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Ride-sharing apps must comply with regulation: Senior minister
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Thousands of taxis from different operators are parked on Jl. Gatot Subroto in South Jakarta to block the road during a demonstration to protest the operation of ride-sharing apps. They claimed the operation of app-based public transportation was illegal and against fair competition laws. (thejakartapost.com/wienda parwitasari)
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oordinating Maritime Affairs Minister Luhut Pandjaitan has said app-based ride-sharing companies will be required to comply with a government regulation on their operations for the sake of fairness and consumer protection.
"They can't say no, if they reject [the regulation] they can leave [the country]," he said on Thursday.
The government will implement a revision to Transportation Ministerial Regulation No. 32/2016, which covers floor and ceiling service fares and fleet quota for ride-sharing app partners.
(Read also: Ride-hailing apps to soon see curbs to business)
Luhut said the government had the authority to regulate the operations. "We are protecting investment in Indonesia with fairness. That's the key," Luhut added.
The minister referred to conventional taxi drivers, who claimed dwindling incomes since the emergence of app-based transportation services.
The government claimed that the floor fare for the services, to be decided by the regional government, would ensure the safety of consumers and reduce "fare wars. Meanwhile, the ceiling fare was intended to protect consumers from extreme ride-sharing app fare surges during peak hours
Major ride-sharing apps—Go-Jek, Grab Indonesia and Uber— have strongly opposed some proposed points, such as pricing and fleet quota, which they consider “has no relation whatsoever to safety”, according to their joint statement last Friday. (bbn)
