By default webMethods logs (all components such IS, MWS, Optimize etc) rotate every 24h on midnight. You can change that interval by modifying an extended property.
For IntegrationServer 9.6 and lower it is watt.server.logRotateInterval (in milliseconds).
Please note: The watt.server.logRotateInterval parameter was removed from Integration Server after
8.2 SP2. When it was reintroduced for the following fixes, the scope of the parameter changed so that it affected only the stats.log:
IS_9.0_SP1_Core_Fix6
IS_9.5_SP1_Core_Fix3
IS_9.6_Core_Fix2
Starting with Integration Server 9.7, this server configuration parameter has been renamed watt.server.statsLogRotateInterval (in minutes instead of milliseconds), but affects only stats.log file as well.
So I think there is no way to change the log rotate interval. For compressing the old log files I think the best solution would be to write a service that does that and used that service to create a scheduled task (executed daily after midnight).