The growth of digital economics in Indonesia has driven an increase\nin project-based or gig workers, including online transport drivers,\nlogistics couriers, and digital freelancers. However, the regulatory\nframework governing this sector remains fragmented and fails to provide\ncertainty regarding worker status or protections.<\/p>\n
The Centre for Indonesian Policy Studies (CIPS), an independent and\nnon-partisan think tank focusing on public policy research and\nrecommendations, addressed this matter in its latest policy brief titled\n\u201cNavigating the Future of Work: Policy Approaches for Gig Work in\nIndonesia.\u201d<\/p>\n
\u201cThrough this publication, CIPS aims to provide analysis and policy\nrecommendations to the government and stakeholders regarding the\ndevelopment of the gig economy in Indonesia and more targeted regulatory\napproaches to protect workers whilst maintaining innovation in the\ndigital economy,\u201d said Jimmy Daniel Berlianto, Senior Research and\nPolicy Analyst at CIPS.<\/p>\n
Gig work, according to Berlianto, is flexible work based on\nshort-term tasks or projects, typically conducted through digital\nplatforms. In Indonesia, this activity is expanding particularly in\nonline transportation, logistics, e-commerce delivery, and digital\nfreelance work such as graphic design, programming, and content\nwriting.<\/p>\n
Most visible<\/p>\n
Gig workers in the digital transportation sector\u2014such as ride-hailing\ndrivers operating through platforms including inDrive, Gojek, and\nGrab\u2014represent one of the most visible worker groups in Indonesia\u2019s gig\neconomy development.<\/p>\n
\u201cCIPS research notes that the gig economy\u2019s contribution to\nIndonesia\u2019s economy reached approximately USD 7 billion or approximately\n0.62% of Gross Domestic Product (GDP) in 2019. Whilst its contribution\nremains relatively small, this sector is estimated to continue growing\nas digital technology usage and platform economies expand,\u201d Berlianto\nstated.<\/p>\n
However, behind these opportunities, some gig workers face unstable\nworking conditions, uncertain income, and limited bargaining power\nagainst platforms.<\/p>\n
CIPS\u2019s study identified that some platform workers, particularly\nride-hailing drivers, fall into \u201cdisguised employment\u201d\ncategories\u2014situations where individuals appear to be self-employed but\npractically work like employees due to heavy dependence on a single\nemployer or platform.<\/p>\n
This policy brief emphasises that gig workers cannot be treated as a\nuniform group. Based on work autonomy levels and bargaining power\nagainst platforms or clients, the research identifies four main gig\nworker categories: disguised employment, dependent self-employment,\nconstrained high-leverage self-employment, and independent\nself-employment.<\/p>\n
Disguised employment describes workers with low autonomy dependent on\na single platform. Dependent self-employment refers to self-employed\nworkers heavily reliant on one or a few main clients. Constrained\nhigh-leverage self-employment involves highly skilled workers facing\nlimited access to capital, networks, or resources. Independent\nself-employment represents truly independent work with full control over\noperations and diverse client sources.<\/p>\n
Worker protection<\/p>\n
Gig workers in digital sectors such as designers, programmers, and\nfreelance writers tend to have higher autonomy and flexibility levels,\nrequiring policies focused on market access and competitiveness.<\/p>\n
Jimmy emphasised that gig work policies should not adopt a\none-size-fits-all approach.<\/p>\n
\u201cOverly broad regulatory approaches risk hindering the flexibility\nthat constitutes gig work\u2019s primary advantage. Therefore, policies\nshould focus on protecting workers in disguised employment situations,\nwithout impeding opportunities and innovation for other gig workers,\u201d he\nstated.<\/p>\n
CIPS recommends that the Indonesian government avoid comprehensive\nregulatory approaches and instead target protection for gig workers with\nlow autonomy and limited bargaining power. Additionally, CIPS encourages\nthe government to strengthen dispute resolution mechanisms between gig\nworkers and platforms, and to enhance the transparency of algorithms\nused by digital platforms.<\/p>\n
This transparency should encompass information regarding service\ntariff determination, platform commissions, incentive systems, and\npenalty mechanisms that can affect worker earnings.<\/p>\n
Through more precisely targeted policy approaches, Indonesia is\nexpected to protect vulnerable workers whilst maintaining the dynamic\ninnovation and continued growth of the digital economy.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/cips-urges-more-targeted-gig-economy-regulation-in-indonesia-1773424702", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }