Author: Trevi Putri, Gadjah Mada University and Richard Heeks, University of Manchester
Indonesia’s gig economy is dominated by two mega-platforms, Grab and Gojek. The gig economy contributes at the very least US$7 billion to Indonesia’s economy and employs at the very least 4 million employees. The sector has been plagued with controversy, beset with employee strikes and complaints about pay and situations. These controversies are well-founded as labour standards have persistently fallen short of decent work standards.
In December 2021, the Fairwork challenge launched a report evaluating 9 of probably the most outstanding platforms within the nation. This included car-based taxi companies, motorcycle-based taxi and supply companies, and courier companies. The report scored every platform in opposition to the 5 world rules of Fairwork — honest pay, honest situations, honest contracts, honest administration and honest illustration. Indonesia’s gig economy fell short throughout all metrics.
The Indonesian authorities has beforehand launched tips for per-kilometre fare funds to fulfill minimal wage standards. Yet no platform studied was capable of present proof that honest pay for its employees was being supplied. Once a employee’s logged hours and work-related prices have been considered, many didn’t take residence a minimal wage. Those who did earn greater than the minimal wage typically labored lengthy hours — almost 20 per cent of employees interviewed often labored greater than 100 hours per week.
Indonesia’s gig employees consistently face dangers from accidents, scams and COVID-19-related lack of earnings. Only a 3rd of the platforms studied had sought to offer honest situations by taking measures to guard their employees via accident insurance coverage, emergency helplines, entry to medical health insurance and COVID-19 sick pay.
Most of the platforms have clear and accessible phrases and situations for employees that contribute towards honest contracts. But the phrases and situations usually function an unfair distribution of dangers and liabilities, on condition that employees are much less ready than platforms to bear such burdens.
Only Grab and Gojek have been awarded scores for honest administration. These two platforms documented channels for communication with employees and initiatives searching for to deal with discrimination and inequities, together with these regarding gender. This is especially necessary given the challenges going through feminine gig employees in Indonesia — these interviewed have been typically confronted with male clients refusing to journey with them or sexually harassing them.
These issues are exacerbated by a scarcity of honest illustration of employees throughout all platforms. Worker associations exist in Indonesia, however they’re typically locality-based and casual. They aren’t formally recognised in legislation or by the platforms, giving employees no legitimised option to specific their collective issues and to barter with platforms. Workers additionally reported being cautious of becoming a member of protests or strikes on account of fears of penalties. Without honest illustration, the grievances expressed by employees can’t be totally addressed.
The rankings for 2021 replicate an pressing want to make sure equity in Indonesia’s gig economy. Two important actions are wanted to deal with the substandard working situations.
The declare that gig employees are ‘independent contractors’ wants to finish. Gig employees are dependent on platforms for his or her livelihoods, and their work is directed and monitored by the platform’s app. The authorities wants to alter the legislation to recognise that gig employees are akin to workers, and to present them related rights and protections. As a part of this, gig employee associations should be given recognition in legislation as labour unions, permitting them to enter into formal negotiations with the platforms on behalf of employees to cut back the present energy imbalance between platforms and their employees.
Consumers in Indonesia needs to be supplied scores on how every platform is performing by way of decent work standards. When deciding on which platforms to make use of, shoppers can then select a higher-scoring platform the place attainable. This will assist to incentivise proactive steps among the many platforms to fulfill key metrics and exceed minimal labour standards within the gig economy. Large organisations are additionally inspired to enroll to the Fairwork Pledge as a option to strain platforms to enhance.
Providing platforms with incentives to indicate management in elevating work standards can have an effect on significant change. Worker protests, dissatisfaction and unfair remedy are detrimental for model picture and fame at a time when platforms are searching for to have interaction extra with company social accountability as a way to appeal to shoppers and traders.
Regulatory change and client strain for enhancements in gig work situations are present in a rising variety of international locations all over the world. With some preliminary indicators of motion in Indonesia for laws on gig work and the willingness of shoppers to boycott manufacturers that deal with employees poorly, platforms would do properly to get forward of this wave in order that they’ll form, quite than be pushed by, the approaching modifications.
Trevi Putri is a lecturer within the Department of International Relations and a researcher within the Center for Digital Society at Gadjah Mada University, Indonesia.
Richard Heeks is Professor of Digital Development within the Global Development Institute on the School of Environment, Education and Development, University of Manchester.