Jakarta Governor Basuki "Ahok" Tjahaja Purnama has stressed that the operation of the smartphone-based apps for transportation services like Uber and Grab Car is a product of current technology that his government could not prohibit.

He, however, said that he had demanded their operators abide by existing regulations, but the governor admitted that none of the operators had registered with the transportation agency.

He said they kept using black license plates (private car plates) instead of the yellow plates that are required by the transportation law for public transportation.

Therefore, those cars shall be considered rental cars. "If they want to serve as rental cars, they shall pay tax. Are rental cars allowed in Jakarta? Yes, but they shall pay taxes," Ahok said in Jakarta in response to the protest to by thousands of drivers of conventional taxis in Jakarta on Monday.

Meanwhile, City Transportation Agency head Andri Yansyah admitted that his agency had not managed to prevent the app-based services from operating because they function like private cars.

He said his agency could only take action against drivers who had violated traffic regulations. He explained that this year, his officers had seized 65 cars that were used as app-based taxis, but those cars were released after the drivers paid fines imposed by the traffic court.

He demanded the operators of those cars to immediately abide by regulations by establishing companies that owned at least five cars that could pass roadworthiness tests. "The most important thing is they have to fulfill all of the requirements to be rental car or public transportation," Andri said.  

About 2,000 taxi drivers staged a demonstration in front of City Hall on Monday to protest against the operation of app-based taxis.

Meanwhile, the chairman of the Association of Road Transportation Drivers (PPAD), Cecep Handoko, said the government, especially the Information and Telecommunications Ministry, had to stop their operations because their presence represents unfair competition

"We urge the government to close the car-booking applications that led to this national strike," Cecep said after a meeting with official of the transportation agency, adding that the operation of app-based taxis has incited envy among drivers of yellow-plated vehicles (conventional taxis).

The conventional taxis, which are operated based on the existing regulations '€“ which means they pay regular taxes and other fees '€“ certainly could not compete with app-based taxis that in fact are private cars, Cecep argued.

A similar call came from David Santoso, the Finance Director of PT Express Trasindo Utama Tbk, saying that the government has upheld the law on transportation. "If they want to compete fairly, follow the relevant regulations in this country," David said.

He called on the government to be firm in banning the app-based taxis that offer cheaper fares than conventional taxis from operating because their operation violated existing regulations. '€œTheir operation has created unfair business competition,'€ he added. (bbn)(+)

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