Indonesian Political, Business & Finance News

Online Motorcycle Taxi Drivers Reject UMKM Status, Affirm Position as Workers

| Source: CNBC Translated from Indonesian | Economy
Online Motorcycle Taxi Drivers Reject UMKM Status, Affirm Position as Workers
Image: CNBC

The Indonesian Transport Workers Union (SPAI) has affirmed that the status of online motorcycle taxi (ojol) drivers is that of workers. This is in response to the plan to shift the status of drivers to UMKM entrepreneurs, which has often been voiced by Minister of UMKM Maman Abdurrahman.

“The Indonesian Transport Workers Union (SPAI) demands that the government immediately recognise ojol drivers, online taxi drivers and cargo couriers as workers in Presidential Regulation No. 27/2026 concerning the Protection of Online Transport Workers,” said SPAI Chairperson Lily Pujiati in an official statement, quoted on Thursday (13/8/2026).

“The claim by the Minister of UMKM to shift the status of drivers to UMKM entrepreneurs is completely unfounded because it has no legal basis. On the contrary, the status of ojol as workers has a legal umbrella in accordance with Law No. 13/2003 on Manpower, Article 1 Paragraph 15 concerning employment relationships that fulfil the elements of work, wages and command,” she added.

Lily explained that the elements of an employment relationship for ojol drivers have been fulfilled, such as the element of work in the form of transporting passengers, goods and food, as well as the element of wages in the form of piece-rate payments made upon completion of work.

Meanwhile, the element of command is fulfilled by the existence of sanctions if drivers refuse orders, ranging from account suspension to termination of the partnership.

Furthermore, she stated that Presidential Regulation No. 27/2026 does not link online transport with UMKM at all, but rather focuses on protecting online transport workers.

“This Presidential Regulation aims to provide work accident insurance and BPJS Health, which are indeed the rights of workers, not KUR loan assistance or incentives promised by the Minister of UMKM,” she said.

She also asserted that Maman’s claims regarding the aspirations of ojol associations do not match the conditions and facts on the ground, where ojol drivers on average only earn Rp100,000 per day with extreme working hours exceeding 8 to 17 hours.

Lily revealed that if the status of drivers is shifted to UMKM, this would eliminate their basic rights as workers, ranging from minimum wages, 8-hour working days, overtime pay, 2 days of rest per week, leave entitlements (menstrual, maternity, miscarriage and breastfeeding), rights for workers with disabilities, social security, to the right to form trade unions, collective bargaining and strike action.

In fact, forcing UMKM status is considered contrary to the Manpower Law and risks increasing the number of workplace accidents due to drivers working beyond their capacity (overwork).

“For this reason, SPAI demands that Presidential Regulation No. 27/2026 recognise ojol as workers in accordance with the Manpower Law. In addition, the government must immediately ratify ILO Convention 193 on Decent Work in the Platform Economy, which was approved by the Government of Indonesia at the 114th International Labour Conference (ILC) session last June, to subsequently be adopted into the discussion of the new Manpower Law,” she concluded.

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