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Govt regulates app-based ‘ojek’ operations
After operating on the roads of cities across Indonesia for several years without proper legal protection, app-based ojek (motorcycle taxi) drivers and ride-hailing companies must now comply with a new regulation designed to ensure protection for all parties involved, including drivers and passengers
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After operating on the roads of cities across Indonesia for several years without proper legal protection, app-based ojek (motorcycle taxi) drivers and ride-hailing companies must now comply with a new regulation designed to ensure protection for all parties involved, including drivers and passengers.
The Transportation Ministry recently issued Transportation Ministerial Regulation (Permen) No. 12/2019 on the safety of users of motorcycles used for public interest.
The Transportation Ministry land transportation director general, Budi Setyadi, said the regulation, which was signed by Transportation Minister Budi Karya Sumadi on March 11, aimed at preventing any misconduct related to motorcycles used as a means of public transportation.
Budi Setyadi said the ministry would publicize the new regulation in several big cities in April.
The ministry’s multimode transportation director Ahmad Yani said the regulation focused on four aspects, namely safety, partnership between app companies and drivers, sanctions against drivers and fares.
Minimum standards of service are stipulated, for example, ride-hailing companies — also known as applicators — and local and national authorities must provide shelters for drivers to wait for, pick up and drop off passengers in certain locations.
“Applicators are required to provide shelters at places like bus stations, train stations, in order to pool drivers. The obligation of shelter procurement applies not only for applicators, but also for the Transportation Ministry and regional administrations,” said Budi Setyadi.
The reasoning behind the provision of shelters is because frequently the process whereby drivers wait for, pick up and drop off passengers often disrupts traffic, especially during rush hour, as there is a lack designated meeting points for either party.
The regulation also sets a formula for ride-hailing companies to calculate base fares for drivers to create a fair balance between both sides.
The formula is expected to answer protests from app-based ojek drivers, who have been continuously calling for improved welfare as the current fares are deemed insufficient to support their livelihoods.
The detailed formula about the upper ceiling and base fares will be stipulated in a separate ministerial decree slated for issuance this week, said Budi Setyadi.
“Each region has its own different expectations on base fares; we will issue [the decree] at least within this week,” he said, adding that the government was still negotiating with drivers’ representatives and ride-hailing app companies on the matter.
Aside from those two parties, the ministry is also discussing with the Indonesia Consumers Foundation (YLKI), Business Competition Supervisory Commission (KPPU) and transportation and public policy experts.
Based on hearing sessions with drivers, Budi Setyadi said, the ministry received several suggestions on the net base fare of Rp 2,400 (17 US cents) per kilometer. Currently, ride-hailing companies have set an average base fare of around Rp 2,000 to Rp 2,100 per km.
Meanwhile, app-based ojek driver Rusnadi, 50, said he had yet to hear about the new regulation, but was ready to comply when the ride-hailing company he partnered with told him to do so.
“Whatever it [the regulation] is, I am ready to obey. I have no problem wearing shoes, a good jacket and helmet [to ensure safety], but I hope they will also increase the fares, so that I can afford a new jacket,” he said, citing Rp 3,000 per km as the ideal level for him.
Rusnadi has to pay for his working jacket and helmet through an installment scheme provided by the ride-hailing company he partners with.
Michael Reza Say, vice president of corporate affairs at homegrown ride-hailing company Go-Jek, said his company was committed to maximizing the efforts to comply with the regulation, which will be disseminated intensively among its driver partners.
“[Through the regulation] Go-Jek hopes that the government can push the use of motorcycle taxis for the public interest, while always taking into account the safety of drivers, passengers and other road users,” he told The Jakarta Post on Thursday.
Michael added that Go-Jek hoped the regulation could protect millions of its driver partners and the company from possible unhealthy business competition in order to support digital-economy growth.
