Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman announced on July 8 that motorcycle ride-hailing drivers from Gojek, Grab, and Maxim prefer recognition as micro entrepreneurs over employee status. This shift aims to grant drivers access to government empowerment programs and financing while maintaining the flexibility of the platform economy.
Drivers Seek Entrepreneur Status Over Employment
During a meeting in Jakarta on Wednesday, July 8, Minister Maman Abdurrahman consulted hundreds of drivers representing 19 different communities. According to the minister, the drivers expressed a unanimous preference for being classified as micro entrepreneurs rather than workers.
Maman stated that this preference stems from a desire to keep the independence and flexibility inherent in the platform economy. This status allows drivers to control their own schedules and pursue income streams outside of ride-hailing services.
Did You Know? The government is integrating a registration mechanism into the SAPA UMKM platform to allow ride-hailing drivers to automatically obtain micro entrepreneur status.
Access to KUR Financing and MSME Programs
Formal recognition as micro entrepreneurs provides drivers with entry to government-led MSME initiatives. Minister Maman explained that this includes entrepreneurship training, business development programs, and the People’s Business Credit (KUR) financing scheme.
The minister noted that the existing digital ecosystems of ride-hailing platforms could make KUR financing more accessible for drivers with limited capital. These platforms can help identify eligible participants, which may enable drivers to diversify income and improve family welfare.
Fare Distribution and Platform Compliance
Drivers have welcomed a new policy from President Prabowo Subianto that allocates 92 percent of each ride fare to the driver, leaving an 8 percent commission for the application companies. Maman reported that the response to this policy has been very positive.
Regarding reports of lower earnings since the policy began, Maman attributed the decline to external factors, specifically the school holiday period which typically reduces passenger demand. However, he warned that the Ministry of MSMEs will enforce regulations strictly.
Platform operators facing violations may receive warnings or face the suspension and revocation of their operating licenses, depending on the severity of the breach.
Finalizing the Legal Framework
The Ministry of MSMEs is currently coordinating with the Ministry of Transportation and the Ministry of Communication and Digital Affairs to finalize the legal framework. Maman stated the goal is for the framework to take effect as soon as possible to ensure a prompt completion of the process.
The ministry is also collaborating with platforms to ensure the registration process is simple and does not disrupt the daily activities of the drivers.
Frequently Asked Questions
What percentage of the fare do drivers receive under President Prabowo’s policy?
Drivers receive 92 percent of each ride fare, while the application companies receive an 8 percent commission.
What benefits do drivers get by being recognized as micro entrepreneurs?
They gain access to government MSME empowerment programs, including business development initiatives, entrepreneurship training, and People’s Business Credit (KUR) financing.
Why have some drivers experienced lower earnings recently?
Minister Maman Abdurrahman noted that external factors, such as the school holiday period leading to lower passenger demand, may be contributing to the decline.
Do you think classifying gig workers as entrepreneurs provides enough security compared to traditional employment?