Australia's workplace regulator on Wednesday (28/06) said it is investigating US ride-hailing firm Uber Technologies Inc over the way it recruits drivers, after a drivers group sought employee rather than subcontractor status. The Fair Work Ombudsman plans to focus on whether the San Francisco-based startup, which makes apps that allow people to book journeys on their smartphones, is in breach of Australian workplace rules, a spokesman said. (Reuters Photo/Toby Melville)

Jakarta Ready to Enforce Revised Regulation on Ride-Hailing Services


MARCH 27, 2017

[Updated at 5:30 p.m. on Monday, March 27, 2017, to add the footage of acting Jakarta governor, Sumarsono.]

Jakarta. Acting Jakarta Governor Sumarsono said on Sunday (26/03) that the city administration is prepared to implement the controversial revision to a 2016 ministerial regulation that will curb app-based ride-sharing services in the capital.

Transportation Minister Budi Karya Sumadi met with city officials on Sunday to discuss the regulation. The National Police traffic director and the Public Works Ministry's Toll Road Regulator (BPJT) chief also attended the meeting.

The city administration said it will start enforcing the new regulation in the Greater Jakarta area this weekend, starting on April 1.

"Jakarta will be ready. Moreover, all parties have understood each other, as this will be our base to start the implementation [of the new regulation]," Sumarsono said at City Hall.

Nevertheless, he acknowledged room for improvement in resolving several technical and coordination issues.

As stipulated in the revised regulation, provincial administrations will be given authority to regulate app-based ride-hailing services individually, as long as proposed adjustments do not contradict national policy.

"We hope that business owners will comply with the revised regulation and that the policy change will trigger responsibility and awareness in creating a safe, comfortable and service-oriented Jakarta," he added.

The Ministry of Transportation added 11 new stipulations to the initial 2016 regulation in a bid to level the playing field for existing modes of transportation across the country.

The modified regulation is expected to resolve conflicts with conventional transportation drivers.

The acting governor has also ensured that app-based transportation providers will follow the new regulation, with calculations of profit and operational fees for conventional and online-based operators having been included in the consideration.

"The decision will be made by the Greater Jakarta Transportation Agency [BPTJ], I think Eli [and his staff] are in the middle of coordination and calculation. Actually, the amounts of the operational fees and profit form the basis of the calculation. It is very simple; I think before April 1, Jakarta will be able to implement it, including the Transportation Ministry's regulation on stickers [to be displayed by ride-hailing partners]," Sumarsono said

Watch Indonesia Highlights at 8 p.m. tonight on the Jakarta Globe News Channel and Facebook Live to find out more about the revised regulation on ride-hailing services.