Indonesian Political, Business & Finance News

New Regulations for Ride-Hailing Drivers Imminent, Says Grab

| Source: CNBC Translated from Indonesian | Regulation
New Regulations for Ride-Hailing Drivers Imminent, Says Grab
Image: CNBC

Grab Indonesia believes that policies regarding the status and protection of driver partners must consider the characteristics of platform-based work, which differ from conventional employment relationships.

Grab Indonesia’s Chief of Public Affairs, Tirza Munusamy, stated that the company understands the diverse views regarding the form of protection and the status of driver partners within the online transportation ecosystem. According to her, in addition to demonstrations, Grab has received information from dozens of communities with thousands of active members across various regions stating that they do not wish to be classified as employees or labourers.

“The policy being drafted needs to consider the characteristics of platform-based work, which is different from conventional employment relationships,” Tirza said in a written statement to CNBC Indonesia on Friday (2/1/2026).

She explained that driver partners have the freedom to determine their working hours, accept or reject orders, and use more than one platform. According to Grab, this flexibility is essential to maintain access to income opportunities that are open and adaptive.

Grab believes that if the partnership is fully equated with a permanent employment relationship, including the application of identical rights and obligations, there will be several consequences that must be taken into account. “Conventional employment relationships generally regulate working hours, labour capacity, and operational structures in a more fixed manner,” she added.

According to Tirza, applying such a structure fully to the platform model could potentially limit partners’ choices in determining their working hours and using multiple platforms. This condition is also seen as potentially reducing open access for members of the public seeking flexible income opportunities.

In the Indonesian context, Grab believes that an approach that allows partners to develop as micro-entrepreneurs is relevant to the character of platform partnerships. This approach, according to Tirza, can maintain the freedom of partners to manage their time, accept or reject orders, join without difficult requirements, and use more than one platform.

On the other hand, partners can also gain access to various micro-business supports, such as tax incentives, People’s Business Credit (KUR) financing, training, and business capacity building. Grab stated that social protection for partners can also continue to be strengthened through these schemes. Currently, driver partners can access BPJS Ketenagakerjaan (social security) through the Non-Wage Earner (BPU) scheme for self-employed workers. This access is expanded through ease of registration and payment within the ecosystem. The company also provides free BPJS Ketenlagakerjaan protection for high-performing driver partners.

Grab hopes that the resulting policy can strengthen protection for driver partners while remaining consistent with the characteristics and development of the digital economy.

Previously, regulations regarding the protection of online motorcycle taxi (ojol) drivers have begun to emerge through the Draft Law (RUU) on Labour Protection. In this Draft Law, online taxi drivers could fall under the category of Digital Platform Workers. Digital Platform Workers are defined as anyone employed or assigned to work for a business entity and/or an individual through digital technology.

This category includes workers performing tasks through digital platforms with flexible work characteristics. Article 49 of the Draft Law on Labour Protection states that Digital Platform Workers possess flexibility in terms of time, task organisation, and workplace.

The compensation system is also not solely based on task completion but can be determined by the application’s algorithm system, as well as incentives or bonuses based on performance. The Draft Law also provides rights to social security protection for Digital Platform Workers.

Furthermore, online taxi drivers will have the right to form or become members of a Trade Union/Labour Union, as stipulated in Article 50. Meanwhile, Article 51 states that further provisions regarding Digital Platform Workers will be regulated through subsequent legislation.

Thus, the Draft Law on Labour Protection provides an initial framework regarding the status and rights of digital platform workers, including those who earn income through applications such as online motorcycle taxis.

View JSON | Print