Uber, the app-based ride-hailing service, has introduced a new feature called UberXL, an on demand ride service offering larger seating capacity to accommodate groups traveling together, the company said in a statement on Wednesday (18/01). (JG Photo/Muhamad Al Azhari)

Uber, Grabcar Hit the Road After Ministry Updates Regulation

BY : SARAH YUNIARNI & TABITA DIELA

AUGUST 29, 2016

Jakarta. Car-hailing apps Uber, Grabcar and Go-Car will be permitted to continue business as usual using privately-owned vehicles once the start-ups have joined a cooperative in a move altering previous regulations which forced drivers to change car ownership rights into corporate-owned public transport.

"[Decisions] like this is what online taxi groups want ... and are part of the efforts to keep the safety, security and comfort of the people," Budi Karya Sumadi, the newly appointed Transport Minister, told the Jakarta Globe on Friday (26/08).

Budi's comments came after the Ministry of Cooperatives and Small-Medium Enterprises released a statement saying assets owned by the members of a cooperative as a means of production are not transferred into the cooperative's assets.

"It's different than conventional taxi drivers who are working for a company," Agus Muharram, secretary at the Ministry of Cooperatives and SMEs secretary, said as quoted by Kompas.com.

"If the taxis are private cars owned by cooperative members, then the cars must remain listed as private properties," Agus said.

The statement is a response to protest against the Transport Ministry's regulation which obliges ride-hailing services' fleet to obtain special driving licenses and their vehicles must pass roadworthiness tests similar to public transportation.

The government has yet to confirm if this will be the final solution for ride-hailing startups. Ojek, or motorcycle taxis, apps can continue operating as usual.

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