Government Tariffs on Mobile Ride-Hailing Operators Are Fair: YLKI

The government's new minimum and maximum tariffs for online car-hailing services are fair and reasonable to ensure a level playing field against traditional taxi operators, a top executive at Indonesian Consumer Protection Foundation (YLKI) said. (Antara Photo/Rosa Panggabean)

By : Yudo Dahono | on 3:42 PM July 05, 2017
Category : Business, Corporate News, Featured

Jakarta. The government's new regulatory tariffs for online ride-hailing companies operating in the country are fair and ensure a level playing field with other traditional taxi services, said a top executive at the Indonesian Consumer Protection Foundation, or YLKI.

"[The regulation] fits and it's fair enough [...] fares of online taxis are still lower than traditional ones," YLKI managing director Tulus Abadi told on Tuesday (04/07).

The Ministry of Transportation set tariff ranges for online car-hailing services, like Go-Jek and Uber, of between Rp 3,500 - Rp 6,000 ($0.26 - $0.45) per kilometer on the islands of Java, Bali and Sumatra. In Kalimantan, Sulawesi, Nusa Tenggara, Maluku and Papua, customers will be charged between Rp 3,700 - Rp 6,500 per kilometer.

Those fares are still lower than traditional competitors, however. Blue Bird, perhaps the most well known taxi company operating in Jakarta, charges a minimum of Rp 4,100 per kilometer, while rival Express Transindo Utama charges Rp 3,800 per kilometer. Both charge Rp 6,500 as a fixed start fee.

Leading online ride-hailing services previously said they will comply with the current regulation but will continue to work to accommodate the demands of partner drivers, as well as customers.

Despite supporting the new tariffs, Tulus said ride-hailing drivers should not demand higher ones.

"Consumers look for the most efficient and cheapest methods," the managing director said. "If online taxi drivers demand a tariff increase, they should anticipate their customers looking elsewhere."

In fact, the new tariff ranges are only a small part of the Transport Ministry's wider initiative to regulate public transport services without fixed routes, requiring those services to limit fleet sizes and upgrade engine quality.





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