Ministry issues ride-hailing app regulation, but delays decision on fares

OJEK - JAKARTA. The Transportation Ministry has issued a regulation on ride-hailing applications, but Ministerial Regulation No. 12/2019 only details rules on safety, while the anticipated regulation on fares will be stipulated in a separate decree.

Land Road Director General Budi Setiyadi said on Monday the regulation was the result of discussions involving nearly all stakeholders, including the government and ride-hailing app providers and drivers.

A regulation on fares would be issued later this week in the form of a ministerial decree, which could be revised every three months, he said, adding that the ministry continued to face difficulties determining the fare because of the different aspirations of drivers and ride-hailing app providers.

Drivers have demanded the fare be increased to Rp 3,000 (21 US cents) per kilometer, while the providers have insisted on maintaining it at Rp 1,600 per km. The providers also offered an alternative scheme for minimum fares of between Rp 9,000 and Rp 10,000.

“With the scheme, if a passenger rides only 1 km, they have to pay the minimum fare,” Budi added.

Meanwhile, Transportation Minister Budi Karya Sumadi offered a compromise of Rp 2,400 per km, but no agreement has been reached between the two parties.

The minister said he would make a decision on the fare by the end of this week.

The proposed fare of Rp 3,000 per km would place too high a burden on users, Budi said, adding that the ministry was still negotiating with both drivers and ride-hailing app providers.

“The drivers have proposed a fare that is two times higher than the existing fare. Hopefully, they will change their proposal after we talk with them,” he said.