Ride-Sharing Services Willing to Comply With New Regulation: Minister
Jakarta. Transportation Minister Budi Karya Sumadi said on Friday (24/03) the three biggest online ride-sharing companies in Indonesia have said they are willing to comply with a new, more restrictive regulation which will start taking effect on April 1.
Budi made the statement after meeting with the Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan, Communications and Informatics Minister Rudiantara and representatives from ride-sharing companies Grab Indonesia, Go-Jek and Uber and from the Land Transportation Organization, or Organda.
"Everyone has agreed to obey the new regulation," Budi said.
The ministry added 11 points in a 2016 regulation on public transportation services without fixed routes in a bid to usher in a level playing field for existing modes of public transportation.
The new rule will allow the government to officially recognize ride-hailing services such as Grab, Go-Jek and Uber but also impose limitations on them, ranging from fare caps to limitation on cars' minimum engine displacement.
However, the fare caps and fleet limit rules will not be implemented until at least June as the ministry still wants to discuss the details with the ride-sharing companies, Budi said.
The ministry said it will start rolling out the new regulation to drivers and stakeholders in Greater Jakarta this weekend.
Budi said the modified regulation should put to an end to the long-running and at times violent conflict between ride-sharing companies' so-called "driver-partners" and drivers of more conventional public transportation.
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