Gig Workers and Legal Ambiguity: Flexibility and Vulnerability in Indonesia

Abstract

The rise of gig workers poses a fundamental challenge to modern labour law, where the flexibility offered by digital platforms contrasts sharply with workers’ socio-economic vulnerability. As of October 2025, Indonesia still lacks a comprehensive legal framework governing gig work. Existing regulations, such as Government Regulation No. 35 of 2021 on Fixed-Term Employment, fail to capture the distinctive features of algorithm mediated labour relations. In contrast to Malaysia’s Gig Workers Act 2025, Indonesian gig workers remain in legal grey area, and their designation as “partners” diminishes their bargaining power against platforms. The protection gap is evident in their limited participation in social security schemes like BPJS Employment and BPJS Health, leaving them exposed to occupational hazards, work-related illnesses, and income insecurity without sufficient compensation. In the financial sector, despite the rapid growth of fintech and digital banking under OJK Regulation No. 3 of 2024, gig workers’ financial inclusion remains limited. Irregular income, minimal credit history, and low financial literacy continue to restrict access to secure and affordable financial services. This study reveals the asymmetrical power dynamic between digital platforms and gig workers, in which  algorithmic systems control pricing, performance assessment, and contract termination. It recommends the establishment of a dedicated regulatory framework recognising gig workers’ legal status, adaptive social security mechanisms, a stronger role for the Financial Services Authority in promoting inclusive financial innovation, targeted literacy initiatives, and transparent algorithmic governance: essential steps towards a fair and sustainable digital labour ecosystem.