State Intervention in the Super-Exploitation of Formal and Informal Workers in Platform Capitalism

Arif Novianto ()
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Arif Novianto: Universitas Tidar, Department of Public Administration, Faculty of Social and Political Sciences

Chapter Chapter 5 in Cheap Labour Regime in Platform Capitalism, 2025, pp 67-94 from Springer

Abstract: Abstract This chapter examines the role of state intervention in shaping labor regimes and sustaining super-exploitation within platform capitalism, with a particular focus on Indonesia. It argues that the state is not a neutral regulator but a contested arena where the interests of capital, labor, and the public collide. Under neoliberal policy, when capital holds greater power, the state produces regulatory frameworks that often prioritize investment and economic growth over worker protection. Globally, state intervention in platform economies operates across three dimensions: licensing and market entry regulations, worker protection policies, and enforcement mechanisms. While some advanced economies, such as those in the European Union, have advanced toward reclassifying platform workers as employees with basic rights, many Global South countries maintain permissive frameworks marked by weak protections and limited enforcement. In Indonesia, state policies reflect a pattern of accommodative regulation, granting platforms operational flexibility while neglecting systematic violations of labor standards. This selective enforcement reveals a structural bias toward capital accumulation, enabling the persistence of super-exploitation among platform drivers, both those classified as independent or dependent contractors (informal workers) and those formally categorized as employees within platform ecosystems.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-95-1841-8_5

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DOI: 10.1007/978-981-95-1841-8_5

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