Indonesia finalizes regulation for online transportation worker protection

The Indonesian government is finalizing a Presidential Regulation (Perpres) regarding the protection of online transportation workers, which is expected to be completed by the end of August. Minister of Transportation Dudy Purwagandhi stated that the regulation will cover passenger, goods, and food delivery services, specifically addressing the maximum commission rates that digital platforms can deduct from drivers.

Simultaneously, the Indonesian Transport Workers Union (SPAI) is urging the government to officially recognize online motorcycle taxi (ojol) drivers, taxi drivers, and cargo couriers as workers under the upcoming regulation. SPAI argues against classifying these individuals as micro, small, and medium enterprises (MSMEs), claiming such a status lacks legal basis and could strip drivers of essential rights.

SPAI Chairperson Lily Pujiati noted that the relationship between drivers and digital platforms meets the legal criteria for employment under Law Number 13 of 2003, citing the presence of work, wages, and orders. The union emphasized that drivers are subject to platform control through algorithms and the threat of account suspension or termination, necessitating protections such as health insurance and accident compensation.