Regulations
The government's proposal to reclassify ride-hailing drivers as microbusiness owners has drawn mixed reactions, with labor unions pushing for employee status, some drivers preferring to remain partners with stronger legal protections and platform operators backing the government’s initiative.
The logos of ride-hailing service providers Gojek and Grab are seen on helmets worn by two passengers using online motorcycle taxi services on June 24 in the Kampung Melayu Besar area of South Jakarta. (JP/Iqro RInaldi)
The government's plan to classify ride-hailing drivers as microbusiness owners rather than partners has drawn mixed responses from labor groups, drivers and platform operators, highlighting a growing debate over whether the move would improve welfare or weaken labor protections.Micro, Small and Medium Enterprises (MSME) Minister Maman Abdurrahman said the move, to be formalized through a presidential regulation currently being drafted, would expand drivers' access to government support programs including entrepreneurship training, business development assistance and financing through People's Business Credit (KUR) loans.
He added that that the KUR disbursement could be streamlined by feeding drivers' data from ride-hailing platforms into the government's SAPA UMKM system, allowing them to be automatically recognized as microbusiness owners.
