A Third Way for Indonesia's Gig Economy: A Hybrid Legal Model for Worker Protection and Productivity

Abstract

Indonesia's binary legal framework (Worker vs. Independent Contractor) is failing to protect gig workers, whose de facto status is more accurately described as "dependent self-employment." Trapped in a legal vacuum characterized by imbalanced contracts and algorithmic management, these workers lack access to essential rights, including social security, occupational safety standards, and fair dispute resolution mechanisms.

Using a juridical-normative and reform-oriented approach, this paper formulates a sui generis hybrid regulatory model. This model comprises two substantive pillars: (1) a digital contractual justice framework featuring three technical interventions (mandating algorithmic explainability, introducing a partial reversal of the burden of proof, and implementing an ex-ante review of standard contracts delegated to the Business Competition Supervisory Commission (KPPU)); and (2) a fundamental safety net adapted from labor law (mandating BPJS social security co-contributions and adapting the industrial relations dispute pathway).

Beyond legal substance, this research designs an executable policy roadmap for implementation. This roadmap is proposed via a (Draft) Presidential Regulation that adopts an "enforced self-regulation" model. This mechanism is to be orchestrated through the establishment of a "National Tripartite Digital Partnership Council" and introduced via a phased rollout utilizing Regulatory Sandboxes (inspired by Kenya) and Pilot Programs (inspired by China).

Ultimately, this paper not only deconstructs the existing legal framework's failures but also offers a technical, institutionally consistent regulatory blueprint. This model, reinforced by the emerging ASEAN regional policy convergence (citing Malaysia and Singapore), provides a viable pathway to fostering a gig economy ecosystem in Indonesia that is simultaneously fair, productive, and sustainable.

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How to Cite

“A Third Way for Indonesia’s Gig Economy: A Hybrid Legal Model for Worker Protection and Productivity” (2025) Indonesia Forum on Labour and Productivity, 1. Available at: https://iflp.kemnaker.go.id/index.php/naker/article/view/98 (Accessed: 29 October 2026).