Alfi Dinilhaq, Jakarta – The Indonesian government plans to formally recognize ride-hailing drivers (ojol) as part of the micro, small, and medium enterprises (MSMEs) sector, offering them access to legal protection and economic support typically reserved for small businesses.

MSMEs Minister Maman Abdurrahman said Tuesday the proposed legal basis will be included in the upcoming revision of the MSME Law, with discussions targeted to begin in 2026.

"The goal is to ensure that online motorcycle taxi drivers have clear legal protection," Maman said.

If enacted, the law would allow ojol drivers to qualify for benefits such as fuel and 3-kg LPG (liquefied petroleum gas) subsidies and access to government-backed microloan program or KUR.

The plan follows President Prabowo Subianto's recent suggestion that drivers receive bonuses (THR) during the Eid holidays. As platform-based companies are not obligated to provide Eid bonuses, the government sees MSME classification as a way to broaden driver access to support and incentives.

Under the MSME framework, drivers could apply for KUR loans with a 6 percent interest rate for amounts up to Rp 100 million ($5,900) without collateral. They would also qualify for a 0.5 percent income tax rate if their annual revenue is under Rp 4.8 billion.

Maman said drivers would also gain access to training and capacity-building programs currently offered to other MSME players. The proposal is still under internal review and will be submitted as part of the formal legislative process next year.

Source: https://jakartaglobe.id/business/indonesia-plans-to-classify-ridehailing-app-drivers-as-msmes-by-202