During the May 1 Labor Day celebrations, President Prabowo Subianto unveiled a populist move to slash the commission charged by ride-hailing platforms from 20 percent to just 8 percent. To ensure the policy sticks, state asset fund Danantara has even taken a stake in PT GoTo Gojek Tokopedia, the parent company of major ride-hailing app Gojek. Although the holding reportedly remains below 1 percent, the message is clear.

At first glance, the policy looks like a clear win for drivers; a smaller platform cut could translate into higher take-home pay. However, it also signals a deeper shift: The state is moving from regulator to active participant in an industry still struggling to sustain profitability.

GoTo, which only recently posted its first quarterly net profit in Q1 this year, could be pushed back into the red if more than half of its commission-based revenue is effectively wiped out. A similar impact could affect Gojek’s main competitor, Singapore-based Grab, which counts Indonesia as its biggest market to date.

This is where the government’s intervention risks becoming a double-edged sword. To this day, ojol drivers are still classified as “partners” rather than employees, a status that has become the foundation of the gig economy. The arrangement promises flexibility but provides far fewer benefits than formal employment in order to keep platforms’ fixed labor costs low.

In response to tighter rules, ride-hailing platforms may protect their margins by raising the bar for who can become a driver, keeping only a smaller pool of high-performing partners. This adjustment may result in fewer opportunities for aspiring gig workers. Furthermore, it may also mean fewer drivers on the road, longer wait times and higher fares for consumers.

Stricter rules could also squeeze smaller players out of the market, leaving only deep-pocketed giants that can absorb thinner margins. In the long run, this may accelerate industry consolidation and potentially pave the way for the long-rumored merger between Gojek and Grab, effectively creating a monopoly.