Indonesian President Prabowo Subianto announced new economic measures during International Workers' Day, including a reduction in ride-hailing platform commission fees and the introduction of low-interest credit for small-scale workers.
Key points
- President Prabowo Subianto signed Presidential Regulation Number 27 of 2026, capping ride-hailing application commissions at 8 percent, down from the previous 20 percent.
- The government plans to launch a People's Business Credit (KUR) program with a maximum annual interest rate of 5 percent to support laborers, farmers, and fishermen.
- New housing initiatives were introduced to allow workers to convert monthly rent payments into long-term mortgage installments of up to 40 years.
- The administration is working with the House of Representatives to finalize a new labor law aimed at ensuring greater justice for the workforce.
Why it matters
These policies represent a significant shift in government intervention to protect the purchasing power and financial stability of Indonesia's gig economy workers and low-income citizens.
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