Police Search for Middle Way in Go-Jek Controversy
Jakarta. The chief of the Jakarta Police has called for finding a middle ground in the escalating debate over mobile app-based motorcycle taxi services to determine their legal standing.
Popular apps GrabBike and the homegrown Go-Jek have largely undercut traditional motorcycle taxi (ojek) drivers, spawning resentment and occasional outbursts of violence, with detractors insisting that this new business model is unregulated and illegal.
Insp. Gen. Tito Karnavian, the city police chief, acknowledged that such services were not catered for in the 2009 Traffic and Land Transportation Law. He argued that even though Go-Jek and GrabTaxi were registered, taxpaying businesses offering legitimate employment, they were neither licensed nor regulated to provide public transportation services.
However, he said the police recognized that they provided an increasingly popular and essential service for commuters in Jakarta.
“There are pros and cons, and if people need these Go-Jek drivers, then we certainly have to consider that,” Tito said.
“But if the people are against it, we won’t hesitate” to crack down, he added.
“If we want to ban it, there must be strong legal basis for doing so; but that will come with a social cost, because people already depend on these services. Consumers still dictate the service. People want better, cheaper and safer service. Looking at the situation at present, [services like] Go-Jek tend to benefit the people and the ojek drivers themselves,” Tito said.
Still, he said that failing to regulate the service would create legal uncertainty and might harm consumer and public safety.
He suggested that the city authorities make the service legal, pointing out that the present state of public transportation was far from adequate to satisfy the needs of commuters.
“This kind of service emerged because our public transportation system isn’t convenient. Maybe people will stop using Go-Jek once the mass rapid transit [rail line] becomes available, or once there are more buses in operation,” he said.
If the service that Go-Jek and GrabTaxi is to be are to be legalized, Tito said, the companies must fulfill a number of requirements, including safety standards and regulated tariffs.
Go-Jek has taken steps in this direction, most recently signing up with insurer Allianz to provide coverage for commuters.
All public transportation users are entitled to coverage from state-owned insurer Jasa Raharja, but this does not extend to Go-Jek, which is not recognized as a public transportation operator.
Under its deal with Allianz, Go-Jek will pay out up to Rp 10 million ($719) for accidents and Rp 5 million for hospital expenses, as well as provide lost item coverage of up to Rp 10 million for its motorbike courier service.
The company has hired more than 10,000 ojek drivers throughout Jakarta since its establishment in 2011.
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