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Jakarta Post

Online transportation apps oppose regulation revision

  • Dylan Amirio

    The Jakarta Post

Jakarta   /   Thu, March 16, 2017   /  11:50 am
Online transportation apps oppose regulation revision Hundreds of taxis are parked in Yogyakarta on Feb. 17 while the drivers stage a rally against ride-hailing apps Uber, GoCar and GrabCar. (JP/Bambang Muryanto)

Online transportation apps companies have rejected some points in the revision of a Transportation Ministry regulation on online transportation, particularly regarding the fare and pricing system.

Transportation Ministerial Regulation No.32/2016 regulates ride-hailing apps and requires that vehicles used for the purpose undergo roadworthiness tests and the drivers to possess public transportation driver's licenses.

Part of the revision addresses online transportation fares, which can change with the revision. It states that certain fares will likely be capped at certain rates, making online transportation unable to offer competitively lower rates.

(Read also: Traditional drivers stage rally protesting ride-sharing apps in Surakarta)

Uber Indonesia has voiced concern about the revision, saying that if implemented, it would make it harder for Indonesians to access reliable transportation options and the flexible economic opportunities that ride-hailing offers.

“We will continue to engage with the government to ensure that the interests of riders and drivers are put first, and that innovation is allowed to thrive in Indonesia,” the company said in a statement on Wednesday.

Ride-hailing app Grab has also voiced concern, saying it agreed with some points but not with others.

"We are studying conditions in certain cities. The public is open to the idea of online-based transportation because of the technology, sense of security and convenience,” Grab Indonesia managing director Ridzki Kramadibrata said recently.

The revision is likely to be implemented on April 1. (bbn)

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