Government Plans to Classify Online Motorcycle Taxi Drivers as Micro-Entrepreneurs

The government is considering classifying online motorcycle taxi (ojol) drivers as micro-entrepreneurs as part of efforts to strengthen protection for the ride-hailing transport ecosystem. State Secretary Minister Prasetyo Hadi said the consideration is based on the government’s desire to ensure that economic activities in the transport services sector receive adequate protection, both in terms of income, workers’ rights, and the future certainty of the profession.

According to Prasetyo, the government is also considering the sustainability of transport service companies, as certain conditions can affect company performance, which in turn impacts drivers. The discourse on making ojol drivers part of micro, small, and medium enterprises (MSMEs) is still being discussed as material in the drafting of a presidential regulation on the online motorcycle taxi sector.

He said the government still needs time to find the right formula and common ground on various issues related to ojol regulations so that the issued rules can accommodate all interests. Previously, Minister of Micro, Small, and Medium Enterprises Maman Abdurrahman stated that the draft presidential regulation would treat drivers as micro-entrepreneurs to strengthen the people’s economic ecosystem.

Maman explained that the regulation is being drafted to maintain a balance of interests among all parties in the online transport ecosystem, including drivers, app operators, MSME sellers, and consumers. He added that the government has already addressed drivers’ aspirations regarding trip fare distribution, with 92 percent for drivers and 8 percent for app operators, as conveyed directly by President Prabowo Subianto during the International Labour Day commemoration. The micro-entrepreneur status is considered suitable for drivers who operate independently, providing their own vehicles and capital while partnering with app companies.