Gig Workers in Digital Platform Strengthen Economy: CSIS

TEMPO.CO, Jakarta - The Centre for Strategic and International Studies (CSIS) revealed the result of its study on worker-partners of a ride-hailing firm Grab that gig workers in digital platforms play vital roles in strengthening the country's economic security.

“Our study shows that other than providing informal workers better income opportunities, the growth in Grab platform generates more economic opportunities in its ecosystem and more jobs outside the ecosystem,” said the CSIS’ head of economic department, Yose Rizal Damuri, in a press conference on the role of gig workers in Indonesia’s economic security on Thursday, June 25.

Yose presented examples that Grab’s food delivery services dubbed GrabFood helps merchants establish new businesses and employ more workers as their business grows.

Gig workers through the platform have also improved the life quality of workers in the informal sector and increased their financial inclusion. “This is the important factor that will contribute to the country’s economic progress in the long term,” he added.

The CSIS studies also reported that in 2019, Grab’s partners consisting of GrabFood, GrabCar, GrabBike, and GrabKios contributed up to Rp77 trillion to the country’s economy. “This figure rises significantly compared to 2018 at Rp48 trillion. The hike occurs in all services (GrabFood, GranKios, GrabBike, and GrabCar,” Yose said.

Meanwhile, the largest contribution in 2019 was made by GrabFood at Rp37 trillion, up from 2018’s Rp20.8 trillion, followed by GrabBike at 26.2 trillion from last year’s 15.6 trillion, while GrabCar (Rp10.7 trillion) and GrabKios (Rp 3.2 trillion).

Read: Singapore's Grab Puts Partnership with Troubled Wirecard on Hold

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