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Jakarta Post

As deadline nears, GrabCar and Uber still face hurdles

Farida Susanty (The Jakarta Post)
Jakarta
Fri, August 19, 2016

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As deadline nears, GrabCar and Uber still face hurdles Uber management can easily monitor a driver’s performance. Drivers need to maintain a minimum rating of 4.5 to keep their account in good standing; those whose rating is below that threshold may be warned, or even delisted. (Shutterstock/-)

P

roblems continue to pile up for app-based transportation services as the deadline for formalizing their position approaches, diminishing hopes that their operations can run smoothly in October.

About 100 drivers, partners of app-based ride-hailing services such as GrabCar and Uber, signed up to obtain type A driving licenses for public transportation vehicles at an event recently this week.

The specific type of driving license was one of the requirements set by the Transportation Ministry for the drivers to operate legally on the streets. However, by the end of the day, only seven drivers had passed the test and obtained the license.

The situation highlighted ongoing problems, both external and internal, faced by GrabCar and Uber. They have been racing against time because in October the government will start enforcing the recently issued Ministerial Regulation No. 32/2016 that will determine their future.

It stipulates that drivers partnering with ride-hailing services must possess type A driving licenses for public transportation vehicles, have their cars undergo vehicle roadworthiness tests (KIR) and register their cars under a cooperative’s name.

Indonesian Car Rental Businessmen Association (PPRI), a cooperative that partners with GrabCar, states that only 966 cars out of a total 5,000 have passed the KIR test so far. The number of drivers possessing the type A driving licenses is even lower at 50 drivers.

The PPRI claims the problems lie within the drivers themselves and with the authorities. PPRI chairman Ponco Seno said it designated 70 cars to undergo the KIR test every day, but many drivers were still reluctant to comply.

“But the transportation agencies at the regional level, such as in Bekasi and Tangerang, don’t have infrastructure and facilities ready to support the KIR tests for our cars either,” he said over the phone.

The KIR test comes under the responsibility of each respective transportation agency. The Transportation Ministry merely gives recommendations for the drivers.

Ponco said the drivers faced difficulties passing the driving simulation test as well to get the type A licenses for public transportation vehicles, hence only three drivers passing the test on Monday.

Uber’s cooperative partner, Jasa Trans Usaha Bersama cooperative, is also struggling to meet the requirements. Of 5,000 drivers, only 1,500 drivers have already taken the KIR test and 1,000 drivers already possess the license.

Jasa Trans Usaha Bersama chairman Agung Eko Ismawanto claimed that the regional transportation agencies did not make it easy for them to undergo the KIR test.

“They say they are waiting for certainty from the Transportation Ministry. Basically it is waiting for the ministerial regulation to take effect later in October,” Agung said.

The government has previously declared that app-based transportation services can operate legally subject to certain legal requirements.

It gave the companies until May 31 to meet the requirements, including having a legal entity, having at least five vehicles that have undergone the KIR test and partnering with cooperatives that own a carpool and repair services.

As of May 30, only 329 cars that partnered with Uber, GrabCar and newcomer Go-Car had passed the KIR test, whereas their combined fleet of cars stands at around 13,000.

The PPRI hopes to see 3,500 cars undergo the KIR test by year-end, while Jasa Trans Usaha is aiming for almost 5,000 cars.

Grab Indonesia managing director Ridzki Kramadibrata said it would suspend drivers who failed to show up for the KIR test.

Transportation Ministry director general for land transportation Pudji Hartanto Iskandar said that it would enforce the regulation in October as planned. Drivers that violate the regulation will face several consequences, ranging from warnings to the revocation of permits.

“The KIR and the driving license are really important because they will affect the safety of passengers,” he said.

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