Strict Rules for Online Taxis Effective November 1

Sunday, 22 OCtober 2017 , 12:00:00 WIB -

Public transportation drivers are seen demonstrating in Cimahi, Jawa Barat, Monday (25/9). (ANTARA)

JAKARTA, GRES.NEWS – Coordinating Minister for Maritime Affairs, Luhut B Panjaitan, has announced results of the revision on the Minister of Transportation No.26/2017 on People Transportation Using Motor Vehicles Operating without Routes, Jakarta, Thursday (Oct.19).

Online taxi vehicles will have stickers to show their ‘identity’ in order to differentiate them from personal vehicle. "The vehicles will have special stickers placed on the right side of the up front windshield," Luhut said.

Said point stipulates the sticker will also be placed on the rear windshield and on the right and left body. The sticker will contain information on the operation area and the permit valid date.

Minister of Transportation, Budi Karya Sumadi, said the policy aims at balancing the competition between online taxis and conventional taxis. Online taxis have been operating like ‘ghosts’ as their existence have not been regulated by the regulations on public transportation vehicles. They have been operating as personal vehicles without special features.

The points also include prohibitions for online taxi providers:

1. Give transportation vehicle companies or personal vehicle owners who have not registered as online taxi driver providers or drivers access to their application.
2. Provide access to application to individuals.
3. Recruit drivers.
4. Set tariffs
5. Provide promo tariffs below the minimum tariff.

Budi explained that the government will introduce minimum and maximum tariff, which would consequently rid of promo tariff. He argued that promo tariffs have resulted in unhealthy competition.

"The minimum tariff will be introduced to prevent a party from offering discounts without considering the capacity of other parties to compete, so that they can monopolize the market," Budi said.
The regulation has been submitted to the Ministry of Law and Human Rights.

"The regulation will be effective on 1 November 2017," said Hindro Surahmat, Director General of Land Transportation, Ministry of Transportation. (dtc/mag)