Estimated Number of Gig Economy Workers in Indonesia

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Adi Ahdiat 23/09/2024 20:00 WIB

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According to research by Permana, Izzati, and Askar, Indonesia was estimated to have approximately 2.3 million gig economy workers in 2019.

Estimated Number of Gig Economy Workers in Indonesia by Sector (2019)

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Estimated Number of Gig Economy Workers in Indonesia by Sector (2019)

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Indonesia is estimated to have had around 2.3 million gig economy workers in 2019, divided between the transportation and other service sectors.

This is recorded in a research report by Muhammad Yorga Permana, Nabiyla Risfa Izzati, and Media Wahyudi Askar, titled *Measuring the Gig Economy in Indonesia: Typology, Characteristics, and Distribution* (2023).

According to the report, the gig economy refers to work that is project-based or short-term and mediated by digital platforms.

The gig economy has five characteristics:

1. Client demand-based work;
2. Compensation is paid based on results and measured by work output, not working hours;
3. Workers are required to provide their own production tools;
4. There is a mediator connecting workers and clients; and
5. There is a digital platform acting as a mediator, responsible for work supervision and facilitating payment transactions.

In the Indonesian context, gig economy workers are generally defined as self-employed workers in the service sector who utilize the internet in their work.

Using this definition, Permana, Izzati, and Askar then measured the number of gig economy workers in Indonesia by analyzing data from the 2019 National Labor Force Survey (Sakernas) released by the Central Statistics Agency (BPS).

The results showed that in 2019, there were approximately 1.23 million gig economy workers in the transportation sector, equivalent to 0.9% of the total workforce. This group represents online motorcycle taxi drivers, couriers, and food delivery personnel (example platforms: Gojek, Grab).

Then there were 1.1 million gig economy workers in other service sectors, equivalent to 0.8% of the total workforce. They represent online educators (example platform: Ruang Guru), software developers, translators, copywriters, and other remote work (example platforms: Upwork, Fastwork).

However, these figures may be overestimations.

"The Sakernas data, released twice a year, cannot perfectly estimate the number of gig workers in Indonesia accurately. However, with its limitations, we can use this survey to roughly estimate it," as quoted from the report.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Estimated Number of Gig Economy Workers in Indonesia

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