Government Finalizes Presidential Regulation, Ojol Recognized as a Micro Entrepreneur

JAKARTA - The government will recognize online motorcycle taxi (ojol) drivers as micro-entrepreneurs through a Presidential Regulation (Perpres) which is currently being finalized. The policy is prepared to provide certainty of status as well as strengthen the grassroots economic ecosystem.

Minister of Micro, Small and Medium Enterprises (UMKM) Maman Abdurrahman said the recognition was one of the main substances in the draft Presidential Regulation on online taxis.

"In the presidential decree, it is also encouraged that the treatment of ojol as a micro-entrepreneur," said Maman at the Presidential Palace Complex, Jakarta, Monday, July 20.

According to Maman, the government considers ojol drivers to have the characteristics of micro-entrepreneurs because they run their businesses independently. They provide their own vehicles, bear operational costs, and partner with application companies in running their businesses.

With the status as a micro-entrepreneur, ojol drivers are expected to have a wider space to develop various business activities outside of their activities as driver partners.

Maman explained that the preparation of the Presidential Decree was carried out by considering the interests of all parties in the online transportation ecosystem, ranging from application companies, drivers, UMKM players or merchants, to consumers.

"Regarding ojol, we have to see it as an ecosystem. In it there is an application ecosystem, ojol, UMKM or seller/merchant, and also consumers," he said.

He added that the majority of drivers' aspirations also want to have the status of a micro-entrepreneur because it is considered to provide flexibility in carrying out various business activities.

In addition to regulating the status of drivers, the government has also prepared cross-sector arrangements through a number of ministries. The Ministry of Manpower will regulate social protection for drivers, the Ministry of Transportation handles safety and passenger transportation rates, while the Ministry of Communication and Digital regulates freight delivery service rates.

Maman also reminded the government that previously it had accommodated the aspirations of drivers regarding the distribution of travel fares of 92 percent for drivers and 8 percent for applicators. The scheme was announced by President Prabowo Subianto on the International Labor Day, May 1, 2026.

Currently, the draft Presidential Regulation on online motorcycle taxis is still in the finalization stage at the Ministry of State Secretariat before being officially published.