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Here's why Grab refuses to allow online taxi drivers to become permanent employees

Source
Tempo - May 20, 2025

Riri Rahayu, Jakarta – Grab Indonesia considers the status of online motorcycle taxi drivers or Ojol cannot be changed to permanent employees because it could have a broad impact. Chief of Public Affairs Grab Indonesia, Tirza R Munusamy, stated that if the partner's status is changed to employee, the number of Ojol drivers would drastically decrease.

This is because employee status would bind the application with drivers in fulfilling rights and obligations. Meanwhile, the company has limited ability to fulfill the rights of the millions of Ojol drivers.

"The company cannot absorb such a large number of employees. Where would the rest go?" said Tirza during a meeting with Minister of Transportation, Dudy Purwagandhi, in Central Jakarta on Monday, May 19, 2025.

According to Tirza, the partner status is attached to Ojol drivers because this profession embraces the principle of flexibility. One of these is that Ojol drivers have the freedom in terms of working hours. If the partner status is changed to employee, Tirza stated that Ojol drivers would no longer be flexible as they would be bound by working hour regulations. The public would also find it increasingly difficult to benefit from the online transportation application because the company would take a selection process to choose employees. However, online transportation has become the choice for many people to find jobs with an easy selection process.

Tirza claims that 50 percent of Grab partners are from the unemployed community. Some of them are victims of layoffs or are still waiting for other jobs. Another category includes drivers who have a job but also work as Ojol drivers to increase their income. "We have now become a social cushion," said Tirza.

Furthermore, Tirza stated that changing the status of Ojol drivers from partners to permanent employees would have a broad impact, including affecting micro, small, and medium enterprises (MSMEs). This could happen because the company would set working hour limits for online drivers. However, according to Tirza, 90 percent of Grabfood tenants are MSMEs. "The impact is wide and will hinder the economy which is currently flourishing in this ecosystem," she said.

The change in the status of Ojol drivers from partners to permanent employees has been conveyed several times by Ojol driver associations. This is also one of their demands in the planned demonstration on Tuesday, May 20, 2025.

Chairperson of the Indonesian Transport Workers' Union (SPAI), Lily Pujiati, stated that Ojol drivers demand permanent employee status because they have been working exceeding the 8-hour working hour regulations. She mentioned that Ojol drivers can work for 12 to 16 hours, even on holidays. In addition, female Ojol drivers are a vulnerable group as they do not receive paid menstrual and maternity leave.

"Working conditions for platform workers such as Ojol drivers, online taxi drivers, and couriers are increasingly oppressed under the partner status regulated by platform companies," said Lily. According to her, this situation is exacerbated by platform deductions exceeding 20 percent, as per government regulations.

Source: https://en.tempo.co/read/2008957/heres-why-grab-refuses-to-allow-online-taxi-drivers-to-become-permanent-employee

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