Indonesia's plans to regulate ride-hailing rates threaten Grab, Go-Jek models

Indonesia is preparing to launch regulations fixing the rates drivers and riders for ride-hailing services such as Grab and Go-Jek receive, two government officials said this week, creating potential obstacles for the companies' expansion.

The regulations would meet drivers demands for more oversight and higher rates but there are concerns that the rising costs to the companies could stifle their development as they battle to dominate the ride-hailing market in Southeast Asia's biggest economy.