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Minister invites ride-hailing apps to discuss change of status
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A customer uses a smartphone to access a ride-hailing application as online motorcycle taxi drivers park on the roadside near Palmerah Station in Jakarta. (JP/Jerry Adiguna)
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ransportation Minister Budi Karya Sumadi said on Monday he would summon representatives of ride-hailing apps Grab and GO-Jek after the two companies ignored the deadline set by the ministry for them to change their company status to transportation operators.
"There are technical difficulties related to regulations such as percentage of [foreign ownership of the companies]. So, I’ve still given them time and we will discuss it," he said at the State Palace in Jakarta.
Under Government Regulation (PP) No 44/2016 on the negative investment list (DNI), foreign ownership of non-route transportation companies is limited to only 49 percent, while most of the ride-hailing apps are financed by foreign investors.
Budi said he would discuss the issue with the two companies this week.
Initially, the ministry set April 13 as the deadline for Go-Jek and Grab to change their company status to transportation operators, but the companies ignored the deadline.
“It would be better to ask the minister [about the deadline],” Grab Indonesia spokeswoman Dewi Nuraini said last week. (bbn)
