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Jakarta Post

Uber claims to have green light, Ahok says the opposite

  • Edna Tarigan

    The Jakarta Post

Jakarta   /   Tue, December 8, 2015   /  08:41 pm
Uber claims to have green light, Ahok says the opposite

Applied technology: A man orders a taxi from Uber through an application on his smartphone in Jakarta.(JP/DON)

Jakarta Governor Basuki '€œAhok'€ Tjahaja Purnama has yet to give an operational permit to Uber to operate in Jakarta, underlining that a green light will be given after the foreign entity manages to meet four requirements.

"We summoned Uber to tell the company to meet the same requirements that GrabTaxi has met. You must have a permit from the Coordinating Investment Board [BKPM] and put a [vehicle road worthiness/KIR] sticker on the car," Ahok said at City Hall on Tuesday.

That means, he said, that every car that Uber leases must pass a KIR test.

The Jakarta administration would also control the income tax that the car owners must pay to the government. "The taxi owners have to pay income tax. If they got Rp 4.8 billion per year, the only need to pay 1 percent of their income," Ahok added.

However, in a press statement, Uber'€™s regional manager for the Asia-Pacific, Mike Brown, said that Ahok fully recognized Uber'€™s legality after the company secured approval of its investment application from the BKPM.

'€œIt is very encouraging that the ride-sharing industry in Jakarta has finally received a green light from Governor Ahok to operate in an environment with regulatory certainty that is conducive to success. As a company we have made some mistakes in the past and apologize for that,'€ he said.

There are four requirements for Uber and ride-sharing platforms to flourish, Brown added, quoting Ahok. The first is that it must be a legal foreign investor; second, it must fulfill its tax obligations; third, it must hold adequate insurance; and fourth, its vehicles must pass KIR tests.

Working with Jakarta'€™s transportation department, Uber is ready to conduct vehicle inspections and verify insurance as well as to cooperate with Ahok'€™s office to ensure Uber complies with all requirements, Brown said. (ags)