Protecting Indonesia’s Hustlers: Can We Fix the Gig Economy?
We seek dignified human development
Indonesia faces the challenge of development — the ideal direction points to the development of human dignity, a dignified human development ‘pembangunan bermartabat’ for Indonesian; but in reality today, there are still hardworking people who put in more than 12 hours — still do not earn enough to meet their standard of living.
Gig workers, these intrepid individuals who navigate the digital marketplace as delivery personnel, ride-hailing drivers, or online freelancers, find themselves in a precarious position — essential cogs in the economic pie, yet often lacking the safety nets traditionally associated with formal employment. This fast-paced world comes with a hidden cost for Indonesia: a lack of protections for the very people driving its growth — the gig workers themselves. Can we fix the gig economy?
The balance dynamics
Today, the issue of gig work has begun to gain traction in Indonesia’s academia, becoming an important and complex issue, more precisely, one that helps decipher the problems of the gig economy in Indonesia.
The gig economy involves a two-way tug-of-war relationship, balancing low service costs for consumers with fair treatment for workers. Typically, lower service costs come at the expense of worker well-being, while higher costs reflect better working conditions.
However, in recent times, Indonesia has bucked this trend. Here, companies offering cheap services with poor worker protection records are less likely to attract customers. This suggests a growing sensitivity among Indonesians towards worker issues, particularly those affecting gig workers.
There are reasons for this, one of which is the role of social media in democratizing day-to-day public conversations for Indonesians — often critically responding to viral issues that lead to a ‘general public judgment’; which, if summarized in general, often centers on inequality, poverty, sexual violence, and actions that violate societal norms. The plight of gig workers, exemplified by underpaid online motorcycle taxi drivers (“ojek online”) and unpaid internships, frequently sparks discussion within Indonesia’s social media.
Indonesia’s booming gig economy presents a challenge: how to protect workers who are classified as “partners” by platforms, not employees. Most gig workers are classified as independent contractors or partners, as a result, they are denied rights covered under the scope of labour and social security regulations due to their status as non-workers. This classification excludes them from the protections of Indonesia’s Labour Law, leaving them without guaranteed minimum wage, health insurance, or paid time off.
Further complicating matters, platform algorithms, and competition can lead to unpredictable earnings, making it difficult for gig workers to make ends meet. Studies reveal that, particularly in delivery sectors, many gig workers are forced to work long hours (over 12 hours a day) to secure a decent living. These challenges are compounded by a lack of proper insurance coverage for work-related accidents, leaving them vulnerable in case of misfortune. Additionally, women in the gig economy face the added burden of potential harassment and discrimination from customers.
So, can we fix the gig economy? The answer is yes, but it requires a multi-pronged approach. One solution lies in creating a new category of worker — a hybrid classification that acknowledges the unique aspects of the gig economy while offering basic protections like minimum wage guarantees, and portable benefits systems that allow them to contribute to social security and health insurance — this could provide much-needed security. Additionally, standardised platform agreements with minimum requirements for fair treatment and transparent pay structures would empower gig workers.
Consumers also have a role to play. By being aware of labour practices on different platforms and choosing those with a strong track record on worker rights, they can put pressure on the industry to improve.
Co-operative platform for the gig economy
But what if the answer lies in a different model altogether? Co-operative platform systems offer a revolutionary approach — a gig economy built and owned by the workers themselves. I see that Indonesia has a big potential for this endeavor.
Imagine a gig economy where workers aren’t just “partners,” but co-owners. Co-operative platforms empower gig workers by giving them a direct stake in the platform’s success. Decisions on pay structures, working conditions, and platform development are made democratically, ensuring fair treatment for all worker-owners. In view of the precarity and economic dependency of gig workers, platform co-operatives come into the picture as alternatives to investor-owned platforms. This shift in power prioritizes worker well-being over pure profit, potentially leading to fairer wages, better benefits packages, and improved safety measures.
A Gig union, another scenario
While we’ve explored potential solutions through industry regulations and worker-owned co-operatives, another powerful force for change exists: gig unions.
One alternative pathway towards a more balanced gig economy lies in fostering collaborative networks for gig workers. These networks, inspired by the traditional concept of worker associations, would be reimagined for the digital age. They would empower gig workers to transcend their roles and build a collective voice, fostering a sense of community and shared purpose.
Imagine gig workers, such as ‘ojek-online’ drivers no longer isolated and voiceless in Indonesia. Gig unions would empower them to band together, creating a collective bargaining force capable of negotiating with platform companies. This united front would address pressing issues like minimum wage, healthcare benefits, and fair treatment. Standardized contracts with clear terms and conditions could be advocated for by these unions, ensuring transparency and protecting gig workers from exploitation. Additionally, gig unions could push for improved working conditions through collective action. This could include limitations on working hours, access to safety training, and clearer policies on dispute resolution — crucial safeguards currently missing in the gig economy.
Moves forward
The Indonesian gig economy has the potential to be a win-win for both workers and companies, but only if it’s built on a foundation of fairness and dignity. Law reform, gig co-operatives, and gig unions offer a path towards achieving this balance. Ultimately, a thriving gig economy in Indonesia depends on achieving a delicate balance — fostering innovation and flexibility while ensuring that workers are protected. The rise of collaborative networks offers a solution, potentially transforming the landscape from one of vulnerability to one of empowerment. As Indonesia moves forward, exploring and supporting this model presents a unique opportunity to unlock the potential of the gig economy, making it a force that enables shared prosperity in Indonesia.
