Drivers in Yogyakarta protest against the government's new regulation on ride-hailing services. (Antara Photo/Andreas Fitri Atmoko)

New Ride-Hailing Rules Contradict Supreme Court Verdict: Activists


NOVEMBER 01, 2017

Jakarta. The government's new regulation on car-hailing services, which becomes effective on Wednesday (01/11), poses legal problems, activists say.

Last month the Supreme Court ruled that the regulation on car-hailing services in 14 points contradicted higher laws and regulations.

The problematic points included fare calculation based on taximeters, fare caps, mandatory transfer of car ownership to cooperatives, operational limits, fleet quota sand standard requirements for vehicles.

"The Supreme Court's decision is supposed to be final and binding. Disobeying it is disrespectful and sets a bad example [showing] that people can just break the law," said Azas Tigor Nainggolan, who leads the Jakarta Citizens Forum.

"The government should have created a new regulation that would not repeat the same problems," Azas told the Jakarta Globe.

Secretary general at the Ministry of Transportation, Sugihardjo, said in a statement that the new regulation tries to balance the needs of the transportation industry, consumers and drivers.

"This regulation may not entirely satisfy all parties. The ministry stands in the middle, trying to accommodate everyone," he said.

Grab, one of Indonesia's popular ride-hailing services, said it respects the ministry's effort to include the newborn industry in the system. But some of the requirements, like the mandatory use of stickers and special codes for registration numbers, may hinder the car-hailing service's operations.

"We appreciate the dialogue initiated by the ministry and hope that Grab's input will be taken into account, so that its customers and thousands of partner drivers in 88 cities, from Aceh to Papua, could be accommodated," Grab Indonesia managing director Ridzki Kramadibrata said in a statement.

The Jakarta Globe and Grab are affiliated with the Lippo Group.