Indonesia debates regulatory status and welfare of online taxi drivers

Indonesian authorities and labor groups are debating the regulatory status and welfare of online motorcycle taxi (ojol) drivers. The Ministry of Communication and Digital is preparing new regulations for goods and food delivery services, with lawmakers emphasizing that these rules must guarantee driver welfare and prevent financial loss for partners.

A central point of contention is the proposal to reclassify ojol drivers as micro, small, and medium enterprise (UMKM) entrepreneurs. The Indonesian Transport Workers Union (SPAI) rejects this status, arguing it contradicts President Prabowo Subianto’s commitment to protecting online transportation workers. SPAI contends that the UMKM designation undermines labor rights, such as holiday bonuses and minimum wage protections, and fails to secure adequate income.

In response, the Minister of Micro, Small, and Medium Enterprises, Maman Abdurrahman, stated that the government has consulted nearly 20 communities and found that a majority support the UMKM status to ensure a healthy and sustainable ecosystem. While acknowledging the union's stance, the Ministry maintains that the decision must consider the broader interests of the majority of drivers and application providers.