The regulation was introduced in early April but only took effect two months later to give the app-based taxi services enough time to adjust to the new policy. Under the new regulation, ride-hailing app providers, such as Go-Jek, Grab and Uber, are required to cooperate with licensed transportation companies or cooperatives rather than partnering directly with car owners or drivers.

According to the new policy, the app-based ride-hailing taxi companies also have to comply with road worthiness, tax and insurance requirements, and with fleet caps set by each city in the country.

The government stepped in following massive protests in Jakarta last year that involved drivers of conventional taxis, whose income has dropped sharply since the app-based taxis hit the road a few years ago. Some of the conventional taxi companies even stopped operating for failing to compete.

For consumers, the app-based taxis are not only a more affordable but also more convenient mode of transportation, available at their fingertips. Ordered through smartphones, app-based taxis typically arrive within a few minutes, compared to the long process of ordering conventional taxis.

We appreciate and support the regulation, as it acknowledges the role of (disruptive) technology in a market that used to be dominated by just a small number of players. The regulation constitutes the state’s acceptance of the app-based taxis, which have been in operation for some time without a legal basis and, hence, put consumers at risk. Besides ensuring the safety of passengers, the new rules create a level playing field in the public transportation business.

Although the regulation mainly affects transportation companies or cooperatives, app providers Go-Jek, Grab and Uber must comply with the policy. They should, for example, partner only with transportation companies that already meet the requirements to continue their operation.

At the end of the day the requirements the app-based taxis have to fulfill will translate into reasonable prices for consumers, as opposed to the predatory rates that will eventually kill any competitor. This is why we are not really comfortable with the floor and ceiling fares the regulation imposes on app-based taxis.

Fare restrictions may help conventional taxi operators compete with their app-based rivals, but the price policy impedes not only fair business competition but can also hurt those that have managed to operate efficiently.

Strict enforcement of the regulation will hopefully create a business environment where the most efficient and those offering the best services win, rather than those who generously offer hefty subsidies. Only with such a policy will there be fair competition in the public transportation business and will the rights of passengers be ensured.

We also hope there will be no more rallies and conflicts involving desperate drivers at the expense of public order.