Minister of MSME Says Ojol Drivers Agree to Status as MSME, Denies They Will Be Taxed

Minister of MSME Maman Abdurrahman (photo; VOI)

JAKARTA - Minister of Micro, Small and Medium Enterprises (UMKM) Maman Abdurrahman revealed that the government has reached an understanding to place drivers as micro-enterprises. This policy also considers the aspirations of the ojol driver community and associations who have dialogued with the government.

"I have met with about 20 associations and ojol communities. Their aspirations are mostly directed towards MSMEs, meaning micro-businesses," said Maman, quoted Tuesday, August 11.

According to him, the status as a micro-enterprise provides space for ojol drivers to maintain flexibility in running their business activities. At the same time, this status opens up opportunities for drivers to benefit from various policies and incentives aimed at MSMEs.

"God willing, with their status as MSMEs, our brothers who are ojol have flexibility in time. Then several incentive policy packages for MSMEs can also be enjoyed by them," he said.

Maman also clarified information regarding the consequences of taxation after ojol drivers were categorized as micro-enterprises. He emphasized that this status does not necessarily make ojol drivers subject to tax.

Entrepreneurs of MSMEs with a turnover of up to Rp500 million per year are not subject to income tax in accordance with the applicable tax provisions. Meanwhile, according to Minister Maman, the average turnover of ojol drivers is in the range of Rp. 10 million to Rp. 15 million.

"I want to make it clear, if someone says that ojol will be taxed, it's not true. For MSMEs whose turnover is below Rp500 million, they are not taxed. Meanwhile, the average turnover of ojol is around Rp10 million to Rp15 million," he said.

In addition to providing access to various UMKM policies, the status of micro-enterprises is also expected to be an entry point for ojol drivers to develop their economic capacity. Drivers are not only seen as partners who provide transportation services, but also as business actors who have the opportunity to grow and increase the scale of their business.

Maman gave an example that drivers can develop vehicle ownership and use it as part of their business activities. Thus, this policy is expected to provide more space for drivers to build productive assets and strengthen their economic independence.

After the Presidential Decree is determined, he continued, the relevant ministries and agencies will draft derivative regulations in accordance with their respective authorities. All regulations must remain within the corridor of the Presidential Decree and have the same spirit, namely improving the welfare of drivers while maintaining the sustainability of the digital transportation ecosystem.

The government, said Maman, needs to ensure that the policies formulated are able to create a balance between the interests of drivers as micro-entrepreneurs and the sustainability of application companies as an important part of the digital transportation ecosystem.

"His spirit to encourage the improvement of growth and the welfare of our brothers and sisters in ojol, plus maintaining the existing ecosystem there. One of them, the sustainability of the app also has to be secured," said Maman.