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Government sets price range for car-hailing services
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A Jakarta resident uses his smartphone to access the Go-Jek application. (JP/Jerry Adiguna)
T
he government has announced floor and ceiling prices for car transportation services ordered through ride-hailing applications in a further move to regulate the growing industry.
The Transportation Ministry's director general for land transportation, Pudji Hartanto, said the tariffs, mandated by a recently issued Transportation Ministry decree, were differentiated based on a zoning system.
The first zone covers Sumatra, Java and Bali, while the second zone covers Kalimantan, Sulawesi, Nusa Tenggara, Maluku and Papua.
“The minimum tariff for the first zone is Rp 3,500 per kilometer and the upper limit is Rp 6.000 per km, while for the second zone, the minimum tariff is set at Rp 3,700 and the maximum tariff are Rp. 6,500,” said Pudji in a statement received by The Jakarta Post.
(Read also: Ride-hailing apps to soon see curbs to business)
The floor and ceiling prices went into effect on Saturday and would be subject to evaluation every six months, he added.
The ride-hailing industry has sparked concerns among conventional transportation providers, as they accuse major players like Go-Jek, Grab and Uber of practicing predatory pricing by providing heavy subsidies for customers using their services. (mrc/hwa)
