Indonesian Ride-hailing Drivers Demand Regulatory Reforms and Fair Revenue Sharing

Protests Against New Insurance Regulations

The Indonesian Transportation Workers Union (SPAI) is urging the government to revise PP 20/2025, which regulates JKK-JKM insurance contributions for ride-hailing drivers. The union argues that this regulation further weakens the position of online transportation drivers, including ojol, taksol, and couriers, amid already declining incomes ¹

Key Demands: Fair Revenue Sharing and Regulatory Reform

The Garda Indonesia association, representing ojol drivers, has rejected any fare increases until the government issues a Presidential Regulation (Perpres) on revenue sharing. They demand a 90:10 revenue split, favoring drivers as the primary workers, while companies would receive the remaining 10% ²

Rationale Behind the Demands

Drivers argue that their work arrangement with platform companies fulfills the three elements of an employment relationship as defined by Law No. 13/2003 on Labor: work, wages, and command. They claim that platform companies control their work through strict application rules, determine their earnings through unilateral tariff schemes, and enforce compliance through penalty systems ¹

Implications of Current Regulations

The new insurance regulations categorize ride-hailing drivers as Non-Wage Recipients (BPU), which the union believes is a step backward in labor protection. This classification, combined with the increased financial burden of JKK-JKM contributions, has sparked widespread discontent among drivers.

Path Forward: Regulatory Adjustments

To address these issues, the government is being urged to revise PP 20/2025 and establish clear guidelines on revenue sharing between drivers and platform companies. Without these changes, drivers fear that fare increases will not translate into better financial outcomes for them.