KONTAN.CO.ID - JAKARTA, May 1 - 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.

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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.

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"Its just not right that youre (drivers) the one sweating while they are (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 and Singapore-based rival Grab.