Indonesia Recognizes Ride‑Hailing Drivers as Micro‑Entrepreneurs

RRI.CO.ID, Jakarta - Starting July 1, 2026, the Indonesian government will improve the welfare of ride‑hailing drivers by recognizing them as micro‑entrepreneurs in the online transportation sector. With this status, drivers will receive 92 percent of the trip fare and gain access to various empowerment programs.

“Ride‑hailing drivers are now officially recognized as micro‑entrepreneurs in online transportation. This policy is part of the government’s efforts to improve welfare while strengthening protection for millions of drivers in the digital transportation ecosystem,” said Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, in Jakarta on Wednesday, July 1, 2026, as quoted on the ministry’s official website.

Under the new regulation, drivers will receive 92 percent of the trip fare, while platform commission deductions are capped at a maximum of 8 percent, in line with Presidential Regulation No. 27/2026. Previously, drivers received 80 percent, while platforms took 20 percent.

Their new status grants ride‑hailing drivers the same rights as other MSMEs, including access to government‑provided protection, empowerment, business financing, and entrepreneurial capacity‑building programs.

“Drivers are entitled to all the benefits received by micro‑entrepreneurs. One of these benefits is exemption from tax, as their average income remains below the IDR 500 million turnover threshold,” Minister Maman said.

The government is also preparing a stimulus package to create additional income opportunities for drivers and their families. The program includes access to business financing, entrepreneurship training, and mentoring to help them develop productive businesses outside their work as online transportation partners.

“They have flexible working hours. With their status as micro‑entrepreneurs, they also have the opportunity to build other businesses independently with their families,” Minister Maman added.

According to him, the status change will take effect automatically, reflecting the aspirations expressed by various driver associations. The government will coordinate with app companies and associations to ensure a smooth transition without disrupting operations.

Minister Maman emphasized that the main goal of the policy is to protect and empower online ride‑hailing drivers by expanding opportunities.

“The spirit of this policy is to protect and empower our fellow drivers. Administrative requirements should not be a burden. Most importantly, this policy will be implemented smoothly through coordination with all relevant parties,” he said.

He added that the government is preparing a stronger legal basis to ensure the policy can be implemented sustainably while maintaining balance in the online transportation ecosystem involving drivers, app companies, merchants, and MSMEs.

“We have a vested interest in maintaining a conducive ecosystem because it involves app companies, drivers, merchants, and MSMEs who utilize digital platforms. Therefore, all policies are designed to create a healthy, conducive, and equitable ecosystem,” Minister Maman said. ***