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).

APP-BASED TAXI PROBLEM MUST BE SOLVED JOINTLY

 

by Andi Abdussalam

Jakarta, Jan 29 (Antara) - The presence of ride-hailing taxi services in the country has been welcomed by users as they relatively offer convenient and cheap services.          However, their presence is opposed by conventional taxi operators on ground of fairness regarding obligations to follow government regulations in the public transportation sector.          The government has seen protests staged by both conventional and online taxi drivers since the inception of the app-based taxi services.          The transportation ministry has done its best to formulate regulations on the app-based taxi services; yet, it is not accepted by online taxis. Even, online services happen to challenge a ministerial regulation and had won it in the Supreme Court.      In order to revise its regulation, the ministry had organized public consultations in a number of regions to find a solution to the disputed ride-hailing app regulation, following the annulment of 14 articles of Transportation Ministry Regulation No. 26/2017 on the operation of non-route public transportation by the Supreme Court in August.         The latest ruling is the Transportation Ministerial Decree No. 108/2017 (PM No.108/2017) on Public Transportation Service Without Fixed Routes.

APP-BASED TAXI SERVICES TO GET THREE-MONTH GRACE PERIOD

By Andi Abdussalam

Jakarta, March 25 (Antara) - After operating for several years without any regulations, online taxi services will now have to follow new rules being worked out by the government, which will be implemented from April 1, 2017.          The new rules, consisting of at least 11 points, are regulated in the revision of Transportation Minister's Regulation No. 32 Year of 2016 on Public Transportation Services Without Fixed Routes.          Both app-based and conventional taxi services should abide by the new regulations, which consist of 11 points, though online taxi operators have yet to agree with 3 of the 11 points.          The government will stick to the April 1, 2017, deadline plan to enforce the rules. However, it will grant a grace period of three months until June 30 to both conventional and online taxi services without sanctions if they violated the rules.           Transportation Minister Budi Karya stated that he will grant the grace period for about three months as a transitional period to both conventional and app-based transportation services to meet the provisions.          "We stick to enforcing the rule as of April 1, 2017, but we will grant grace period for about three transitional months," the transpiration minister added in Jakarta on Friday.          The minister made the remarks in his efforts to popularize the transportation minister's regulations No. PM 32 Year of 2016 on Public Transpiration Services Without Fixed Routes that would put in force on April 1.

GOVERNMENT URGED TO FORMULATE NEW RULES ON PUBLIC TRANSPORTATION

by Andi Abdussalam

Jakarta, March 23 (Antara) - The government is expected to prepare new regulations on public transportation in response to protests by conventional taxi drivers on Tuesday against online application-based taxi services.          The presence of online transportation services, which are believed to be operating illegally and disadvantaging conventional services, has triggered concern among public transportation companies.          The online transportation services are considered to have affected the livelihood of the drivers working for non-online transportation companies as they have reduced the number of passengers who usually use non-online transportation modes.          As the online-based taxis operate as a means of public transportation without licenses, they are viewed as illegal, paying no taxes and other levies required by the government.          Thus, with the advancements in online technology, they are able to offer cheaper fares to passengers.          Therefore, the government needs to reorganize and implement a fair public transportation system by taking into account the progress made in the field of technology.

MINISTRY UNLIKELY TO BLOCK ONLINE APPLICATION-BASED TAXI SERVICES

by Andi Abdussalam

Jakarta, March 16 (Antara) - The government is unlikely to block online application-based taxi services as demanded by the Organization of Land Transportation Owners (Organda), which considers their operation as illegal and disadvantaging the livelihood of conventional taxi drivers.          "We may not shut down their internet-based applications. The problems must be solved. After all, they are now in the process of obtaining licenses from the Ministry of Transportation. This is not a matter of blocking them. Technology is a neutral problem, so we should find a win-win solution," Minister of Communications and Informatics Rudiantara noted in a press conference in Jakarta on Tuesday.          He emphasized that the route service licenses of online-based taxi services need to be improved. Hence, the Ministry of Communications and Informatics has to study the problem.          "We have to find a solution to the problem, so that it could be settled in the near future," Minister Rudiantara affirmed.