- 19/11/2024
- Category: Press Release
Jakarta (07/11/24) – Since its emergence in 2009, online transportation platforms have transformed the global gig economy landscape, including in Indonesia. The implementation of Artificial Intelligence (AI) and Machine Learning (ML) on these platforms has sparked new concerns, particularly regarding the working relationship between gig workers and platforms. The gig economy refers to a system based on short-term tasks, where gig workers are individuals operating independently under flexible contracts. Responding to these issues, the Center for Digital Society (CfDS) at Universitas Gadjah Mada, in collaboration with the Pulitzer Center, organized a Focus Group Discussion (FGD) titled *”The Impact of AI on Operational Systems and the Future of Gig Workers in Indonesia.”* The event invited practitioners, academics, government officials, associations, and the online transportation industry in Indonesia. Held in Jakarta on Friday (8/11), the FGD aimed to delve into how AI impacts work systems and the future of gig workers, particularly in the ride-hailing industry, while formulating policy recommendations to support a fair and transparent gig work ecosystem.
Moderated by M. Hafiz Noer (Head of Research at CfDS), the discussion opened with Karol Ilagan (a Fellow of the AI Accountability Network at Pulitzer Center and a member of the International Consortium of Investigative Journalists). Ilagan highlighted structural injustices in the gig economy sector in the Philippines, particularly in ride-hailing dominated by a single platform. Non-transparent algorithms leave consumers unaware of fare component justifications, while gig workers face declining incomes despite rising user fees. Incentive schemes force workers to take on more orders, requiring them to spend more time on the road just to maintain a steady stream of orders. In their investigation, Karol and her team analyzed 8,000 data points on fares across various routes and times to compare automated pricing by platforms. The report criticized the “Black Box” of
algorithmic fare determination, which significantly affects gig workers’ livelihoods. Ilagan questioned whether the surge charges paid by consumers truly translated into higher driver earnings.
Additionally, it was found that gig workers’ monthly incomes often fell below regional minimum wages, despite their long daily working hours. This situation underscores weak legal and social protections for gig workers, as they are not recognized as employees. Such conditions mirror the challenges faced by gig workers in Indonesia.
Dr. Suci Lestari Yuana (Lecturer, Department of International Relations, Faculty of Social and Political Sciences, Universitas Gadjah Mada) presented future projection scenarios for Indonesia’s gig economy in 2030. According to Yuana, the *optimization scenario* is the most feasible, requiring the government to manage policy innovations better while platform companies need to develop more participatory schemes for driver-partners. Multi-stakeholder governance and collaboration are proposed, covering economic, regulatory, social, and technological aspects, with a focus on protecting consumers and driver-partners alike.
The discussion also featured Ir. Windy Gambetta (Member of the Artificial Intelligence Center, Bandung Institute of Technology), who highlighted the complexities of AI usage in ride-hailing platforms for route and fare optimization. Gambetta also discussed the potential and risks associated with transparency and decision-making accuracy, emphasizing the need for further advancements to improve driver welfare.
This FGD marks the initial phase of a joint CfDS and Pulitzer Center study on the impact of AI adoption, particularly in Indonesia’s ride-hailing services. The results will be published and accessible to the public, aligning with their shared commitment to transparency in AI development for societal benefit. “Our focus is on developing fair and transparent AI policies, with the hope of fostering equitable ride-hailing regulations for all stakeholders,” concluded Hafiz Noer.
CfDS and the Pulitzer Center also encourage multi-stakeholder collaboration initiatives involving the government, private sector, public sector, associations, communities, and media. Such partnerships
are essential for creating an inclusive and equitable ride-hailing industry ecosystem. Good governance should balance the interests of drivers, consumers, and platform companies. Not only in terms of regulation but also in the design of technology, which should consider relevant social issues from the outset of its implementation.
Moving forward, CfDS and the Pulitzer Center will intensify their research, aiming to provide significant policy recommendations. Both remain committed to addressing the urgent need for comprehensive regulation in AI systems and ride-hailing platform governance. These regulations are critical to ensuring justice and welfare for gig workers in Indonesia amidst the rise of technological advancements.
Author:Allysa Putri Rendry
Editors: Syaifa Tania, Masgustian, Grenti Paramitha
