp92 billion (US$6 million) per day,” Adian said.

The proposed legislation aims to introduce transparency and fairness to the digital transport sector, ensuring that drivers are protected and companies are held accountable under clearly defined legal standards.

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