Indonesian Political, Business & Finance News

Celios: Ojol MSME status must not ignore social protection

| Source: ANTARA_ID Translated from Indonesian | Economy
Celios: Ojol MSME status must not ignore social protection
Image: ANTARA_ID

The Center of Economic and Law Studies (Celios) has assessed that the plan to include online motorcycle taxi (ojol) drivers as micro-enterprise actors must not divert the government’s focus from the fundamental issue of their social protection.

Celios Digital Economy Director Nailul Huda said that regardless of the status eventually granted to ojol drivers, the government needs to ensure they receive adequate protection.

“Whether the status is UMKM (micro, small and medium enterprises) or workers or whatever, what is clear is that they must be protected in terms of health, and how social protection is provided for the drivers,” Nailul told ANTARA in Jakarta on Thursday.

Nailul added that social protection is a non-negotiable aspect in the regulation of the digital transport sector, including through drivers’ participation in BPJS Kesehatan and BPJS Ketenagakerjaan.

According to him, if the aim is to enable drivers to access financing such as Kredit Usaha Rakyat (KUR), such facilities can actually be accessed based on the business activities they own.

“If he has a business, he is eligible to receive KUR. Why must ojol be immediately classified as UMKM?” he said.

He also assessed that government assistance should not be linked solely to status as an UMKM actor.

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