May 20 motorcycle taxi demonstration, economist: Government needs to open formal employment opportunities

May 20 motorcycle taxi demonstration, economist: Government needs to open formal employment opportunities






Economist Fithra Faisal Hastiadi assessed that the government needs to open more massive formal employment opportunities in response to online motorcycle taxi (ojol) drivers who will hold a demonstration.

"The government's task is to build its industry, to create jobs in the formal sector, not to increase informality," said Fithra in a discussion entitled, "Dynamics of the On-Demand Industry in Indonesia: Status of Driver Partners and Commissions",

Fithra said that the ojol platform is actually an economic cushion, not a permanent job. If the status of 'partners' of ojol drivers is to be changed to 'permanent workers', with the current conditions, Fithra believes there will be new costs that must be paid by the applicator.

The problem, he continued, is that the extra expenses could cause applicators to leave Indonesia and look for other countries with friendlier systems.

"If that happens, it will create increasingly complicated labor conditions. There is no cushion, the formal sector is also getting smaller," said the Senior Economist of Samuel Sekuritas Indonesia.

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