The declining incomes for platform-based drivers in Indonesia has trapped many in debt, as they work long hours to simply provide for their families. Some have taken their own lives under financial pressures, while others are engaged in resistance against the dire conditions.
On 29 June 2022, a 23-year-old motorcycle driver (ojol) was found dead, with his head severed, near the railway crossing in Bekasi Regency, West Java, Indonesia. When the body was found, his hand was still holding the smartphone he used to take online orders, and his motorbike laid beside the railway tracks near his body.
He was run over by a train. Instead of seeing it as an accident, it is suspected that the motorcycle driver had become seriously depressed and committed suicide. According to the victim’s parents, their son showed signs of depression relating to his financial situation.
Just five days after the incident in Bekasi, the Indonesian media reported another similar case. A 35-year-old motorcycle driver ended his life by jumping off the Suramadu Bridge in Surabaya, East Java. His body was found floating in the sea wearing a green jacket bearing the Gojek’s logo. Reportedly, the driver ended his life also due to economic pressures.
The act of suicide is highly unusual in the Indonesian context. Social norms and values in Indonesia do not tolerate suicide.
Nor are the two cases isolated incidents. In Indonesia, from 2015 to 2022, 14 cases of suicide by online motorcycle drivers (10 cases) and online taxi drivers (four cases) occurred. Of that number, 13 victims were male and one victim was female, with an average age of 33 years. The number of cases is high by Indonesian standards, and there are likely more cases like this in the sector that are unreported.
We argue that what drove them to suicide are the extremely precarious conditions these workers have been facing which have been made worse by the COVID-19 pandemic.
While the suicides are the most extreme expression of their desperation, the basic conditions that contribute to such desperation are built into the work of the app-based transport sector in Indonesia. During the pandemic, the spread of the virus and the government’s response to restrict people’s movements resulted in declining incomes for online motorcycle drivers. To maintain their basic daily needs, many have been forced to go into debt and face financial hardship.
The Rise of App-Based Transport Companies
The two giant app-based transport companies in Indonesia, Gojek and Grab, said that each year they contribute tens of trillions to the economic development of the community. Gojek now operates in 167 cities and regencies in Indonesia. Meanwhile, Grab has been operating in almost 100 urban districts in Indonesia.
These two companies have not detailed the number of their motorcycle drivers. One of the online driver’s associations, GARDA, said that there are approximately 4 million online motorcycle drivers in Indonesia.
Indonesia has proved to be a lucrative market for the app-based transport sector due to the large size of its young, internet-savvy workforce. In addition, the government’s incentives for business investment and lack of strict regulations on labour relations have contributed to the rapid growth of this sector.
However, not surprisingly, the development of the app-based transport sector is built upon the exploitation of workers. The company continues to reduce incentives to the drivers, which results in a decrease in drivers’ incomes, and the absence of regulations regarding decent working hours, living wages and health insurance undermine workers’ conditions and safety.
Based on our research, we would like to highlight the serious negative impacts on the drivers such as suicide and debt, and also the drivers’ acts of resistance with the support of their communities to fight for decent working conditions.
Race to the Digital Bottom
Since 2017, Gojek and Grab have gradually reduced the incentives, bonuses and the fare per kilometer and so pushed down drivers’ incomes. The companies also increased target points, which means drivers have to chase a lot of points to earn bonuses. These changes are driven by a race to the digital bottom by app-based transport companies. It benefits the companies at the expense of drivers.
Our interviews with drivers suggest that most of the app-based motorcycle drivers in three cities, Bekasi, Tangerang and Serang, have experienced a decline in income of around 50% since the COVID-19 pandemic. They complain about the difficulty of getting orders.
On average, drivers have to work between 10 and 15 hours every day. This makes drivers not only vulnerable financially but also more prone to becoming sick or suffering injuries in road accidents. From 2015 to July 2022, there were 149 road accidents that killed 89 motorcycle drivers from different app-based transportation companies in Indonesia. The actual figure is likely to be higher as there were probably more accidents unreported by the media.
Many app-based motorcycle drivers experienced occupational illnesses and died because of lack of resting time. They continue to work to reach unreasonable targets and points set up by companies in order to have enough to feed their families and pay off debts. Their debts are used to feed their families, maintain motorbikes, repay smartphones and cover hospital fees in the event of injury. The debt must be paid on a daily basis deducted from the balance in their account, putting considerable pressure on the drivers.
The loan scheme itself, in a twist, is provided by Gojek and Grab, in collaboration with fintech companies. Grab collaborates with fintech Julo, while Gojek provides a lending scheme through Gopay Later. The companies are reaping profits from the misfortune of workers that they have contributed to in the first place.
The drivers say that they are in a lose-lose situation. When there are a lot of orders, they are compelled to complete them otherwise they will get a low rating, and as a consequence don’t have enough time to rest. Meanwhile, if there are not many orders, their incomes drop significantly. Drivers are increasingly burdened with getting good ratings and high earnings. Some cases of suicide occurred because drivers were depressed, as a result of not earning enough and being trapped in debt.
How Companies Control Workers
Referring to labour regulations, app-based motorcycle drivers are legally workers, not partners as defined by the companies, because they receive workers’ orders and wages, and also wear uniforms provided by the companies. Drivers do not sell their work from an equal and independent position, as is commonly understood in partnerships. On the other hand, companies set prices unilaterally, as well as exercising control over workers.
Despite the promise of work autonomy, the companies deploy algorithms and human supervisors called satgas as key mechanisms to control the drivers and ensure profit maximisation.
Algorithmic labour control
The algorithm monitors drivers’ accounts and then determines rewards and punishments. It is a virtual manager in charge of instructing drivers to carry out requests from customers, either taking them from one place to another or delivering goods, food and so on. If drivers refuse to accept orders, their account will be restricted from getting further orders. Usually, drivers refuse certain orders because the pick-up point is far away, the area is prone to crime and traffic jams.
According to drivers, by relying on GPS, sometimes the distance shown in the application is shorter than the actual distance. The fare determined by the company only calculates the distance between the pick-up point and the destination. Meanwhile, the distance from where the drivers are to the place where they take orders is not calculated. In addition, the return distance from the destination to where the driver is based is also not calculated.
Two components of the order cost that often become a dispute between management and drivers are the cost per kilometer and the service fee. From a one-time order made by the company’s drivers, companies take a 20% cut from the order cost. Apart from that, the companies also get an app fee that goes entirely to them, not to drivers. The companies require drivers to have a balance in their digital wallet or account. Gojek and Grab, for example, will not give orders to drivers if the balance in their digital wallet is empty.
Ratings and comments from customers are also important for determining incentives and bonuses. The customer rating is processed by the company to determine reward or punishment for drivers. The forms of punishment vary, ranging from accounts being suspended or temporarily deactivated to accounts being permanently frozen. These ratings and comments are what cause a lot of disputes between drivers and consumers.
Some drivers say that usually customers give unfounded negative ratings. Some cases that cause bad ratings occur due to technical errors. For example, food ordered by customers does not match what is delivered. Customers usually blame the drivers even though this error is due to the negligence of the restaurant. Drivers also say that management imposes penalties on drivers only based on customer’s comments and ratings without further checking information from restaurants or drivers themselves for verification.
In-person labour control still in place
Drivers have been using many counter-tactics and strategies to get around the control algorithm. These tactics make use of ghost accounts and jockey accounts.1 Through these methods, drivers are able to make orders increase, which then leads to incentives and bonus increases from companies. The companies finally realised that control through algorithms had its limits. They then recruited satgas, complementary to algorithms, to strengthen control over drivers with the aim of continuously maximising profits. Some of satgas’s personnel were retired police or military members.
The satgas’s personnel are stationed in the field. They are tasked to discipline drivers, by ensuring drivers work in accordance with the Standard Operating Procedure made by the company. They ensure that drivers wear the helmets and jackets bearing the company logo, the vehicle number matches the driver’s identity, etc. The satgas were first formed by the Gojek in 2015. This is a response to the conflict between drivers and conventional drivers (indigenous motorcycle drivers and taxi drivers).
In addition, the satgas were given the task of persuading and inviting conventional drivers to join as Gojek drivers. The satgas facilitate all requirements for conventional drivers willing to become Gojek drivers, such as new vehicle loans, smartphones and making a driving license. But all these facilities are not free. Drivers have to pay the company and their balance is deducted.
The satgas also collaborate with Gojek drivers to recruit new drivers. According to several online motorcycle drivers, if they can recruit new ones, especially conventional drivers who are based in strategic locations, such as near train stations, bus terminals, airports or malls, they will be given money. Control over the conventional drivers’ base is important to dominate the market and ensure the business operation. And by controlling these bases, the satgas can easily control the drivers.
Gojek’s success in forming a satgas team was followed by Grab and other platforms in the following years. In the space of two to three years, Gojek and Grab have managed to control many conventional driver’s bases, turn them into online motorcycle drivers’ bases and set up pick-up points there.
Another form of securing business operations carried out by the company’s satgas is to eradicate drivers who use fake GPS applications. During the initial period or during the money-burning period, Gojek and Grab still offered high incentives. A group of drivers who were knowledgeable about information technology found a way to get more orders easily. They created what they call a ghost account and also fake GPS.
The drivers themselves say that fake GPS is not cheating, it only proves the weakness of the system in the apps. Fake GPS accelerates the process of drivers receiving orders and can complete orders in large quantities, giving drivers an advantage over incentives and bonuses.
Operations to eradicate ghost accounts and fake GPS began to increase between 2017 and 2019. During this period, Gojek and Grab criminalised more than 20 drivers who were suspected of using ghost accounts or fake accounts.
Drivers sued through the courts using the Electronic Information and Transactions (ITE) Law. The company’s satgas collaborated with several regional police (Polda) to criminalize drivers. In Makassar, for example, the Grab satgas in collaboration with the cybercrime team of the South Sulawesi Police succeeded in criminalising seven Grab car drivers who used fake GPS.
The satgas recruited drivers and assigned them as spies. These spies are asked to provide information and report to the satgas on important events happening in their community. They also report on drivers’ activities that are considered detrimental to the company.
As a result of this spying, often protests or strikes designed by the drivers’ community are known in advance by the satgas. The satgas also plays a role in countering protests by sending messages on Whatsapp prohibiting actions, by holding meetings with community members, and even visiting the drivers who lead the demonstrations and threatening them.
For example, in November 2021 in Bandung, an app-based motorcycle driver was threatened by the satgas. A satgas personnel reportedly pointed a gun right at the head of a driver. This intimidation was carried out because the driver was an organiser who mobilised his fellow drivers to protest.
Why Workers Go into Debt
Why do workers go into debt? Several drivers in Tangerang said that in the past year, they completed 10 orders per day on average. Although the orders varied, using basic calculations, we assume that for each order passengers paid the drivers as much as Rp. 14,000 (about USD 0.9). The company then deducts app fees and service fees from this amount. After calculating deductions, drivers get Rp. 102,000 per day, or Rp 3,060,000 per month (about USD 203).
The minimum wage regulation in Tangerang for 2022 is Rp 4,285,000. Their income as app-based motorcycle drivers is only 71% of the Tangerang minimum wage.
On one occasion LIPS discussed with the drivers their monthly family expenses. We get the picture that there is a deficit in monthly expenditures for drivers’ families. The total expenditure of a driver’s family per month is about IDR 4.000.000, but the total income per month is only IDR 3.060.000, leaving a deficit of IDR 940.000 (about USD 62).
Most drivers are in debt to cover this deficit. Some drivers have personal goals: they will not go home if the target has not met their daily needs. One of the drivers said he would leave the house early for work, so he could get more orders. Others said they had to spend a lot of time on motorbikes looking for locations that would allow them to get more orders.
Workers Driven to Protests
Declining incomes, long working hours, lack of social security as well as unilateral policies and onerous sanctions, encourage drivers to fight both against companies and against the government.
Protests by drivers in recent years have surpassed trade union protests especially in the manufacturing and service industries which have been declining. This is not to say that the trade union resistance is obsolete. But the resistance of the drivers will be an important factor for the future of the labour movement.
From 2015 to July 2022, there were at least 133 protests carried out by app-based motorcycle drivers in cities in Sumatra, Java, Kalimantan and Sulawesi against companies such as Gojek, Grab, Shopee and Maxim. There was solidarity from drivers who work for other app-based transport companies if drivers in a particular company staged a protest.
Most of the demands put forward by drivers are tariffs (30%), incentives (25%), penalties (11%), and others. Drivers also demand companies to curb the practice of illegal fees when new drivers are recruited, and for parking fees not to be charged to drivers.
However, this kind of sporadic resistance has limited impact on pushing for change. Companies continue to cut tariffs and incentives unilaterally which results in a decrease in drivers’ incomes.
Drivers who work for Gojek and Grab at the same time, for example, will prioritise receiving orders in one company if the other company cuts incentives and tariffs that are deemed too large.
Meanwhile, the resistance aimed at the government is related to fair regulation of the fare per kilometer which can be used by companies to calculate incentives and bonuses, as well as changing the bogus relationship concept of partnership into employment. In this context, protests are usually carried out jointly by drivers from various app-based transport companies and drivers’ communities.
The resistance aimed at the government allows change because it is carried out by all drivers regardless of the company they work for. This type of resistance reminds us of that carried out by the labour movement several years ago that successfully launched a series of general strikes2, as well as strikes in several industrial zones in Java that demanded wage increases and the abolition of outsourcing.
Challenges Ahead
The growth of the app-based transport business in Indonesia is achieved at the expense of drivers. The companies’ profits continue to grow while the incomes of drivers decline. Drivers are trapped in debt even as they work for longer and longer hours. Since 2015, the app-based drivers’ resistance has grown. However, the resistance aimed at the company has limitations in creating changes to the existing working conditions. Meanwhile, the resistance directed against the government allows for some change.
To change working conditions and ensure that they are protected by the Labour Law, drivers need to continue organising and mobilising. And there are lessons to be learned from the experience of previous resistance by the labour movement, which conducted not only strikes but also factory raids.
- Wening Mustika and Amalinda Savirani. 2021. “’Ghost Accounts,’ ‘Joki Accounts’ and ‘Account Therapy:’ Everyday Resistance among Ride-hailing Motorcycle Drivers in Yogyakarta, Indonesia”, The Copenhagen Journal of Asian Studies Vol. 39, Issue 1, https://doi.org/10.22439/cjas.v39i1.6175
- Fahmi Panimbang and Abu Mufakhir (2018), “Labour Strikes in Post-Authoritarian Indonesia, 1998-2013”, In J.Nowak, M. Dutta, & P. Birke (Eds.), Strikes and workers movements in the 21st century (pp. 21–43).Rowman and Littlefield. https://www.academia.edu/38530868/Labour_Strikes_in_Post_Authoritarian_Indonesia_1998_2013
