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ensions have risen in Jakarta streets following conflict between application-based and traditional modes of public transportation, while the government is still searching for solutions to address the '€œunfair business competition'€ that has arisen from the new technology.

Jonhider Pasaribu, an angkot (public minivan) driver said on Tuesday that he had witnessed a violent conflict the previous day, in which dozens of ojek (motorcycle taxi) drivers from ride-hailing app Go-Jek smashed the windows of several minivans at Kota train station in West Jakarta.

Jonhider said it might have been an act of retaliation, as a few hours earlier he had heard that some angkot drivers in the area had asked a Go-Jek driver to leave behind his passenger.

'€œNot only Go-Jek, now we have to compete with Grab and Uber,'€ he said, referring to US-based Uber and Malaysia-based Grab'€™s GrabCar, two ride-hailing apps that have enjoyed rising popularity recently.

The reported incident followed another in Central Jakarta on Monday, in which a private car suspected of being an Uber operator was damaged by protesters who were marching to the National Monument to protest the ride apps.

Thousands of drivers of traditional taxis and angkot accused the apps of being behind their dwindling income in the past months.

The incidents on Monday indicated that the conflict has widened to four-wheeled public transportation. Previously the conflict had only occurred between traditional and app-based ojek.

The rise of Go-Jek, followed by Grab group'€™s GrabBike, has led traditional ojek drivers to become more defensive of their turf and prohibit Go-Jek and Grab drivers from picking up passengers in certain places. Later, app-based drivers retaliated by responding to any incident of an attack on fellow drivers by arriving at the scene and forming a mob of their own.

Nanang Maulana, a Go-Jek driver, believes that the rift between app-based and traditional public transportation is widening. '€œA few months ago we only had a problem with ojek drivers, but now the angkot drivers are starting to show hostility toward us,'€ he said.

Jakarta Police spokesman Sr. Comr. Mohammad Iqbal said the police had not arrested anyone over the reported incident but added that the police had video footage and would process anyone proven of being violent at the rally.

During the rally, protesters accused ride-hailing apps of posing a serious threat to their livelihood through unhealthy competition. They said that by not paying public transportation taxes and legal fees to the government, the companies were able to offer lower prices to passengers.

'€œThe competition is very fierce and we are afraid that more incidents will happen if the government does not do anything,'€ rally coordinator and bajaj (auto rickshaw) driver Cecep Handoko said.

Jakarta Governor Basuki '€œAhok'€ Tjahaja Purnama said Tuesday he would still allow ride-hailing app-based transportation to operate in the capital but they had to register their vehicles as public transportation and pay the required taxes.
He added that they also had to put stickers on vehicles to make them visible as public transportation.

The central government has also been trying to find a balance between protecting traditional drivers and not shutting down the app-based services, which are highly popular among members of the middle class.

Communications and Information Minister Rudiantara said that he was seeking a win-win solution that would eventually enable digital and conventional transportation services to coexist on a level playing field in the Indonesian market.

He said he would coordinate with the Cooperatives and Small and Medium Enterprises Ministry to help make clear the requirements of operating a business in Indonesia.

In order for a foreign firm to legally operate in Indonesia, it must establish a local, legal entity so that it is eligible to pay taxes.

What is needed now, he said, is for the services to have a proper operational umbrella for the largely independent vehicles that operate with Grab and Uber. Both companies, he said, have largely complied with the operational requirements and are currently in the process of completing the remaining obligations.

'€œOn the other hand, we can'€™t ignore the fact that the public greatly appreciates these services because they are seen as affordable and reliable. What the ministry can do now is assist these services to fulfill the requirements needed to legally operate in Indonesia,'€ Rudiantara said on Tuesday.

After receiving word of the proposed ban, Grab Indonesia released a statement clarifying that it is not a transportation operator, but instead works with independent transportation providers.

Safrin La Batu and Agnes Anya contributed to this story.
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