Authors: Holongi Theonia, Ananya Prabhughate
Online motorcycle taxi (Ojol) drivers in Indonesia have recently spoken out about the government's plan to restrict access to subsidised fuel oil.
For Ojol drivers, fuel isn't just a daily need—it's their lifeline. However, according to WageIndicator’s latest cost-of-living data, fuel consistently ranks as one of the highest work-related expenses for these drivers.
‘Will I earn enough to pay for the fuel?’ is one of the questions that frequently arises in the social media groups that Indonesian drivers join to voice concerns about financial pressures.
For Gigpedia's blog section, we delved into the discussions in 8 vibrant Facebook groups for drivers in Indonesia, revealing their day-to-day realities.
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WageIndicator’s latest cost of living data shows fuel as one of the highest work-related expenses for these drivers. Take a look at the price trend since 2016. |
The Context
The Indonesian ride-hailing market has witnessed significant transformation and growth in recent years. This growth can be attributed to the fast-paced adoption of smartphone technology and the convenience offered by app-based services. Currently, the size of the ride-hailing market is estimated to be USD 2.88 billion and is expected to grow at 8.8% per year to reach USD 4.83 billion by the year 2029. The two main players in this market are Gojek and Grab, which initially started with motorcycle taxi services but now have expanded the scope of their work to include car rides, food delivery, payment services, and more.
What are Ojol drivers talking about?
Based on the discussions in the eight Facebook groups studied- Group Driver Gojek Se Jabodetabek, GODAMS (Gabungan Ojek roDa duA Medan Sekitar), Komunitas Ojol (Ojek Online) Jabodetabek (KOJ), ZONA BREAK OJOL BAHAGIA, INFO DRIVER OJOL INDONESIA, KOMUNITAS OJOL INDONESIA ( GOJEK DAN GRAB ), Ojol Milenial Grab & Gojek Medan, POIN [Persaudaraan Ojol Indonesia] "Group OJOL/DRIVER Online Se-Indonesia", KOMUNITAS OJOL, and OJOL BANDUNG TIMUR - several key conclusions associated with the realities of being a ride-hailing driver in Indonesia were drawn.
- Firstly, drivers often share experiences, from positive passenger interactions to safety and earnings issues with each other.
- Second, a common concern is financial strain due to high commissions and fluctuating demand.
- Third, they exchange tips on vehicle maintenance, customer service, and navigating Indonesian cities, fostering community and mutual support. This platform allows drivers to voice concerns and seek advice from peers.
Key Issues Faced by Ojol Drivers Via Platforms
Observing the aforementioned Facebook groups allows us to understand the variety of pressing issues that reflect the complexities and challenges of working in the gig economy in Indonesia. Drivers frequently discuss a variety of pressing topics, reflecting the complexities and challenges of working in the gig economy in Indonesia, some of which are discussed below.
Traffic Congestion and Operational Updates
Navigating through the heavily congested streets of Indonesian cities is a daily hurdle for drivers, significantly affecting their efficiency and earnings. Drivers often exchange tips on the best routes to avoid traffic jams and share real-time updates on road conditions. Updates on operational changes, such as new policies or changes to platform mechanisms, are frequently shared and debated. Staying informed about these updates is crucial for drivers as they directly impact their work routines and financial planning.
Customer Misconduct
Drivers frequently share their experiences with problematic customers who refuse to comply with safety regulations, such as wearing helmets, or those who engage in abusive behavior. These interactions not only jeopardize the drivers' safety but also affect their morale and job satisfaction.
Theft and Accidents
Posts about stolen motorbikes or cell phones, as well as accidents, are common in these groups. Such incidents not only cause financial strain, but also create a sense of insecurity among drivers. For example, a driver shared a harrowing experience of having his motorbike stolen while he was making a delivery.
Additional Fees and Platform Policies
Additional fees not included in the app fare, such as parking fees, are a recurring issue. Passengers often refuse to pay these extra costs, putting drivers in a difficult position where they have to bear the expenses themselves. Platform policies are another source of frustration. Drivers are required to complete trips consistently; failure to do so for a certain period results in account deactivation. This policy adds pressure on drivers, especially those facing personal or health-related issues.
Low Tariffs and Inadequate Incentives
Complaints about low fares and insufficient incentives are rampant. Drivers feel that the compensation they receive does not reflect the effort and expenses involved in their work, exacerbating their financial struggles.
Algorithmic Management
The system of combined orders in food delivery services like GoFood and GrabFood is another contentious issue. Drivers argue that this system benefits the platform more than the drivers, as the payment structure often leaves them at a disadvantage.
| The Gig Work Podcast: Super apps and green jackets: lessons on the gig economy from Indonesia Super apps like Grab and Gojek are centralizing and formalizing Indonesia's informal labour market. What problems are associated with this? And what does this teach us about the gig economy worldwide? Martijn Arets explores in The Gig Work Podcast. |
Main Problems Faced by Drivers
Financial Instability
One of the most pressing issues is the financial instability that comes with being a ride-hailing driver. The Fairwork Ratings 2021 report highlights how drivers often struggle to earn a living wage after accounting for vehicle maintenance, fuel costs, and the commission taken by ride-hailing platforms. Many drivers express frustration over the high commission rates, which significantly reduce their take-home pay.
Safety Concerns
Safety is another pressing issue for ride-hailing drivers, who often face risks ranging from verbal harassment to physical violence. Incidents of robbery and assault are not uncommon, yet drivers report feeling inadequately supported by ride-hailing companies in addressing these concerns. This lack of support exacerbates drivers' vulnerability and underscores the need for enhanced safety measures and company accountability.
Lack of Support from Ride-Hailing Companies
The relationship between drivers and ride-hailing companies is often contentious and characterized by a perceived lack of transparency and responsiveness. Drivers frequently express frustration over sudden changes in policies, unclear communication channels, and inadequate support in resolving issues. This disconnect contributes to drivers’ feelings of exploitation and dissatisfaction with their working conditions. In order to improve the situation of the drivers, the government is currently in talks with the ride-hailing companies. The government’s aim is to ensure the existence of effective channels of communication between drivers and ride-hailing companies and revisit the employee insurance schemes in order to protect workers' right to employment and health insurance.
The Role of Smaller Communities and the Need for Structured Action
Facebook groups have become indispensable for Indonesian ride-hailing drivers, providing a virtual space for support, information sharing, and advocacy. By fostering a sense of community and empowering drivers to address their collective challenges, these groups play a vital role in ensuring the sustainability and fairness of the gig economy in Indonesia.
However, stronger unions and structured advocacy are essential for broader reforms and improved working conditions to keep up with the pace of change in the gig economy. The SAGE Journal’s findings underscore the potential of collective bargaining and unionization to empower gig workers and advocate for policy reforms. By organizing and engaging with policymakers, drivers can amplify their voices and demand industry changes. Stronger regulations and standards are needed to ensure fair wages, safety, and job security for all gig economy workers.
It’s also true that in Indonesia, as in many countries in the Global South, the informal work and economy are the backbone of the society. Workers may be more resilient to the gig economy in a large informal market because they are already used to organising informally. Secondly, many of the drivers enjoy the flexibility and are satisfied with their income; they are reluctant to consolidate a strong union with a clear strategy and agenda, which may take up too much of their time and energy.
Thirdly, the gig workforce is highly fragmented, making it challenging to build a sense of solidarity at the regional or national level. This is also why Indonesia's traditional trade unions appear to be ineffective in representing gig workers, as they have limited infrastructure to organize outside their traditional base and limited ability to organize the labor movement under the authoritarian regime.
Conclusions
The experiences shared by Indonesian ride-hailing drivers on Facebook groups underscore the significant challenges they face in their daily work. As the gig economy continues to evolve, it is imperative for ride-hailing platforms to prioritize the well-being of their drivers and create a supportive and sustainable environment. This will not only ensure the continued viability of the ride-hailing industry but also contribute to Indonesia's overall economic stability.
To address the challenges faced by ride-hailing drivers, a combination of structured advocacy and regulatory reforms is essential. Advocacy efforts should focus on raising awareness of drivers' issues, mobilizing support, and engaging with policymakers. Regulatory reforms should aim to establish clear labor standards, provide social protections, and ensure fair compensation for ride-hailing drivers.
Given the unique characteristics of the Indonesian gig economy, where a significant portion of the workforce operates informally, it is crucial to consider the specific needs and challenges of these workers. Tailored policies and regulations are necessary to address the unique circumstances of gig workers and ensure that they have access to the same basic rights and protections as workers in more traditional employment sectors.
Potential solutions to improve the working conditions of Indonesian ride-hailing drivers include:
- Minimum wage regulations: Implementing a minimum wage for ride-hailing drivers to ensure fair compensation.
- Social security benefits: Providing access to social security programs, such as health insurance and retirement benefits, for gig workers.
- Unionization: Supporting the formation of unions or worker cooperatives to give drivers a collective voice and bargaining power.
- Fair platform algorithms: Ensuring that platform algorithms are transparent and do not exploit drivers.
- Education and training programs: Providing drivers with training on safe driving practices, customer service, and financial literacy.
- Mental health support: Offering access to mental health resources for drivers facing stress and burnout.
- Improved working conditions: Addressing issues such as long working hours, excessive workload, and lack of job security.
By implementing these measures, Indonesia can create a more equitable and sustainable gig economy that benefits both drivers and passengers.
Gajimu's labour expert Nadia Pralitasari commented: 'It's clear from this blog that Indonesian ride-hailing drivers are facing serious challenges. The government needs to do an in-depth and systemic evaluation of the current regulations and make necessary changes. They should bring everyone to the table – drivers (represented by unions or communities), platform companies - to discuss solutions. For drivers, forming strong communities or joining trade unions becomes essential to get a seat at the table. This will give them a united voice and power to demand better working conditions and fair treatment from platform companies and the government.'
Nadia Pralitasari also helped develop the Living Tariff tool in Indonesia, which takes into account all the costs associated with freelance and gig work (waiting time, training, taxes, social security) and helps workers calculate rates to earn a decent income. Read more here.