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App-based taxis told to fulfill public transportation requirements
Transportation Minister Ignasius Jonan has told all operators of application-based taxis to fulfill the requirements for operating as public transportation.
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A taxi is seen with damage to its windscreen after being hit by protesting taxi drivers on Tuesday. Many of the protestors stopped taxis that had chosen to continue operating, telling their fellow drivers to join the demonstration against application-based taxis. (thejakartapost.com/Wienda Parwitasari)
Transportation Minister Ignasius Jonan has told all operators of application-based taxis to fulfill the requirements for operating as public transportation.
"They must be established as a business entity or an association, or a foundation or cooperative, so that income can be recorded. They should also pay tax like conventional taxi companies do," Jonan said in Jakarta.
He was responding to protests held by thousands of taxi drivers in the capital on Tuesday, the second demonstration this month. They held a strike, demanding that the government block ride-hailing applications Uber and Grab.
Conventional taxi drivers protested because the operations of Uber and Grab, which they say have violated fair business competition standards, have severely reduced their incomes as the fares offered by both apps are lower than conventional taxis.
Jonan admitted that neither Grab nor Uber possessed the licenses required for commercial public transportation providers.
Hence, the government obliged them to register their companies and to meet the requirements for public transportation including undergoing roadworthiness tests.
Regarding the fares, Jonan said that currently taxis apply two rates — “lower fare” or “higher fare”. However, app-based taxis will be categorized as rental cars. "Rental cars have no tariff provisions," he added.
Currently, low-fare taxis charge a flagfall of Rp 7,500 (56 US cents) followed by Rp 4,000 per kilometer, while other taxis charge Rp 8,000 initially and then Rp 4,600 per kilometer.
Meanwhile, Communications and Information Minister Rudiantara reiterated that the two companies had chosen to establish cooperatives, the permits for which were issued by Cooperatives and Small and Medium Enterprises Minister Anak Agung Gede Ngurah Puspayoga last week.
Currently both companies are still in the process of obtaining permits from the Jakarta administration’s One-Stop Integrated Services (PTSP) center.
"In the context of being business entities, these cooperatives will accommodate their status as rental cars, and they also will cooperate with transportation companies. It is tailored to the existing regulations to make a level playing field," he said.
Transportation Minister Ignasius Jonan has told all operators of application-based taxis to fulfill the requirements for operating as public transportation.(bbn)
