The Indonesian government has issued a new regulation on ride-hailing transportation services, which is expected to end the lengthy dispute between stakeholders of both conventional and online public transportation services.
Transportation Minister Regulation No. 108/2017 on Non-route Public Transportation is to replace a similar regulation, 14 articles of which were annulled by the Supreme Court in August.
The new regulation, signed by Transportation Minister Budi Karya Sumadi on Oct. 24, also regulates the operation of residential transportation, employee transportation and chartered transportation in addition to ride-hailing transportation.
Under the new regulation, rice-hailing transportation services are required to operate in specific areas, are prohibited from picking up passengers directly on the street, are required to use mobile app technology and must have a minimum standard of service.
Other stipulations include a requirement for vehicles to display stickers issued by the Transportation Ministry and to pass roadworthiness tests. Meanwhile, the government will determine the operational quota for ride-hailing vehicles in each region.
The Transportation Ministry’s land transportation director general, Hindro Surahmat, was quoted in an earlier kompas.com report as saying that the regulation also set the floor and ceiling rates for ride-hailing services.
Hindro said the rate for online transportation operating in Java, Sumatra and Bali was Rp 3,500-Rp 6,000 per kilometer, while those operating in Kalimantan, Sulawesi, Maluku, Nusa Tenggara and Papua were set at Rp 3,700-Rp 6,500 per kilometer. (bbn)