Jakarta. Ride-hailing platforms Maxim Indonesia and Grab Indonesia have rejected a proposal to classify online motorcycle taxi (ojol) drivers as full-time employees, arguing that the existing partnership model provides greater flexibility and economic opportunity.

The companies were responding to a call by the Indonesian Transport Workers Union (SPAI), which urged lawmakers to formally recognize ojol drivers and couriers as permanent employees under the 2003 Manpower Law. The law defines an employment relationship as one involving a job, wages, and direct orders from an employer.

Currently, ride-hailing drivers are considered partners or independent contractors who use the platforms to connect with customers but are not directly employed by the companies.

Both Maxim and Grab argue that this partnership model is better suited to the nature of gig-based ride-hailing services.

“Full-time employee status implies a minimum of 40 working hours per week, fixed schedules, and exclusive service to a single platform,” said Maxim Indonesia PR Specialist Yuan Ifdal Khoir in a written statement to state news agency ANTARA on Tuesday.

He said that over 80 percent of Maxim drivers work fewer than four hours per week. “Reclassifying them as employees would create dissatisfaction among drivers who are unable or unwilling to meet such obligations,” Yuan said. “They may even lose part of their income and the flexibility they currently enjoy.”

Grab Indonesia’s Chief of Public Affairs, Tirza Munusamy, echoed the sentiment, saying the partnership model reflects the unique business dynamics of the ride-hailing industry.

“The partnership model not only allows drivers to set their own schedules, but also opens up opportunities for a wider segment of the population to earn supplemental or even primary income, especially during economic uncertainty or transitions,” Tirza said.

Reclassifying drivers as employees, she warned, would impose rigid requirements related to working hours, age limits, performance targets, and a cap on the number of drivers permitted to join the platform.

“This could reduce the number of active partners by as much as 80 to 90 percent, significantly limiting opportunities for income through digital platforms,” she said.

Meanwhile, the Indonesian government is developing a legal framework to categorize ride-hailing drivers as part of the micro, small, and medium enterprises (MSME) sector. This classification would grant drivers access to benefits typically reserved for small businesses, including subsidized fuel, 3-kg liquefied petroleum gas (LPG), and government-backed microcredit loans (KUR).

Both Maxim and Grab support the government’s initiative, saying it preserves schedule flexibility while expanding access to training, development, and financial support for drivers.

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