22 May 2026
The New Draft Bill on Gig Workers: A Novel Legal Framework for the Protection of Indonesian Platform Gig Workers

Indonesia’s digital economy has given rise to a new class of worker — flexible, platform-dependent, and largely unprotected by existing labour law. App-based drivers, couriers, freelancers, and creative professionals currently operate in a legal grey zone: contributing to the national economy yet excluded from the statutory protections afforded to conventional employees. 

The Indonesian House of Representatives introduced a Draft Bill on Gig Workers (“Draft Bill”), which has been included in the 2026 Priority National Legislation Program (Program Legislasi Nasional or Prolegnas). Spanning 105 provisions, the Draft Bill proposes a comprehensive legal framework for individuals working in informal sectors. It is anticipated that the Draft Bill would introduce standardized regulations and protections surrounding Gig Workers (also known as freelance workers/platform workers), which were not appropriately captured under the existing manpower legal framework. For the first time, Gig Workers would be entitled for enforceable legal rights, income protection, occupational safety, social security, and a specialized dispute resolution form and mechanism. 

From business undertaking’s perspective, the Draft Bill will have significant and wide-ranging implications for businesses that engage Gig Workers — including digital platforms, logistics and delivery operators, media and entertainment companies, and on-demand service providers. Businesses should begin assessing the following key areas of impact.

The key provisions introduced by the Draft Bill are summarized below.

Scope and Definitions

The Draft Bill defines a Gig Worker as an Indonesian individual who enters into a service agreement with an Engaging Entity (Entitas Pemberi Kerja), whether through conventional means or via a digital platform, to perform services in exchange for income. The Engaging Entity shall be a person, legal entity or a platform provider. The broad definition would cover all freelance workers/platform workers who are providing services on a peer-to-peer basis.

The Draft Bill classifies Gig Workers as individuals that are providing services under the following service types:

A service agreement governing the engagement may be verbal or written, and must stipulate the services to be provided by the Gig Worker and the corresponding income payable by the Engaging Entity. The service agreement shall be differentiated from a typical employment agreement as defined under the legislation governing employment, industrial relations and occupational health and safety (“OHS”) matters. The service agreement must contain a set of minimum statutory provisions, including:

1. The identity of the parties to the agreement;

2. The duration or term of the engagement;

3. The services to be provided by the Gig Worker;

4. The respective rights and obligations of the parties;

5. The applicable tariff and details of the Gig Worker’s income; 

6. The method of payment of such income; and

7. Any benefits, tips, or gratuities to which the Gig Worker may be entitled, if applicable.

The Draft Bill provides a grandfather provision acknowledging the validity of service agreements concluded prior to its enactment. It should be noted, however, that the rights and protections under the Draft Bill are immediately enforceable in respect of such pre-existing agreements. Where any terms under a service agreement that are less favourable to the Gig Worker than those prescribed under this law, shall be deemed null and void and automatically replaced by the relevant provisions under the Draft Bill. The parties may also agree on arrangements that are more beneficial to the Gig Worker. 

Legal Status of Gig Workers

Although the legal arrangement between a Gig Worker and an Engaging Entity may resemble an employment relationship, the Draft Bill expressly establishes that such arrangement falls outside the scope of conventional employment relationship under the existing manpower legislations. The Draft Bill’s use of employment-law terminology, such as ‘mempekerjakan’ and ‘pemberi kerja’, in defining the Engaging Entity does not alter this characterisation; the arrangement is intended to constitute an independent service provision governed by a service agreement, not an employment relationship. A further distinguishing feature is that the Gig Workers receive income for the completion of specific services, rather than a traditional salary or wage (gaji), which is a key element in determining whether an arrangement constitutes a conventional employment relationship.

Under the Draft Bill, certain statutory conditions must be satisfied to establish the Gig Worker’s status as an independent partner, instead of an employee of the Engaging Entity.

Entitlements for Gig Workers

Similar to conventional employees, the Draft Bill provides clarity on the legal entitlements that Gig Workers shall receive throughout the period of service with the Engaging Entity. Firstly, the Engaging Entity must ensure that, for each income period, the Gig Worker receives compensation of no less than the Net Guaranteed Income, which is a minimum level of net income guaranteed to Gig Workers during their period of engagement. 

Gig Workers are entitled to have their portion of social security contributions deducted from their income and remitted to the National Social Security Board (Badan Penyelenggara Jaminan Sosial or BPJS). These social security benefits include the registration of Gig Workers into the Self-Employed Social Security Scheme (Skema Jaminan Sosial Wirawasta). In addition, the Draft Bill requires the provision of work accident insurance and life insurance coverage during the period in which Gig Workers are actively performing services.

The Draft Bill also introduces several protections relating to income transparency and occupational safety. Gig workers must receive their income in accordance with the agreed tariff structure, including the full transfer of any tips provided by customers without administrative deductions. The Draft Bill further requires the Director General of OHS of the Ministry of Manpower to supervise the Engaging Entity’s compliance to OHS-related laws and regulations. In this case, the Engaging Entity shall ensure that the Gig Workers being engaged is protected from any OHS hazards, provided with OHS-related guidelines and trainings and report any OHS incidents. 

Dispute Settlement

In the event of a dispute between the Gig Worker and the Engaging Entity, the Draft Bill requires the parties to initially settle the dispute through the internal complaint mechanism provided by the service agreement. The Gig Worker may further file a dispute complaint for conciliation facilitated by an official of the Ministry of Manpower, which will act as a conciliator, if the dispute is unresolved through the internal complaint mechanism. 

If the dispute remains unresolved after conciliation, the Draft Bill introduces a Tribunal, as the dispute resolution forum which is authorized to adjudicate the case. The Tribunal shall only be authorized to adjudicate a dispute upon referral by the conciliator or the Ministry of Manpower, excluding disputes related to criminal law violations. Claims referred to the Tribunal may include compensation of damage and consequential damage. 

Upon adjudication of the dispute, the Tribunal shall issue an order in the form of a final and binding decision within 30 (thirty days) after the last day of the hearing. 

The Tribunal’s decision shall be binding upon the disputing parties and shall have the same enforceability as a District Court decision. The Tribunal Registrar will submit a copy of the Tribunal’s decision to the competent District Court for registration. Any party that is dissatisfied with the Tribunal’s decision may file an appeal with the High Court within 14 days as from the date of the Tribunal’s decision. Failure to comply with the Tribunal’s decision may result in the imposition of penalties and imprisonment.  

ABNR Commentary

Indonesia’s Draft Bill on Gig Workers represents an important step toward establishing a dedicated regulatory framework for the country’s rapidly growing platform-based workforce. By introducing statutory standards for service agreements, income transparency, insurance coverage, and platform governance, the Draft Bill signals the Government’s intention to bring greater certainty and protection to gig-based engagements while preserving their flexible nature. 

If enacted, the Draft Bill may have significant implications for businesses that rely on Gig Workers, where these businesses may need to review their engagement models, contractual arrangements, and operational policies to comply with the proposed requirements. Additionally, protections for Gig Workers mandated under the Draft Bill may also have commercial implications to the businesses operation. The Draft Bill would also finally address any legal gaps surrounding the protection of ‘freelance workers’ which are not regulated under conventional Indonesian employment laws and regulations. 

ABNR assists clients across a wide range of industries that engage Gig Workers, including digital platforms, logistics providers, and on-demand service marketplaces. We are ready to help you navigate this potential new regime and assess its implications for your engagement models, contractual frameworks, and operational practices. If you have questions about how the Draft Bill may affect your business or wish to discuss approaches to compliance and implementation, we would be pleased to assist.

This article was written by partners Indra Setiawan (isetiawan@abnrlaw.com), Mahiswara Timur (mtimur@abnrlaw.com), senior associate Marintan Panjaitan (mpanjaitan@abnrlaw.com), associates Ershad Murtadho (imurtadho@abnrlaw.com) and Bernessa Clarissa (brotua@abnrlaw.com)

This ABNR News and its contents are intended solely to provide a general overview, for informational purposes, of selected recent developments in Indonesian law. They do not constitute legal advice and should not be relied upon as such. Accordingly, ABNR accepts no liability of any kind in respect of any statement, opinion, view, error, or omission that may be contained in this legal update. In all circumstances, you are strongly advised to consult a licensed Indonesian legal practitioner before taking any action that could adversely affect your rights and obligations under Indonesian law.