Indonesia gig workers turn to ride-hailing due to lack of formal jobs

A survey by the Segara Research Institute reveals that 73.8 percent of online motorcycle and taxi drivers in Indonesia entered the gig economy due to an inability to find formal employment. The study, conducted between August and September 2026 among 506 gig workers in Jakarta, Bandung, Surabaya, Medan, and Makassar, highlights the role of platform-based work as a critical alternative income source.

Key findings indicate that 40.3 percent of all respondents chose gig work because formal jobs were unavailable, while 57.3 percent had never worked in the formal sector. Among online motorcycle taxi drivers, 22.1 percent reported having previously experienced layoffs.

While flexibility was a major draw—cited by 88.1 percent of all respondents and 95 percent of motorcycle taxi drivers—the survey also noted economic dependencies. Approximately 81.6 percent of participants rely on gig work as their primary source of income, and 32.4 percent hold multiple gig roles simultaneously.