New Presidential Regulation on Protection of Digital Platform-Based Transportation Ecosystem
On April 30, 2026, the President of the Republic of Indonesia enacted Presidential Regulation No. 27 of 2026 on Protection of the Digital Platform-Based Transportation Ecosystem (“PR 27/2026”), which took effect on the same date. Despite the date of PR 27/2026, the text of PR 27/2026 was only available in early October 2026.
PR 27/2026 sets out the legal relationship between a driver (pengemudi), an Indonesian citizen who runs a micro business in two-wheeled transport, providing passenger transport and/or delivery of goods and food independently and flexibly through an application, and application companies (perusahaan aplikasi). An application company must be an Indonesian legal entity that provides, manages, and/or operates the app connecting consumers with drivers.
PR 27/2026 aims at providing legal certainty and balanced protection for both drivers and app companies within the platform-based partnership relationship established under a partnership agreement (a “Partnership Agreement”). We set out below the key provisions introduced by PR 27/2026.
♦ Partnership Agreements
Article 3(1) of PR 27/2026 provides that a driver may enter into a partnership with one or more app company and is not tied exclusively to one. The Partnership Agreement between the driver and the app company must be written in the Indonesian language.
Under Article 4(2) of PR 27/2026, a Partnership Agreement shall at least set out the following contents, namely: (i) the identities of the parties; (ii) the scope of services; (iii) the rights and obligations of the parties; (iv) the structure of the transport service fee; (v) the app service fee; (vi) the components of operational costs; (vii) the incentive mechanism; (viii) social security protection; (ix) access to transaction data; (x) the use of algorithm-based automated systems; (xi) the complaint and dispute resolution mechanism; (xii) changes to the terms and conditions of service; (xiii) account restrictions; and (xiv) termination of the agreement. The Partnership Agreement may be amended only with the consent of both the app company and the driver, and any amendment must be made clearly, in a way that the driver can easily understand, and through electronic media that the driver can access.
♦ Rights and Obligations of Drivers and App Companies
As for drivers, they have the following rights under Article 6 of PR 27/2026 to run their businesses independently and flexibly, receive transparent information on fee structures, have their personal data protected, earn income from the use of their transport services, receive explanations of algorithm-based systems affecting their services, file complaints and have them resolved fairly, receive protection appropriate to the type and degree of their disabilities, and receive training. On the other hand, drivers are also subject to the following obligations, including to meet technical and administrative requirements, comply with technical standards on safety, security, comfort, affordability, and orderliness, jointly draft agreements with the app company, comply with the app company’s platform service standards insofar as they do not conflict with applicable laws and regulations, protect consumer safety, maintain data confidentiality, use their data, identity, and app accounts properly, and report to law enforcement any delivery item suspected of endangering public safety in accordance with Article 7 of PR 27/2026.
In addition, PR 27/2026 also governs the obligations and rights of the app companies. Under Articles 8 of PR 27/2026, app companies have the following rights under this regulation, including to set platform service standards, verify and screen drivers, ensure the security of their app systems and algorithm-based systems, take action against breaches of agreements, and receive fees for the use of their apps. On the other hand, app companies are subject to obligations, including to hold a business license and comply with the obligations applicable to electronic system operators, provide transparent information on fee structures, protect drivers’ personal data, design fair, transparent, accountable, and non-discriminatory algorithm-based systems, provide an easily accessible complaint mechanism, provide protection for drivers with disabilities, support training, jointly draft agreements with drivers, comply with the rules on app service fees, ensure that drivers receive social security protection, and pay drivers their share of the income in real time after payment for the service has been made.
♦ Business Licensing
Article 10 of PR 27/2026 sets out the licensing and compliance requirements for the sector. It provides that both app companies and drivers must hold a business license under the risk-based business licensing regulations. App companies must also comply with the requirements applicable to electronic system operators, while the government is expected to make it easier for drivers to meet their licensing obligations. In addition, both parties must meet the technical and operational standards set by the relevant ministries or agencies.
♦ Fees and Taxation
Article 11 of PR 27/2026 requires app companies to apply the principles of fairness, transparency, and compliance when setting the Transport Service Fee and the App Service Fee. PR 27/2026 limits the App Service Fee at 8% of the Transport Service Fee for passenger transport and/or the delivery of goods and food. The Transport Service Fee for passenger transport must be determined in accordance with the guidelines and calculation method issued by the minister in charge of transportation, while the fee for the delivery of goods and food must follow the guidelines issued by the minister in charge of communications and information.
Under Article 13 of PR 27/2026, an app Company that offers multiple types of services through a single app must maintain separate records for passenger transport and the delivery of goods and food. This separation aims at ensuring that policies applicable to one type of service do not disproportionately affect another type of service with different characteristics. The app company must also submit the results of this separation to the relevant ministry or agency.
♦ Disputes Resolution
PR 27/2026 provides the dispute resolution mechanism for the drivers and the app Companies. There are three steps of dispute resolution set out pursuant to this regulation.
Firstly, disputes are first settled through the app company’s internal complaint mechanism, by deliberation to reach consensus. The app company must provide a complaint center that is easy to access, responsive, transparent, and documented, which may be online and/or offline. The app company must respond to a complaint within 7 days of receiving it.
Secondly, if the dispute is not resolved, the driver may file a complaint with the Regional Government or the relevant ministry or agency, which may facilitate the settlement.
Finally, if the dispute still cannot be settled, the parties may pursue legal remedies under the prevailing laws and regulations.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Shafa Femalea Sekar Nuswantari (snuswantari@aksetlaw.com) for further information.
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