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Indonesia to classify ride-hailing bike drivers as micro-entrepreneurs | Caixin Society
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Indonesia to classify ride-hailing bike drivers as micro-entrepreneurs

Jakarta (ANTARA) – Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, stated that the government has agreed to classify ride-hailing motorcycle drivers as micro-entrepreneurs under an upcoming presidential regulation.The Presidential Regulation on the Digital Transportation Ecosystem is slated for completion within a week, after the harmonization of its final clauses.Speaking after a coordination meeting at the Parliamentary Complex, here, on Monday (August 10), Abdurrahman noted that the micro-enterprise designation was chosen to accommodate the aspirations of approximately 20 online driver communities and associations.According to the minister, being classified as micro-entrepreneurs will allow drivers to maintain flexibility in their daily operations while gaining access to various government MSME incentives.However, he emphasized that the new status will not automatically subject the drivers to income tax.Abdurrahman explained that under prevailing tax laws, small business owners with an annual turnover of up to Rp500 million (approximately US$28,097) are exempt from income tax. Currently, the average turnover for ride-hailing motorcycle drivers ranges between Rp10 million and Rp15 million (about US$562 to US$843).Furthermore, the minister expressed hope that the micro-enterprise status will open new opportunities for drivers to build their economic capacity and achieve financial independence.Once the presidential regulation is enacted, he noted that relevant ministries and agencies will draft the necessary implementing regulations based on their respective jurisdictions.”Our goal is to drive growth and improve the welfare of the drivers while safeguarding the broader digital ecosystem. For instance, we must also ensure the sustainability of the ride-hailing platforms,” Abdurrahman concluded.