Indonesian Political, Business & Finance News

Time for Platform Workers to Enter Indonesia's Labour Law Regime

| | Source: REPUBLIKA Translated from Indonesian | Regulation
Time for Platform Workers to Enter Indonesia's Labour Law Regime
Image: REPUBLIKA

The development of the digital economy has created millions of workers who depend on digital platforms for their livelihood. However, Indonesian labour regulations have yet to provide adequate recognition and protection for this group of workers. In Indonesia, millions of online transport drivers, couriers, and other digital workers are still classified as ‘partners’. As a result, most labour protections such as social security, occupational safety, fair wage standards, working hours, leave entitlements, and freedom of association are not adequately guaranteed. The debate regarding the status of online transport drivers has been ongoing for years. Some argue they are independent partners because they have the flexibility to determine their own working hours. Conversely, many believe that the application companies effectively act as employers through algorithmic control, incentive systems, and account suspension mechanisms. Amidst the heated discussions on the Draft Labour Law, there are several fundamental reasons why platform workers should be placed under the labour law regime. Firstly, international developments show a clear direction. In the discussions for ILO Convention No. 193 concerning Decent Work in the Platform Economy, the international labour body no longer starts the debate by questioning whether someone is a worker or not. Instead, the ILO adopts a more progressive approach by first recognising all individuals working through digital platforms as ‘platform workers’. Their employment relationship status is then adjusted according to each country’s legal system. This approach carries an important message: protection must not be delayed simply because a country is still debating the legal status of the worker. Secondly, a substantive review shows that the relationship between application companies and drivers fulfils the elements of an employment relationship as defined in Article 1 point 15 of the Manpower Law. This law defines an employment relationship as a relationship between an employer and a worker containing elements of work, wages, and command. In practice, these three elements are met in the relationship between platform companies and drivers. There is work to be performed by the driver, such as transport services, food delivery, or logistics. There is an element of command through algorithms that regulate order distribution, performance targets, rating systems, incentives, and suspension sanctions. Finally, there is compensation for the work, with the amount and payment mechanism determined by the platform. Thus, substantively, this relationship meets the characteristics of an employment relationship, providing a strong legal basis to categorise it as such. Thirdly, the state has indirectly acknowledged the existence of platform workers, particularly in the online transport sector. The issuance of Presidential Regulation Number 27 of 2026 concerning the Protection of Online Transport Workers represents a significant policy development. The President’s use of the term ‘workers’ carries important normative meaning, as it demonstrates state recognition of drivers as subjects deserving of labour protection.

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