Extending social protection to Indonesian digital workers
Digital and gig economies have created enormous opportunities and enhanced productivity of workers, businesses and the overall society. Yet, they also pose serious threat to decent work and fair competition.
Representatives of the ILO together with the Indonesian Social Security Provider for Employment (BPJS Ketenagakerjaan) and the Trade Union Rights Centre (TURC) participated in a discussion titled “Workers behind the Glamorous Industrial Revolution 4.0”, initiated by Engage Media, a non-profit organization working for digital rights issue. The event, held on 7 May, discussed the vulnerability of digital platform workers and the urgent need to extending social protection for these non-standard workers.
(c) ILO/F. Latief “Through this event, we aim at increasing awareness of legal frameworks and available social protection scheme for those who are depending on digital platforms to make money. I hope we can also build a stronger solidarity through shared commonalities among workers,” said Maria Karienova, Digital Rights Coordinator of Engage Media.
Digital platform workers do not have stable incomes and are at high risk of losing job. Allowing flexible contribution requirements and mechanisms can increase their willingness to register to the system."
Christianus Panjaitan, ILO’s Programme Officer for Social Protection
During the event, Armeilia Handayani, Advocacy Officer of TURC, highlighted the negative side of partnership between digital platform workers and business owners. She argued that this kind of partnership have placed workers in a more vulnerable position, as they do not have access to worker’s rights and social protection system.
“The partnership relationship between platform owners and digital workers makes workers ineligible to access their rights such as minimum wage, social protection, paid leave, severance pay and decent work environment. As a result, for example, the workers often work long hours yet still underpaid. They are also at risk of losing their job as the appraisal scheme is merely based on reviews from customers,” she added.
Responding to the lack of access to social protection system, Ivan Sahat Pandjaitan, Assistant Deputy Director of BPJS Ketenagakerjaan, reminded that social protection is a mandatory protection for all workers. Thus, he encouraged digital platform workers to apply non-wage earner scheme to be eligible for work injury and death benefit.
“We have implemented several strategies to extend social protection to digital workers. We understand that the system needs some improvements. Thus, we are seeking for active participation and collaboration from all relevant stakeholders to make the system more accessible for all workers, including digital platform workers,” said Ivan.
he key for social protection for all is social dialogues among relevant stakeholders to share common understandings and jointly find effective ways to address challenges and ensure access to all workers."
In its latest World Employment Social Outlook 2021, the ILO recognizes challenges related digital labour platform, such as long working hours, unpredictable income, gender pay gap, unfair competition and lack protection. In relation to social protection, Christianus Panjaitan, ILO’s Programme Officer for Social Protection, shared recommendations to extend social protection to digital platform workers.
“Digital platform workers do not have stable incomes and are at high risk of losing job. Allowing flexible contribution requirements and mechanisms can increase their willingness to register to the system,” Christianus explained one of the recommendations.
Other recommendations included providing adequate benefits, lowering legal minimum thresholds for eligibility and streamlining administrative procedures. For effective implementation, Christianus suggested the policy makers to follow several principles, such as universality, adequacy, transferability, transparency, gender equality and good governance.
“The key for social protection for all is social dialogues among relevant stakeholders to share common understandings and jointly find effective ways to address challenges and ensure access to all workers,” he concluded.