Assessing the Impact of Presidential Regulation on Online Taxi Drivers' Welfare
Amidst increasing public pressure regarding digital platform work practices, the government has finally issued Presidential Regulation (Perpres) Number 27 of 2026 concerning the Protection of Online Transport Workers. This step is commendable as it represents state recognition that millions of platform workers are not merely “app partners,” but an essential part of the national digital economic ecosystem.
This regulation also marks a new chapter in the regulation of Indonesia’s ride-hailing ecosystem. In total, the government has issued at least 12 regulations related to this sector: nine from the Ministry of Transportation, two from the Ministry of Manpower regarding BHR, and now one regulation at the Presidential level. In terms of legal hierarchy, the position of a Presidential Regulation is significantly stronger than previous regulations.
However, the official text of Perpres 2/2026, containing the final number and the President’s signature, is not yet openly accessible to the public. Consequently, many researchers, driver unions, and civil society members have been unable to conduct an in-depth reading of the policy’s substance.
Based on official government statements, this regulation only touches upon a small portion of the “decent work” principles established by the International Labour Organization (ILO). Of the five main principles—fair pay, fair working conditions, fair contracts, fair management, and fair representation—the regulation only accommodates aspects of income and working conditions, and even then, only partially.
As the ride-hailing industry has expanded in Indonesia for over a decade, digital platforms have successfully built massive valuations and attracted significant investment. Simultaneously, however, driver welfare has continued to face pressure.
The fundamental issue lies within the economic structure of the platform itself. In practice, the primary infrastructure of online transport services is not just the application, but also the labour and the risks borne by the drivers. Vehicles are privately owned, and costs such as fuel, vehicle instalments, internet data, maintenance, as well as accident and health risks, are largely borne by the drivers.
Findings from a recent survey by the Institute for Demographic and Affluence Studies (IDEAS) in December 2025 illustrate this inequality concretely. The survey, conducted using purposive sampling of 1,018 online motorcycle taxi drivers across 62 regencies/cities, shows that with an application commission of 20 per cent, the average gross income for drivers reaches Rp126,313 per day, or approximately Rp3.15 million per month.