Luhut admitted that the government was late in anticipating the rapid technology development which enabled such applications to provide the public with low-cost transportation. However, Communications and Information Minister Rudiantara and Transportation Minister Ignatius Jonan are set to settle the dispute in a meeting on Wednesday.

"We never imagined applications such as those. Looking from a business aspect, the overhead cost of a regular taxi is higher than that of the applications. It makes the ride-hailing app fare lower," he said in a press conference in Jakarta on Tuesday.

The President has ordered the related ministries to evaluate the case by taking in legal considerations, Luhut added. Therefore, further coordination will include providing a fair legal solution for both conventional taxis and app-based taxis.

“The license and legal requirements for both services must be equal. The only thing that will differentiate them is cost efficiency,” he said.

However, he underlined that the government had yet to block the applications, as it would only create more problems. He requested patience from protesters as revising the law would take at least one to two years.

"If we close the apps now, how many thousands people will reject the closure? It will create the same reaction, it won't fix the problem," Luhut said.

Rudiantara, who attended the conference, elected not to comment.

Meanwhile, Jakarta Police arrested 83 people allegedly involved in the taxi and Go-jek driver sweep and brawl. "We haven't classified who they are. Some Go-jek, some Grab bike, and taxi drivers," said Jakarta Police deputy chief Brig. Gen Nandang Jumantara.

He pledged that the vandalism suspects would be prosecuted. "We will investigate them further," Nandang said. (ags)

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