Indonesia says ride-hailing firms to give driver holiday bonus

Indonesia says ride-hailing firms to give driver holiday bonus

Indonesia Directs Ride-Hailing Firms to Provide Holiday Bonuses for Drivers

The Indonesian government has mandated that ride-hailing and delivery platforms distribute holiday bonuses to their driver-partners ahead of Eid al-Fitr, marking a significant policy shift in the gig economy sector. President Prabowo Subianto announced the requirement during a meeting with executives from GoTo Group and Grab, emphasizing the need to support drivers during the country's major religious holiday. The bonuses, calculated based on drivers' activity levels, online hours, and performance metrics, will be formalized through a ministerial circular to be issued alongside broader holiday allowance regulations.

The policy aligns with broader efforts to stimulate consumer spending, a key pillar of Prabowo's economic agenda. With private consumption accounting for over half of Indonesia's domestic output, the government aims to bolster demand by ensuring drivers receive additional financial support. Manpower Minister Yassierli confirmed that platforms like Gojek and Grab have expressed willingness to comply, though final details remain under coordination with the State Secretariat.

However, industry stakeholders have raised concerns. The Indonesia Digital Mobility and Delivery Association (Modantara) opposes mandatory bonuses, arguing that such payments should remain voluntary and tailored to companies' financial capacities. The group warned that a standardized approach could create unrealistic expectations among drivers and strain smaller platforms. It also questioned the selective application of the policy, noting that other informal-sector businesses are not similarly targeted.

Under current labor laws, holiday bonuses are legally required for formal-sector employees, but ride-hailing drivers are classified as independent contractors, leaving their eligibility contested. Last year, platforms voluntarily distributed bonuses based on performance metrics, but this year's directive seeks to institutionalize the practice.

The government has until March 24, 2026—seven days before the anticipated start of Eid—to finalize the policy. Investors will closely monitor how the mandate affects platform profitability and driver retention, particularly as companies balance regulatory compliance with long-term sustainability.