Estimated Income of Gig Economy Workers in Indonesia

Employment

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Adi Ahdiat 24/09/2024 16:30 WIB

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According to research by Permana, Izzati, and Askar, the average income of gig economy workers in Indonesia reached Rp3 million per month in 2019.

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

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Estimated Average Income 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.

Some worked in the transportation sector (such as Gojek and Grab drivers), and some in other service sectors (such as online tutors, copywriters, translators, software developers, and other jobs performed through digital platforms).

In 2019, gig economy workers in the transportation sector were estimated to have an average monthly income of Rp3.05 million.

The estimated monthly income for gig economy workers in other service sectors was Rp3.04 million.

These estimates are 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 is work based on projects or short-term assignments 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 as a medium in their work.

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

However, their analysis results are still estimates.

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