Ride-Hailing and Delivery Firms Push Back Against Compulsory Eid Bonus
Ride-Hailing, Delivery Firms Push Back Against Compulsory Eid Bonus
Jakarta. The Indonesia Digital Mobility and Delivery Association (Modantara) has urged the government not to require online taxi and courier platforms to pay a mandatory Ramadan bonus to their driver-partners this year, arguing that such payments should remain voluntary.
The association said the holiday bonus — intended to help drivers celebrate Eid al-Fitr after the fasting month — should be based on each company’s financial capacity, not imposed uniformly across all platforms.
According to Modantara, the Ramadan bonus is “not a corporate obligation, but a goodwill initiative to support the welfare of driver-partners.”
The group warned that mandating a standardized bonus scheme for all online taxi and delivery operators could place additional strain on industry players, whose business scale and financial conditions vary significantly.
“A uniform holiday bonus mechanism would create expectations among driver-partners and could potentially trigger unrest,” the association said in a statement. “We believe the government will act wisely this year in implementing policies related to the holiday bonus, taking into account that each platform has different financial capabilities.”
Modantara added that several of its members have independently provided holiday bonuses in line with their respective financial positions, while also considering the long-term sustainability of the sector.
The association also questioned why the government appeared to single out digital mobility and delivery platforms, while not imposing similar obligations on other informal-sector businesses.
“Policy-making should not be discriminatory or overly burdensome to industry players, and must take into account the long-term impact on the industry and the broader investment climate,” said Agung Yudha, executive director of the association.
Earlier, the Ministry of Manpower indicated that online taxi and delivery operators would be expected to provide holiday bonuses to driver-partners, similar to last year.
Under Indonesian law, state institutions and private companies operating in the formal sector are required to pay a religious holiday allowance equivalent to one month’s salary once a year. Employees with at least one year of service are entitled to receive the full amount.
Most companies subject to the rule disburse the allowance uniformly in mid-Ramadan to simplify financial management.
Ride-hailing and delivery drivers — who number in the millions across Indonesia — are generally classified as informal workers due to their flexible contractual arrangements and commission-based income structures. Their eligibility for mandatory holiday allowances therefore remains a contentious regulatory issue.
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