Ride-Hailing Drivers Call on Govt Not to Implement New Regulation

Thresa Sandra Desfika
September 26, 2016 | 10:17 pm
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The  traditional profit-sharing method between taxi operators and drivers is 80 percent/20 percent, where the latter will eventually own the car, while most online ride-hailing services offer a 15 percent/85 percent profit-sharing scheme, with drivers receiving the bigger portion.  (Antara Photo/Rosa Panggabean)
The traditional profit-sharing method between taxi operators and drivers is 80 percent/20 percent, where the latter will eventually own the car, while most online ride-hailing services offer a 15 percent/85 percent profit-sharing scheme, with drivers receiving the bigger portion. (Antara Photo/Rosa Panggabean)

Jakarta. An association that claims to represent drivers of app-based ride-hailing services in Indonesia has called on the government to suspend the implementation of the Ministry of Transportation's regulation that aims to regulate the sector.

Dedi Haryanto, a representative of the association known as ADO, said the Transport Ministry's Regulation No. 32/2016, which will come into effect on Oct. 1, will force drivers to just become workers at ride-hailing services, rather than a partners and entrepreneurs.

He said this contradicts the government's agenda to encourage the growth of small and medium enterprises.

"It does not comply with the people's economy concept and justice, which is the spirit of the current administration," Dedi said on Sunday (25/09).

He said the government never involved representatives of drivers working for ride-hailing services in the process of drawing up the regulation.

Once the regulation comes into effect, it is expected to provide drivers with several obstacles, despite some flexibility being allowed by the government.

Dedi said the traditional profit-sharing method between taxi operators and drivers is 80 percent/20 percent, where the latter will eventually own the car.

On the other hand, most online ride-hailing services offer a 15 percent/85 percent profit-sharing scheme, with drivers receiving the bigger portion.

The association also rejects the clause that forces drivers to obtain public transportation driving licenses, put their cars through roadworthiness tests and convert their private car ownership rights to corporate-owned public transportation.

Hundreds of ADO members gathered in front of the State Palace in Central Jakarta last week, demanding that the government stops the implementation of the regulation.

He said ADO is ready to return on Thursday and that they will demand to meet President Joko "Jokowi" Widodo to ask for the ministerial regulation to be retracted.

Newly appointed Transportation Minister Budi Karya Sumadi previously said ride-hailing services will be permitted to continue business as usual using privately owned vehicles once the startups have joined a cooperative.

However, he did not confirm whether the decision will be final, as there have been no revisions to the regulation, while the deadline is approaching.

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