Transportation Minister Extends Transition Period for New Ride-Hailing Regulation

hundreds of ride-hailing service drivers who were protesting against the new regulation in front of the presidential palace in Jakarta. (Antara Photo/Puspa Perwitasari)

By : Thresa Sandra Desfika | on 9:50 PM February 01, 2018
Category : Business, Featured, Transportation

Jakarta. Indonesia's Transportation Minister Budi Karya Sumadi has extended the transition period for ride-hailing service drivers to adapt to a new regulation to one month from the previous 15 days.

The new revised regulation requires drivers to carry a roadworthiness certificate (KIR), get a public transportation driving license and attach a "ride hailing service" sticker on their cars.

The new regulation officially takes effect on Thursday (01/02) but is applied so far with some looseness.

The ministry previously gave a 15-day transition period for the drivers and promised they will only be warned if found to be breaking the rules during that time.

"The regulation still officially takes effect on Feb. 1, but we'll have one month to get everyone familiarized with it," Minister Budi said in Jakarta on Wednesday.

The ministry will also assist drivers to obtain documents required by the new rule, including getting the public transportation license.

"We'll help them to go to a police station to get the new driving license," Budi said.

On Monday (29/01), Budi met with 15 representatives of hundreds of ride-hailing service drivers who were protesting against the new regulation in front of the presidential palace in Jakarta.

The meeting produced some useful results, including a promise to help the drivers communicate with the Information, Communication and Technology (ICT) Ministry.

"The drivers said the Transportation Ministry, the ICT Ministry and the drivers' association should sit together to discuss what penalties are appropriate for breaking the new rules," Budi said.

The new regulation imposes three-tiered sanctions for disobedient drivers: suspending their license, fines of up to Rp 500,000 ($37) or a two-month jail sentence.

The chairman of Indonesia's Online Taxi Drivers Association said according to the revised regulation issued by the Transportation Ministry, the ICT Ministry now has an important job to discipline ride-hailing services such as Uber, Grab or Go-Jek when necessary.

The revised regulation also stipulates that ride-hailing services have to follow a fare cap, which suggests the government wants to make sure there will be np price war.

"We've urged the ICT Ministry to issue another regulation to discipline the drivers. If this still doesn't work, we'll stage another protest rally," he said.

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