Gig Economy’s Contribution to National Economy, Green Jobs, and Productivity in Indonesia

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Gig Economy in Indonesia

Written by Leonard Tiopan Panjaitan, MT, CSRA, GPS, CPS

Consultant at Trisakti Sustainability Center (TSC) - Universitas Trisakti

September 2025

Indonesia is at a pivotal juncture in its economic development, marked by the confluence of a digital revolution and an urgent transition towards a sustainable, green economy. This report provides a comprehensive analysis of the gig economy's role in this transition, moving beyond a simple examination of its economic contribution to a strategic assessment of its potential to drive national productivity, foster green jobs, and enhance global competitiveness.

The analysis reveals that the gig economy is a significant and growing force in Indonesia, with a workforce estimated to be in the millions and a digital economy projected to contribute over $130 billion to the national GDP by 2025.¹ However, this rapid growth presents a paradox: while offering flexibility and income opportunities, it has also deepened labor informalization, creating vulnerabilities in social protection and income stability.³

This report argues that when strategically guided, the gig economy can serve as a potent catalyst for Indonesia's green transition. It is particularly effective in two key areas: first, by providing a flexible labor force for a decentralized circular economy, as exemplified by waste management startups that leverage gig workers to formalize an informal supply chain ⁵; and second, by facilitating the agile transfer of specialized “green-enabling” skills, such as freelance Green Productivity (GP) and Environmental, Social, and Governance (ESG) consultancy.⁷

The report's central strategic proposal is to bridge fragmented policies by formally integrating the Ministry of Manpower's Green Productivity (GP) competency certification into the Ministry of Environment's Company Performance Rating Program (PROPER) assessment. This integration would transform GP from a personal asset into a valuable corporate asset, creating a market-driven virtuous cycle that stimulates demand for green skills, addresses the national “skills gap,” and drives genuine environmental excellence.

Drawing on global case studies, the report identifies both opportunities and challenges, from the productivity gains amplified by AI ⁹ to the pressing need for labor protections seen in China and South Korea.¹¹ To unlock this potential, a comprehensive national roadmap is recommended, centered on establishing a multi-ministerial task force, accelerating the development of national competency standards (SKKNI) for green professions, and implementing targeted fiscal and financial incentives that link investment to green job creation.

Ultimately, the report concludes that the gig economy is not merely a new form of employment; it is a fundamental shift in the labor market that, with deliberate policy orchestration, can become a key pillar of Indonesia's strategy to enhance national productivity and secure a competitive, sustainable future in the ASEAN region and beyond.