Minggu, 04 Februari 2018

ONLINE TAXI REGULATION TO ENCOURAGE INVESTORS

 by Andi Abdussalam
         Jakarta, Feb 5 (Antara) - The government has begun enforcing a law on app-based taxi service as part of its efforts to regulate fair business between online and conventional taxi services and to encourage investors in the transportation sector.
        Implemented since Thursday last week (Feb 1), Transportation Ministerial Decree No. 108 of 2017 (PM 108/2017) on public transportation service without fixed routes had been formulated in a fair manner. It is expected that the regulation would not discourage investors and not harm the interests of ride-hailing and conventional tax services.
        Hence, Transportation Minister Budi Karya Sumadi had noted on Friday (Jan 2) that apart from protecting the rights of ride-hailing taxi drivers, PM 108/2017 also aims to maintain the competitive edge of businesses in the transportation sector amid Indonesia's all-out efforts to attract investors.
         "The most important aspect is that the rights of app-based taxi drivers will be protected. It should not happen that this regulation reduces the competitive edge of transportation services," Minister Sumadi stated after a meeting with Minister of Communications and Information Technology Rudiantara on Friday (Feb 2).



         The transportation minister had met with Rudiantara to put forth a proposal that the Communications and Information Technology Ministry should issue a regulation on app-based transportation services to protect the interests of drivers.
         "I explained during the meeting that there is a problem in the implementation of PM 108/2017, but it is not related to its substantial content. The problem lies in other aspects that need a legal umbrella from the Ministry of Communications and Information Technology, in terms of matters linked to the drivers and technical applications of the system," he noted.
         Furthermore, he spoke of two schemes that could serve as a legal umbrella to solve this problem. The first scheme can be a general rule that covers all applications and not merely online transportation applications or the second one is a rule for special rent transportation applications.
         "When I held a dialog yesterday, some (drivers) said their applications were often blocked without clear reasons. They are not given the same rights as consumers (passengers). When a consumer complains, they are directly given a negative point. They are often directly suspended without being given the chance to defend themselves," he pointed out.
         The minister had earlier remarked that PM 108/2017 will come into effect from February 1, 2018. In some two months of its implementation, measures will be taken against violators. After two months, sanctions in accordance with PM 108/2017 will be imposed against violation by online taxi services or drivers.
         The measures are being implemented by the Directorate General of Transportation of the Ministry of Transportation.
         "Since the issuance of PM 108/2017, we have given them (online taxi services and drivers) time to complete the necessary requirements. Today, on February 1, the regulation has begun to be enforced. We will take initial action in the form of operations in which violators or those who have not yet fulfilled the requirements are only issued warnings," Transportation Director General Budi Setiyadi had noted in a statement in Jakarta on Thursday (Feb 1).
         PM 108/2017 on public transportation service without fixed routes requires online taxi services to have cleared a KIR or vehicle worthiness test, drivers to have obtained a type A Public Driving License, and identification stickers to be placed on each operating vehicle, among others.
         Setiyadi stated that the operation aimed at giving a warning as part of the efforts to make the drivers aware of their duties to immediately fulfill the requirements already outlined in PM 108/2017.
         "We, along with the police, will conduct operations and will then prepare a checklist containing the conditions to be fulfilled by the drivers," Director General Setiyadi remarked.
          According to the director general, the transportation minister had received a group of drivers claiming to belong to the Alliance of National Transport Society of Indonesia that was keen to voice its aspirations. The group conveyed its support to the issuance of PM 108/2017.
          "We would like to thank the Alliance of National Transport Society of Indonesia that has already expressed its support for us," Setiyadi asserted.
         In fact, all stakeholders should take responsibility to implement the transportation regulation. The Ministry of Transportation should not alone shoulder the burden of the implementation of the online taxi regulation.
         Other stakeholders must jointly support PM 108/2017, so that its implementation would run smoothly, transportation observer Djoko Setijowarno of the University of Soegijapranata had noted on Monday (Jan 25).
         Setijowarno, in a written statement, stated that the Transportation Ministry was responsible for ensuring safety and security, while the police was tasked with the issuance of driving licenses. Matters concerning technology applications are in the hands of the Ministry of Communications and Information Technology.
         "The Transportation Ministry is not only involved in the operations of the taxi networks but also has the responsibility of maintaining safety, security, and convenience of passengers through regulations," Setijowarno explained.
         Matters relating to driving licenses and technology applications are respectively in the hands of the police and Ministry of Communications and Information Technology. The Ministry of Manpower is responsible for handling the relationship between operators and drivers.
         Online taxi operators keen on having a legal basis in the form of cooperatives could be assisted by the Ministry of Cooperatives and Small-Scale Business. The payment system and tax affairs will be regulated by the Ministry of Finance.
          "Hence, this, in fact, involves several parties," Setijowarno explained.***3***
(A014/INE)EDITED BY INE(T.A014/A/BESSR/F. Assegaf) 05-02-2018 12:26:

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