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Jakarta Post

Uber, Grab Car told to collaborate with '€œlegal'€ transportation

A taxi driver demands the halt of illegal transportation during a demonstration in protest of smartphone app-based taxi services in front of the State Palace in Jakarta on Monday

Callistasia Anggun Wijaya (The Jakarta Post)
Jakarta
Wed, March 16, 2016 Published on Mar. 16, 2016 Published on 2016-03-16T17:22:00+07:00

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span class="caption">A taxi driver demands the halt of illegal transportation during a demonstration in protest of smartphone app-based taxi services in front of the State Palace in Jakarta on Monday. Some 2,000 taxi drivers took part in the protest.(thejakartapost.com/Wienda Parwitasari)

The operators behind ride hailing apps Uber and Grab Car have been advised by Transport Minister Ignasius Jonan to collaborate with existing licensed public transportation such as taxi and rental car operators.

Jonan'€™s statement was calmer than the statement he had made on Tuesday which called on the Communication and Information Technology Ministry to block the two ride-hailing apps because they operated illegal public transportation.

Jonan stressed that, as IT providers, both Uber and Grab Car could be provided with permits but would need to collaborate with existing transportation companies. "The form can be that of a cooperative, a foundation or a public company," he added.

Jonan is known for his toughness against smartphone-based app transportation. He attempted to cease the operation of Go-Jek (a popular motorcycle taxi booking app), but revoked his decision after he was advised by President Joko '€œJokowi'€ Widodo with regard to the matter.  

Not having registered as public transportation and having utilized private vehicles without the necessary licenses to operate a taxi service, both Malaysian-based Grab Car, operated by PT. Solusi Transportation Indonesia, and US-based Uber, operated by Uber Asia Limited, have in violated transport regulations, Jonan stressed.

"The problem is not the application. It is good and I strongly support it. Our concern is with the vehicles, as these have not been selected in accordance with the regulations," he said.

The recommendation came after thousands of public transport drivers held a demonstration in Jakarta on Monday to demand the government ban Uber and Grab, saying that they have had a negative impact on licensed public transport operators in the country. (bbn)(+)

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