Changes in the Online Transportation Company Partnership System in Indonesia's Economic Development Post-Covid-19 Pandemic


                                                                    ISSN: 2146-0353 ● © RIGEO ● 11(5), SPRING, 2021                                                                                         Research Article

            Changes in the Online Transportation
         Company Partnership System in Indonesia's
           Economic Development Post-Covid-19
            H. Radea Respati Paramudhita1                                  Prof. Dr. H. Obsatar Sinaga, M.Si.2
    Faculty of Economics and Business, Widyatama                           Padjadjaran University, Indonesia
                  University, Indonesia                              

E-commerce business is growing rapidly in Indonesia. An online transportation company engaged in the
e-commerce business is one of the drivers of Indonesia's economic development. The Covid-19
pandemic has hampered the wheels of the economy, including online transportation companies. The
partnership relationship between the company and the driver does not guarantee their income,
especially in the current pandemic conditions. In addition, the company does not guarantee the safety
and health of the drivers. The company encourages drivers to exploit their power by providing
inappropriate daily income bonuses. In the recruitment process, the company does not do a good
screening, so drivers of productive age are constrained by a system that kills their creativity and potential.
In the UK, the partnership system is no longer used and has replaced it with an employment relationship
to become an employee of the company. While in the state of California, United States, the company
provides strict conditions for drivers who want to work for the company. The partnership system used by
the company in making work agreements with drivers is not in accordance with the Manpower Act. The
company's encouragement to exploit the driver's time and energy is alleged to have violated the
Trafficking in Persons Act. With the current pandemic conditions, the partnership system is no longer
appropriate for the agreement between the company and the driver. Therefore, it is necessary to change
the agreement from a partnership to a work agreement.

Partnership System, Online Transportation Company, Covid 19 Pandemic, Employment, Trafficking in Persons,

To cite this article: Paramudhita H, R, R, and M.Si. P, D, H, O, S. (2021). Changes in the Online Transportation Company
Partnership System in Indonesia's Economic Development Post-Covid-19 Pandemic. Review of International
Geographical Education (RIGEO), 11(5), 3276-3287. Doi: 10.48047/rigeo.11.05.218

Submitted: 12-11-2020 ● Revised: 10-02-2021 ● Accepted: 21-03-2021
© RIGEO ● Review of International Geographical Education                         11(5), SPRING, 2021
Today the development of e-commerce business is very rapid along with the advancement of
information technology in the world. Including in Indonesia, e-commerce companies are starting
to emerge and have even become large companies with high market values. There are many
types of e-commerce businesses ranging from marketplaces, internet banking, online
transportation applications, and so on. According to the We Are Social survey in April 2021 quoted
by that as many as 88.1% of internet users in Indonesia used e-commerce services
to buy products or use these services in the last few months. In fact, both online transportation
applications have been downloaded more than 100 million times each. This is a very good
business potential where the e-commerce business contributes to economic development in
Indonesia. Companies have a big role in the development of the Indonesian economy. In the e-
commerce business, one of the online transportation companies in 2018 contributed 8.2 trillion
rupiah per year to the Indonesian economy through the income of online motorcycle taxi drivers
and 1.7 trillion rupiah per year generated by Micro, Small and Medium Enterprises. (MSMEs) in the
Indonesian economy (Ikhsan, Islam, Khamis, & Sunjay, 2020). Meanwhile, in 2019 the company
contributed 104.6 trillion rupiah to the Indonesian economy and the digital ecosystem moved 152
trillion rupiah or around 1% of Gross Domestic Product (GDP) (Purbasari, Muttaqin, & Sari, 2021).
With more than 2 million online motorcycle taxi drivers and more than 900,000 merchant partners,
online transportation companies open new jobs and make the company one of the drivers of the
economy in Indonesia in the e-commerce business (DERMAWAN, ASHAR, NOOR, & MANZILATI,
2021). In 2020, the COVID-19 pandemic hit Indonesia. This has a direct impact on the economy,
economic growth in Indonesia in 2020 will be -2.07% (Margiansyah, 2020), a drastic decrease from
previous years with an average economic growth of 5%. The government has made policies to
deal with the COVID-19 pandemic, both in the health and economic fields. The policy made by
the government begins with imposing restrictions on community activities and socializing health
protocols that must be followed by the community. With this restriction, companies and other
business actors are directly affected, the implementation of the Work from Home policy until the
number of employees who are laid off is the impact of these restrictions. One of the most severe
impacts is felt by the drivers because the number of orders per day decreased by 99% (Abdillah,
2020), so that their daily income decreased and became increasingly uncertain. It's the same with
companies that rely on their drivers to make a profit. The partnership system in the cooperation
of companies with drivers has been used by many countries (Degasperi et al., 2020). Initially,
partnership cooperation was known in the franchise business, sub-contract and so on with the
principle of mutual benefit. In Indonesia, the partnership system is adopted by companies to
recruit prospective drivers. The partnership cooperation system used by the company provides
rules that are burdensome for prospective drivers. In times of bad economic conditions such as
during this pandemic, drivers do not get guarantees from companies to earn income. This is far
from the principle of partnership which must be mutually beneficial to both parties. The
recruitment system carried out by the company is still not running well. According to data released
by the Demographic Institute of the FEB University of Indonesia in 2018 that the age of drivers 20
years and over was 38% and those aged 30 years and over were 39%. This age is a productive
age, where drivers can maximize their ability to generate energy and thoughts beyond being a
driver. In the same data, it is stated that 15% of drivers who have the latest undergraduate
education are ironic because the knowledge they have after taking higher education cannot be
used optimally by becoming a driver. They should become candidates for experts in their fields,
enter into corporate management or even become entrepreneurs in the future to participate in
building the Indonesian economy. Therefore, based on the background thought above, the
author would like to examine the issue of the partnership cooperation system carried out by the
company and the driver is still relevant to the current pandemic conditions and the recruitment
pattern carried out by the company does not conflict with the National Education System.

Online Transportation Application Company Partnership System in Indonesia

The formal concept of partnership as stated in Law Number 9 of 1995 (Yusi, 2015) concerning Small
Business states that partnership is a collaboration between small businesses and medium
businesses or with large businesses accompanied by continuous guidance and development by
medium or large businesses by taking into account the principle of mutual need, mutual respect.
Mutually reinforcing and mutually beneficial. This concept is reinforced in Government Regulation

© RIGEO ● Review of International Geographical Education                    11(5), SPRING, 2021
Number 44 of 1997 (Erwin, Asep, Ida, & Heru, 2017) concerning Partnerships which explains that
the ideal form of partnership is mutually reinforcing, mutually beneficial, and mutually supportive
(Akimova, Kochetkova, Kovalenko, & Zinina, 2016). There are several partnership patterns that are
currently developing such as: plasma nucleus, sub-contracts, general trade franchises, and other
patterns in which the Law gives entrepreneurs the freedom to enter into partnership relationships
with other parties that are more efficient and effective (Novikova, Sidorov, & Goncharuk, 2020).
Some other opinions say that the partnership pattern that is currently developing is a traditional
partnership, the market and the government by prioritizing the principle of symbiotic mutualism
(Sokolova & Litvinenko, 2020). In Indonesia the cooperation system used by companies with drivers
is partnership. The partnership system is not commonly used by companies in Indonesia, usually
the partnership system is used by business actors with models such as franchises and so on.
Companies in Indonesia use a partnership system because it is considered according to the
company's needs, where they have an application that consumers can download to use their
services which will be carried out by the driver. Likewise, drivers who are willing to become
company partners, initially intend to increase their daily income by getting lots of orders from the
application. Without realizing it, the company's partnership system with drivers has a ticking time
bomb that can explode at any time, especially for drivers. The partnership system is not regulated
in the Manpower Law, in which all regulations regarding employment in Indonesia are regulated
in the Law. This means that there is no job guarantee (BPJS) for drivers before, during and after
work from the company. In addition, there are several rules made by the company and must be
approved by the drivers in signing the partnership agreement to be established, which are as

 1.   Punishment System which tends to be one-way by the company in giving
      penalties to drivers which can end in the termination of partnership
 2.   Determination of Tariffs and Commissions that are unilateral without involving
      the driver.
 3.   Establish a code of ethics that is implemented based on the system without
      asking for information from the drivers.
 4.   The company establishes a policy that encourages drivers to keep their cell
      phones on for a day and accept jobs whenever they are given.
 5.   Transfer of company responsibility to drivers in case of accidents or other risks
      at work.

Looking at the points above, the principle of partnership that prioritizes mutual need and benefits
for both parties does not occur. Even the company allegedly exploited the drivers to work hard
into the night to get more work by offering incentive bonuses. This is one of the bad effects of the
partnership system used by the company with the drivers. The other bad impacts of the
partnership system are as follows:

 1.   Drivers are trapped in an online motorcycle taxi system that takes up a lot of
      time, thereby eliminating the creativity of the drivers.
 2.   Damaging the younger generation by recruiting drivers in their productive
      age (18-30 years).
 3.   Damaging the scientific potential of scholars to further develop in
      accordance with expertise in their respective fields.
 4.   People's expectations for mass/public transportation are reduced.
 5.   The company can avoid the capital system, payroll, operational and
      maintenance costs that should be the company's obligations.
 6.   The company can avoid calculating the exact tax according to its
 7.   The state exports raw natural resources, due to the lack of human resources
      who are experts in managing them.

In terms of recruitment, the company provides information about vacancies as prospective drivers
both in print, electronic and online media. Prospective drivers must come to a location that has
been determined by the company to provide the necessary requirements such as: Identity Card
(KTP), valid Driving Permit (SIM), Family Card, and Certificate of Criminal Record (SKCK). After

Paramudhita H, R, R, and M.Si. P, D, H, O, S. (2021). Changes in the Online Transportation Company …

bringing the above requirements, the prospective driver is asked to read the partnership
agreement provided by the company after it is approved, the prospective driver signs the
partnership agreement. Another way to register as a driver is to download the application and
follow the procedures contained in it. Whether registration as a prospective driver is face-to-face
or online, the prospective driver will be given training first after the training is completed by the
prospective driver then they will be given attributes to work.

UK Partnership System Model

The development of transportation in the UK has been very advanced. As a developed economy,
it makes it easier for them to build transport infrastructure in the UK. The high income of British
citizens gives many choices in the use of the type of transportation mode to be used. The private
sector is also involved in the development of transportation modes in the UK, one of which is an
online transportation application company. In addition to supporting modes of transport in the
UK, the company also provides opportunities for people who want to earn an income by
becoming a company driver partner. One company in the UK enforces the recruitment of
prospective drivers by means of online (Uber, 2021). This makes it easier for prospective drivers who
will apply without having to come to the office. The conditions are as follows: first register online,
then get a private hire license at the city council where the company has a license and if you
don't have one, the company will help to get it. The company requires a special license to drive
a vehicle into public transportation and helps prospective drivers if there are obstacles in the
manufacturing process. Followed by uploading documents, namely: a valid British driving license,
ID card and a minimum of 21 years, Private Hire Insurance, Passbook and driver's photo. The
company requires prospective drivers aged 21 years and over to be accepted for work. After
that, the vehicle must follow the minimum standards provided by the company before starting
work. The company ensures that the vehicle to be used by the driver meets the minimum
standards before starting work. Followed by online training, the company provides online training
to prospective drivers as the final step before drivers start working. After that, all you have to do is
activate your account and you can start working as a driver. Major online transportation
application companies in the UK use a partnership system with their drivers. Initially, this partnership
system was considered a model of the appropriate cooperation system applied by the company
in seeking driver partners. In 2016 two drivers filed a lawsuit against the company in a UK
employment court because they were receiving less compensation. Followed by dozens of other
drivers who filed a lawsuit against the company. In February 2021 the UK Supreme Court granted
the driver's lawsuit against the company. The court requires companies to treat drivers like
company employees complete with the fulfillment of rights such as minimum wages, leave and
other benefits (Amaxopoulou, Durovic, & Lech, 2021). In the verdict, there are things that become
important points in the judge's decision that has been read out, namely:

 1.    The company is obliged to determine the salary that must be paid to the
       driver because it has previously set the tariff and the driver must not ask for
       more than what has been calculated by the application. Thus, the driver has
       a steady income while working for the company.
 2.    The company must have conditions for prospective drivers such as a work
       contract, with a work contract, the driver has a guarantee when they work
       for the company.
 3.    The company enforces a work contract and directly monitors the
       performance of the driver and provides sanctions if they refuse too many
       orders, the company applies a rating mechanism that determines whether
       the driver can still work or not. With the employment contract, the obligations
       and rights as well as the rewards and sanctions that have been made have
       been mutually agreed upon by the company and the driver.
 4.    The company must prohibit any communication or relationship between the
       driver and the customer outside the context of delivery (Kenner, 2019).

Model Partnership System in the State of California (United States of America)
The transportation system in the United States has been highly developed, both public and
commercial modes of transportation. Private companies are competing to innovate in the

© RIGEO ● Review of International Geographical Education                         11(5), SPRING, 2021
transportation sector. With advances in technology, companies create applications that can be
used to order transportation services. In addition to facilitating the selection of transportation
services to be used, the company also provides job opportunities to earn income for prospective
drivers. The way to recruit a company in the State of California (United States of America) is by
downloading an application and then registering it online. This step is considered practical and
makes it easier for prospective drivers to apply for jobs at the company. The requirements that
must be met by prospective drivers are as follows: a valid California state driving license, at least
25 years old and have a year of driving experience, driving record and free of criminal records.
The company has strict requirements to meet the qualifications of drivers who will work. Vehicle
minimum requirements that valued by company is:

1.      The company establishes vehicle age border year 2001 to up, has four doors and number
of chairs as much as five until eight including driver chairs.
2.      The company uses standard qualification of vehicle minimum to provide the safety and
comfortable for client while driving.
3.      The company requires used vehicle must apply government plate for California and it is
not problem.
4.      The company requires the driver sends the document to equip the requirement such as
vehicle assurance for California State, proof of vehicle inspection and driver photograph (Lyft,

The cooperative system used by the company with its drivers in the United States is called
independent contractor. An independent contractor is an individual, business, or corporation that
provides goods or services to another entity under the terms specified in the contract (Suo, Siegel,
& Soley, 2020). This system is still foreign to use in Indonesia, this system places the driver as a service
provider based on a written contract or oral agreement. Independent contractors are widely
used by companies in the United States in carrying out working relationships with other people. In
2020 the state of California (United States of America) has filed a new lawsuit against the two large
operating companies because they illegally enforce their drivers, under the independent
contractor regime. Implementing drivers illegally causes drivers to lose protection and labor
benefits, including unemployment insurance and minimum wages. Company policy classifies
drivers as independent contractors, giving the company the advantage of not paying state and
city taxes, which are used primarily to finance social assistance programs (Bechtel, 2019). There
was implementation after the Bill 5 (AB 5) rule was enacted, the rule originating from the California
State Assembly came into effect on January 1, 2020. The historic law sets stricter standards in
treating workers who are considered independent contractors, not employees. Formal. The law
now requires companies to classify drivers as employees covered by minimum wage, overtime,
unemployment insurance and disability compensation (Bechtel, 2019).

Covid 19 Pandemic against Indonesia's Economic Development

Reported by the South China Morning Post on November 17, 2019, covid 19 was first discovered
in the city of Wuhan, Hubei Province in the People's Republic of China. Covid 19 is a disease
caused by the novel corona virus. This disease quickly became a pandemic that hit all corners of
the world, including Indonesia. Almost all countries in the world do not know the impact that will
be faced from covid 19. The covid 19 pandemic changes the normal order of human life,
especially in the economy and even involves social culture where worship activities are also
limited (Menezes & Gropper, 2021). There are policies carried out by the government in an effort
to overcome the COVID-19 pandemic in Indonesia. First, the government imposed large-scale
social restrictions (PSBB) as an effort to prevent the transmission of covid 19. This effort resulted in
limited people's movement. This causes delays in the distribution of goods and services which
hampers the wheels of the economy. This pandemic has had an impact on multi-sectors, starting
from the hospitality business where the number of tourists visiting tourist attractions has decreased,
transportation services both land, sea and air have decreased along with restrictions on people's
movements, banking and non-banking financial services that have difficulty in lending and many
other businesses that have been impacted directly or indirectly by the COVID-19 pandemic. Like
repeating the economic crisis in 1998 and the global economic crisis in 2008, where business actors
suffered huge losses and laid off their employees, this has caused economic growth in Indonesia
to slump during the pandemic (Menezes & Gropper, 2021). With the completion of large-scale

Paramudhita H, R, R, and M.Si. P, D, H, O, S. (2021). Changes in the Online Transportation Company …

social restrictions, the government carried out an evaluation because the implementation of the
PSBB was considered less than optimal. So the government made a new policy by imposing
restrictions on community activities (PPKM). This policy was implemented as an effort to reduce
hospital occupancy rates (Saragih & Andrabi, 2021). The implementation of restrictions on
community activities is focused on the islands of Java and Bali because they are the epicenters
of the spread of the covid 19 virus. With the enactment of this policy, the center of the Indonesian
economy, which originates in Java and Bali, has resulted in the national economy getting worse.
The government disbursed funds from the allocation of the State Revenue and Expenditure
Budget (APBN) for the 2021 fiscal year for the recovery of the national economy amounting to 699
trillion rupiah (Saragih & Andrabi, 2021). With this budget, the government wants to stimulate the
economy to recover. One of them is by encouraging people to buy daily necessities to increase
consumption in the midst of a pandemic, by providing social assistance both in cash and in the
form of food ingredients. Including micro, small and medium enterprises, the government provides
direct cash assistance to keep their businesses from closing. Employees and workers who have a
specified minimum salary do not escape the mind of the government who are registered as BPJS
participants, they are given assistance directly to each employee's bank account. The
vaccination program is the government's top priority in efforts to contain the COVID-19 pandemic.
The government has provided 141 million doses of vaccine (Turner et al., 2021). The number of
people who have been vaccinated with the second dose until the beginning of August is
24,481,296 people or 11.75% of the total population, while the people who have been vaccinated
with the first dose are 51,181,322 people or 24.58% of the total population of Indonesia
(Beritajakarta, 2021). This effort is carried out by the government so that the formation of herd
immunity, so that community activities can return to normal. In this pandemic condition, the
programs planned by the government in national economic development are hampered. The
budget allocation for President Jokowi's programs to build infrastructure was diverted for the covid
19 pandemic prevention program. This caused a slowdown in the economy and the delay of
programs in efforts to develop the national economy. In 2020, Indonesia's economic growth was
-2.07% (Pradesha, Amaliah, Noegroho, & Thurlow, 2020), this happened because both macro and
micro economic sectors were affected by the covid 19 pandemic. Drivers were affected by this
pandemic, with the reduced number of orders they received causing their daily income to be
uncertain. This condition requires making a special policy for drivers to guarantee their income,
health and safety at work. After various efforts made by the government in tackling the pandemic,
the Central Statistics Agency has released the latest data on economic growth in the second
quarter of 2021, which is 7.07% (Sampurna, 2019). Of course, this is positive news to revive the
national economy.

Employment Law Perspective

Law No. 13 of 2003 is a law that regulates Manpower in Indonesia. In the Law there is a term
working relationship in Article 1 number 15 of Law Number 13 of 2003, namely: Employment
relationship is a relationship between an entrepreneur and a worker or laborer based on a work
agreement, which has elements of work, wages and orders (Nusantara, Anugrah, & Fathanudien,
2019). These three elements are cumulative, which cannot be separated from each other. If one
of these elements is missing, a working relationship cannot occur. The partnership system does not
exist in Law No. 13 of 2003 concerning employment. The partnership system was created for small
businesses according to Law Number 9 of 1995 concerning Small Business, not as an employment
relationship because it is not contained in the Manpower Act. But in article 1313 of the Civil Code
allows everyone to make an agreement (Azhari, 2020) and in article 1338 of the Civil Code
recognizes the legal principle of the principle of freedom of contract (Irawan Soerodjo, 2016), the
parties to the agreement are entrepreneurs or people who represent the company with workers,
laborers, motorcycle taxi drivers, or others using the system. Partnership or partnership relationship.
Agreements based on a partnership system or partnership relationship must not conflict with
Article 1320 of the Civil Code which contains the conditions for the validity of the agreement,
namely: agreeing to bind themselves together, capable of making agreements, certain or
determinable objects and reasons that are not prohibited (Lumenta & Runtunuwu, 2020). The legal
consequences that occur if the partnership agreement is not based on article 1320 of the Civil
Code, the agreement can be canceled in court on the basis of an application if the subjective
conditions are not fulfilled and the agreement is null and void by itself if the agreement is made
not fulfilling the objective requirements. The partnership system agreement or partnership
© RIGEO ● Review of International Geographical Education                     11(5), SPRING, 2021
relationship is made in written form. In the agreement there are parties who make the agreement,
the legal position of each party, the agreed material, the rights and obligations of each party and
the sanctions imposed on the party committing the breach of contract. There is no standard
format in making a partnership agreement, the arrangement is made depending on the material
of each party. Working relationships and partnerships are actually intended to benefit the parties.
In Article 4 of Law Number 13 of 2003 concerning Manpower, it is stated that the objectives of
manpower development are as follows (Perdana, 2021):

 1.    Empower and utilize the workforce optimally and humanely
 2.    Realizing equal employment opportunities and providing manpower in
       accordance with development needs
 3.    Provide protection to workers in realizing prosperity
 4.    Improving the welfare of workers and their families

In an employment relationship, workers or laborers receive work guarantees from the company
because they are protected by law. Meanwhile, drivers in the partnership system do not get legal
protection from the Manpower Act because they do not have a working relationship with the
company and are partners (Sudharma, Sutrisni, & Abiyasa, 2018). Legal protection is an effort to
organize various interests in society so that there are no conflicts between interests and can enjoy
the rights granted by law (Sudharma et al., 2018). The partnership agreement becomes the legal
basis for partners in their work. If the agreement does not provide guarantees in accordance with
what is stated in the Manpower Act, then the driver in the partnership system will be harmed.
Drivers in a partnership system or partnership relationship do not get job guarantees from the
company. Whether there is an accident or loss while delivering goods at work, it is the responsibility
of the driver. Compared to workers or laborers who have a working relationship with the company,
they get job security by participating in BPJS membership. On the other hand, in terms of income,
workers or workers get a fixed monthly wage and incentives according to the predetermined
overtime time. As for drivers, their income comes from the number of orders they get and
complete, if they want to get an incentive, they have to work late into the night to complete the
number of orders determined by the company. Therefore, there needs to be a follow-up in the
implementation of a partnership system or partnership relationship, especially in making an
agreement between the driver and the company.

Perspective of the Criminal Act of Trafficking in Persons

Trafficking in Persons is a type of human rights violation, it is a modern form of human slavery. The
Crime of Trafficking in Persons is also one of the worst forms of treatment for violations of human
dignity. The increasing number of problems of trafficking in persons in various countries, especially
in poor countries and other developing countries, has become the concern of the state, the
international community, and members of international organizations, especially the United
Nations (UN) (Prakoso & Nurmalinda, 2018). The crime of trafficking in persons is increasingly
dangerous, data obtained from the International Organization for Migration (IOM) shows that
around 600,000 – 800,000 men, women and children are trafficked across international borders. It
was further stated that at least 500,000 women were victims of trafficking in persons (Magnis
Florencia Butar-Butar, 2021) in Western Europe, while in Southeast Asia an estimated 250,000 were
victims of the Crime of Trafficking in Persons. Reporting from the website, during 2020,
according to data from the International Organization for Migration (IOM), it was stated that the
number of cases of Trafficking in Persons in Indonesia increased to 154 cases and it turns out that
the Crime of Trafficking in Persons is not only cross-border, but also cases of Trafficking in Persons.
Domestic people also rose (Amelia, Maria, Roy, Darma, & Pusriadi, 2019). Companies have a big
role in Indonesia's economic development. Apart from being taxed for development, they also
provide jobs for other people. Most of Indonesia's population belongs to the middle to lower
economic class, the lack of job opportunities is a problem along with the high unemployment rate
(Paramudhita, Suseno, Sulistiani, & Muhammad, 2019). Limited employment opportunities are one
of the obstacles for the government in carrying out programs for national economic
development. The difficulty of getting a job and a decent wage makes it difficult for people to
meet their daily needs. The company as a job provider provides convenience for the community
to earn income to meet their needs. People who work for the company will be given wages
regularly and continuously. The crime of trafficking in persons is usually carried out by several

Paramudhita H, R, R, and M.Si. P, D, H, O, S. (2021). Changes in the Online Transportation Company …

individuals, organized and dividing tasks either in their respective roles as individuals or for and on
bepagef of one company. Elements of the criminal act of Trafficking in Persons can be fulfilled if
there is at least a party that sends, a party that receives, a party that exploits a victim. Individual
parties who play a role in the Crime of Trafficking in Persons usually take advantage of the
economic weakness of potential victims; individuals will work together with companies to supply
human labor. The individual gets a commission as a reward for his services, while the company
relies on the difference in profits from the Crime of Trafficking in Persons or by providing a work
relationship that is detrimental to prospective employees or their partners (Amelia et al., 2019). The
crime of trafficking in persons is considered to be committed by a corporation if the crime is
committed by persons acting for and on bepagef of the company or in the interests of the
company based on a work relationship or based on other relationships within the scope of the
company's business, either individually or jointly (Darwance & Sudarto, 2021). Examples of cases
suspected of committing the Crime of Trafficking in Persons are companies that have a working
relationship with a partnership system that is only based on an agreement between the two parties
between the company and potential partners. As in a study conducted by Victoria Panggidae
that 55% of drivers who work full time earn less than the DKI Jakarta Provincial Minimum Wage
(UMP), and Health conditions, and working hours that exceed the provisions of the Manpower Act
(Fanggidae, Sagala, Ningrum, & Prakarsa, 2016). The company employs drivers with a partnership
system, where they bind together in a partner agreement. There are several clauses in the partner
agreement where the company is suspected of exploiting drivers when they are required to work
to get orders that have been determined by the company in order to get incentives. And that is
done by the driver until the evening, and if they do not reach the order size determined by the
company, they will not get incentives. Of course, this is very detrimental to the driver, where they
have to spend more energy from morning to night to get the amount of orders that have been
determined by the company in order to get incentives.

             Recruitment System and National Education System
Employee recruitment is an important part of company activities. Recruitment is the process of
finding, finding and attracting applicants to be employed in and by an organization (Stewart &
Brown, 2019). Applicants are looking for jobs to fulfill their daily needs, while companies are looking
for workers to be positioned as needed to run or increase company activities and productivity
(Avdeeva, Davydova, Skripnikova, & Kochetova, 2019). There is a mutually beneficial relationship
between the two parties, due to the needs of each other. The company in conducting
recruitment aims to get employees who can fulfill the position or position needed by the company
(Fenech, Baguant, & Ivanov, 2019). In recruiting prospective workers, the company has minimum
qualifications in accepting prospective workers. The age limit and the latest education are
administrative requirements that are required by the company to be fulfilled by prospective
workers in addition to other additional requirements. With the age limit that is still productive and
has the latest education in accordance with the qualifications, it is expected to be able to meet
the needs of the company. However, many companies still employ employees who are still
underage and hinder the education that is being pursued by their employees. The purpose of
National Education according to Article 3 of Law Number 20 of 2003 concerning the National
Education System is to function to develop capabilities and shape the character and civilization
of a dignified nation in the context of educating the nation's life, aiming to develop the potential
of students. The government is obliged to provide education to all its citizens with quality
education. By getting a quality education, citizens will get a decent life. Many companies pay
little attention to the impact of a wrong recruitment system, especially in terms of the National
Education System Act. Often this law is not considered by companies when recruiting, because it
is not directly related. In fact, when the company recruits and employs its employees, the level of
education that has been taken and the potential generated by the employee is affected by the
work they do. It should be in accordance with the Law on the National Education System, the
education that has been taken can be utilized and the potential of employees can be developed
while working in the company. But in fact there are still many companies that employ employees
who are not in accordance with the education they have taken and even turn off their potential.
The company's recruitment system tends to be wrong in recruiting its employees. One example is
a company that employs drivers. There are many ages where they should still be studying, but are
accepted as drivers. As well as undergraduate graduates who should have qualified

© RIGEO ● Review of International Geographical Education                       11(5), SPRING, 2021
competencies to work in offices or become other professionals are also hired to become drivers.
This becomes an obstacle for the community in developing their potential, of course contrary to
the purpose of the National Education System Law, which functions to develop capabilities and
shape the character and civilization of a dignified nation. This is counter-production, where the
company should absorb prospective workers to increase their abilities and potential in an effort
to fulfill their needs, but what happens is that workers cannot develop the abilities and potentials
they have as a result of the education they take.

The partnership relationship or the partnership system used by the company does not provide a
guarantee of safety and health to the driver at work. The income earned by the driver is also
uncertain, adjusted for the number of orders given by the company plus the COVID-19 pandemic
which imposes restrictions on community activities. This is contrary to the Manpower Law which
states that every worker or laborer is entitled to work security and a decent wage for his work. The
partnership relationship must be changed in accordance with the provisions contained in the
Manpower Act because it is no longer relevant, especially in the current pandemic conditions,
into a working relationship as an employee so that work guarantees, and a living wage are
provided by the company. If it is feasible, drivers with working status can meet their needs, so that
consumption levels will increase which will have an impact on national economic growth and
development. The partnership system is deprecated in the UK and the US state of California. The
UK's Supreme Court has ruled that drivers are company employees. The partnership system was
judged by a court in the UK to be detrimental to drivers with no guarantee of income, safety and
health when they work for the company. Likewise in the State of California, United States, the State
Attorney General changed the status of drivers from independent contractors to employees. In
addition to harming drivers, independent contractors that resemble a partnership system allow
companies to avoid paying taxes. The company can unilaterally carry out punishments such as
suspending the driver to implementing a policy of dismissing partners from the drivers without
making other efforts and requesting information from them even though in Article 151 of Law
Number 13 of 2003 concerning Employment that Termination of Employment (PHK) (Ramadhan &
Diamantina, 2020) is an effort the last time after not finding common ground in the negotiations
between the two parties. In accordance with the principle of partnership which must be mutually
beneficial for both parties, this does not uphold this principle at all because the driver is very
disadvantaged by the company. By changing the partnership relationship to a working
relationship, there will be agreement and clarity regarding the rewards and punishments in the
work agreement agreed by both parties. The company allegedly encourages drivers to work
overtime in order to complete the work that has been determined in order to get incentives from
the company. This has led to allegations of exploitation of drivers by the company, where drivers
work harder and earn inadequate wages. With the work agreement, overtime hours have been
determined in accordance with the provisions of the Manpower Act and do not conflict with the
Criminal Act of Trafficking in Persons. Exploitation is an act with or without the victim's consent
which includes but is not limited to prostitution, forced labor or services, slavery or practices similar
to slavery, oppression, extortion, physical use or exploiting one's power or ability by another party
for profit, which is one of the one element of the article on the Crime of Trafficking in Persons. The
company's recruitment system without applying good screening makes the recruitment results
without clear boundaries. Many productive people easily join and become drivers in participating
in the recruitment process. Such a recruitment system causes the potential loss of potential drivers,
especially those of productive age to maximize their abilities and educational outcomes. So that
Human Resources who are able to become professionals in managing Natural Resources in
Indonesia are reduced due to a shortage of prospective experts in their fields. The recruitment
system allows drivers who have talents in sports, music, fine arts and many others, whose potential
is not channeled properly because they run out of time, energy and mind to work to meet the
target orders given by the company. Companies need to rearrange the recruitment plans
needed by companies, especially drivers so that they do not conflict with the National Education
System. Referring to article 1320 of the Civil Code that one of the conditions is a cause that is not
prohibited by the validity of an agreement, then if one of the legal conditions of the agreement
is not fulfilled then the agreement can be legally canceled because it does not meet the
objective elements in the legal requirements of the agreement based on article 1320 of the Civil
Code. So it can be sued by the driver to the company in court to be canceled. Drivers can sue

Paramudhita H, R, R, and M.Si. P, D, H, O, S. (2021). Changes in the Online Transportation Company …

the company either individually or in groups in court to fight for their rights to job security and
decent wages, as is the case in the UK and the US state of California. There are quite a number of
drivers in Indonesia, around 4 million people in 2021 with a productive age of 20 years and over
as many as 38% and those aged 30 years and over as many as 39% experiencing loss of income
security, health insurance, work safety insurance, and being trapped in the online application
system, and the loss of potential of the Indonesian people due to the wrong recruitment system
provides a basis for the need for government participation in overcoming this. The government
should make strategic policies, both in terms of legal policies and social policies. In addition, the
government needs to form an institution or provider to ensure the safety and health of drivers at
work. This is necessary to ensure the fulfillment of the rights of drivers and reduce the risk of drivers'
work that is not borne by the company. The institution in question can be in the form of a provider
or a special insurance institution that guarantees and ensures the fulfillment of claims in
overcoming the risks faced by drivers while working for the company.

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