JAKARTA: (Bernama) Indonesia on Friday (May 1) announced a series of labour measures focusing on gig economy drivers and domestic workers to improve worker protection, income distribution and job security.
Speaking at the International Workers' Day celebration here on Friday, President Prabowo Subianto said the government would regulate revenue-sharing arrangements in the e-hailing and delivery sector to ensure fairer earnings for drivers.
He said commissions imposed by platform companies, currently around 20 per cent, would be reduced to below 10 per cent.
"Drivers work hard and take risks every day. It must be below 10 per cent, and from 80 per cent (earning) for drivers, it will become at least 92 per cent,” he said.
Prabowo said the policy is stipulated under Presidential Regulation No 27 of 2026 on the Protection of Online Transportation Workers, which also includes provisions on social protection such as work accident insurance and access to national health coverage.
In addition, Prabowo said the government has enacted the Domestic Workers Protection Law (UU PPRT), describing it as a milestone after more than two decades of advocacy.
"Today, I can report to you that we have enacted the Domestic Workers Protection Law. If I am not mistaken, this has been a long struggle, a 22-year struggle. Even since the republic was established, there has never been a law protecting domestic workers,” he said.
He said the law provides clearer provisions on wages, working conditions and legal protection for domestic workers.
"A law protecting domestic workers has never existed. So far, domestic workers, whatever wages they were paid, it was unclear. Now, for the first time in the history of Indonesia, we enact a law protecting domestic workers,” he said.
Prabowo also announced the issuance of Presidential Decree No 10 of 2026 on the establishment of a task force to mitigate layoffs (PHK), aimed at strengthening protection for workers facing job losses.
"Those threatened with layoffs, we will defend and protect,” he said adding that the government would continue to ensure worker protection under all economic conditions.
According to Prabowo, the government has allocated Rp500 trillion in social protection spending this year for low-income groups. - Bernama
