Content 360 2025 Singapore
ID online motorcycle taxi drivers protest for holiday allowance, stage mass 'off bid' action

ID online motorcycle taxi drivers protest for holiday allowance, stage mass 'off bid' action

share on

Hundreds of online motorcycle taxi drivers and transport workers, united under the Indonesian Transport Workers' Union (SPAI), are set to stage a demonstration today outside the manpower ministry office in Jakarta.

Their primary demand is the payment of Tunjangan Hari Raya (THR), a holiday allowance, by ride-hailing platforms such as Gojek and Grab. The drivers plan to go offline temporarily as part of the protest, a move described as "off bid," where they will refrain from accepting ride requests on their respective platforms during the action.

The protest, which is expected to involve between 500 and 700 drivers, is a response to the growing frustration over the lack of clarity regarding the payment of THR by ride-hailing companies to their drivers. According to the SPAI, the manpower ministry must issue a clear policy that ensures platform companies provide the allowance.

In Indonesia, online motorcycle taxi drivers are typically considered partners rather than permanent employees. This classification is central to the ongoing debate about their rights, including entitlement to benefits like THR. The platform-partner model has sparked controversy, with many drivers and advocacy groups arguing that the nature of their work - dependent on platforms for a substantial portion of their income - warrants recognition as employees.

Meanwhile, in a statement seen by MARKETING-INTERACTIVE, the Serikat Demokrasi Pengemudi Indonesia (SDPI) in Sukabumi said that the status of online motorcycle taxi drivers should not be a barrier to receiving the THR.

Mohamad Supendi, the chairperson of the SDPI, expressed his discontent: "The reality is that drivers are generating profits for the platform companies and contributing to the nation. Even small traders in markets give THR to their customers - why can't the app platforms, which earn hundreds of millions from our efforts, do the same for us?"

Don't miss: GoTo shuts down Grab merger rumours – again

The issue has been further amplified by a statement last year by the ministry's director of industrial relations and social security, Indah Anggoro Putri, who reportedly asserted that ride-hailing companies must pay THR to online motorcycle taxi drivers. However, a subsequent clarification softened this stance, stating that it was merely a recommendation and not a legal requirement, the SDPI said.

As the Muslim holy month of Ramadan approaches, the controversy surrounding THR for online drivers is expected to intensify. The SDPI is urging the government to resolve this issue by issuing a regulation that guarantees THR payments for online motorcycle taxi drivers.

Additionally, they are calling for the reduction in platform fees and the provision of insurances, along with social security benefits, including free education and healthcare for online motorcycle taxi drivers and their families.

As of December 2024, there were around four million online motorcycle taxi drivers operating across Indonesia, according to the micro, small, and medium enterprises minister, Maman Abdurrahman.

"Many drivers face precarious working conditions, with daily risks such as illness, accidents, and harassment, particularly for female drivers. The uncertainty of their income, combined with platform fees that can reach up to 30%, places them on the edge of poverty," the SDPI said.

In response to Putri's statement last year, Gojek and Grab have emphasised that drivers are entitled to certain incentives during Ramadan but have also highlighted the complexities of the relationship between drivers and their platforms.

MARKETING-INTERACTIVE has reached out to Gojek and Grab for comments.

Related articles:
How the Grab-GoTo merger could impact merchants across Southeast Asia
Grab spotlights Indonesian SME Restu Mande at World Economic Forum
You can now earn yuu points by taking Gojek rides

share on

Follow us on our Telegram channel for the latest updates in the marketing and advertising scene.
Follow

Free newsletter

Get the daily lowdown on Asia's top marketing stories.

We break down the big and messy topics of the day so you're updated on the most important developments in Asia's marketing development – for free.

subscribe now open in new window