ICT Ministry to Block Online Access to Rogue Ride-Hailing Apps

The Ministry of Communication and Information Technology will block consumer access to app-based ride-hailing services if those companies are found to violate stipulations outlined in the controversial revision to a 2016 ministerial regulation, set to come into effect on Saturday (01/04). (Reuters Photo/Beawiharta)

By : Herman | on 6:57 PM March 27, 2017
Category : Business, Corporate News

Jakarta. The Ministry of Communication and Information Technology will block consumer access to app-based ride-hailing services if those companies are found to violate stipulations outlined in the controversial revision to a 2016 ministerial regulation, set to come into effect on Saturday (01/04).

Under the new rules, operators such as Go-Jek, Grab and Uber will be forced to cap their fares, limit their number of drivers on the road and obtain roadworthiness certificates for each vehicle in use, among other requirements.

The companies have been granted a three-month grace period which will conclude at the end of June — to adjust their operations in accordance with the new revision, or risk being blocked by Indonesia's mobile service providers.

Minister of Communication and Information Technology Rudiantara said his ministry will provide support to make the sanctions possible.

"The Communication Ministry will work alongside the Transportation Ministry [in enforcing the revised regulation]," Rudiantara said on Monday (27/03).

While agreeing to the proposed safety and roadworthiness requirements outlined in the revision, Go-Jek, Grab and Uber have all come out against the future fare cap and driver quota, measures they feel will prevent customers from receiving economic fairness.

Uber Indonesia, the local unit of the San Francisco-based app-based ride-hailing service, said on Monday that the quota system, if enacted, would defeat the purpose of its services that match real-time demand with available supply.

The company's drivers are not currently forced to work full-time, an option that may disappear under the proposed revisions. According to data released by the company, more than 56 percent of Uber drivers worldwide work under 10 hours a week.

Ride-hailing companies provide necessary services to customers during demand surges that, according to Uber Indonesia, could not otherwise be fulfilled by a limited public transportation system, such as the one that will take shape under the new revision.

 

 

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