The Gig Economy and Economic Justice in Indonesia: Labor Rights in the Digital Age

Abstract

This paper critically examines the rise of the gig economy in Indonesia, focusing on the economic justice issues faced by gig workers in the digital age. With the proliferation of online platforms like GoJek, Tokopedia, and Bukalapak, the gig economy has reshaped Indonesia’s labor market, offering flexible income opportunities but also exacerbating economic insecurity. The study explores the economic vulnerabilities of gig workers, such as lack of job security, absence of social benefits (health insurance, retirement plans), and low wages relative to the cost of living. It also investigates how these workers, often categorized as independent contractors rather than employees, face challenges in accessing labor rights and legal protections. The paper further analyzes the role of the state and platform companies in regulating labor conditions in the gig economy, critiquing current labor laws and their applicability to gig workers. Using case studies from various gig platforms, the paper assesses the broader implications of the gig economy on economic inequality, highlighting the social and economic exclusion of gig workers in Indonesia’s rapidly digitalizing economy. Finally, the paper suggests policy reforms aimed at ensuring better legal protections, social security benefits, and fair wages for gig workers, advocating for a more equitable and sustainable approach to digital labor.