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🇮🇩 Indonesia /Economy & Trade

Social Protection for Ojol Drivers Essential Regardless of MSME Status, Says Celios

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • A research center in Indonesia, Celios, argues that ride-hailing drivers must receive social and health protections regardless of their classification as micro-enterprises.
  • Celios questions the benefits of classifying drivers as MSMEs, suggesting financing access should be business-based, not status-based.
  • Indonesia's parliament and government have finalized a Presidential Regulation on online transportation, expected by late August 2026, which will guide driver classification and regulation.

The Center of Economic and Law Studies (Celios) in Indonesia insists that ride-hailing drivers deserve social and health protections, irrespective of whether they are classified as micro-enterprises or workers. Nailul Huda, Celios Digital Economy Director, emphasized that these protections, including health security through BPJS Kesehatan, are non-negotiable for the digital transportation sector.

Huda expressed skepticism about the proposed classification of ride-hailing drivers as micro, small, and medium enterprises (MSMEs). He questioned the tangible benefits drivers would gain from this status change. Huda argued that access to financing, such as the People's Business Credit (KUR), should be based on the existence of a business, not solely on an MSME classification.

Whether the drivers are categorized as MSMEs (micro, small, and medium enterprises) or workers, or whatever, what is clear is that they must receive health and social protections.

— Nailul HudaCelios Digital Economy Director Nailul Huda stated the government's obligation to ensure adequate protection for ojol drivers.

Meanwhile, the Indonesian House of Representatives and the government have concluded work on a Presidential Regulation for online transportation services. Deputy Speaker Sufmi Dasco Ahmad announced the regulation, which covers the transport of people, goods, and food, is set for issuance by late August 2026. The Ministry of Communication and Digital will regulate delivery tariffs, while the Ministry of Transportation will set passenger fares. Online transportation drivers will fall under the guidance of the Ministry of MSMEs. The government plans to consult with ride-hailing drivers, organizations, and app companies before the regulation takes effect.

If they have a business, they deserve to receive the People's Business Credit (KUR). Why should they be directly included in the MSME category?

— Nailul HudaNailul Huda questioned the rationale behind classifying drivers as MSMEs, suggesting financing access should be business-dependent.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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