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Transportation Minister rejects request for grace period from ride-sharing app providers
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Hundreds of Go-Jek drivers stage a peaceful rally to demand a better revenue system in front of the Go-Jek office on Jl.Asia Afrika, Senayan, Central Jakarta. Transportation Minister Budi Karya Sumadi has rejected a request from major ride-sharing app providers for a grace period to implement a new rule affecting their businesses. (Antara/Reno Esnir)
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ransportation Minister Budi Karya Sumadi has rejected a request from major ride-sharing app providers Go-Jek, Grab and Uber to delay the implementation of a revised ministerial regulation affecting their businesses.
In a recent joint statement, the ride-sharing app providers asked the government to give them a nine-month period to adjust to the changes stipulated under Transportation Ministerial Decree No. 32/2016 after it became effective on April 1. The changes include a minimum and maximum fare set by regional administrations.
Budi said Tuesday that he had rejected the grace period proposal, although he acknowledged an adjustment period would be necessary to implement arrangements in the new regulation, such as service fare limit and quota.
"We told regional administrations and police that they should not enforce the law right away [regarding the matters]. We will disseminate the information first," Budi said.
(Read also: Government designs bumper sticker for ride-hailing cars)
The government held a video conference meeting with regional leaders and their representatives on the day to convey this issue.
Apart from asking for a grace period, the three app providers raised strong opposition to three points in the new regulation, namely pricing, fleet size and vehicle licensing. (lnd)
