Not Just Wages: Workers' Welfare Can Rise Through This

JAKARTA, KOMPAS.com - Labour Day on 1 May is seen as a moment for reflection on various labour issues in Indonesia. Amid ongoing demands for wage hikes, a new approach is gaining strength: improving workers’ welfare by reducing the burden of daily living costs. Professor Rahma Gafmi from Airlangga University stated that several policies being promoted by the government, such as plans to cut online motorcycle taxi (ojol) platform fees, provide worker housing, and offer daycare facilities in work areas, directly target the root problems of workers’ welfare. Rahma explained that one of the most spotlighted policies is the plan to reduce platform deductions for ojol drivers. Currently, platform cuts range from 15 to 20 percent, which often burden driver partners. According to her, if these deductions can be reduced below 10 percent, drivers’ net incomes could increase instantly without needing to add working hours. In addition, the worker housing programme integrated with industrial areas is seen as able to reduce one of the biggest burdens for workers: housing and transportation costs. With homes close to work locations, daily expenses can be significantly reduced. “This policy can serve as a form of indirect wage. But the key lies in the location and financing scheme that does not burden workers,” said Rahma. So far, many workers have been forced to stop working due to high childcare costs. According to Rahma, the presence of daycare in work areas can increase productivity while providing peace of mind for workers. This policy also has the potential to encourage female workforce participation.