Government Classifies Online Motorcycle Taxi Drivers as MSMEs, Granting Access to KUR

The government will categorise online motorcycle taxi (ojol) drivers as micro-enterprise operators in the online transportation sector, entitling them to various incentives and facilities, including access to Kredit Usaha Rakyat (KUR) financing. Minister of Micro, Small, and Medium Enterprises Maman Abdurrahman confirmed the move, stating that drivers would be treated as micro-entrepreneurs and receive all benefits afforded to such businesses. He noted that the majority of ojol drivers earn below Rp500 million annually, meaning they would be subject to a 0% tax rate. Beyond tax incentives, the government is preparing empowerment programmes covering financing access, business capacity building, and training. Maman expressed hope that drivers would not solely depend on online transportation income but could also develop other ventures. He added that administrative requirements, such as obtaining a Business Identification Number (NIB), would not be prioritised during the initial implementation phase to allow for a smooth transition. The micro-enterprise status will be granted automatically to all drivers registered on app platforms, reflecting the aspirations of ojol associations. The primary spirit of the policy is to provide protection and empowerment, with technical matters to be further coordinated between the government, app companies, and driver associations. The legal basis for the policy will be established through a Presidential Regulation currently being prepared.