Jakarta. The Indonesian government has called on ride-hailing and online delivery platforms to provide Eid holiday bonuses to their drivers, a move aimed at improving welfare for gig-economy workers but one that has drawn objections from industry groups.

The policy introduces a special payment known as BHR, a holiday bonus designed specifically for app-based drivers ahead of Eid al-Fitr. It reflects the government’s effort to balance the rapid expansion of Indonesia’s gig economy with longstanding labor practices that grant holiday allowances to formal employees.

Indonesia faces a structural challenge. Millions of ride-hailing drivers operate as independent partners rather than salaried workers, meaning they are not legally entitled to the traditional holiday allowance — equivalent to one month’s salary — granted to formal employees. The BHR program is intended as a compromise that offers financial support without formally classifying drivers as employees.

Manpower Minister Yassierli said the policy reflects the government’s concern for ride-hailing drivers, many of whom rely on daily earnings.

“The government urges companies operating app-based transportation services to provide BHR,” Yassierli said Tuesday.

Under ministry guidelines, the bonus must be paid in cash and should equal at least 25% of a driver’s average net income over the past 12 months. Companies are encouraged to distribute the payments no later than seven days before Eid, which is expected to fall in the third week of March 2026. Platforms are also urged to disclose transparent calculations when determining bonus amounts.

$13 Million Extra Spending
Ride-hailing companies are expected to distribute about Rp 220 billion ($13 million) in Ramadan bonuses to around 850,000 drivers, according to the government. The payout is roughly double last year’s figure.

Indonesia is estimated to have about 7 million ride-hailing drivers nationwide, according to the Indonesian Transportation Society (MTI).

Chief Economic Affairs Minister Airlangga Hartarto said the figure reflects commitments made by major digital mobility platforms following discussions with the government. He said active motorcycle drivers are expected to receive around Rp 150,000, while car drivers could receive about Rp 200,000, depending on company performance criteria.

Major platforms GoTo and Grab have allocated around Rp 100 billion combined for the program this year, benefiting roughly 400,000 drivers.

Rudi Hartono, a 48-year-old Grab driver, said payments typically vary based on performance.

“Last year I received around Rp 450,000,” Rudi said, adding that drivers with higher ratings or more completed orders often receive larger bonuses.

Other companies have also expanded their coverage. Maxim plans to distribute bonuses to 51,000 drivers, up from about 1,000 last year, while inDrive said it would provide payments to around 500 driver partners, with amounts determined by company policies and driver performance.

Industry Concerns
Despite the planned payouts, industry groups say the policy overlooks the contractual structure of ride-hailing work. Drivers are generally classified as partners rather than employees, meaning companies are not legally obligated to provide the same benefits as formal workers.

The Indonesia Digital Mobility and Delivery Association (Modantara), which represents several platform operators, said holiday bonuses should remain voluntary.

“The holiday bonus is not a corporate obligation, but a goodwill initiative to support driver-partners,” the association said in a statement.

Modantara warned that a standardized policy could create unrealistic expectations among drivers and strain companies with different financial capacities.

“A uniform mechanism could trigger unrest if drivers expect similar bonuses across all platforms,” the group said, adding that regulations should avoid placing disproportionate burdens on digital mobility companies.

Wawan, a 30-year-old driver for inDrive, said drivers welcome the mandatory bonus initiative but remain uncertain about eligibility requirements.

“Usually, there are certain requirements set by the company, so not everyone automatically receives it,” he said.

Debate Over Driver Welfare
Transportation analyst Deddy Herlambang of the Strategic Transportation Initiative (Instran) said calculating a fair holiday payment remains difficult because ride-hailing drivers are not formal employees.

“Ride-hailing drivers are partners, not workers under standard employment contracts. That’s why the payment is framed as BHR rather than the mandatory holiday allowance given to formal workers,” he said.

Deddy suggested linking welfare benchmarks to regional minimum wages, given the wide variation in living costs across Indonesia. He added that many platforms already reward drivers with strong performance records through incentive systems tied to ratings or completed orders.

The policy debate has also revived discussion about whether the government should establish its own ride-hailing platform.

The Indonesian Transportation Society has previously proposed creating a state-owned online transportation service, potentially starting in Jakarta where the driver community is largest. Deddy said such a platform could allow the government to subsidize both drivers and passengers.

“If the government had its own ride-hailing application, it could provide subsidies from the state budget to improve driver welfare and affordability for users,” he said.

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