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Ride-sharing apps must comply with regulation

Thursday, 23 March 2017 | Sanny Cicilia

JAKARTA. Coordinating Maritime Affairs Minister Luhut Pandjaitan has said app-based ride-sharing companies will be required to comply with a government regulation on their operations for the sake of fairness and consumer protection.

"They can't say no, if they reject [the regulation] they can leave [the country]," he said on Thursday (3/23).

The government will implement a revision to Transportation Ministerial Regulation No. 32/2016, which covers floor and ceiling service fares and fleet quota for ride-sharing app partners.

Luhut said the government had the authority to regulate the operations. "We are protecting investment in Indonesia with fairness. That's the key," Luhut added.

The minister referred to conventional taxi drivers, who claimed dwindling incomes since the emergence of app-based transportation services.

The government claimed that the floor fare for the services, to be decided by the regional government, would ensure the safety of consumers and reduce "fare wars. Meanwhile, the ceiling fare was intended to protect consumers from extreme ride-sharing app fare surges during peak hours

Major ride-sharing apps—Go-Jek, Grab Indonesia and Uber— have strongly opposed some proposed points, such as pricing and fleet quota, which they consider “has no relation whatsoever to safety”, according to their joint statement last Friday. (bbn)

Source : The Jakarta Post

Reporter: Sanny Cicilia
Editor: Sanny Cicilia