From Algorithms to Protection: Addressing Structural Failures and Skills Mismatches in Indonesian Gig and Informal Labor Markets
Hilman Abdul Halim(a), Tomi Setiawan(a), Bonti(a)

a) Universitas Padjadjaran

Abstract

Informal workers, including gig workers, dominate the Indonesian economy, accounting for 59.40% of the workforce in February 2025. However, they face challenges such as unstable incomes, lack of social security, and low productivity. This study uses a qualitative methodology through secondary data analysis to explore the realities of gig workers and informal workers. Gig workers, regulated by digital platform algorithms, face dependence as ^dependent contractors^ without full control over their work. The failure of structural transformation is demonstrated by premature deindustrialization and skill mismatch, which exacerbate inequality and brain drain. Regulations for gig workers are currently fragmented and minimal, necessitating a comprehensive policy encompassing social security (health, work accidents, death, old age, unemployment), occupational safety and health (K3), data securitization, and algorithm transparency. A dynamic Labor Market Information System (SIPK) is also needed to map labor needs and support the HR roadmap towards Advanced Indonesia 2045. This recommendation aligns with the 2024 ILO agreement on the protection of digital platform workers, drawing on best practices from countries such as Mexico and Europe. This research emphasizes the need for targeted policy interventions to achieve decent work and address structural inequalities.

Keywords: Gig Workers , Informal Workers, Structural Transformation, Skill Mismatch, Regulation

Topic: Business Transformation in the Digital Era