Indonesia: 2026, Looking Ahead

 

1. New plans for the issuance of a regulation on mandated social security for drivers or couriers of online taxi services

Since May 2025, Minister of Manpower Yassierli has commented on how the Indonesian Government must act in providing social security protection for informal sector workers, particularly online drivers and couriers working with online ride hailing or taxi services.

In particular, Yassierli has directly commented in a public forum discussion in May, stating “It is important for online drivers and couriers to become social security participants because the risk of work accidents, especially with two-wheeled vehicles, is very high.” Recent news reports have highlighted that Yassierli alongside his Ministry are currently in the process of preparing a Presidential Regulation that will help regulate social security for such workers. The Regulation is expected to cover a multitude of aspects related to the employment of online drivers and couriers, including their Employment Status, Tariff Regulations, as well as the aforementioned Social Protections.

Under Indonesian Manpower Law, while social security participation is explicitly required under Article 14 of Law No. 24 of 2011 on Social Security, as lastly amended by Job Creation Law (“Social Security Law”), statistics have shown that most Online Ride Hailing or Taxi Companies do not register their Employees under the required social security, namely the Indonesian Employment Social Security Program (Badan Penyelenggara Jaminan Sosial Ketenagakerjaan or “BPJS Ketenagakerjaan”).

Yassierli has commented that the regulation will therefore specifically stipulate responsibilities in bearing the cost of Work-Related Accident Benefits and Death Benefits, in addressing issues of a lack of insurance coverage for drivers and couriers (or their families) when encountering such incidents due to not being registered under BPJS Ketenagakerjaan. Prasetyo Hadi, the Minister of State Secretary, has commented that the Presidential Regulation will be delayed to 2026, as it is still subject to further review due to requiring consultations with Online Ride Hailing/Taxi Companies.

 

Key Takeaways

While Online Ride Hailing or Taxi Companies continue to hold influence in the daily lives of Indonesians, the Ministry of Manpower is now well aware of their deficiencies in protecting the rights of workers. Therein, the forthcoming Presidential Regulation aims to mandate coverage for work-related accident and death benefits, addressing the current low registration with the BPJS Ketenagakerjaan program.

2. Implementation of the electronic card system for migrant workers

Indonesia’s Ministry of Manpower has recently issued a new regulation stipulating a new Electronic Card system for Migrant Workers (Kartu Pekerja Migran Indonesia Elektronik or “E-Card”) that will be issued and held by Indonesian Migrant Workers under Ministry of Manpower Regulation No. 34 of 2025 on Electronic Card System for Migrant Workers (“MoM Reg. 34/2025”). The E-Card will function as proof that the Workers are officially recognized by the Indonesian Government as Migrant Workers that have fulfilled the requirements and procedures to obtain employment overseas (Articles 2 and 4 of MoM Reg. 34/2025).

The E-Card will be a mandatory requirement for Migrant Workers who are intending to migrate overseas for employment, are currently employed overseas, or are intending to extend their employment overseas (Article 5 of MoM Reg. 34/2025). The E-Card must be registered for by the Migrant Worker and received upon issuance via the Computerized System for the Protection of Indonesian Migrant Workers (Sistem Komputerisasi Pelindungan Pekerja Migran

Indonesia or “SISKOP2MI”) (Article 6 of MoM Reg. 34/2025). Existing Migrant Workers that have registered on SISKOP2MI will be required to register for the E-Card within 1 (one) year, by 28 November 2026.

 

Key Takeaways

The E-Card serves as another level of compliance that must be met by Migrant Workers. Employers overseas and Migrant Agency Employers (Perusahaan Penempatan Pekerja Migran Indonesia or “P3MI”) must be vigilant in ensuring that any prospective or current Migrant Workers that are being sent overseas must fulfil this requirement to ensure adherence to this new regulation.