New Ride-Hailing Regulation Put on Hold Indefinitely

Ride-hailing service drivers staged a protest in front of the Presidential Palace in Jakarta on Feb. 14 to reject a new regulation issued by the Transportation Ministry. (Antara Photo/Aprillio Akbar)

By : Amal Ganesha | on 8:37 PM February 22, 2018
Category : Business, Transportation

Jakarta. Indonesia's Transportation Ministry has put on hold a new regulation governing ride-hailing services such as Uber and Grab, citing its ineffectiveness.

The ministry had earlier announced the new "online taxi" regulation would be rolled out on Feb. 1, but that sanctions would only be imposed on offending drivers from Feb. 15.

However, Transportation Minister Budi Karya Sumadi then said "Operasi Simpatik," the trial period for the new regulation, will be extended to 30 days.

Then on Tuesday (20/02) the ministry issued a letter of instruction to the National Police and Transportation Agency saying the regulation has now been put on hold for an indeterminate period.

"We've issued an order to put the new regulation on hold [until an unspecified date]. We have to find ways to make it more effective," the ministry's director general for land transportation Budi Setiyadi said in the letter.

Drivers for ride-hailing services had voiced their rejection of the new regulation in peaceful street marches in Jakarta, arguing that it is not ideal for a modern transportation business.

The new regulation makes it compulsory for drivers to possess a roadworthiness certificate (KIR), a public transport driving license and a sticker on their car indicating it is being used for "ride hailing service."

In addition, the new rule – a revised version of an old regulation – also limits the number of cars used for ride-hailing services in specific regions across the country.

If the regulation was implemented, there will only be 83,906 ride-hailing cars in the whole country.

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