Indonesia delays enforcing new taxi regulations - Mobile World Live

Indonesia delays enforcing new taxi regulations

28 MAR 2017

The Indonesian government is giving ride-hailing app companies five months to adjust to new regulations for the taxi industry issued by the Transportation Ministry, which come into effect on 1 April.

Transportation Minister Budi Karya Sumadi said his office would be tolerant to ride-sharing companies through to August before the regulations are fully enforced and violators are punished, The Jakarta Post (JP) reported.

The new regulations include a fare ceiling and floor to avoid price wars and protect consumers from excessive surge pricing rates, and fleet quotas for ride-sharing app partners.

Sumadi said ride-hailing app operators and conventional taxi companies must be ready to compete fairly to ease tension among drivers, the JP reported. He said the current practices of ride-hailing app providers were not fair to conventional taxi companies because the former can reduce rates to attract passengers in off-peak hours, but increase them during the peak hours.

“There is no fair competition. Therefore, we are regulating it,” he said.

Major ride-hailing apps including Grab and Uber expressed strong opposition to the new regulations in a joint statement.

Grab and rival Uber have faced a number of regulatory obstacles in Indonesia. The government last year warned operators of taxi-hailing services it would more tightly enforce new regulations. Under Indonesian traffic law it is illegal for an individual to provide public transport services – drivers must obtain special licenses and operate as part of a cooperative or company.

In December, Uber teamed with Indonesia’s second largest taxi operator, Express, to launch a pilot car-booking programme.


Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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