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Jakarta Post

Uber, GrabCar illegal until licenses sealed: Ministry

  • Anton Hermansyah

    The Jakarta Post

Jakarta   /   Tue, March 22, 2016   /  12:40 pm
Uber, GrabCar illegal until licenses sealed: Ministry A taxi that had decided to operate as usual, instead of joining a rally protesting Uber and GrabCar, was attacked by a mob while passing the protest in Jl. Gatot Subroto, Jakarta on March 22. (thejakartapost.com/Wienda Parwitasari)

The Transportation Ministry will insist on labeling Uber and GrabCar illegal until such times as they have secured a license to provide transport to the public. The statement comes as the transportation association holds its second rally protesting ride-hailing apps.

Transportation Ministry spokesman Sugihardjo stated that both of the app-based transportation operators have yet to submit any application to the Ministry. GrabCar are in the process of preparing a cooperative, as a legal entity, covering all of its car owners.

"Before they have the license, they are illegal," he said to Kompas.com.

The ministry, he continued, have provided some options for Uber and GrabCar.

Firstly, if they want to run a car-rent business, they must possess a public transport operator license, driver licenses, and be covered by insurance. Also, the vehicles must pass the regular scrutiny, he emphasized.

"Second, if they want to offer a taxi service, they need to use a fare machine. The tariff is subject to the regional government," Sugihardjo said.

Another option, he continued, is that both companies maintain their ride-hailing business, but work with official car operators to provide the rides. "There are some small taxi operators. Grab can join them, the B2B [business to business) agreement is up to them," he said. (ags)

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