Indonesia mandates Eid bonuses for online ride-hailing drivers following protests

In a significant policy shift, Indonesian President Prabowo Subianto has ordered ride-hailing companies, including GoTo Group and Grab, to provide holiday bonuses to their drivers ahead of the upcoming Eid celebrations.

The bonuses, to be calculated based on drivers' work activity, are set to be disbursed at least seven days before the holiday, expected to commence on March 31.

This directive aims to ensure that the nation's approximately 250,000 active online drivers and couriers can celebrate the festive season with financial ease. Additionally, up to 1.5 million drivers work on a part-time basis, President Prabowo reported.

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"We have held discussions and secured a commitment from the leaders of online ride-hailing companies, Patrick Walujo, CEO of Gojek, and Anthony Tan, CEO of Grab," the president told the press on Monday. Both Walujo and Tan appeared at the conference alongside Prabowo.

Prabowo stated that the decision followed multiple ministerial cabinet meetings, reaffirming the government's commitment to improving workers' welfare. "Hopefully, this policy will allow workers and online drivers to enjoy their holiday, homecoming, and Eid in good circumstances," he said.

The mechanism and amount of the Eid holiday bonus will be further determined through a circular issued by the ministry of manpower.

The issue of Eid bonuses for ride-hailing drivers had been contentious, with numerous demonstrations calling for fair compensation. In 2024, the ministry of manpower urged companies to grant Eid bonuses to their employees. However, legal experts noted that online drivers, operating under partnership agreements, were not automatically entitled to such bonuses.

Companies like Gojek and Grab contended that, due to their partnership status, providing Eid bonuses was not mandatory, though they offered other incentives to support their drivers during the holiday period.

The most recent protests, held just weeks before the mandate, saw hundreds of drivers taking to the streets in Jakarta, demanding clearer regulations on holiday pay. They voiced frustration over the lack of financial support during the festive season, arguing that their heavy reliance on the gig economy made them vulnerable to such inconsistencies. The protests gained significant attention, pressuring the government to take a more active role in ensuring fair compensation.

The recent presidential mandate signifies a decisive move to standardise benefits for ride-hailing drivers, recognising their pivotal role in Indonesia's transportation sector and addressing the growing calls for better financial security among gig workers.

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