Taxation, Innovation, And Inclusion: The Economic Contributions of Gig Workers

Abstract

The growth of digital technology has led to the rise of the gig economy as a new type of economic activity that relies on flexibility, the use of information technology, and short-term work arrangements. This study seeks to explore how gig workers contribute to the national economy, with a focus on three areas: taxation, innovation, and inclusion. The research uses a literature review method with a descriptive qualitative approach. The analysis was done by reviewing statistical data, official government documents, and relevant academic articles about the digital economy's development. This method was selected to gain a thorough understanding of the gig economy's role in Indonesia and its possible effects on national progress. The study found that gig workers help increase tax revenue by enabling digital transactions that are easier to track and formalize. However, low taxpayer participation and limited tax rules are major challenges. In terms of innovation, the gig economy has fostered new business models, sped up the use of digital technology, and helped individuals use their skills to generate more economic value. Regarding inclusion, the gig economy offers opportunities for different groups such as older workers, women, students, and informal workers to take part in economic activities, while also improving access to digital financial services. Despite these benefits, there are still issues that need to be solved, like weak social safety nets, unstable earnings, and unclear regulations, which could affect the gig economy's long-term viability. Therefore, it can be said that the gig economy has a major impact on the national economy, especially in boosting tax collection, promoting innovation, and increasing economic inclusion.