However, the Minister for Transportation Budi Karya Sumadi acknowledged that ride-hailing startups will need an “adjustment period”
Last week, Indonesia’s major ride-hailing companies, including Go-Jek, Grab, and Uber, released a joint statement, opposing a revision to a transport regulation introduced by the Ministry of Transportation, which will come into effect from April 1, 2017.
The on-demand taxi firms are mainly opposing three points, of the total 11 introduced by the Ministry. They are related to driver quota, maximum/minimum tariff, and car ownership.
According to these companies, the driver quota introduced in the new rule will hamper company growth and people’s right to apply for a job, whereas the minimum/maximum tariff will make it hard for them to compete with traditional taxis. At the same time, the new rule on the car ownership (which mandates each vehicle to be registered as a company’s asset, instead of an individual’s) will result in the driver-partners in losing the ownership of their cars/bikes.
The 11-point revision also includes vehicle type, engine displacement, fleet quota for each company, periodical feasibility tests, service stations, home base for vehicles, taxation, access to dashboard, and sanctions.
The taxi-hailing companies have also asked for a nine-month grace period for a smooth transition. However, a report by The Jakarta Post said that the Minister for Transportation Budi Karya Sumadi rejected the ride-hailing companies’ plea for an extension.
The Minister has, however, acknowledged that an adjustment period will be provided to implement the new regulations. “We told regional administrations and the police that they should not enforce the law right away. We will disseminate the information first,” the Minister added.
Also Read: Grab vs. Uber: Which is the better ride-hailing app in Singapore?
The road is on fire
Recently, many Southeast Asian countries saw huge protest against on-demand ride-hailing companies, mainly from conventional taxi firms. Last month, there were riots between mini-bus drivers and online ‘ojek‘ (motorbike taxi) drivers in various cities in Indonesia, such as Bandung and Tangerang. Even the local government of Jogjakarta is considering to complete ban on ride-hailing startups, in a move to protect conventional taxi companies.
Today, a local news paper reported another clash between mini-bus drivers and ojek drivers in the city of Bogor. One mini-bus was destroyed in the clash. However, the details are unavailable.
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